Getting the system fixed

The trucking industry started going downhill when deregulation and the breaking up of organized labor started. And those are just my thoughts.

 

When the rates today are the same as the 80's that's part of the problem.

 

You're absolutely right DB. How some companies can afford to haul freight for these rates are beyond me. Honestly how can anyone survive when the load you run to California paid 2.50 a mile and the load coming back only pays .75 cents a mile? And you have two choices: either haul it or sit for who knows how long.

 

Grouch,

I have mixed emotions about this subject. I speak as one who is a former member of an international labor union. My father was a member before he retired. My brothers are still members of active unions in VA today...at least for a while longer.

In my opinion, and my opinion only, organized labor was very important in the growth of our nation out of the industrial age. It protected workers, helped to provide them a better than living wage and benefits uncommon to most non-union workers in the same areas.

Organized labor may be needed and important in order to stop some of the outrages currently taking place in the trucking industry.

However, unions will only do so much and in fact, will likely only expedite the impending outcome. It's kind of like a pyramid scheme, those who get in early will benefit, while those who come later will not.

The paper mill, founded in my hometown of Franklin VA (population about 8500) more than 100 years ago, just announced last week that it was shutting down...for good. Part of the reason is that they simply can't compete on the world market, making paper with employees earning $25-$30-$35/hour. They were able to pull it off until now. but now there is nowhere to turn. The only way to win, is to not play the game.

Tell the UAW that organized labor is important to future of our nation. Yes, many benefited greatly for many years...however, with the exception of Ford, the other two would be in BK right now without YOUR tax dollars being used to pay the benefits and pay for thousands of union workers. YOUR tax dollars. Not the evil profits earned on the open market.

I read here day after day from so-called drivers who continuously bash the trucking companies who "think of no one but themselves". What they fail to realize is...is that it is the profits of the company that pay their mileage rates. No profits = no cash = eventually, no pay.

The government doesn't have money. They have the ability to print money and they have the ability to confiscate money at the end of a gun from you and me.

We first must have profitable companies (read LESS government intervention) so that they will have the money to pay its workers. More government intervention means more costs, less profits, lower and eventually, no pay for its employees.

We just simply can not have it both ways.

 

I'm not sure anyone or anything can fix the trucking industry. As Dieselbear pointed out this industry is paying cpm from the 1980's. I made .88-.90 cpm in the 80's and early 90's. Diesel fuel was CHEEP compared to todays cents per gallon yet companies pay .88 cpm to O/O and LO. I saw an article just this week that states there's between 250,000 and 300,000 too many trucks available now. Not sure how they come up with these figures but to some extent that explains the low rates. Even in the 80's there were certain area's of the country you just didn't go to because of too many trucks. The more trucks there are in an area the lower the rates-been that way for years. That's why you see good rates to Texas but lousy rates from there-Cali-####-fornia the same. I pulled a reefer and actually stayed pretty busy BUT remember I only plated for 26 states and stayed away from east coast and west coast-too many trucks. When I was running produce out of south Texas I know of brokers who actually drove around the truck stop parking to see how many trucks were there. Getloaded even has a thing that show how many loads are in an area and how many trucks. You can argue this all you want but it's still the law of supply and demand!! The more demand for trucks the better the rate-the less demand the lower the rate. Not rocket science just common sense. That's one of the reasons I only plated for 26 states-stayed away from the area's with a lot of trucks. Not really that hard to do with a little thought and foresight. Frankly, I think there's just too many trucks and not enough freight regardless of what the so called "experts" say about this economy and it's going to take awhile for this thing to run its course. It may never come back to where it was. This country has lost thousands of manufacturing jobs and you don't replace those in few months-IT TAKES YEARS!! Trucking companies and O/O are going to have to think outside the lines that used to apply to this industry. I am reminded of a rule that says 20% of your customers do 80% of your business-Keep the 20% happy and let someone else worry about the rest. Good Rule! Sorry for the rant. I just don't have much faith in todays trucking company leaders to be able to contend with this situation. Based on what I read and their comments I'm pretty sure I'm right. All you hear from them is when the economy rights itself things will be better! Uh Huh! What plans have YOU made just in case it doesn't. Are you taking care of your 20%!!

 

You'll never get drivers to go out together. It would be a dream come true for students trying to find work if the drivers walked out. Plus the guy that's barely feeding his family could not afford any time off.

It's a tremendous problem and I believe that one of the starts would be a lobby group in DC for the DRIVERS.

 

As a new driver coming into this industry, it is certainly an eye opening experience for me. Drivers shortages, abuses by the large trucking companies, increasing government regulations...and still everything has to be moved by a truck.

We certainly live in interesting times.

 

Yes indeed we do.

 

It's alot different than before, that's for sure. However, I do not believe there is a driver shortage.