Post Gordon ~ Thoughts, Commentary & Reflections

Heartland 22xx and Wife

Hm-m-m-m, maybe a pattern's forming here. Happy Heartland drivers, unhappy GTI drivers. Possible?

22xx drove 10 years for JB Hunt, then got starved out when JB started to intermodal heavily. Went back to JB later for 10 more years and got starved out again when JB started brokering out loads heavily. Has been with Heartland for 5 years. Costs $20/month to have wife along.

She likes running with him better than staying home alone. Dallas is his home terminal, lives in Oklahoma City. "Okay," I responded, "No pun intended..." (Vic's idea of a joke.) Says Heartland has never, NEVER, lied to him. Is he happy with Heartland?

His face scrunched up for a moment and he hesitated, "I don't see it any better anywhere else. You know, if a driver makes $800/week has good home time and likes his job, the extra money probably isn't worth the aggravation... Stay where you're at."

What he likes is that at 50 cents a mile, even a 2,000 mile week brings him $1,000 week, a nice round number. Runs system and freight has been a little hit and miss since the first of the year, yes, possibly because of Gordon. His ProStar Plus had no spot mirrors. How does he feel about that?

"Well, these CLOWNS claimed that their accidents went UP when they installed what they called 'lane change' mirrors. Yeah, I miss them. I don't like it one bit," he said. (Personally, I rely on my fender spots every day, all day, every day. Once you get used to them, a fender without them seems just a little naked. At least seems that way to me.)

Is this smart, Heartland?

One accident that a lane change could prevent--and they do--they help you know what's on either side of you, how far you are off that curb you're making your turn around; one accident prevented would pay for lots of fender spots.

Told him about some of Triple X's experience with HTLD drivers and mechanics. "Just goes to show there's a horse's rear end at the back end of every horse, doesn't it." When I mentioned Triple X's ponytail, he laughed. "Yeah, that's probably not going to fly very well here. Heartland wants to be JB Hunt when they grow up, you know... "

Told 22xx's wife that next time I get to interview her, too. She sat there quietly while we talked; I didn't know she was there until he asked her about something we talked about.

He figures he averages 2400 miles/week and home every other weekend. Agrees that regionals do not do as well because, "they're home every weekend, you know." Gotcha!!!


Written Saturday, June 21, 2014 at the Willow Creek Rest Area. Suppose I better get a move on to Indiana. What a great place to sit and write: picnic table up on a grassy, tree-lined hill overlooking miles and miles around.

All rights reserved.

///Dunno, Bumpy. But that big, flat-rack-guy cheater bar in your hand might just scare off a few, not to mention the chains you were dragging behind. Maybe travel lighter. Work on your approach...

 

Does Debt Matter??

A while back (msg #624) I looked at and discussed the debt of Old Dominion, Heartland Express and Covenant, compared them with each other. Just an academic exercise, eh?? I mean, a job's a job and most of us work for non-publicly held trucking outfits that don't report diddly.

Gordon was like that. Until HTLD acquired Gordon. The Gordons were keen to get out from underneath $150 million in debt they had burdened the company with and their 94% costs to revenue ratio. You know, you bring in $100 and spend out $94 for every $100 you bring in.

Some trucking companies spend $105 for every $100 they bring in. What to do, what to do??

Borrow it!! Right??

If you worked for New Century that just announced failure to get an agreement with creditors so seeking protection in Chapter 7 for an orderly liquidation...

Terminated over 1,000 trucker jobs alone.

So who is the lender? Why would it let 1,000 trucker jobs go under?? Why would NCT liquidate the assets of a company it founded in 2000, with over 900 power units in 2014??

Isn't there something wrong with this picture when freight's hot, brokers are scrambling to cover loads and dispensing with much negotiation. "Here's our best offer on this load..." And it really is a good, a very good trucker pay day. There's good money out there right now, folks.

