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“I could have taken the load – it was mine if I wanted it – but I told the broker they could choke on it.” (http://www.landlinemag.com/todays_news/Daily/2008/Apr08/040708/040708-02.htm)

http://www.cleanmpg.com/photos/data/501/18-wheeler_s_idling_away.gifClarissa Kell-Holland – Landline - April 7, 2008

Trucker’s idling at a nearby Rest Stop.

When the supply of truckers willing to haul for losses dries up, freight prices will rise. The question is when will these guys get smart and drive smarter? -- Ed.

Frustrated with soaring diesel fuel prices and low freight rates, OOIDA member Matt Shelley of Rogers City, MI, shut down his truck and started making phone calls to his lawmakers this past week.

While he didn’t actually get through to any of them, Shelley said he’s not giving up on getting his voice heard.

“I can help a little by making another voice heard,” he told Land Line on April 3. “I did this for a reason, to stand up for everybody that ain’t big enough to do it.”

Shelley said he’s at his break-even point, but he knows some are a lot worse off than he is.

“I have very good friends that are losing their houses, losing their trucks, and they have nothing else to go to because trucking is all they know how to do,” he said. “Everybody around here is a truck driver, works in the woods or farms, and they’re all feeling the squeeze because of high fuel prices. They just don’t know what to do anymore.”

In the 10 minutes it took him to drive home and then head back to town for an item he forgot to pick up, Shelley said the price for a gallon of diesel went up 10 cents to $4.29.

“Who knows what it’s going to be tomorrow,” he said.

Shelley, a flatbedder, has been a truck driver since 1996. He just recently gave up his dedicated run hauling military freight after his fuel surcharge was capped at 32 cents a mile, while the cost for a gallon of fuel skyrocketed more than 72 cents during the same time period… http://www.landlinemag.com/todays_news/Daily/2008/Apr08/040708/040708-02.htm

What is making phone calls going to do? THEY can't just legislate away the problem, even if they wanted to. There's a crisis, and we all need to be doing something.

I think motel 6 is $29.99 a night in po dunk areas...and you can use it for up to 24 hours dude. Instead of burning 1/gal hr @$4.29 to keep warm...or freezing to death....just a suggestion.:Banane37:

As a drive to and from work along I-95 each day at 55mph, and am passed by numerous big rigs running at or above the posted speed limit, I think to myself "I wonder how much fuel they could save if they all kept their speed down, and as a result, how much more money could they bring home and how much money would it save me in all my purchases".

It isn't rocket science, if they slowed down to 50mph or so, instead of running at 75mph not only would all the above savings occur, but they would have a side benefit of less wear on their truck.

Great suggestion by Toastblows too. Whats the deal with all parked trucks keeping their engines running? Anyone....?

Cheers,

Since I found this site a month ago, I have been trying really hard to keep my speed way down. Ive driven a lot of highway miles for work recently, and have yet to come across 1 semi what wasn't running faster than me(50-60mph). This includes areas where the speed limit is 60mph, as well as 70-75mph areas. By the way all the trucks pass me, they are all doing the limit or more here in Oklahoma. I would like to try some side and distance drafting, but I think any gains will be negated by me having to increase my speed by 20mph to do it.

Its becoming clear around my area who the independent truckers are, whose truck has a limiter on, and who isnt paying for their diesel. The right and left lanes are both clogged with trucks at rush hour, yet there is a 15-20mph difference between the two.

human nature, if you dont pay for it, then why slow down.

I know i had an appointment in another town from where i live and was doing 60 in a 65/55 speed zone. As the weather was a bit nasty at the time. And i have many semi's drive past me speeding when they are too be doing no more then 55 tops.

I hear all these truckers talking about company truckers having limiters but I can't see how, every day I see them running up and down I-20 which is a speed limit of 65 at 70-75 if not more. Hell the other day I almost had a Fed-Ex truck clip me chaning lanes when I was running 60 in the Far Right Lane :eek:

I heard a tiny amount of a program on this issue this morning on the local NPR affiliate. The guest was saying that some truckers are taking jobs without surcharges just for the cashflow so they could pay the truck loan or rent, etc. These particular truckers are actually losing money by taking the job just to get the cash so they are on a downward spiral.

Supply and demand will take care of this problem and eventually we'll all be paying more for trucked goods. Unfortunately, some people are going to lose their jobs (hopefully the ones that drive the fastest).

Independent truckers are always paid by the mile. They have to drive long and hard in a competitive market. They just hit the wall. Independent trucking is dead. Lots of cheap trucks for sale everywhere.

Corporate truckers can slow down. They're paid by the hour. All the independents will be trying to get jobs with them. That would bring wages down if it wasn't for the union.

