Time to tighten the belt....

Discussion in 'Trucking Industry Regulations' started by HoneyBadger67, May 24, 2019.

  1. Ridgeline

    Ridgeline Road Train Member

    Dec 18, 2011

    Tighten our belts?

    Expand if you can.

    I don't know what target audience the article is written for, but it is too simplistic and makes a little bit of an assumption that the fleets are all effected.

    Here is fleet ownership 101 -
    The “driver shortage” and “capacity shortage” are two different things. The driver shortage commonly refers to the availability of drivers in the market to drive the trucks that are on fleet rosters, while the capacity shortage is a function of having enough trucks available for dispatch. Unseated trucks don’t generate revenue, while a capacity shortage gives the fleets pricing power as shippers and brokers struggle to find capacity. And in markets with a capacity shortage, carriers and drivers alike are big winners. Nothing brings driver pay up like a good old capacity shortage.

    OK the driver's shortage thing is missing something, it mentions the unseated trucks but it fails to tie it together with the overcapacity and why it exists in the market by explaining it correctly. It isn't about enough trucks to dispatch, it is about having the reserve capacity to anticipate customer's needs and having no short term or long term planning with capacity in markets that are driven by mega trends.

    The last statement is wrong, it is opposite, nothing brings driver's pay up like a real driver's shortage which we don't have.
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  2. HoneyBadger67

    HoneyBadger67 Heavy Load Member

    Dec 15, 2018
    I'm not arguing about the lack of a driver shortage. I never believed there was one to begin with. The article is claiming that freight, in general, is on a decline. The tariff war certainly isn't going to help much.
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  3. Ffx95

    Ffx95 Medium Load Member

    May 18, 2017
    Freight goes up and down. Probably one of the many reasons it went down because all the drivers too scared to drive winters are out and about.
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  4. Ridgeline

    Ridgeline Road Train Member

    Dec 18, 2011
    It really isn't, there is a decline in capacity happening ..
    Finally .... but it is very slow.

    I read the opposite from a subscription consulting firm and it shows that tariffs are not effecting the freight as much as it could but over capacity and a glut of trucks coming into the market that are being sold to expand marginal fleet operations are the real problem.
  5. snowwy

    snowwy Road Train Member

    Jul 6, 2009
    Tariffs haven't hit full swing yet.

    As for driver shortage. With unemployment at it's lowest level in years. Who wants to drive a truck? There's tons of other jobs to be had.

    But it won't be long before things turn ugly

    The auto industry has already started layoffs.
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  6. starmac

    starmac Road Train Member

    Apr 11, 2019
    Fairbanks Ak
    I will have to consult my crystal ball on this one, right now they are trying to run me ragged.
  7. MrEd

    MrEd Road Train Member

    Sep 2, 2011
    Winfred, SD
    It is not a tariff war in theory. It is an attempt to force China, and other countries too, to cease the unfair, immoral, and frequently illegal trade practices we have been allowing them to engage in for decades. Finally we get an administration willing to take them to task for it and the administration catches heat. People have been complaining about and demanding action on those trade practices for years, and now they are actually praising the administrations who did nothing about it. I look forward to the future of fairer trade with our trading partners if we would stand behind the administration. That is much of why China, and other countries as well have not given in yet. They know that there is not really any widespread resolve in our country to support our administration through this tough but neccessary time.
    LoneCowboy, roshea, bzinger and 2 others Thank this.
  8. Rideandrepair

    Rideandrepair Road Train Member

    Aug 8, 2015
    Sounds scary, Lol. I’m sure I’ll survive. Not looking forward to all the painfull stories on the horizon, never a good thing. But some things never change. Just part of it.
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