So let's take a quick look at the lender, Prospect Capital: See http://secfilings.nasdaq.com/filing...TAL+CORP&FormType=10-Q&RcvdDate=5/6/2014&pdf=

That link is to Prospect Capital's 10-Q and if you scroll down through Level 3 Portfolio Investments you'll eventually find New Century. It looks like this and it means Prospect lent NCT $46 million dollars:

New Century Transportation, Inc.
New Jersey / Transportation
Senior Subordinated Term Loan (12.00% (LIBOR + 10.00% with 2.00% LIBOR floor) plus 4.00% PIK, due 2/3/2018)(4) 46,361 46,361 35,913 1.0%

This is very different debt from Covenant, ODFL or HTLD. More expensive. Riskier. 'Level 3 Investment' is code for difficult to value, difficult to appraise, difficult to sell, difficult to get your money back.

Also discussed short interest a while back. Remember that?? That's when speculators bet by selling a stock they don't own that the stock's headed for the toilet. NTC just did the flusho-o-o to protect itself in Chapter 7 bankruptcy from PSEC (Prospect Capital) and their $46 million dollar loan to NTC.

So who's betting against this lender that played a role in the loss of a thousand trucker jobs?

Back in January, 2014 PSEC short interest was under 6 million shares.

Jumped to over 9 million short sales in February, 2014.

Then surged to 10.8 million short sales, bets against the lender April 15, 2014.

Again, surged up to 11.9 million short sales by April 30, 2014.

A tidal wave of short sales swept over PSEC in May, 2014:

19.8 million short sales by May 15, 2014.

24.2 million short sales at last report May 30, 2014.

See PSEC short sales here: http://www.nasdaq.com/symbol/psec/short-interest

Those short sellers stand to make some real money on this NTC~PSEC mess.

Oh well, it's just money, right?? Well, NO, in fact it's not. It's over a thousand trucker jobs at a trucking firm that was pretty well-regarded. How did NTC and PSEC muck this up??

Who are all these short sellers that got in for a big payday??

Moral: Debt does matter.


Written Sunday, June 22, 2014 at home, six miles north of Spencer, Indiana. Heading back to Prairie du Chien again tomorrow (Monday). Not sure that I'll bother with an outbound load until Wednesday and prior to my next run to Prairie. Did an outbound (Shelbyville IL to Sturtevant WI) then we got blindsided with need for 3 Prairie du Chiens this week with no notice. Had to give up $1100 plus $50/hr wait time up to Tahoma. Ugh!!

All rights reserved.

 

Conspiracy Theories

I could come up with all sorts of conspiracy possibilities in the NTC~PSEC debacle that puts a thousand drivers and what appeared to be an on-going business into liquidation.

They say follow the money. Who benefits here??

Who benefits by a thousand drivers, some with 8-12 years experience at NTC alone? You could start with every other trucking outfit, couldn't you, that's struggling to hire enough drivers.

Let's see, you have 1000 drivers looking for jobs. What would it be worth to guarantee a sudden supply of proven drivers in your market?

Who picks up all the freight that NTC had a lock on??

Who benefits by all this rolling stock, power units, trailers and tires. I list tires separately, you see, because the Big Fellas capitalize tires separate from power units and depreciate them out over 2 years. Tires are a MAJOR trucking expense.

Daily volume on PSEC shares is interesting, too. It was like 2.5 million/day back in January 2014, jumped to 9.6 million shares end of February, back down to 3-4 million/day until it spiked in May to 9.5 million and then fell back off to 5 million.

Still well above the 2.5 million/daily January level.

So who are these May 2014 short sellers? What did they learn, where did they learn it??


Written Sunday, June 22, 2014 from home, six miles north of Spencer, IN. All right reserved.

 

A Comparison of Two Weeks

So I've been over to Gosport with two weeks of logs, pay sheets, tolls (several missing), scale ticket, fuel receipts to get caught up. Some items have been 'fast tracked' (already sent in) per Yard Boss.

At this point I'm enough confused not sure what all I've got.

Get caught up, I must. Tomorrow's a new week. Since I'm paid every two weeks, could have one delayed. Well, oh-oh.

