Considering investing in OSOW

Discussion in 'Heavy Haul Trucking Forum' started by chadwick404, Sep 12, 2019.

  1. chadwick404

    chadwick404 Bobtail Member

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    Hi, thanks for the comment. My partner does have experience (about 5 years) on a 13, plus about 30 years total in trucking. He started hauling cattle for my Dad at about 18, I recall, then moved into a hotshot with a step deck, and went on from there. He has the experience, and even now we are getting letters of intent (to load) via his contacts and former customers (for when I go for financing).

     
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  3. chadwick404

    chadwick404 Bobtail Member

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    We've discussed that quite a bit, actually - something even to grab fall-off from, say, mining equipment or large crane loads has also be discussed. But I'd prefer to contract out the fall-off initially, and keep focus on the big trailer. Doing otherwise adds to the initial investment, not to mention headaches. Not doing it may mean we can't (or won't) do those loads - I'm not completely sure.

    We can carry "small" loads when running to big loads (assuming timing and general areas work out right), to prevent complete dead-heading. But I am not basing my entire model on the concept - perhaps no more than 15-25 percent of the time would be modeled in. I want to be conservative on the income side, until I see how the loading actually goes. We have some idea already of what we can do, so I know the percent "small" loading is conservative.

     
  4. Rontonio

    Rontonio Road Train Member

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    I have tried to stay out of this discussion

    I will offer a few opinions take them for what you will. I run a single 11 axle set up - so I understand only a fraction of the pain of running a big setup. I can just see the horizon of 13 axle but couldn’t operate one on my resources.

    You are not just starting as a 13 axle but per your comments a perimeter 13 axle trailer. The distinction being that you will require a reasonable support network to operate that type of set up - just storing building the trailer is going to require a large yard and heavy equipment. At your weights and dimensions you are going to need support vehicles to travel with the loads and even in some states a replacement tractor. The routes will need to be surveyed and the load plans engineered as you approach 250k and 60-80 in the well.

    Do you have a steerman lined up for the trailer? I can tell you after doing just a few steerable loads that they can/will make or break the trip.

    These are just hurdles for you starting up but a single trailer operation you will have no depth to replace a part or a person of something “happens”.

    Can it be done - sure
    Are your pockets deep enough? I don’t know.

    I would suggest you look at the competitors in this segment and ask yourself - why are there no single truck operators...Perkins, Miller, American, Turner, PHH (Outwest), Contractors Cargo

    All of these companies (like them or hate them) have some things in common

    1 they can do Everton house from engineering to route surveys to pilots

    2 they have multiple resources if a they have a failure- and they do -

    3 they have the financial resources the customers are likely to require Incase something goes wrong with a load.

    So I am not sure what value you are selling to your potential customers?

    It can’t be experience or reliability or even availability. So it can only be price and that is a risky proposition. If you miss on one deal from a cost estimate standpoint or a state decides to shut you down for a month while they re-evaluate your route - your profit will evaporate quickly and your working cash could be stretched pretty thin.

    And apologies to @wore out but Cow hauling and the type of heavy hauling you are talking about don’t have anything in common.

    Please understand you are not my direct competition- so I have no actual stake in this discussion and am only suggesting that this may be a steeper hill than you think.

    Good luck

    Ron
     
  5. chadwick404

    chadwick404 Bobtail Member

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    Hi, your points are spot on. My biggest fears, too.

    Your points and some questions:

     
  6. chadwick404

    chadwick404 Bobtail Member

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    Hi, your points are spot on. My biggest fears, too.

    Your points and some questions:

    That large a setup will require escorts wherever it goes. We’ve considered a support truck, as well, with gear for tire changing, etc.

    You mention replacement tractor – that I’ve not heard of. Can you elaborate? Which states?

    Load plans – I am an engineer and can lay out CG, CL, etc. But, I’ve never really done this for trailers only as load and lifting points for equipment design, and some in-house moves. However, I’m not sure about regulatory requirements for trailers and need to research it. I’ve been running under the impression that most shippers (offering to ship) will have the load plans.

    Route surveys – I have steady, trusted sources for this.

