09/09/09...time for a quick update on our wonderful industry.
For those of you who have not had a customer plant closure or customer bankruptcy over the past 9 months; consider yourself extremely fortunate. The economic slowdown created ripples that are still being felt and I have no idea how the true asset based carriers have been able to survive over the past 12 months, especially after last years spike in diesel prices.
Every company continues to battle for business and truck capacity seems to have tightened a little over the past few weeks. Shippers have been inundated by 3PL companies who saw the perfect environment for their services by being able to offer lower truckload and LTL rates. Bid packages have slowed down with the middle of the year being here, but I predict they will be back in full force after the end of the year.
As a particpant in the industry I would like to make a general observation. As things have evolved post deregulation I have heard some people say it was the best thing to ever happen in the transportation industry and I have heard others say it was the worse thing. I must agree with both of these statements.
The postives that have come from deregulation have been: lower prices; the ability for small companies to compete; and just a general openness in the transportation environment.
The negatives I have seen are: Commoditization of services; the ability for crooks to scam shippers/brokers/trucking companies without any punishment; and a general erosion of professionalism.
In theory a down economy is supposed to weed out the weak companies, but I am not sure I have noticed many brokers or 3PLs close their doors. However there have been asset based companies who shut down. And the remaining asset based companies still in business will get their reckoning on the brokers, shippers and 3PLs when the economy finally turns the corner.....make no doubt about it.
19 comments:
Ineed it has been a terrible year.
I owned and ran a small trucking brokerage since 2004. Since January 09 i've had 5 customers go either bankrupt or into recievership. of course by the time we realized we weren't getting paid for these trucks totaling almost $30,000 the trucks hired to haul this freight have been paid creating a devastating hit to our healthy cash flow to pay carriers timely.
Additioally I laid of a trusted employee of almost two years only to find out that she had been giving bogus check numbers to carriers while forging checks to herself. Flying solo since then then I've done my level best to sustain this company.
Business picked up somewhat in July and August. Of course I sold those invoices to satisfy the oldest carrier invoices in an effort to keep the collection calls at bay.
Realizing now that I only stalled the inevitable I am devastated to report that I am shutting my doors.
I have no idea what to expect.
Is there someone out there who faced the same difficult decision who can advise me on how to close the doors? I voluntarily contacted the bond company and informed them. I told my key customers and am finding myself terrified to pick up the phone because I don't know how to tell my carriers.
I am devastated. I am exhausted physically, emotionally and financially. The stress is so dibalating that I can't eat, sleep, my heart constantly palputates, my normal low blood pressure is spiking and I my hands are numb.
Ashamed
Time for antoher post. I keep checking but not posts. You should post at least once a month.
wow, That's great News
I hate most freight brokers but to say " great news" to someone that is losing it all is rude and uncalled for. As a carrier Ive been burnt by some brokers. Its been the bigger ones with dunns #s and all the bells. Of course a $10k bond covers a week of loads for them so most get screwed. The problem is that brokers have the same rep as lawyers and car salesmen in that they are out to suck every thing they can from you. But I hate too see some one go out of business. It could be karma coming around or a simple case of everything dropping at once. Good luck
its really good blog. I use this transportation factoring will get all parties the money they need when they’re supposed to get it.
I own a software company who programs the software and times are hard for alot of the smaller companies. I use to also drive for us express 11 years ago.. Sorry to hear about your business anonymous. Things will get better in the future.
We can't deny bankruptcy have cause a lot of damages these past few years. Some studies said that credit cards or loans is one of the causes of bankruptcy. Most of us avail this service because our budget can't reach our needs. For me, if you're planning to avail services for any loans, I can say that it is better to research about the loan. For sure, anyone of us is aware of bankruptcy issue. To avoid this problem, we are all responsible to understand the terms, services, and policy of a mortgage company before availing. Here in Missouri, cash advance loan services are very useful among residents here because they're given an opportunity to invest. When I availed this service, I make sure that every detail of their services are clear to me.
There are ups and downs in every industry and it is better to keep matters in control and not fret,there has been a bad recession but I think the scenario is becoming better and coming under control.
Freight Brokers keep up to 60% of the freight charge!! Again it's the power of the pen...
Haller
You seem to have a bundle of knowledge about the subject, please provide more so that we can enhance our knowledge as well. Thanks for doing such a great job
broker agent
I don't think 3pls should have a hand in it. Just fucks everyone that know what their doing. I bid a good farewell to you and your company. You were a scab to the trucking industry.
Its time to get away
Hey, don't be ashamed! You did your best. Sometimes things outside your control happen and you've just got to roll with the punches. Being a freight broker is tough, but persevere and stay true to what's important to you. You'll come out of it better in the end.
I was wandering, what does it take to get into the freight broker business? I think that I could do really well at it, but I want to make sure that I know what qualifications I need.
Hopefully, this trend in freight will be more positives than ups, a change or modification in policy and law enforcement may be of help.
Freight brokers are definitely affected in hard economic times. When the economy is slow, less people ship their products. There is just less business for everyone.
Ron | http://a1freightsystems.com/agents.html
Thanks for the heads up. It's true, there was a rough time for the industry as a whole in the last few years. It's nice that the freight transportation business keeps its head above water, though. It's one of the more constant industries. | http://www.jayde.com.au/profile/
My uncle uses freight transports when he needs to transport large amounts of stuff. He does this so he doesn't have to ever worry about not having enough room for his stuff that he needs moved. Also does it so he only has to make one trip instead of a couple of trips with smaller semi-trucks. http://www.starfreightlines.com.au/servicesguarantees
nice post
Business Brokers
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