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Hotshot Market Sizing

Discussion in 'Expediter and Hot Shot Trucking Forum' started by texaszpack, Nov 19, 2013.

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  1. Nov 19, 2013 #1
    texaszpack

    texaszpack Bobtail Member

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    Nov 19, 2013
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    Hello everyone, I'm trying to get some basic information around the hotshot market (it appears the info is tough to find). Can anyone help me answer this:

    - How many hotshot trips does a typical rig require per week?
    - What is the average trip in $ terms
    - What is the breakdown of hotshotters that are independents vs. lease vs. company trucks?
    - How many hotshotters service a given rig (is it like 1 or 2 or more like 10?)
    - How does the rig manager decide who he is going to use?

    Thanks for the help everyone,
    Zack
     
    texaszpack, Nov 19, 2013
    texaszpack, Nov 19, 2013
    #1
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  3. Nov 19, 2013 #2
    Grumppy

    Grumppy Trucker Forum STAFF Staff Member

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    A lot of this depends on where you are & what your planing to haul. As well, it seems sometimes people have different understandings of the term "Hotshot".

    If you could give us a little more in depth idea of what your trying to do & where.
     
    Grumppy, Nov 19, 2013
    Grumppy, Nov 19, 2013
    #2
  4. Nov 19, 2013 #3
    texaszpack

    texaszpack Bobtail Member

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    Nov 19, 2013
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    No problem at all. This would mainly be in the Marcellus but could also be in anywhere in Texas. By "Hotshot," I'm referred to the traditional oil & gas hotshot, 1 ton truck & trailer, etc... Hopefully that's helpful.
     
    texaszpack, Nov 19, 2013
    texaszpack, Nov 19, 2013
    #3
  5. Nov 19, 2013 #4
    Grumppy

    Grumppy Trucker Forum STAFF Staff Member

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    I am not suggesting that you give up your dream, but over in Louisiana & Texas, Acme, pretty much has all the oil field related hot shot business wrapped up. Good that your asking here but, my best advice to you (as a previous hot shot owner) just make sure that you can get an agreement or contract with a company before you spend your money on buying a truck, trailer & equipment. It is really tough in the hotshot business unless you have a company that your contracted to.

    Just my two cents. I hope it helps :)
     
    Grumppy, Nov 19, 2013
    Grumppy, Nov 19, 2013
    #4
    chalupa and texaszpack Thank this.
  7. Nov 19, 2013 #5
    texaszpack

    texaszpack Bobtail Member

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    Nov 19, 2013
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    That's very helpful - I was under the impression the market was fragmented with independents but this sounds like Acme's company truck are dominating the market. Do drivers generally like working for Acme? I assume the bulk of their value-add is finding loads, once you have your insurance?
     
    texaszpack, Nov 19, 2013
    texaszpack, Nov 19, 2013
    #5
  8. Nov 19, 2013 #6
    chalupa

    chalupa Road Train Member

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    They may not allow you to run your insurance under their flag. They would have no control in a loss situation......as it was put to me. I'm thinking Acme is all O/O too unless the terminal owner that has a few of his own. U may want to check on all that.

    And the Texas oilfield is saturated for at least right now...like you I was considering coming in, So I rounded up a bud off this board and asked him. He runs 5 out of DFW.......I took his specs and information....did some due dillagence and decided to leave my money in the bank.

    The new broker attitude is like this....I pay $2 a mile for a full load and I have a partial going to the same place....so I'll pay you $1 a mile for the partial. Well no problem if you can take your time looking for a second partial but you can't "go" with the buck stuff....and you can't sit around and wait either...the people want their partial.

    I'm going to suggest you sit this one out for awhile. Market looks soft and saturated right now and folks like Acme are going to run their loyal guys ( long timers ) before we eat........found the same thing in auto transport too. Saturated and soft with rates dropping due to the saturation.

    JMO and good luck

    (And thanks for the insight Paul.... )
     
    chalupa, Nov 19, 2013
    chalupa, Nov 19, 2013
    #6
    texaszpack, Grumppy and moneyburner Thank this.
  9. Nov 19, 2013 #7
    texaszpack

    texaszpack Bobtail Member

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    Nov 19, 2013
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    Chalupa this is also super helpful. So basically as an O/O you're forced to go with Acme in their regions because they control all the loads? The DOT authority and insurance don't seem to be what's compelling drivers to work for ACME. I just don't get it. If the ACME trucks are being dispatched only from their terminals, you would have to think there are more efficient options if oil companies would just look beyond ACME to all the independent drivers.
     
    texaszpack, Nov 19, 2013
    texaszpack, Nov 19, 2013
    #7
  10. Nov 19, 2013 #8
    chalupa

    chalupa Road Train Member

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    You have to get the bigger picture.......as a big oil producer or any corporation I have rules like I have to be named as co insured on your insurance policy...so what's easier? One policy or 100 ? And when i verify this? one call or 100?

    And when I need a truck ? Call 100 numbers ( independents ) or 0ne?

    And when I'm billed ? receive 100 bills and write 100 checks...or one?

    I would need a complete office to track 100 trucks plus they all need to be in compliance so I need someone to do that too. One call / one haul driver....see? I'd rather pay more and have someone do all this for me, get it?

    I'll produce my oil and leave the trucking to the trucker.
     
    chalupa, Nov 19, 2013
    chalupa, Nov 19, 2013
    #8
    Grumppy and moneyburner Thank this.
  11. Nov 20, 2013 #9
    Grumppy

    Grumppy Trucker Forum STAFF Staff Member

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    Dec 11, 2010
    West Monroe, La
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    I agree 100% with chalupa on his posts. I have been out there with my own authority. Its tough. A million hotshots out there looking for that same partial paying $1 a mile just to keep from going bankrupt. I ran off of load boards & some regulars I had. The best I ever done in the business was when I had an agreement to run local for a company. As long as I worked for that one company, I did good, but when their job was finished, so was mine. It was back to scraping those $1 per mile loads where I could get them. Sometimes you'll get a few $2 mile loads, but there are not enough of those good paying loads to keep your business running. Insurance is what eat me up at $8000 - $10,000 ($700 - $800 per month) per year. Then fuel went up to almost $5 per gal in 05 & 06 didn't help either. $500 truck note per month & maintenance costs, you gotta eat out there every day, and no matter how careful you are, your gonna get stopped by DOT here & there & get a ticket, etc, etc.. the list goes on & on.

    He is also correct on why they pay Acme $5 per mile & use them rather than calling a single O/O. They never know where you will be.. usually on the other side of the state... when they need you here right now to haul a valve to a rig that went down. On the other hand, Acme has hundreds of trucks leased to them & have the area saturated. Oil companies have money to burn & they do it. They dont care how much money it costs to get it done... as long as they get it done. But they need someone they can go to... someone they can depend on. So, they pay an outrageous amount to get the big picture secure & taken care of.
     
    Grumppy, Nov 20, 2013
    Grumppy, Nov 20, 2013
    #9
  12. Nov 20, 2013 #10
    Florida Playboy

    Florida Playboy Road Train Member

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    Seems every since Shipping Wars came out everyone and their mother want to get into the "hotshot" business.
     
    Florida Playboy, Nov 20, 2013
    Florida Playboy, Nov 20, 2013
    #10
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