JBT Group files for creditor protection

Another one who borrowed on top of borrowed.

 

Public documents,seems like a lot of irregularities in this company, notice that this is owned by one individual making a lot of bad decisions:
JBT Transport Inc., Drumbo Transport Ltd., Heritage Warehousing & Distribution Inc., Heritage Truck Lines Inc., Heritage Northern Logistics Inc., Melair Management Inc. and Waydom Management Inc. (collectively, the "JBT Group") - Dodick & Associates

 

With everything happening in today's economy especially here in Canada. I believe if changes don't happen sooner it might reach closer to half of the Trucking companies big or small might be taking out. I spoke to a few larger fleet owners who told me from about 10 well known fleets have already downsized from 50 trucks to 15 or from 100 to 20, filed for creditor protection or simply filed Bankruptcy altogether. it's bad, in today's economy. And with so much new foreign drivers apply for their CVOR/MC#' Carrier Authority it has over saturated the market with an abundance of trucks especially running lanes like Toronto to Montreal. That use to pay $1100 on average in November now it's difficult to average $850 with a Dry van so I've changed to the East coast and that's become difficult to get loads back to Ontario. Let's keep it real, how can am Owner Operator keep up with one driver in a truck vs. 3 in a truck? That 3 shared license drivers in a truck never stops rolling so even if they take those single loads for less they keep lowing the bar in an already devaluing market.

According to most industry reports, a typical profit margin for a trucking business is between 6% to 8%. With these tariffs etc. I'm thinking on throwing in the towel myself. Either going back to driving local, management or something else. It's becoming a difficult hill to climb when weighing out the Pros vs. Cons.

 

Well said bro, I can confirm the profit margin on all freight, is between 2-8%, even doing LTL. Most companies out west here, have been operating on break even, or 5-8% loss, surviving on credit and savings.

This also goes for the gravel/construction business, big dollars on the invoices, nothing left after you pay for it all; break even to maybe 5-8% profit. Unlimited truck and pup outfits, willing to do it for a loss just to get the work.

I'm still doing ok, but I'm starting to think I should have looked into fuel/propane hauling, roll off or something else. For Hire anything in trucking just seems to be the same old dead end.

 

I feel the same, and i'm not seeing what you were talking about with Dump. The undercutting that's going on here, is absolutely unreal! The rates for truck and pup sub contractors is never going to go up, with all the bottom dollar outfits around. Its also WAY to expensive and difficult to become a prime contractor now. So the big outfits like Kidco and Borger basically have a monopoly, and they can dictate how everyone else works. Every O/O or Sub Contractors dream, is to get on a City of Calgary approved vendors list, but good luck with that unless you know someone; or bribe someone (Just like CNTL/Fed Coop).

Roll Off seems to be the answer, my choice would be construction waste, from construction sites. Its usually just wood/drywall/plastic etc etc, much cleaner and less rank than general garbage.

 

Well that's the thing. I'm literally back in Ontario after a prolong trip to Halifax, NS for a delivery that paid alright out of Montreal, QC ($1250). Thing is I had a few truck issues and the truck is only 2.5 years old if that. One being a 2nd injector now acting up on these paccar crap motors (if I only knew they were junk I won't of considered it). Regardless, even though I reached my goal of $6700 this week with all the overhead and fuel being crazy high in the Atlantic ($1.94/litre) I'm still falling behind. Giving back my trailer tomorrow and going to run Power Only for a while. If that doesn't work, time to call it a career and move on. I'd say, 85% of New Canadians coming to Ontario and rest of Canada wants to be a O/o and it's over saturated. In this bad freight market they're cutting rate with an extra driver in the truck. Amazon had some $3.87 and $4.40 per mile loads and they're getting scooped up quick. Ontario has to much trucks, small carriers and O/o's. The tariffs aren't helping Canada one bit. A crap storm is brewing and I'm not going to dip into my last personal bank reserve to saving a Canadian Trucking company when plenty like JBT etc. operating on borrowed money for their truck and equipment lease payments, wanting to borrow more to salvage and stay in a business that has minimal profit margins. Honestly, in Canada they don't really want the small independent to win. As a business and fuel being the biggest expense it's crazy difficult here. In America it's still a challenge but they have much lower diesel rates averaging $3.65 per gallon. Canada would be $4.95 per gallon with our exchange rate so the bigger carriers with direct customers can save on their fuel surcharge (fsc). Again I saw more trucks in the ditch heading back from Montreal, QC. It's becoming a scary site and tells me that it will only get worse. I'm semi retired with a pension doubling in my investments and getting tired of the chaos happening these days. If someone can prove that trucking will be better in the next decade, I'd be willing to listen. I don't think it will.

 

Montreal to Halifax for $1250 is considered a decent rate?Did I read that right or am I missing something?