    Steerman lined up – no, we don’t actually. And I know how important “team” is for the model. I do intend to learn myself, my partner has the experience, but we’ve not gotten farther than that yet. Excellent point.

    Single trailer operation, have no depth to replace a part or a person if something “happens” – you are absolutely correct. A deep concern because it will happen eventually. I’ve not yet put together plans around this issue.

    Competitors in this segment and ask yourself - why are there no single truck operators...Perkins, Miller, American, Turner, PHH (Outwest), Contractors Cargo – I have met single trailer O/O’s but your point is well taken. As in any business size matters, and precisely for the points you make.

    So I am not sure what value you are selling to your potential customers? Completely agree – what is our value proposition. I do not wish to compete on price – it never serves anyone well in the long run. I have some ideas on this, but the larger players moot them quickly.

    Bottom line is I’m not sure yet on how we differentiate ourselves to customers, per se.

    Your points are definitely valuable to me – thanks for taking your time to type it out. They all must be addressed satisfactorily or we are sunk before even starting, I think.
     
  7. Rontonio

    Rontonio Road Train Member

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    I will try and clarify

    Replacement tractors - when you read the requirements for Colorado Super load permits - loads over 200,000 are supposed to have a stand by tractor traveling with the load. I have never run a 200k plus permit in Colorado - so i do not know specifically that’s they are still requiring it or enforcing it. I rarely permit for over 200k and usually when I do it for convenience on axle weights - on 11 axles I am mostly in the 190 plus range. Some of the eastern states like NY come to mind. I don’t by design run east of Indiana or north of Tennessee.

    Load plans - The most difficult poart of the engineering I was referring to was the traffic engineering - when is counterflow required and can corners be made for given dimensions. What curbs, poles, lights, signs etc are going to need to moved. It may be not be a large part as a regular 13 axle that is around 130’ long but with the perimeter trailer you are going to be substantially longer. You may not be big enough to run into issues but then again you may. If it were me I would being trying to reach out to a project engineer from one of the big project HH companies and trying to buy some consulting time for some of your typical “loads”. I just went to load a 118k piece that not only had no load plan but no tie down points. it took days and a bunch of steel fabrication just to get the point of loading. The piece took 2 years to make and assemble and was worth 8 figures. I would not count on the customer for any information with the exception of maybe a drawing with a CG marked (it may or may not be correct based on how many parts have been removed for transport - transformers from ABB fall in this category)

    Steerman - I know your driver has experience but he cannot run both ends of the trailer in close maneuvering situations. If you think HH drivers are a pain in the but try these steer guys. Trust me I have just run some 230’ long OAL loads and driving the front is not the hard part. If you are going steerable - you better get a good on board.

    Hope that’s help
     
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  8. TripleSix

    TripleSix God of Roads

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    Wish you had. I was wanting to see this partner with all of this experience do his thing.

    You’re a good Man, Big Ronnie. Six back quiet.
     
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  9. REO6205

    REO6205 Trucker Forum STAFF Staff Member

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    You'll probably get your wish. I was glad to see @Rontonio contribute to this thread but I have a hunch the OP will brush off his good advice and do whatever it is he's determined to do.
    There's been some excellent posts on this thread but the OP has his mind made up
    The OP doesn't want our advice, he wants us to validate ideas he already has and he wants little grace notes of encouragement whenever he has doubts.
    If you add up all the combined years of experience of everybody that has offered advice to the OP...good advice based on practical experience and real world situations...wouldn't you tend to listen to what all that experience was telling you?
    I would.
     
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  10. TripleSix

    TripleSix God of Roads

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    Perhaps OPIE should write an $800k check to his friend and hope that his 13axle experience isn’t 13axle lunch counter experience?
     
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  11. m16ty

    m16ty Road Train Member

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    I've never had a customer supply load plans, they always ask me for the load plan and in some cases engineer drawings. You mention you have experience in engineering, but is your experience in static loads or dynamic loads? Big difference.

    As Rontonio says " So I am not sure what value you are selling to your potential customers". You don't seem to have an answer for that question. That is a major problem.
     
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