Trucking Costs Making Companies Suffer in Revenue

Discussion in 'Truckers News' started by Brucely, Mar 23, 2018.

  1. Brucely

    Brucely Light Load Member

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    Man this is kinda scary: Higher Trucking Costs Eat Into General Mills' Profit

    So like, if companies are losing 10% revenue because trucking is now eating their profits cuz they have to pay truck drivers more and blah blah... does that mean we're screwed? A company isn't going to lie there and let their profits sink, they're going to push back... which is bad lol
     
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  3. Gunner75

    Gunner75 Road Train Member

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    If they want their products on the market they are gonna have to pay something in order to get the trucks they need
     
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  4. stayinback

    stayinback Road Train Member

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    Gunner, Not Necessarily ANYMORE- I'll tell you why.......

    Businesses Will Resort Back to Having their own Fleets of Trucks (Like it was from the 1930's THRU the 1980's) Before an Exploded deregulated market.

    Ive Been saying this for quite a few years Now Since at Least 2008 When The DOW Fell Apart Like in 1987.

    If we (Trucking Companies) Continue to Pinch Their Profits, They Will Fight Back and Purchase Their Own Fleets,Hire their own Drivers, And Pay Quality Wages to them..And Shove it Right in the Face of Hundreds of Contract/common carriers Who Think, $4.00 Per Mile to Haul Frosted Flakes to St Louis is a Fair rate.

    And When this Happens...........(Which I Hope it does) Will Filter Out Thousands of Motor Carriers
     
  5. Brucely

    Brucely Light Load Member

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    ...if they purchase their own fleets and hire their own drivers... won't they have to pay them the same??
     
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  6. stayinback

    stayinback Road Train Member

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    NO
     
  7. Brucely

    Brucely Light Load Member

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    but then why would their drivers stand for that? They have to deal with the same things that we do... so then why would they be paid so much lower... i dont understand.
     
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  8. stayinback

    stayinback Road Train Member

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    Its more than just a drivers salary- Overall Business model of transportation- Its Moree trhan just Paying a Driver- I see you know nothing about operations- And Im not going to explain it- Not being Rude- But its Far Beyond Just a Drivers Salary.
     
  9. Brucely

    Brucely Light Load Member

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    So it's because they'd be attracted to work for them because they have set routes and whatever and no dispatcher problems?

    So management is basically just better, and it's less rocky. So that's why they'd agree to the lower pay.

    Okay.
     
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  10. 8thnote

    8thnote Road Train Member

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    I would really love to hear you explain how a company can buy, maintain, and operate it's own fleet and pay salary and benefits to full time drivers for cheaper than it can contract out its transportation. I know a lot about operations, so I'd love to hear this.
     
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  11. KB3MMX

    KB3MMX Road Train Member

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    If this was the case, every major shipper in the country would already have private fleets exclusively. Walmart has a good private fleet but they still use tons of contractor work.

    Fact is there is way more overhead expense to running a transport department sufficient to handle 100% demand than just employe pay, benefits and equipment.

    The management overhead is a large part of it and often not a value to the company once it's all figured up... That's why contract carriers are much more popular.

    It's like our federal govt... The bigger they get the more expensive they are to feed their expenses. BUT the govt just votes to take more money from you when they need it. Business can't do that.
     
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