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".