Trucking Costs Making Companies Suffer in Revenue

I'm not sure you can, although it was a fair question.

 

Companies are going to find that setting up their own private fleet isn't as easy or cheap as it was in the past. With the new emissions engines, they're going to have higher up front costs, higher maintenance costs, and higher downtime costs. The numbers aren't going to work, and they'll figure out that it's cheaper to just pay more to outside carriers to get their product to market. Those outside carriers have had to jack the rates because they're seeing the same increased costs.

 

I've seen this pendulum effect in transportation for a long time.

-"Employees are expensive, let's outsource."
-"These invoices are ridiculous, let's hire our own people."

Trick is to play the swing.

 

For most, running their own private fleet is too costly and bogged with too many problems. They know it and the carriers know it. Stick with what you know. Food processors be food processors and carriers be carriers. All the regulatory and liability BS that we have today makes private transportation fleets an entirely different matter than they were 30+ years ago.

Just the daunting task of finding and keeping qualified and worthwhile drivers is reason enough to avoid creating a private fleet. Never mind all the other myriad of hurdles.

Walmart is giving up on the idea. If Walmart, after trying it for 30+ years, recently decided to abandon the model, that should tell you all you need to know.

 

The trucking companies now are making a profit. Individual business could just pocket that money themselves.

 

Good,Just the Guy I'm looking for to go Round n Round With....
I'll start this Debate with you very shortly, But First, if Your a Typical Planner or Dispatcher at ANY of those Chattanooga based truckload carrier/broker operations..... You Have Zero Credibility.

US Exress Still Sends trucks in to customers via appointments Late,, Without Looking at Bigger Pictures (e-logs-Drivers hos etc) Just to Make Drivers Sit extended periods of time showing up late with Little to no compensation. Planners Don't care about their own drivers- Just the Customers-

"Gotta keep the customer happy, We Can get Drivers Anytime"

Anyway- Back to Me and You........

I'll start another thread with breakdowns/angles of operation and costs ,

 

I do not work for US Xpress or Covenant. I work for a small carrier based in Chattanooga. We have 35 trucks.