DRIVERS' SHORTAGE * USA - Trucking's new crew

The trucking industry faces a shortage of 20,000 drivers that's expected to hit 111,000 by 2014 St. Full Story
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“Ain't That A.”

Since: Dec 06

San Marcos, Texas.

#539 Jun 13, 2009
Phil Cliffhanger,

You really can't understand trucking from behind the wheel. De-regulation and massive stock owned trucking companies have changed all the rules, it has nothing to do with greed of the 70’s.

A simple class in college economics explains everything without calling names. For example:

“Cyclical Industry.” That means the supply of freight varies during the seasons of the year. This means that “Income” also varies, but do expenses like truck payments and insurance and permits vary also? The answer is no. Therefore, the cost of trucking must include the cost of “Off Seasons” for the trucking industry to survive.

“Outside Forces” is the term used to explain how the Train and Rail Services influence Truckload freight prices. Many items can be sent on rail or truck, thereby causing a squeezing effect to lower per mile rates.

“Economies of Scale” means large companies have leverage in buying bulk fuel, tires, trucks, oil, and all essential elements of the business.(Like being self-insured)

“Down Bidding” describes how too many trucks bid for small amounts of freight. If you add up the trucks owned by large companies, it puts an excessive amount of trucks in every state at any one moment.

“Cut Throat Competition” describes bidding, pricing, kickback contracts and the general manipulation of large scale companies to under-bid because of low Cost Inputs. These tactics are not available to the small owner operators, thereby accidentally pushing them out of the market, or out of business altogether.

“Spot Market” instead of working contracts, some companies play brokers for work in each area that their trucks become empty. This can produce some extremely low mileage rates, like in Houston, Texas where two Wal-Mart distribution centers force huge amounts of empty trucks into the area. This causes shippers to just pay cost or less and not really give a damn if you go out of business or not because someone will take your place as soon as you die.

So if you study this over, you would see that you could be the Super-Man of trucking and still go out of business or produce such a low profit margin compared to the risk involved that it would not be worth it no matter how much Love is involved. Love don’t pay the bills.
Perkins Specialized Trans

College Park, MD

#540 Oct 21, 2010
Perkins Specialized Transportation Nobelsville IN
1-Scam lease purchase program. 2-Steal all your money and under pay for trip loads. 3-Keep your truck in red so you can owe them money each week and have no pay check.

Do not work there they will rip you off, turnover rate is 98% they bring in 8 to 16 new drivers a week and only operate 189 trucks a roll over scam no money no pay and the worst safety rating of any company with D.T.T. check it out a the U.S. D.O.T. web site
Midnightrider

Elgin, IL

#541 Oct 22, 2010
Shame wrote:
Phil Cliffhanger,
You really can't understand trucking from behind the wheel. De-regulation and massive stock owned trucking companies have changed all the rules, it has nothing to do with greed of the 70’s.
A simple class in college economics explains everything without calling names. For example:
“Cyclical Industry.” That means the supply of freight varies during the seasons of the year. This means that “Income” also varies, but do expenses like truck payments and insurance and permits vary also? The answer is no. Therefore, the cost of trucking must include the cost of “Off Seasons” for the trucking industry to survive.
“Outside Forces” is the term used to explain how the Train and Rail Services influence Truckload freight prices. Many items can be sent on rail or truck, thereby causing a squeezing effect to lower per mile rates.
“Economies of Scale” means large companies have leverage in buying bulk fuel, tires, trucks, oil, and all essential elements of the business.(Like being self-insured)
“Down Bidding” describes how too many trucks bid for small amounts of freight. If you add up the trucks owned by large companies, it puts an excessive amount of trucks in every state at any one moment.
“Cut Throat Competition” describes bidding, pricing, kickback contracts and the general manipulation of large scale companies to under-bid because of low Cost Inputs. These tactics are not available to the small owner operators, thereby accidentally pushing them out of the market, or out of business altogether.
“Spot Market” instead of working contracts, some companies play brokers for work in each area that their trucks become empty. This can produce some extremely low mileage rates, like in Houston, Texas where two Wal-Mart distribution centers force huge amounts of empty trucks into the area. This causes shippers to just pay cost or less and not really give a damn if you go out of business or not because someone will take your place as soon as you die.
So if you study this over, you would see that you could be the Super-Man of trucking and still go out of business or produce such a low profit margin compared to the risk involved that it would not be worth it no matter how much Love is involved. Love don’t pay the bills.
You are absolutely correct! Many of the same problems and more were faced by trucking companies during the great depression of the 1930s. This is when regulation (including rates) was started. It had some problems, but overall worked well for 50 years. Companies competed by giving good service, not by cutting rates (rates were regulated). The trucking industry was strong and stable, and drivers made a decent living. Now drivers are treated very poorly and a few big companies will control the whole industry, the government will be/already is in their pocket.
Bus Driver

Minneapolis, MN

#542 Oct 25, 2010
Drivings bus bests job!!

Since: Apr 07

Location hidden

#543 Oct 25, 2010
yup
Shame wrote:
<quoted text>
Is it not funny that all the people who know what to do with money... are always the ones that don't have any.....

Since: Apr 07

Location hidden

#544 Oct 25, 2010
Wow, an intelligent response. Which planet are you from? No one on this planet can talk like that.
Shame wrote:
Phil Cliffhanger,
You really can't understand trucking from behind the wheel. De-regulation and massive stock owned trucking companies have changed all the rules, it has nothing to do with greed of the 70’s.
A simple class in college economics explains everything without calling names. For example:
“Cyclical Industry.” That means the supply of freight varies during the seasons of the year. This means that “Income” also varies, but do expenses like truck payments and insurance and permits vary also? The answer is no. Therefore, the cost of trucking must include the cost of “Off Seasons” for the trucking industry to survive.
“Outside Forces” is the term used to explain how the Train and Rail Services influence Truckload freight prices. Many items can be sent on rail or truck, thereby causing a squeezing effect to lower per mile rates.
“Economies of Scale” means large companies have leverage in buying bulk fuel, tires, trucks, oil, and all essential elements of the business.(Like being self-insured)
“Down Bidding” describes how too many trucks bid for small amounts of freight. If you add up the trucks owned by large companies, it puts an excessive amount of trucks in every state at any one moment.
“Cut Throat Competition” describes bidding, pricing, kickback contracts and the general manipulation of large scale companies to under-bid because of low Cost Inputs. These tactics are not available to the small owner operators, thereby accidentally pushing them out of the market, or out of business altogether.
“Spot Market” instead of working contracts, some companies play brokers for work in each area that their trucks become empty. This can produce some extremely low mileage rates, like in Houston, Texas where two Wal-Mart distribution centers force huge amounts of empty trucks into the area. This causes shippers to just pay cost or less and not really give a damn if you go out of business or not because someone will take your place as soon as you die.
So if you study this over, you would see that you could be the Super-Man of trucking and still go out of business or produce such a low profit margin compared to the risk involved that it would not be worth it no matter how much Love is involved. Love don’t pay the bills.
RDS

Minneapolis, MN

#545 Oct 26, 2010
Perkins make its money off the hard work of others, cheats lyres scam artist. No one makes a pay check and one day these people will be shut down or jailed.
STAY AWAY from Perkins !
jj hey sexy trucker

Orangeville, Canada

#546 Jun 9, 2014
JJ ONTARIO wrote:
Well here we go again the era of anybody can drive a truck,and we've all seen the results of that one on the highways and truck stop parking lots.Until companies realize that they must raise the rates and wages there will always be a driver shortage.
trucking aint same any more trust me want a ride oh yea baby

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