Arrow Trucking reportedly closes its doors

Didn't Arrow go out of business because they made money ? I know an O/O that lost business to Arrow because of low rates . I hope shippers learned something from this and think about whether they want their loads to end up reaching their customers or being held at impound yards .

 

Good points, but one thing alot of drivers overlook, when we as drivers or o/o's talk about low rates we are missing the big picture. Large co's make their money on the volume of freight they are moving, not cpm. They can send a truck to move a load that only pays say 80cpm, while the other 1000 units are moving loads that pay more. As for the shippers learning a lesson, your right, they just learned to go with a bigger co. I'd say we are going to see a few more go down, as is intended! Some of the things I have been reading latley, only thing I can say is, WOW....Worse part is drivers are actually believing its for "Their benifit"

 

Your thinking is on the right track but it also goes this way . If a carrier has 10,000 trucks it can survive with a 5% profit margin per truck . A carrier with only 1,000 trucks probably can't survive with an 8% profit margin . They also can't afford to keep training new drivers so they probably pay drivers more for a better retention record . The smaller carriers that survive will be the ones with customers that demand a level of service training companies can't give .

 

no some are not but some are it is all about the dollar I have been having a lot of lunches with corporate America as of late and some of those folks are pretty bright but the love to hire kinda dim bulbs it has been a learning experience of late

Hey if your board you can come help polish the new tank

 

not every account has the same margin

 

Okay I saw this earlier and it irriated me, and the responses annoyed me, and now that I've had some time to think over it I'd just like to say. There IS a political forum, where you guys can go at your hearts content for remarks like this and argue all you want about pro or anti obama, or whatever. Can we PLEASE quit making nearly EVERY discussion an political one? I purposely do not go to the political forum because I do not want to. I shouldn't have to read the same bs in every thread.

Why didn't Obama do anything?

Because he's the #### president. Its not America's job to save every failing company. And god forbid he HAD done something and given money or helped the drivers, because then you people would argue about the #### money spent and how its wrong to do it and how he's an idiot. There is nothing the man is going to do to make everyone happy. You'd be pissed if he said he was eliminating the entire FMCSA, so please, STOP with the political crap outside the political forum. I am not the boss, I am not a mod, but ###### I don't want to see it constantly and its going to wind up being why I quit coming back here. I am not an Obamafangirl, I am a realist. There is crap that has been done I don't agree with and crap done that I throughly agree with, you don't see me turning every thread into a Obama pro or bash thread so please quit doing it.

 

it might just be I don't think the low rent guys help the industry much and I never understood why folks work for them better then starving but not by much
so maybe if a few don't have the volume to get by on the slim margins it might be better for most

 

There's also what's known in Microeconomics as "economy of scale" - which are cost advantages that a company obtains due to expansion.

Once you have a certain number of trucks, it becomes cheaper for you to have in-house maintenance, instead of commercial maintenance providers. Tires, oil, and fuel, among other items, become cheaper the more quantity purchased.