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Henry Albert
200k
200k
Henry.Albert - 9/12/2012 10:17:32 AM
   
Challenges to your operation
What is your single biggest challenge to operating a profitable business?
It will be interesting to see the different responses are.

Linda Caffee
200k
200k
Linda.caffee - 9/12/2012 6:38:42 PM
   
RE:Challenges to your operation
Henry I would like to know your biggest challenge?

One of the biggest challenges I face is staying on top of when and what is due to the state of MO. We are not home often and I have been late on a few things which caused us to get a penalty and a penaty to me is like holding up a $100.00 bill and setting fire to it.

So I guess what I am saying is getting important mail while on the road to avoid late fees. I pay everything on line and I have a list of when everything is due it is the odd bills that bite me.

One penalty was getting on a toll road in Denver and the bill was mailed to the house. I did not know the toll road did not have toll booths till it was to late. That late penalty was a bitter pill to swallow.

Henry Albert
200k
200k
Henry.Albert - 9/14/2012 8:59:29 AM
   
RE:Challenges to your operation
I guess I should rephrase the question to ... What is the biggest challenge facing the entire industry in regards to profitability?

Linda Caffee
200k
200k
Linda.caffee - 9/14/2012 9:23:02 AM
   
RE:Challenges to your operation
FMCSA - Shippers using trucks as storage units till needed with no pay to driver - feelings of not having any power or say in the industry - traffic - accidents (we were stuck in road block for 11 hours while a hazmat spill was cleaned up we delivered our load one day late and lost pre assignment all 11 unpaid as we are paid by the mile) cost of vehicles to meet standards all of the comfort of these great trucks come at a price and while our bodies are lasting longer our wallets are not doing as well.

What is the solution to the problem? and there has to be many solutions as we are finding out now with CSA and the new HOS rules one size does not fit all.

Jimmy Nevarez
200k
200k
Angustrans - 1/11/2014 12:37:43 PM
   
RE:Challenges to your operation
Im with you guys on this one! Being a driver who completes 5 to 7 transactions with shippers/receivers daily, unpaid detention time can play a serious role in profitability. We get paid detention after an hour and a half, but I think it should be retroactive to the arrival time if the hour and a half is exceeded. This makes the most sense as there usually is no need for a shipper to, as I see all the time, wait an hour before even dropping the ramp on a truck in a door they have been assigned.

Jim Ruiz
< 25k
< 25k
chief1383 - 2/5/2014 10:50:15 AM
   
RE:Challenges to your operation
Hi...question on your comment regarding delay time. I have been asking fleets and drivers the question whether or not unpaid wait time is a major issue and I get different answers. Many carriers don't view "detention" as an issue because they can't bill it in the soft freight environment. Drivers I talk with say this is the MAJOR issue...specifically unpaid delay time.

So here is question: How much time is lost to avoided delays (example shipper delays, traffic, waiting for information) vs. unavoidable (nature of operations, required breaks)?

Follow up question: If the HOS reg is 11 hrs drive time/day...how much actual drive time do you think a 'typical' driver does? I have been told this is 7 to 9 hours (with local drivers less due to their operating profile).

As full disclosure, I am the founder of a company that is making software tools for fleets, and one area of focus is how we can help drivers avoid delays or at least get compensated. That said, as we researched this area, we got a wide range of opinions on the subject...with some fleets suggesting this was not a worthwhile focus area. Love to get additional input.

Carmen Bartleson
25k
25k
Jigsaw - 9/14/2012 3:22:06 PM
   
RE:Challenges to your operation
There needs to be a cap on the percentage that a broker or agent colectively can take from the linehaul. 3PL( 3rd party logistics) Is the biggest challenge facing the industry. There are just to many hands in the pie. I have been in this business for 34 yrs. and the rates posted by some brokers and agents now a days is shameful. I do not haul cheap freight but, I also understand why some drivers do. Their truck payments are insanely high and they just need to keep the truck moving to keep their head above water. Eventually they do drowned and another driver will be waiting behind them to jump into that same situation.

Back to 3PL. No one can explain to me why an agent or broker deserves to take more than 20% collectively off of a linehaul. Yes they have office expenses, employees, etc. They also, can book as many loads in a day as they can possibly cover. A driver, who has most of the expense of transporting the load, can only handle one trip at a time. When the broker,agent and whoever else jumped in to grab a piece, takes 30,40 or even 50% of the linehaul before the load is offered to a driver, that to me borders on theft from the driver.

I believe the use of the antiquated HHG for mileage is another thing that is harmful. We have the technology available to go from exact address to exact address for mileage. Drivers have for years been running an additional 10 to 12% of the stated mileage for no pay. I look at actual mileage and at what the load pays. I then decide if I can haul that load for a profit with what linehaul I have negotiated. Drivers who are paid per mile and have a dispatcher, are told what to load, and paid per HHG mileage are being cheated every trip. So,if that driver's gross income is $125,000 at the end of the year, he should have made another $12,500 to $15,000.

Last but not least, CARB, EPA and RAY LAHOOD are killing the profitability with their constant new restrictions on the trucking industry.They cannot keep adding more expenses to the driver without addressing how we are going to recoop the additional expenses. No other industry is more regulated then the trucking industry, yet the very people who must absorb the expense of new regulations,being drivers, have no way of recooping this expense from the shippers. I can't think of another industry that when uncontrolled expenses are incurred, they have no control to pass those expenses to the consumer.

That'll be the day when a broker calls a shipper and says "the driver's expenses have gone up so, I'll have to raise your rate".

Henry Albert
200k
200k
Henry.Albert - 9/16/2012 6:45:41 PM
   
RE:Challenges to your operation
Here is a link to the defination of the biggest problem I face in the trucking industry because it makes it hard to overcome the rest of the financial hurdles .... http://hbswk.hbs.edu/item/5830.html I would like to hear your thoughts.

Linda Caffee
200k
200k
Linda.caffee - 9/17/2012 4:58:20 AM
   
RE:Challenges to your operation
This statement says it all:

However you approach commoditization, try to innovate at all costs.

We can never sit still we need to keep learning about business and figuring out what we can do to stand out. When leased to a carrier this is still important as we always want to be the best of the best.

Nice Link Henry Albert

Mike Anderson
150k
150k
Mike - 10/15/2012 6:21:59 PM
   
RE:Challenges to your operation
I read this link as well and I appreciate you sharing it.
Thanks Henry

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