What trucking can learn from the airlines
Discussion in 'Experienced Truckers' Advice' started by Working Class Patriot, Feb 7, 2012.
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Nope, not buying most of that ... the most profitable airline flying domestically is Southwest Airlines. They don't nickle and dime passengers, and their avg per mile ticket rate is significantly less than any competitors. They treat people fairly, offer reliable service and don't charge ridiculous charges and fees, and they consistently sell virtually every seat on every flight and are making money. The others airlines are not doing as well (profitably) as you would lead us to believe, in fact many are still LOSING money.
Trucking is highly competitive to say the least. There is probably 2 available trucks for every load ... these things you wish for are never going to happen while we are bogged down in this permanent recession. Shippers have too many other carrier options to choose from, and carriers will never stick together, and certainly not brokers. Especially in the dry van segment, this being the most cut-rate segment because of so many huge mega-carriers begging for freight. -
I think they learned plenty.
Long waits, check.
Merchandise overpriced at the truckstop(airport), check.
Trouble finding a parking spot, check. -
Airlines deregulated? Bwahahahahaha!
Adde most subsidized as well!!!! -
Apparently none of you read the blog...and obviously...None of you are O/O's....
Park's point is that we as an industry need to start "Auxiliary Charging"....
That is charge not only for Detention Time....But charge for tarping (Most brokers will not pay tarping now....)....Charge to go to areas that would require a long DH....
Why is it that it's easy for me to find a load that pays $2/m or more TTT from LA to Denver....But from Denver back to LA...You're lucky to find a load that pays more than $1400 TTT?.....
I know...It's about averaging....But you use the same amount of fuel to to head back West as you did East...Yep...I had brokers tell me that's one reason why loads going back to Cali are less because we *ahem* "Use less fuel".....
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we use to charge what was known as a TONU... Truck ordered not used... Im getting paid one way or the other plain and simple..its my truck and trailer...
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When I ran dumps....I got a 2 hour minimum for "Show-up Time".....
4 hour minimum if I worked even a 1/2 an hour....
Running freight...I have DHed for a 100 miles or more and just as I was pulling in Load cancelled....TONU should be an industry standard.....
Like permits....I have had loads that were booked legal and I show up and they were far from it....
Some brokers are good about it and we revise the freight agreement to reflect the cost of permits....
Some won't or at least, won't until they acted like a three year old caught with their hands in the cookie jar....
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Basically it's the "You get what you pay for" deal that shippers and brokers don't get or want to skirt.....
If they could get someone to haul a tarped OD load that required escorts for $1/M...They would do it every time..... -
If the tucking industry is ever going to adopt such a pricing structure, it will be the major carriers that will have to lead the way....... They're the only ones that have the leverage to make the added "FEES" stick.
But, in the off chance, the major carriers attempt such a strategy, ALL the independents would be well advised to jump on board....... Otherwise it probably will not work.
The airline industry has a distinct advantage over the trucking industry, in that there are a very limited number of airline companies and it isn't too difficult to get a sufficient number of them to go along with the strategy....... The trucking industry, in contrast, has an enormous number of companies, and it would seem to me a daunting task to get a sufficient number of them to operate "ON THE SAME PAGE".
So........ The pricing strategy probably wouldn't work. -
The mega-shippers call the shots, and the mega-carriers will go down on their knees to get that freight.
O/O rates will remain low for quite some time. Look how many drivers are on here every day saying they just bought a truck. The mega-carriers don't give their drivers any freedoms, and are told every move to make under intense pressure. These drivers are buying trucks in droves. More O/Os equals cheaper freight rates. Even the speciality fields are becoming saturated. Oilfield rates have dropped quite a bit in many areas within the last year because people are lining up begging to haul their product.
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