Lower speed limits are coming. But nobody will obey them.

I wonder what the roadways will look like in 20yrs? Will we have largely transitioned goods traffic back to the railway? Will the road surfaces be different because we lack the oil to create asphalt? Will telecommuting be the norm?

Interesting to think about...

I think motel 6 is $29.99 a night in po dunk areas...and you can use it for up to 24 hours dude. Instead of burning 1/gal hr @$4.29 to keep warm...or freezing to death....just a suggestion.:Banane37:

I am an Auto Transport Broker - most of our guys have to stay with the truck for their cargo insurance to be valid.

My company is one of the best paying (if not THE best) for our industry. I've been slowly increasing truck rates over the last 6 months. But, now it's at a point that my rates to my customers are causing me to lose some business! The customer then goes with a company charging less - that is paying truckers less. Truckers would rather take a load for $500 than have an empy spot. What's a girl to do?

Hi Ellen:

___I am very interested in the dynamics of your business. If another broker can put a driver and freight into a distribution facility for less, you will have to find their edge and take advantage of it too. I just do not see driver’s hunting for a loss to much longer irregardless of their cash flow situation. They either make a profit or they do not pay the mortgage and electric bill, let alone the truck payment?

___I am wondering how the brokers are dealing with it as a group? If you cannot get a driver to take the load for such and such, you tell the distribution facility it will cost xxx$’s or it doesn’t arrive, correct? Eventually the fuel surcharges (raises) get paid to the O/O’s or they don’t deliver I would think?

___Thanks in advance.

___Wayne

I was tracking the leadup to the supposed "strike" last week,
which sounded a lot more vocal than it wound up being in
reality. The O/O truckers just by themselves are too disorganized,
and none of the company drivers were on board, but the main
thing I saw them going wrong on was wanting cheaper fuel. I
even tried to point out here and there that the fuel isn't GOING
to get cheaper, long term, and what they really need to be
telling the public is to get ready for those high surcharges
and longer delivery times at lower speeds. Evidently greedy
load brokers are one of the chief impediments to the fuel charge
getting into the right hands [i.e. those that originally paid
to fill the truck].
.
They also seemed rather concerned that if things got too bad,
all the truckers wouldn't be able to make a living and the Mexicans
coming in would take all the jobs for 13 cents a mile or something.
Frankly, getting paid by the mile is one of the stupidest models
since it just encourages speeding. Maybe if more of them got
paid by the hour, they WOULD slow down and make a nice leisurely
trip out of it!
.
_H*

Hi Al:

___Everything you said is 100% dead on as far as I am concerned other than the ¢/mile. Fuel costs take a larger percentage of their income then their salary so they either adapt or die. Traveling at 60 mph yields an at best average speed of 50 mph actual from turn of the key to turn of the key and with the truck pulling all of 5.5 mpg, diesel at $4.00 per is costing over $36/hour. Unless the drivers are pulling in $72K per year considering a 2,000 hour year which I doubt, diesel costs a lot more per mile than they can earn in the same …

___Good Luck

___Wayne

I'd like to hear from truckers about why they struggle. Those of us who are non-truckers and don't walk in their shoes don't really know why they do what they do. What looks like idiocy from the outside may not in fact be so idiotic.

The economics suck, and the problem is that the whole industry is going to have to move at once to really make any difference. I see the problem as the following:

a) gas prices are high and aren't going to go lower
b) truckers don't know how to save gas while traveling - I haven't seen 55mph truckers out there, and I'm sure there are a lot of independent truckers out there that could be driving at that speed
c) truckers are unwilling to find other professions - I'm sorry to say, but when economics get hard, and especially when transportation costs go up, companies cut back on transportation, and get more effecient at it (ie fewer larger loads), therefore the demand for truckers drop, and so do the prices they receive for loads
d) the market hasn't had enough time to adjust for the above factors

There is such a big hole for a truck designed with really good aerodynamics and low rolling resistance. Hybridization won't help that much as they don't do much in town traveling, but there are big gains that could be made in the aero department.

Wayne- maybe Ellen and I could do a logistics/transportation "clinic" for you:D. As a broker she is facing the same issue truckers are- simply more capacity than demand right now. There are an overwhelming number of independents and small companies that are taking anything just to make payments or keep their drivers busy. At some point the cash, savings, and equity has to run out. Independents and small companies usually don't prebuy fuel. Sometimes I wonder if the large carriers hedged lots of fuel when they saw prices on the rise, and are able to run on the inadequate rates because of it.

As to why truckers do what they do. It is a way of life, not just a job, similar to other jobs that require long periods away from home. It is a culture with its own language. The only live contact with people is other drivers, warehouse workers, and truckstop personnel. There is NO social life. The job becomes the identity- and the driver adopts the behaviors that go with it.

