mercer transportation

Parking is different this year for the truck show. The area behind the flood wall is for dropped trailers and when I got here earlier today it was filled with 53' vans and a some flatbed trailers, all waiting for new drivers. Considering that lot is usually packed with drivers coming in for the show I'm not sure where they are going to park, I'm sure there is some arrangement, but it is going to catch a lot of guys off guard.

We must really be concentrating on growing the van fleet. And I see the new lease purchase trucks everywhere. Must be the only way left to attract drivers as companies are competing hard for fresh meat. Going to be interesting to watch things change as vans increase and we get a large percentage of lease purchase drivers. Will guys with paid off trucks and trailers end up missing out on freight offerings so others can make their payments? That's how it works at just about every other company with L/P trucks ....

I wonder if people buying through these L/P programs realize it doesn't contribute to their credit at all, since payments are automatically deducted?

 

I talked to driver relations today they said were parking trailers at the inspection lot and the driver's lounge lot was supposed to be bobtail parking only and double up in every space, I haven't been by the yard in months. There's not much parking to begin with, I can't imagine taking up space with empty LP trucks.

And God I hope there isn't a favorable load selection for LP over people who own their equipment I'll have my title from the bank by the end of the summer would like to enjoy that not struggle with lower paying loads cuz my stuff is paid for.

Also I spoke with a LP driver there's a $65,000 balloon at the end but you have the option to roll that into another lease to pay off the truck

 

I don't think the l/p trucks will get any favors as they arent through Mercer to begin with. Truck payments are truck payments. The big push is more for trucks that can and are willing to go to Cali since that is a dying breed. There is a balloon payment on these trucks, but its about the same mathematically as if you just financed a purchase in the beginning because of interest. Most of us here this week for orientation will be trying to get out tomorrow or thursday so that should open up some parking as well.

 

Its an as is deal. They are Cummins ISX15 w/450 hp, with 3.25 rears according to the door. But yeah, they wont change any of that out

 

Oh BTW I won't be at Mercer till Thursday got a call this morning the guy doing my tires ran out of super singles was supposed to have a delivery Monday but the ups Truck was in an accident Monday so it's supposed to be there Thursday. So if you're still interested in the tire chains I'll be at Mercer Thursday morning

 

Its an interesting situation. Absolute truth I know 2 van drivers personally who gave up in the last ten days. I can only speak for myself and I'll say that if you have moderate to high overhead the van side will sink you. No axe to grind just an honest assessment from a van driver. The "lease purchase" if it's like the others in this industry is a desperate effort to attract warm bodies if only like a revolving door and is the death nail to the traditional OO.

 

those lease trucks , aren't exactly a lease purchase deal like at mega carriers, the lease company has a list of carriers you can lease to, the company you are leased to , will deduct the payments. but the truck can go to a list of carriers.

I don't think its any different than anyone else with truck payments, mercer isn't providing capital for these trucks, a lease company is, mercer just works with em as do several other carriers.

lone mountain has new trucks , only ya got to do 12 to 15 g down, 2400 buck payments for 5 years and its yours ,, no balloon. same as financing from paccar I was quoted.

I think this will replace the " they took my load and gave it to a 4 digit truck" deal, lol

 

Nothing will replace the 4 digit conspiracy!! Lol.

 

That's a contrast from what I've heard...I knows guys that are here including myself that have payments andb are doing very well... define high overhead

 

Im sure it's a contrast to what some May be doing. Perhaps many start behind the eight ball because they are in bad financial shape when they start. Overhead wise? Everyone has their own ideas of high just like they have their own ideas about what is sustainable. It's all relative, I'm sure some are doing "well", I only speak for myself, zero equipment overhead and think it would be difficult to comfortably crack a monthly nut doing what I do. Expectations are different for each individual.