Week of 6/08-14/2014

Sunday evening, June 08, drove out from home to Illinois to set up at a door for my PU the next morning, Monday, June 09. Drove to Postville, IA, with 44K and delivered the next morning, Tuesday, June 10, 2014. $700 to truck, $150.00 to driver. (That's me: driver.)

Returned to Indiana with load from Prairie de Chien, delivered Tuesday, June 10, 2014. $329.16 to driver. (That's me again.) Home Tuesday night.

Wednesday, June 11, 2014, arrived 1 pm in Indy for 2 pm appt that was really an 8 am appt. Got broker to agree $50/hr detention to truck after 2 free. Loaded at 6 pm and 2 hrs detention. Yard Boss wanted to pay $15/hr on that. I insisted on $18 and got it for now and future detentions. Delivered Thursday am just north Madison WI, $150 to driver--me, again.

Broker load paid $900 plus $100 detention.

Thursday, June 12, 2014, PU in Prairie du Chien, delivered to Indiana. $329.16 to driver. Asked to take to warehouse. Another $53 to driver--me, again.

2075 miles. $1011.32 plus $36 detention. Lost 1 $5 toll receipt. Ugh! Lost that $5. Hey! Looks like Heartland, about 50 cents a mile with BETTER home time than HTLD.

Week of 6/15-21/2014

Sunday afternoon, June 15, drove out to Illinois from home for 3 pm PU in Shelbyville. Arrived Sturtevant WI that night, unloaded Monday morning. $150 to driver (you know who).

Monday, June 16, took 18 across Wisconsin to Prairie du Chien, loaded for Indiana. Delivered Tuesday, June 17. We've just learned that customer has a third load this week and no notice. $329.16 to you-know-who.

I run home, love up the dogs, make sure the chickens have fresh water and pellets, worm bins are on their own. Took care of them Sunday.

Back out to Prairie du Chien.

Canceled $1100 load to Tomah, WI that I had just booked. PU Prairie Wednesday afternoon. Delivered Thursday, June 19. $329.16 to driver. Fibbed about not having hours so could leave out Friday after lunch.

Thursday night home.

Friday, June 20, left for Prairie again. PU about 10 pm Friday evening. Back in Indiana Saturday afternoon. $329.16 to driver. Hey! That's me again!

