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Tuesday, August 26, 2008
You get what you pay for... bananas!
Scott Chandler, owner of Park Service Logistics told me a funny story today. He said a car hauler he knows got underbid by $500 on a load. A little bit later, the broker called back up and said that the truck that pulled up to haul his $60,000 car was loaded with crates of bananas, and they were just going to stick that fancy car on the rear of that trailer somehow.
Bananas.
I think it's stories like these that indicate we must be getting somewhere near the bottom of load price. But you still hear stories of cutthroat competition. And, unfortunately, it's usually an auto transport company cutting its own throat.
It reminds me of that old saying from the sixties-- "What if they had a war and nobody showed up?"
What if there was a load and nobody showed up?
What do you suppose would happen next?
Here's a really simple truth. A broker's quality of service is directly dependent on the quality of the carriers that are hauling his loads for him. Since most businesses grow by positive word of mouth and referrals, what do you think is going to happen to the fly-by-night operations that sit on a load for two weeks waiting for some carrier to agree to haul it for pennies? That right there is a strike against him... but more importantly, when that load does finally gets picked up, is that driver going to give the best service? Maybe... maybe not.
Brokers who squeeze the carriers this hard are basically violating the biblical principle "As you sow, so shall you reap." It's one thing to negotiate, but to press your advantage in a way that cripples the other party is unsustainable. It's trying to get something for nothing.
Contrast this behavior with the broker that negotiates a decent price with his customer, and offers the carrier a fair price for his service. If his driver is getting enough money to meet his needs, isn't he more likely to return phone calls, and make the extra effort that is going to improve that broker's reputation with that customer... and lead to more referrals and repeat business?
I think anything other than this type of sustainable business relationship is just... bananas.
Bananas.
I think it's stories like these that indicate we must be getting somewhere near the bottom of load price. But you still hear stories of cutthroat competition. And, unfortunately, it's usually an auto transport company cutting its own throat.
It reminds me of that old saying from the sixties-- "What if they had a war and nobody showed up?"
What if there was a load and nobody showed up?
What do you suppose would happen next?
Here's a really simple truth. A broker's quality of service is directly dependent on the quality of the carriers that are hauling his loads for him. Since most businesses grow by positive word of mouth and referrals, what do you think is going to happen to the fly-by-night operations that sit on a load for two weeks waiting for some carrier to agree to haul it for pennies? That right there is a strike against him... but more importantly, when that load does finally gets picked up, is that driver going to give the best service? Maybe... maybe not.
Brokers who squeeze the carriers this hard are basically violating the biblical principle "As you sow, so shall you reap." It's one thing to negotiate, but to press your advantage in a way that cripples the other party is unsustainable. It's trying to get something for nothing.
Contrast this behavior with the broker that negotiates a decent price with his customer, and offers the carrier a fair price for his service. If his driver is getting enough money to meet his needs, isn't he more likely to return phone calls, and make the extra effort that is going to improve that broker's reputation with that customer... and lead to more referrals and repeat business?
I think anything other than this type of sustainable business relationship is just... bananas.
Monday, August 25, 2008
MyFox Atlanta | Michigan Truck Driver Tapped to Speak at Democratic Convention
MyFox Atlanta | Michigan Truck Driver Tapped to Speak at Democratic Convention: It'll be interesting to hear what he has to say... will it in any way reflect the business realities faced by car haulers in the current climate, or will it lean more toward boiler-plate union language?
Wednesday, August 20, 2008
Auto transport equipment auction: PTS TRANSPORT and ALVAN
Ritchie Bros. to auction remaining assets of PERFORMANCE TRANSPORT and ALVAN: "Ritchie Bros. to auction remaining assets of PERFORMANCE TRANSPORT and ALVAN"
Click on the link to read the article and see a partial list of items.
Click on the link to read the article and see a partial list of items.
Tuesday, August 19, 2008
Boydstun building strap car hauler with cylinders
The folks at Boydstun are building a strap trailer that will use cylinders instead of screw actuators. The target market for this new type of car hauler seems to be the owner operators who have been reluctant to adopt the new screw technology. Boydstun will continue to build screw trucks, which have seen wider acceptance by larger fleets of new car haulers like Toyota Logistics.
Thursday, July 31, 2008
The Autohauler Shopper Forums • View forum - UShip, Central Dispatch, CarloadUSA
The Autohauler Shopper Forums • View forum - UShip, Central Dispatch, CarloadUSA: "UShip, Central Dispatch, CarloadUSA"
Some of the posts in this part of the forum make a lot of sense. Frank discussion of issues related to the car hauling industry.
Some of the posts in this part of the forum make a lot of sense. Frank discussion of issues related to the car hauling industry.
Wednesday, July 23, 2008
Performance Transportation Services
If PTS, Hadley, E&L, etc. owe you any money, then you should know that there is a creditor's meeting on August 25, 2008 at 9:00AM.
Location: Office of the U.S. Trustee, 42 Delaware Avenue, Suite 110, Buffalo, NY 14202
May the force be with you.
Location: Office of the U.S. Trustee, 42 Delaware Avenue, Suite 110, Buffalo, NY 14202
May the force be with you.
