Maybe O/O could answer this question about competing with large trucking companies

This question has been asked here before. But the question that SHOULD be asked is why would you want to compete with the big companies?

The big carriers typically service the big shippers, both parties biggest concern is volume. There is no way that an O/O or a small carrier can compete with that. Service is what garners high rates, making your customer feel like their shipment and their customers are your biggest priority, are what sets you apart from the mega carriers. This is what makes the little guy shine, this is what gives the little guy the ability to set good rates, this is what the mega carriers cannot do.

If you have a prospective customer that seems to be focused strictly on rates, don't waste your time with them, they are not looking for quality headache free transportation. Let the mega's have that customer, or some other poor sucker that doesn't know how to run a business.

 

I'm confused by your use of the word "carrier." The original question as I understand it is how do owner-operators (in this case meaning one person carriers) and small trucking companies (small multiple person and/or truck carriers) compete against large carries? If an owner-operator is leased to a carrier I don't see how they're competing against any carriers in any meaningful sense.

In response to how I can't and don't compete against big carriers... I have to make more profit per load than a larger carrier that has economy of scale that can afford to make less profit per load. I certainly can't offer the coverage a larger carrier can because it's simply impossible since I don't have as many trucks as they do. I also lack the technology, infrastructure, and talent to do anything sophisticated with pricing, data analytics or other logistics issues. I can't do less than truck load, manage supply chains, warehouses, cross docks, reverse logistics, omni-channel distribution or other sophisticated stuff. But the large and mega carriers can.

 

One thing is for sure....If you have a good thing going, rest assured not far down the road another carrier will ruin it for you! Look at how Schneider and Oakley have gotten into the oilfield hauling! From what I have heard, rates have been cut in half of what they were a couple years ago.

Same thing happened with AA&E freight a few years ago. There was a core group of carriers hauling for the DoD and everyone had basically the same rates. Along comes a company called SLT and next thing you know rates have been cut down to basically FAK rates.

 

BINGO!!!!!

 

Again by providing a service that most miss out on. Take today for example had early morning appt I arrived on time but the other carrier didn't, now when I need another load and I'm in same area who you think will get it the carrier who didn't show up on time or me who did.

as far as ltl. Etc....what do you mean you cannot do it, I have friends both in flat, vans, refer who do ltl and make good money at doing it. Saying one cannot do something is saying the same thing as I won't do something.

yes for most part those without authority are leased on to some big names like landstar etc...I'm not, and place I'm at I don't worry about loads and we charge a premium rate to move freight, so in reality it is possible for oo with or with out authority or leased on with someone can still provide a service that most other companies can't.

 

It's extremely difficult for a one truck carrier or even a small carrier to provide LTL service. Multiple stop loads are referred to as LTL by some, but that's only in the broadest sense of the term. To truly offer LTL service you need a network with the appropriate infrastructure consisting of linehaul trucks, p&d trucks, cross docks, and the IT to manage it all. It's inherently not a small carrier operation.
I can't speak to your one experience today since I don't know enough about it. But if the other carrier has a contract and they weren't on time and you were..who are they calling for the next load? Probably the carrier that has the contract and was late the one time you witnessed it. But who's to say their overall performance isn't satisfactory to the customer? You can't know by seeing just one incident at the dock.
A load of ordinary widgets that needs moved from here to there only requires someone to move the ordinary widgets and that's it. It's hard to not provide that service because all you have to do is move the widgets and you did all that was needed and all that will be paid for. Most loads meed that description. But I think we beat this horse enough. If you get paid more than me for the same load because you love it extra special or something then good for you for seeing the light and too bad for me because I could make more money if I would just love the widgets a little more. I just don't believe anyone really pays me to love the widgets, they just pay me to move them.

 

It's actually extremely hard for LTL to exist nowadays. In rural areas, it's very difficult to have someone even come and get your 1 or 2 pallets, and small companies in small towns, especially in Wis. have closed, moving to bigger cities, decimating a lot of small towns. Many years ago, (I know, here we go again) I worked for a dairy warehouse and most of my stops were 1 or 2 pallets from cheese companies in small towns. With the cost of fuel, carriers, big or small, just can't afford to send a truck 4 hours away for 1 or 2 pallets, and most of these small companies are gone now.

 

I Like that... Well said and very true, You Get what you pay for.......

The Megas May Have Buying Power,But They'll NEVER in a Million Years Be able to BUY a quality Driver....

Its Ok, Even the BIG shippers are Getting Pissed Off because Of Wind-up alarm clock, warm Bodied, Space Heads they are Putting in the trucks to Move their freight