2910 miles. $1137.48. Lost another toll receipt. Pattern here??

~~~~

Look at the difference in miles, 2075 vs 2910 and the similarity in pay, $1047.32 vs $1137.48. Hey! I'll take the 2075 miles for $1047.32.

:0) :0) :0) :0) ~ rather work smarter, not harder ~ :0) :0) :0) :0)

Let braggadocio kids take the 2900 milers. The country's full of roads. They can just go pile those miles up all they want. Every highway a paved ribbon full of dollar signs to simple minds. Maybe their thinkers are off-line. Dunno.

That's the difference being paid something 'similar' to percentage compared with something more like straight miles. I did have an outbound for $150 on week 2, but look at the miles. The Prairie runs take about 900 miles because I go the longer, flatter (but rougher and bouncier) 74-39-18 rather than a little shorter through Dubuque with longer uphill pulls and multiple scales.

I'm learning the lane 74-39-18, my 'preferred' lane, pivoting off the 'hub mile' shortest route $329.16 they pay me based on 39 cents a mile.

Add a $150 bump each outbound load on the way to Prairie.

Yeah, that's the ticket. Plenty of home time, too.

Actually, I'd like to get back to what they hired me for. One Prairie du Chien a week and pull an outbound for that $150 bump.

Instead of two Prairie's each week. More time to work on property.


Written Sunday, June 22, 2014 at Gosport, Indiana over pizza, salad and soup. All rights reserved.

 

Ephemeroptera (Mayfly or Shadfly)

Here in Prairie du Chien the mayflies are out tonight, going crazy after each other under street lights. Locals dread them because during the day they cover everything, just everything. You'd be a little crazy, too, if you had two penises or if female, two gonopores.

Yeah, one's enough for me... really!

Wouldn't want to be without, though.

Their Greek name, ephemeroptera, means ephemeral, or 'short lived' and short it is, from mere minutes to a few days. The naiad or 'nymph' stage lasts up to a year--in water. That's the 'immature' stage. I watched them furiously doing an air dance around a street lamp until one finally fell to the pavement.

Looked like some sort of dragonfly, very pale; apparently many, many species exist and some are thought extinct. It's a yearly, buggy, flying bug sex fest.

Worked on two outbound loads today, one would have been for today and the other's for Wednesday. The load that I booked and then cancelled would have went today from Illinois to Edgerton, WI for $800. That's a pretty good rate for 250 miles or so. Not for delivery tomorrow, though.

Had been ready to run the load and was en route. Stopped and looked over the Rate Confirmation carefully for any issues. Noticed it showed tomorrow (Tuesday) delivery. Emailed them for a corrected Rate Confirmation. Wasn't an error. They were telling me one thing, 'delivery today' around 6:30 pm Central, and really it wouldn't deliver until tomorrow 0500. This we cannot do.

Needed to be in Prairie du Chien today and make PU. So I canceled. Emailed broker that I was proceeding to Prairie, maybe next time.

Then got a load for Wednesday PU in Indy from same brokerage, different broker, goes to Oak Creek, WI for $925 plus $50/hr detention over 2 free on both ends. This one we'll keep and run it.

To be continued...


Written Monday, June 23, 2014 from Prairie du Chien, Wisconsin after deep fried cheese curds and broccoli cheese soup. That is, dinner was cheese and cheese. Good, too. All rights reserved.

 

Rate Confirmation-itis

Not sure how many RateCons in my inbox. Lots of them. Finally got a corrected RateCon but has been a battle. Agreement has always been $50/hr detention after 2 at each end, PU and DEL and no cap.

Wording on RateCon states $25/hr and $150 layover.

Negative. Doesn't get it. Broker explains that wording cannot be removed because that's what the customer pays the broker and broker does agree to higher detention and no cap.

Okay, fine. Not my problem. Add language that says that.

Second time since yesterday that verbal agreement and RateCon do not match. Canceled first load. More than willing to cancel this one, too. Am filling up the CFO's inbox with all this back-and-forth and I'm sure he's just tickled about it. Oh, yeah.

Finally have a RateCon that looks okay. Finally. Had CFO scratch out offending line leaving Broker agreement to $50/hr detention after 2 at each end. No cap.

To be continued...


Written Tuesday, June 24, 2014 from Bloomington, Illinois, Pilot TS. All rights reserved.

 

Illinois CMV Blitz on I-39

Today, between Rockford and the Willow Creek Rest Area, the Illinois State Patrol conducted a small blitz if 7 units is what you call small. I saw 4 SUV's with CMVs pulled over, two cruisers with CMVs pulled over and one unit holding at a law enforcement-only turn-around. Only that one not yet ruining someone's day, all the others had selected their 'candidate' for that round. Stealth cruiser in plain view.

Decided to continue on through, skip my favorite rest area, get out of their vicinity. Like muy rapido.

Reminds me of one of those nature films where herds of wildebeests run in chaos as a group of lions close in for kill. Someone's goin' down... everybody's nervous, scared. Think I know better now how the wildebeests feel...

