Consequences of government regulation.

Many sources screamed from the rooftops about how the ELD was going to steal carriers' sensitive customer data as well as privacy concerns for the truck drivers. This was well predicted. I don't run one and refuse to. I will never consent to the GPS tracking. This law was bought and paid for by the megas. Speed limiters will be next. Are you ready?!

Dale, it's the same old story. Everyone talks about doing something to improve this industry, along with figuring out decent rates to charge shippers, but when it comes down to it, NO ONE, not independents,nor companies, are willing to stick together to make the improvements. It's dog eat dog!! What I would love to see is someone take the bull by the horns and form a Bulk Carriers Co-Op where everyone would agree on a SUGGESTED Base Rate that no one would go under when nogatiating the rates per load. I use the word "suggested" because, under de-regulation, we aren't alowed to have published rates, like we had before the government shoved deregulation, in it's present form, down our throats.

At this time I have my nephew running our 18' Western Star 5700 and Utility refer at rates I never go below. We haul perishable and frozen foods and stay in the midwest to east coast. I won't haul produce. Why? Back before deregulation I was under contract with Jewel Foods in Chicago hauling produce from southern Arizona and California for $1.20 per mile. Today, on the DAT board, the average load coming out of those areas are going for $1.27. That's rediculas! Those rates are 35 to 50 years old.

I have stayed with Bulk Loads dot com because I plan on increasing our fleet with a couple of 42 ft. Trinity Belt trailers hooked up with Star 4700's with small sleepers. With the help of the very knowledgeable salesman from Trinity, along with the gentleman I use at Freightliner / Western Star, the new rigs will scale out at just under 30,000, so I should be able to haul 25 tons.

My biggest hesitation comes from the rates i've been studying on this website. I've seen stuff going for $23 a ton that used to be offered at $48 a ton. Why? Because the farmers have had a bad year? In reality, what has farming got to do with trucking? They are two different industries and should be treated as such. If a farmer owns a rig and uses it to supplement his farming income, he's only screwing himself, and all others in the industry, by hauling too cheap. Newbees who dont know any better aren't helping, either.

I have always lived by the motto of: I don't care what goes in the box. The only thing that matters is my operating cost. I have divised my own base rates for hauling exempt freight, whether it's grain, or produce, and I won't operated below that. I'm sure there are others on this forum that do the same thing. I've seen comments that everything we haul should go for $3.50 to $4.00 per mile. That has already been offered many times. If you take a load for $48 a ton, and can haul 22 tons, that's $1056. If you only haul it from Ottawa, IL to southern Wisconsin for a distance of only 230 miles, you'll make $4.59 a mile. Of course, no one's going to pay that for a load going over 350 miles. So, nogatiate an acceptable mileage rate. Anyone who does not know how to do this should sell his rig.

Anyway, as I said earlier, I've expanded my basic rate sheet to include hauling bulk commodities. My sheet already has figures for demurge charges, dead head charges, and hourly rates. Of course, these are things every owner/operator or smaller company owner uses too, I'm sure. Now, if there was just some way to organize folks and have them agree on a base rate(s) no one would go below.

Incidentally, for this forum I've used the name Agra-Logistics. Since that is actually the name of a former outfit in Kansas that went bankrupt, I'm not really using that name. I"ve changed it to Agra-Belt. Will change it here when I become a full member.

Farmer's expenses for running a truck are FAR cheaper than an interstate carrier. It gives them an edge that only the absolute bottom of the barrel can compete with. Their plates and insurance a ridiculously cheaper. Since they're the two biggest operating expenses beside fuel it's a big deal. A large majority cannot even begin to compete with that.

https://www.dot.state.pa.us/Public/DVSPubsForms/BMV/BMV%20Forms/MV-70S.pdf

I understand what they can't LEGALLY do things but apparently laws are meant to be broken to some. People do get loads directly from customers. No room for a broker when you're running under the radar. Every time a farmer pulls moves like that, the guys following the rules lose revenue potential. DOT isn't everywhere and they BOLs/receipts are easily acquired for the rare times one has to see an officer.

Yes, I certainly agree with Dave, Dale, & Eric on their view points. On the whole, if you look at the unfortunate situation concerning Celadon Refer company this past weekend, this is a prime example of a mega carrier running cheap. Although my heart goes out to the employees and their families who have been shafted by this company, as well as their customers, here is a perfect example why rates overall should come up in our industry.