A driver can typically log about 5-10 mph under the average speed limit without getting in trouble with law enforcement or company safety depts. An 11 hour day can net about 650 miles. A driver that stays at 55 mph nets about 550 miles. No problem if the load is a 550 mile linehaul. But if the load is 625 miles, and the unload takes 3 hrs, and there is a 100 mile deadhead to get the return load, which takes 2 hrs to load...The time keeps adding up. If a typical OTR driver does 2800 miles per week, he can drive for 47 hours averaging 60 mph, or 56 hours averaging 50 mph. That's a whole work day difference.

The business and culture (driver income, return on fixed costs, etc, etc) is based on that 2500-3000 mile/week mark. Like others have mentioned, a lot needs to change. But imagine if trucks could only do 2000 miles a week, how many more trucks on the highway to do the same amount of work? As for railroads, still just unit trains and long distance freight. Find a railroad map, the infrastructure is no longer there.

Keith

For a better look into all of this, try these sites:
_ http://roundtable.truck.net/
_ http://www.thetruckersreport.com/truckingindustryforum/
the latter is *very* active. Keith and Ellen can probably
point to more/better sites, too.
.
Have I mentioned recently that it's awesome that you two [and
any others who drive truck] have joined us over here?
.
_H*

Hi Keith:

___I am only seeing it in black and white unfortunately and with fuel consumption costing more than what a driver earns, slowing down is the only way to make the trucking way of life profitable let alone sustainable from my perspective. Even piling on more charges to cover the fuel, the slower and more efficient driver will be rewarded while the un-fuel efficient one will not as diesel climbs even higher.

___The WalMart’s, UPS and FedEx corporations already realize that at some point, the 55 mph driver/tractor/trailer rig is worth more to the bottom line than the 65 mph driver/tractor/trailer rig due to fuel costs alone. I see this with WalMart and UPS drivers locally already and it is those entities that will soon take over the freight business with the bottom line savings while the accelerator be damned drivers continue to lose their trucks due to poor business conditions and driving habits. The corporate drivers are still making $’s of course and if the larger trucking firms are receiving higher income for a given truckload of freight, than it should only be a matter of time before the O/O’s find the same or the freight doesn’t move.

___Help me out with the financing and maintenance side of that equation because a 55 mph OTR rig should last longer and cost less than the 65 mph one but there is a carrying cost of the tractor and trailer being on the road for a longer period that has to cost real $’s and I cannot get my head around that just yet?

___Good Luck

___Wayne

Hi Keith,

I agree with you that there is a lot to learn from the rest of us about the trucking industry/culture. It is safe to say that there are changes coming to all of America not just the trucking industry.

There is nothing new here. Just imagine being in the camera/film industry with the recent development of digital cameras.

Things are about to change the country big time.

I had a little count up of the big rigs that passed me on the way home yesterday, and the way in to work this morning. I drive 20 miles of interstate each way between exit 170 and exit 150 along I-95 in SC, usually averaging about 60mph.

Trip home yesterday, 14 trucks passed me
Trip in this morning, 8 trucks passed me.

I never left the right hand lane, so obviously, I didn't pass anyone :) OK, that’s not true, I actually did pass a Ford Expedition stopped on the hard shoulder.. (Maybe they ran out of gas?).

Knowing this information, I'm sure someone a lot smarter than me could calculate some kind of average trucks per mile along I-95 and average speed, possibly incorporating fuel savings if traveling slower.

Cheers,

I have to admit that I am guilting of not wanting my drivers to slow down. :(

Almost half of my business right now is sports personalities moving into or out of the area for the beginning/end of the season. These guys expect for their car/boat/4 wheeler/golf cart to pick up in Seattle on Monday and be delivered in the Metroplex on Tuesday! They have been catered to for so long in every other aspect that they just don't understand that we aren't FedEx. Many times they just think that they need to pay more to get it here quicker. Alas, the anxiety and stress trickles down (sigh).

I have several drivers that have down-sized to smaller trailers . . . some to 'hot shots' that don't have to follow the 'time on/time off' rules. Cars will deliver quicker but, I am concerned about safety (for the driver and the cargo).

One of my favorite drivers sold all 3 trucks and shut down last week ("going out while we're still ahead"). So, a few have already put 2 and 2 together. Others won't figure it out until the credit card is declined when they stop for fuel.

I feel strongly that if the drivers wouldn't take the low paying loads - the greedy-money hungry-do nothing brokers (myself excluded, of course) would be forced to raise their rates. But, I can also see it from the driver point of view - he would rather have something paying anything in that spot than run with an empty spot. SIGH!