Most of the activity was southbound, except for a brown cruiser that had a trucker to the side northbound. Typical target was a vanilla trailer, no company logo, and a shirt-tail owner-op type of tractor, although one did pull over a dump truck.

Spectacular Rain around Veedersberg, Illinois/Indiana Line

Each of last 3 trips from Prairie have encountered get-off-the-road type, violently heavy, zero visibility rain in same area near Veedersberg. Today same, except broad daylight. Others were at night. According to Accuweather, very intense but will pass by quickly.

Flood warnings for low lying property in my area.

That's trucking and that's trucking, eh?


Written Tuesday, June 24, 2014 from Danville, Illinois. All rights reserved.

///Follow up from home: Indy and Plainfield got F-1 tornado. Reports of 6 inches of water on roadways in Spencer. Probably have more flooding, too.

Broker on Postville loads has 3, needs moved by Monday, June 30 due to coming price increase. Told him couldn't even think about it until see how Indy~Oak Creek works out, whether jams me up or not.

Definitely grumpy tonight. Home, yes. Time to get anything done, not much. We have a two-week break coming up in right at two weeks. Need to make some plans. When you're buying socks and T-shirts because there's not enough time for laundry... job was sold to me as once-a-week to Prairie du Chien, sometimes none.

At least there's two weeks of none coming up fairly soon.

One of our TTR members who lives in Prairie PM'd me whether I work for XYZ... and yes, I do. Work for XYZ. Parked over at Wal-Mart usually. Hopefully member will not spill the beans.

Even though thread has Gordon in the title and I discuss Gordon a lot compared with this or that company and my 5-month experience with Gordon, it's more on trucking in general, not a particular company.

Really. Who woulda thunk, huh??

 

A Horse Lost Due to a Couple Idiots

She: "You weren't dreaming after all."

Me: "About what?"

She: "The horse tracks behind your place."

Me: "Oh, sure."

She: "No, you were probably out of town. Truck hit two horses and their riders up by your place at night, 4 am in the morning on your highway. Riders weren't hurt. One horse died."

Me: "Should have been the other way around."

She: "Yes. Can you imagine, in the dark 4 am, horse riders on your highway?"

Apparently it wasn't the Amish. Wouldn't be out like that anyway. A couple country boys? Probably smashed and out for a lark that cost a horse's life. Ugh! This morning I went out to get something out of the truck and there's a guy trying to change a tire in the traffic lane about 200 feet up, no emergency parking apron there at all.

It's beyond dangerous. Suicidal. In shorts and no shirt started to flag traffic over and called 911. Took a while for the State Police to come out. Guy's safe now, donut's on, blown up tire off. Told him next time he's welcome to pull into the safety of my drive.

Came early, 10:30 am for 1300 (1 pm) appt and to my surprise I'm feeling and hearing loading going on back there. Didn't expect it. Figure to get out of here by 3 pm (1600) so's they avoid any detention. That's fine. Better an hour (or more) early than a minute late!!

Had to slide tandems back. These tandems don't slide well. We'll see how that goes.


Written Wednesday, June 25, 2014 in Indy, loading for Oak Creek, Wisconsin. All rights reserved.

 

Oak Creek, Wisconsin

"The earliest you can come in is 3:30 am. So you need to leave and come back. Can go in as far as you need to turn around. There may be parking at Wendy's, McDonald's or right across the street," the guard had his schpiel down pat and gave it to the driver behind me the same.

Probably occurs every night by the practiced way he said it.

Well, I'm here. Indeed, there is parking at Wendy's. The Rental Yard across the street would have worked but they have 'no truck parking' signs around. Seemed worth driving over to Wendy's. Indeed there is a lot to park in, had one spot open but access blocked by fuel delivery to Kwik Trip.

Kwik Trip claims they have no truck parking on the phone but there's a group of us here. See if they run us off later.

Got loaded prior to my appointment time, had no problem sliding the tandem--what an improvement!! Took about an hour the first time. Today was just, well, about normal. A good thing. And the drive was pretty uneventful. If FedEx's fuel here all night probably won't sleep terribly well. We'll see.

Yuppo. This is trucking, too. Drive 439 miles and find the broker was wrong. Nothing new about that. What was new was Roehl Logistics. Had almost this load, except instead of $925 that we're getting, they offered $675. Told her I'd need $1,000. "Oh, that's not going to happen," she said. She did not try to negotiate, just got me quickly off phone.

The rude brokers are the low-ballers, at least that's my experience so far.

Sounds to me like Roehl's re-brokering the load. Happens a lot and brokers hate it when other brokers re-broker their freight. You can see, though, if Roehl sold this load for $675, they'd make at least $250 and I know my broker paid $1,000 for a different load about 70 miles away.

Hate to leave money on the table. Really do.


Written Wednesday, June 25, 2014 at Kwik Trip in Oak Creek, Wisconsin. All rights reserved.