I just booked my first load with a manufacturer, picking up a 2 pm tomarrow, who has a load stranded in a community half way to their consignee. In the process of selling myself / my company to the traffic manager, I explained that my rates may be higher than Celadon's were; but, there is no fear that my rig would be parked somewhere, stranding the freight. My rates are reasonable, given the cost of operating my equipment in these times.

The upper management at Celadon may have inflated the value of their company in order to receive better funding, etc., to keep their company operating; however, if they were able to increase the rates for hauling loads for their customers, they would have been able to operate at a better margin than they were. With the dog eat dog compitition from other carriers, like Swift and others, they strived to stay "competitive". To what end?

It makes me wonder which mega company will fall next. Our industry has always operated under feast or famine. Any company should be prepared for the bad times and take advantage of things during the good times. It's just the nature of the beast. Agriculture, dry freight, or refer loads doesn't make any difference.

Yes, we do need to band together for our own survival and to fight the government, as best we can. I wasn't picking on the farmers. Just using them as an example of how folks who operate trucks really need to operate their company as a real trucking company should. The same for newbees who may not realise what they are really getting themselves into. Or anyone else who really hasn't realised what it takes to run a trucking company.

Incidentally, I do know of a couple of farmers locally who do run illegally, hauling loads for their "good buddy, Jack" from a local grain house up to a Chicago facility, for a couple hundred bucks on the side. I wish the DOT would do a spot check in my area and catch fellows running like this. Or, fellows running illegally indicating they sleep in their sleepers, when they operate a day cab.

If any of you younger fellows think of a way of organizing fellows from the ag community to band together to help this industry and you want a guest speaker at an event you may come up with, let me know. I have a degree in transportation, as well as business admistration, and I first started out driving rigs back in '63. Guess I concider myself somewhat of an expert.

https://www.thetruckersreport.com/truckingindustryforum/threads/farm-special-plates-hauling-commercial.443666/

Ah, Dale, Government intrusion? How could you think of such a thing? No, the occasional farmer, or anyone else, taking a few loads illegally won't change the whole scheme of things. It's an accumulation of many things. Back in the day when deregulation was first introduced, you have no idea how many arguments, ah, discussions I had with the Business Agent and shop stewart affiliated with local 710 here in Chicago over the "new deal" and how it was going to screw our industry. When I mentioned how many jobs were going to be iliminated and what our breatherin would do for employment, the B.A. said that he was sure that some companies (?) would go under and that the drivers would probably apply at "upstart" companies of the day. Like Swift, JB Hunt, etc. Then they would help promote the union to these companies and the union(s) would thrive. I literally told him that he was blowing smoke up his own butt if he thought he could convince me. And, of course, his predictions never happened. It wasn't that I was clairvoyant or anything. I just new our industry a lot better than he did. I have been a big opponent of government intrusion and most everyone I knew was aware of this. I was not welcomed warmly to meetings either, after the union found out I quit the democratic party in disgust, too. I made no bones about it.

I don't know if you are familiar with the trucking term "Outlaw". I was an outlaw after buying my first rig. Back then it wasn't very hard to run this way, until things began to tighten up with required regulations and I put my rig on with a local union company, before purchasing my own rights and authority.

So, I've run the full gamut of running illegal to operating very legal. I will admit running legal is better for my heart pressure. Even with the ELD, which I was against, until I had to use our records of detention to fight over not being paid correctly according to our load manifest and B.O.L. Took time, but I was paid rather than my client having to face a lawsuit.

So, I will support anyone who has the opportunity of possibly coming up with a program to help this industry. At my age and health condition, with everything else I have going, support will be the most I can give. Besides, this will be a younger mans game, as I mentioned before. Personally, I've enjoyed a good career and really like the trucking industry.

David, thanks for the post from the Truckers Report. It certainly shows the need for our own organization to help eliminate loop holes and other things that hurt the general operaters hauling exempt loads. I've opened an additional post for forming a Bulk Co-Op that hasn't had one response yet. So far it looks like folks want to complain about the problems in our hauling community, but, no one wants to get involved with something that could improve it.