Reorganizing the Industry
Hello Friends. As a couple of you know, I had a stroke, followed by a heart attack, which took the wind out of my sales and hampered my desire to come out of retirement and open a new trucking company. That being said, I have continued to keep up with most aspects of the transportation industry, including following the descussions/debates on this site in regards to dry bulk hauling. (Maybe I have too much time on my hands) With everything costing 3 to 4 times more for us than it did prior to de-regulation, and rates being low for decades, something needs to change.
HOS? As I did against DEREGULATION years ago, I have been fighting for improvements to the present too restrictive HOS rules, the government has shoved down our throats, via letters to Martinez.
Rates? Sure, who wouldn't like to receive $3.50 per mile on all loads; or, for running loaded or empty. The majority of us on the trucking side know what the operationg costs are to run rigs. My suggestion is for the bulk industry to establish minimums on what rates should be and if everyone, O/O or company, would agree to this then the playing field would become more level. Nowhere in the Motor Carrier Act of 1980, or anywhere else, are there rules against companies and Owner/Operators, operating with revised basic standards like this. Setting minimums that shipppers, or brokers, would have to become familiar with, would help insure we can become more profitable and easily pay drivers a decent wage. This would keep shippers, or brokers, from coming up with ludicrus rates like offering $1.10 to $1.90 per mile, for example, for loads. And, yes, I am sure there are folks out there who run real cheap. However, I can never imagine running for a buck ten and then not finding anything in the delivery area to return home with and ending up actually running for a round trip rate of 55 cents per mile. Sheesh!!
Loaded Miles. At the present time, at the end of the winter duldrums, the national average for hauling freight is running $2.20 per mile. For refer loads the national average is $2.32. These are DAT figures. We all know the rates will increase substantially as the year goes on. And, or course, weight is not a contributing factor in this. It costs just as much to haul a load of lettuce from Arizona to Chicago weighing 32 thousand pounds as it does to haul one weighing 42 thousand pounds. Why should weight make any difference on what dry bulk haulers are paid? Industry standard? Sure! The agricultural industry. Not trucking's!!
In the dry bulk division of trucking, my suggestion would be a basic nationwide minimum of $2.20 per mile for live loads; or, $110 per hour for local, or anything not exceding 200 miles from a shipper, with a minimum of 3 hours for the service.
I would also suggest $1.65 per mile for dead head from your base of operations to the shipper; or, from the point of delivery to the next shippers location. Someone may ask, "Who chages deadhead?" Well, in the transportation industry, bus companies charge approximately 75% less than their live rate to pick up charter/tour groups for their service, to cover drivers expenses, fuel, etc. What is the difference between running a bus empty or running a truck empty??
Demurge charges are a plague on the whole trucking industry. I would suggest $80.00 per hour after the initial 2 hours at a shippers/receivers facility.
Delivery and pick-up rate. I would suggest a fee of $50.00 for each pick-up and delivery. I have never seen in writing the law/rule that states a driver/company must give a shipper/receiver two hours of your time in regards to picking up or delivering their freight/load. All I've ever heard is the explanation; "It's the industry standard!" Where did that ever come from? The idea of "giving" a shipper/receiver two hours of your time upon your arrival has always been a sore spot with me. These people are not "giving" you anything. And they are real quick to punish you financially if you are late with a load.
Of course, other things to concider in regards to a load, that need to be charged to a shipper/broker, are the extenuationg costs regarding wash outs, tolls, fuel surcharges that may arise, and weight tickets that insure the load may be transported legally.
I would do anything I could to help improve, or possibly re-invent, this industry. Of course, the elephant in the room would be those who don't realise the benefits of making improvements to help themselves and the whole industry. As usual, your comments for/against will be appreciated.