Question about the LTL and parcel industries.

Discussion in 'LTL and Local Delivery Trucking Forum' started by Mike_77, Feb 24, 2018.

  1. Mike2633

    Mike2633 Road Train Member

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    DHL merged with Airborn Express here in the US I think Airborn was a US based operation. DHL has some supply chain truck load stuff they do all the state liquor store deliveries here in Cleveland it used to be a local company, but that company must have lost the contract and now DHL does it.

    DHL also got the contract to supply all the KFC's in Great Brittan all 900 of them and dropped the ball immensely on that. I've never heard anything great about DHL.
     
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  3. Mike2633

    Mike2633 Road Train Member

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    Well also you have companies like JB Hunt who in the early 1990s figured out that, big shippers wanted like there own mini fleets so they placed truck load terminals in strategic locations were able to afford the technology like Qualcom systems and such to service these customers and then they scaled to more even tailored services.

    But yes with LTL you need more equipment lift gate trailers, straight trucks, long boxes and pup trailers it's all quite a bit and way more to manage.

    JB Hunt they can pat them selves on the back, but for most of there life there fleet was 53' dry van's or containers, and International 9700s.

    They only had 2 different types of trailers either dry van or container.

    They only had 2 different types of tractors the old conventional international day cabs that were used for local work or the International 9700s that's it. JB Hunt did little to no warehousing. They were basically a whole sale transport provider. You ship 500 truck loads a day, we have the power to handle that volume. Here's our rates and times. Werner's terminal is 3 states away and Schneider's is 2 states away. Our terminal is one state away we can guarantee faster pick up and delivery times.

    There wasn't all these non working incompatible parts. Every tractor and trailer they had were all interchangeable.

    Why did Con-Way Eastern Express go out of business?

    Because CF screwed up bought out Penn-Yan Xpress which was a terrible fit for the Con-Way system. Con-Way was mostly non-union where Penn-Yan was all union and while all the other Con-Way's were started from scratch and had interchangeable parts interchangeable parts that were compatible even with the cousin company CF Motor Freight.

    Penn-Yan didn't run 28' doubles where CF and the rest of there companies did. Penn-Yan ran extremely limited New York Thruway Doubles and none of that equipment fit the bill. By the time PYX was converted over to work with the rest of Con-Way and also labor headaches and the fact that major east coast LTL trucking a the time was in the toilet PYX had no chance.
     
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  4. Banker

    Banker Road Train Member

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    40103746-3D61-4D68-A71A-CDABC1923A4A.png C9474AD5-D010-4717-A2CA-051C2DDD47EC.png
    This a recent article about a pilot plan in LA. It is probably a taste of what is to come if it turns out to be profitable for Amazon. I still think Amazon will have plenty of volume for those who deliver for them.
     
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  5. Mike_77

    Mike_77 Medium Load Member

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    The other thing Amazon has going for it is they are a darling of wall street, which means lots of cheap capital for expansion while showing little or no net profit. Have fun competing with that lol.

    The Amazon Era: No Profits, No Problem
     
    Last edited: Feb 26, 2018
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  6. Brettj3876

    Brettj3876 Road Train Member

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    Go be a carrier for them and get 1.35mi or somewhere around that figure, I may be even inflating that # a bit. What a joke
     
  7. Banker

    Banker Road Train Member

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    If they weren’t putting so much back in to the growth of the business I would be worried about their profit margins. The last quarter of 2017 they posted 1.9 Billion in profit and they have roughly 50% of worldwide E-commerce which is growing exponentially. I like the fact that they go against traditional Wall Street wisdom. Many companies make decisions just to keep Wall Street happy. I think Amazon is looking more at the long haul.
    I am biased because they have nearly doubled my investment in just short of 12 months.
     
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  8. Mike_77

    Mike_77 Medium Load Member

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    Yeah I appreciate that perspective, I'm happy I'm not competing against them. Lol
     
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  9. Mike_77

    Mike_77 Medium Load Member

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    I drive by UPS in Portland Oregon and their yard looks like a who's who of the Truckload Carriers Association. It's my understanding Amazon uses these carriers to run between the Amazon warehouse and UPS hubs.
     
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  10. Banker

    Banker Road Train Member

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    Yes there are many shippers who will use truckload carriers to pull trailers from their company’s DC to a UPS facility often hundreds of miles away. From there it gets sorted and fed into the UPS network.
     
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