Your direct shippers are not safe! TMC came in & undercut this company by HALF the rate

Well I don't know if you know this secret, but there is freight everywhere. I find it hard to believe that an owner who has drivers (outside of Chicago) will fold up shop in a market like Texas. He was doing Dallas to the upper Pacific coast, how many places in between are there that have freight?

The question I have for this owner is, did he DH the trucks back or did he load them up along the way to go back to Dallas?

I am not going to waste time watching the video but if he DH his trucks back, that was a total waste of fuel, he could have tap four or five LTL loads from good brokers to put together and even if they are short loads at a sub-qualifying rate, it is revenue that lessens the losses or eliminates them for a zero sum gain.

 

chromes a tax write off as I’d the fuel.

course that only matters if you are in the black

 

He wasn’t deadheading back. He said they were going up for $7500 and back for $6500. Supposedly did 300 rounds for this company during his 3 years in business, and now he’s trying to say TMC is running 2100 miles for $3700.

He had a 45% OOS rate so that probably made brokers not want to work with him.

 

He is supposedly in Dallas? I-20 does go west, to a couple towns called Odessa and Midland. If you can’t find freight there, you are Helen Keller.

 

And with all paid off equipment no less.

 

7500 up and 6500 back. 13,00 round trip x 150 round trips. That's 4.2 million. You can buy five old trucks for that. I believe he said his newest truck was an '07.

 

OK, thanks, I don't remember much of the video, watched a lot of them lately who are crying about rates and going out of business, guess the youtube revenue must be really down.

As one of my drivers mentioned, there is another side of the story that we haven't heard that is the customer.

If it is any customer's are like those I have, they take more than just the price into account, performance matters more to them, and their metrics on delivery times matter a lot, not so much pickups but deliveries. OOS actually matters too because that shows a risk of delay in delivery. I have one customer who sends me weekly metrics of my trucks and goals for the next week, the goals never change. The corporate logistics director actually reads the reports on monday morning and sends his report to the executive staff about every carrier they work with.

Hell, Helen Keller would not have any issues finding freight in that corridor.

Well ... older trucks ... PFFT!!.

 

I think it has more to do with him understanding his employees aren't going to work for mega company driver wages without mega company benefits. Dollars to doughnuts his 'employees' are paid percentage on a 1099 with no health benefits. That works when the rate is high, but when working off of spot market freight - not so much. At this point he probably can sell off his equipment and show a decent profit over the last 3 years. If he tries to make a go of it all he has is risk with no benefit. Especially when you consider his OOS rate - 1 driver pegged him to oblivion and he recognized the juice wasn't worth the squeeze.

 

I get that, agree with you. I am assume he is paying them 1099. I just think for those who think they have to depend on load boards with crap brokers, there is a lot of freight out there if you look for it.

 

45% OOS? See ya. We’re better off if u do go outta business. Safer out here for the rest of us