New alloy tie-down bar for car haulers
This might be of interest to any of you car haulers who are sick of buying tie-down bars that look like they need Viagra after just one use! Click here for more info.
Tuesday, July 22, 2008
Attention Acura Car Haulers
Just heard Acura is getting rid of tie-down holes in the frame for model year 2009. Honda will probably be next. It's a strap-on world!
Tuesday, July 15, 2008
GM Cuts Dividend, Payrolls to Add Cash
Light & Medium Truck | GM Cuts Dividend, Payrolls to Add Cash: "General Motors Corp., buffeted by a U.S. sales collapse and three years of losses, suspended its stock dividend, cut salaried payroll by 20% and proposed selling assets to raise at least $15 billion in the next 18 months, Bloomberg News reported."
I was talking with someone I know at an enclosed trailer manufacturer in the Detroit area, and he says that a lot of the fleets hauling domestic vehicles have one third of their trucks parked.
I was talking with someone I know at an enclosed trailer manufacturer in the Detroit area, and he says that a lot of the fleets hauling domestic vehicles have one third of their trucks parked.
Thursday, July 03, 2008
Madison County Record | No punitives allowed in Cottrell personal injury, judge rules
Madison County Record | No punitives allowed in Cottrell personal injury, judge rules: "No punitives allowed in Cottrell personal injury, judge rules
7/2/2008 7:48 PM
By Steve Korris
Madison County Circuit Judge Dave Hylla will not allow trucker Michael Mandeville to claim punitive damages from the company that built the trailer he hauled.
Hylla dismissed two counts for punitive damages against Cottrell Inc., of Georgia, on June 19."
7/2/2008 7:48 PM
By Steve Korris
Madison County Circuit Judge Dave Hylla will not allow trucker Michael Mandeville to claim punitive damages from the company that built the trailer he hauled.
Hylla dismissed two counts for punitive damages against Cottrell Inc., of Georgia, on June 19."
Wednesday, July 02, 2008
Ask and ye shall receive higher paying loads... maybe.
Had an interesting conversation about load prices with a car hauler today. He told me the first thing he says in every conversation with brokers and dealers is this: "I'm going to need more money."
He said that most of the people he does business with on a regular basis understand what's going on with fuel prices, and a typical reply is-- "OK, what do you need?" Followed by, "OK, I'll call the customer."
He says most guys call right back and tell him OK.
Of course you're wondering-- "What about the guys that don't want to hear about fuel prices?"
He tells them, "Sorry, can't do it for that."
With all the folks that are heading for the exit door, I think that the momentum is going to start shifting in favor of the driver as there are less and less trucks available. Cars will sit for two weeks, three weeks or more on the load boards... brokers will start having to explain the facts of life to their customers. Load prices will start to inch up as brokers play the cat-and-mouse game to find out how efficiently they can price these loads and have them picked up in a timely fashion.
And naturally, the transport companies that prosper will be the ones that don't rely exclusively on load boards for the majority of their billing. The ones that develop long-term business relationships with reputable brokers, dealers, moving companies will not be the ones suffering from selling their service wholesale on a load board while fuel gobbles up half of their revenue.
So... repeat after me...
"I'm going to need more money."
"Sorry, I can't haul your cars for that price."
He said that most of the people he does business with on a regular basis understand what's going on with fuel prices, and a typical reply is-- "OK, what do you need?" Followed by, "OK, I'll call the customer."
He says most guys call right back and tell him OK.
Of course you're wondering-- "What about the guys that don't want to hear about fuel prices?"
He tells them, "Sorry, can't do it for that."
With all the folks that are heading for the exit door, I think that the momentum is going to start shifting in favor of the driver as there are less and less trucks available. Cars will sit for two weeks, three weeks or more on the load boards... brokers will start having to explain the facts of life to their customers. Load prices will start to inch up as brokers play the cat-and-mouse game to find out how efficiently they can price these loads and have them picked up in a timely fashion.
And naturally, the transport companies that prosper will be the ones that don't rely exclusively on load boards for the majority of their billing. The ones that develop long-term business relationships with reputable brokers, dealers, moving companies will not be the ones suffering from selling their service wholesale on a load board while fuel gobbles up half of their revenue.
So... repeat after me...
"I'm going to need more money."
"Sorry, I can't haul your cars for that price."
Tuesday, July 01, 2008
The Autohauler Shopper Forums • View topic - Help please - Kansas is OUT OF CONTROL
The Autohauler Shopper Forums • View topic - Help please - Kansas is OUT OF CONTROL: "Help please - Kansas is OUT OF CONTROL"
Wedge car haulers-- beware! State D.O.T. officials and cops have their own ideas about what is legal, and you'll want to know what they are before you try to haul cars in states with which you are unfamiliar!
Wedge car haulers-- beware! State D.O.T. officials and cops have their own ideas about what is legal, and you'll want to know what they are before you try to haul cars in states with which you are unfamiliar!
Wednesday, June 18, 2008
Teamsters upset about United Road Services and Accurate Auto Carrier · TransportFool
Teamsters upset about United Road Services and Accurate Auto Carrier · TransportFool: "Teamsters upset about United Road Services and Accurate Auto Carrier"
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