Could a shipper lease on owner operators?

Because the extra $400 covers the overhead of a small operation but won’t for in house transportation program. It gets costly, paying the up front cost to establish the authority, then seeing an increase in labor costs which are not covered by the savings because they have to hire experienced logistics people for the segment to make sure their product is moved. The back office staff for a Walmart operation has to be more than 20 people, and while they may see a $50k gross, the benefit costs push that up to $75 to $80k. Not to forget now they have an increase exposure to the liabilities of the authority and possible litigation costs of an accident or incident.

 

Comparative advantage.

Shipper spends their time and money, focusing on their product or more than likely be more profitable than taking away that focus to another task. @Ridgeline stated there is liability in transportation.

 

Ashley and Hobby don't subcontract out to O/OP's or 3rd party.

The price of their goods for sale reflects what they pay out to maintain a private fleet.

Nalco/Ecolab is starting to get their own private fleet rolling now and getting away from using 3rd party major carriers like QC, Altom,Heniff,Schneider.

 

Ashley has a large number of private carriers hauling for them...I have hauled many loads out of Arcadia, Wi.