I don't have 'product' going to a distribution facility. We pick up from the customer (or dealership) and deliver to the customer (or agent). A big portion of my business is moving and storage clients with corporate relocations. There's also my fleet sales and leasing companies (think Mary Kay). Anyway, with each move there is either a VERY limited window for pick up OR a time crunch for delivery. That is why I am in business - the moving and storage companies have 'pools' for vehicle transport (taking anywhere from 3 - 5 weeks to go across country). People won't tolerate that kind of service anymore!

On a side note, I am also guilty of asking why my chicken feed has gone up 25 to 30 cents every two weeks for the last 3 or 4 months. Uhm . . . it's carried in by TRUCK, you doh-doh! I am planting a small garden this year (instead of just tomato plants) so that I am not as reliant on produce that arrives by truck. I have considered goats for milk but, I just don't know if I can go that 'country'. All of that to say that the average American is so far removed from the manufacture/production of the goods that they consume - they don't equate higher prices with higher transportation costs. A trucking strike would be a REAL eye-opener.

Hi Ellen:

___You described your business as being “Between a Rock and a Hard Place” and I hope this all gets sorted out in the very near future with fuel costs being passed on to the end purchaser. Eventually it has to or the end purchaser/user doesn’t receive what he or she wants. Either way, it sounds like a painful transition is in our midst.

___Thanks to both you and Keith for your insights …

___Good Luck

___Wayne

I am an Auto Transport Broker - most of our guys have to stay with the truck for their cargo insurance to be valid.

My company is one of the best paying (if not THE best) for our industry. I've been slowly increasing truck rates over the last 6 months. But, now it's at a point that my rates to my customers are causing me to lose some business! The customer then goes with a company charging less - that is paying truckers less. Truckers would rather take a load for $500 than have an empy spot. What's a girl to do?


So if im hauling a load of lexus vehicles, its best to stay in the cab and sleep while my buddies steal the cars off the back, that way i get insurance covered and a lil extra on the side. I guess its worth freezing for a couple hours. :bananalama:

Wayne-
WalMart’s, UPS and FedEx corporations already realize that at some point, the 55 mph driver/tractor/trailer rig is worth more to the bottom line than the 65 mph
These and similiar companies don't have to deal with this:
Anyway, with each move there is either a VERY limited window for pick up OR a time crunch for delivery.
WalMart trucks exist in a very controlled environment. They originate from their own DC and go to their own stores, and often drop and hook at each point. The only regular "live" loading they do is when they pick up product from WalMart vendor's facilities to bring back to the WalMart DC. This is the only loading/unloading variable that their dispatch has to deal with.
UPS and FedEx semi's usually run between their respective facilities. These are regular, scheduled runs in a controlled environment. If you see a FedEx speed by, it probably is a Custom Critical truck, which does not operate with the same controls.
When a LTL customer doesn't have their freight ready in time, it's no big deal, there is the other customers' freight to haul. A truckload carrier is at the mercy of shipper/receiver appointment times, delays, changes, etc.
The variables are different. If I as a trucker, make a delivery appointment at a WalMart DC, then get hung up at the shipper, I don't have the option of calling WalMart and move the appointment back 5 hours. To them, its my problem. They'll take me at the next available appointment, usually within 2 or 3 days. Good-by backhaul, good-by making revenue for those 2 or 3 days. It's not just WalMart, remember the driver who got really nervous and defensive when he was late to the grocery DC? Because he knew there was a legitimate chance they would reject him, and he'd be screwed. He was late because he was hung up at the shipper.

My write up tries to illustrate the mind set. But these mind sets have a good dose of perception mixed in with facts, or vice versa. I've made the change, but it wasn't easy. And there are still times (very rare) when I need to run 65 mph to make an appointment.

Financing, Maintenance, Insurance
Financing- if financed $900-$1500 per month.
Maintenance- related to miles and usage. Yes, cost per mile reduces as speed reduces.
Insurance- if independent has own authority- runs between $5000 and $9000 per year.

Keith

I'm one of those with my own schedule and basically no hours of service requirements, so I only have to worry about the time the location is open of my unload facility. If I won't make it to the unload facility in time, I don't leave. I wait until the next day.

My schedules are very simple. Make as many loads as possible within the operation hours set by the unload facility. We have our own freight. Only variables are drive time to and from (within 100 miles), time required to load the truck (0.5-1.5 hours) and time required to unload truck (0.5-2 hours) I adjust my leave times to maximize the possible loads for the day and my truck speed has little effect on the overall day most of the time unless I can get very near to another load at the end of the day. I don't stop for anything all day. Most things can be taken care of when waiting on one end or the other of the trip.