by: Pash Brar
If you’re ever sitting at a full blackjack table in a casino you have two choices: you can be selfish by working alone and not make any money, or you can take turns taking a hit, busting out and another person at the table wins. If each person at the table knows what they’re doing, they each take turns taking a hit, so the rest of the table has a chance to win. It’s about beating the odds. If you don’t bust out, the dealer will win. In trucking where the environment is currently incredibly slow, the same odds will apply when you want to make money. If you are selfish, you don’t win. If you take a hit, everyone wins.
I see owner operators who are frustrated at their jobs. They don’t like the company and people they work for and go from one trucking company to another. When nothing changes at yet another new company, they open their own firm and think this will be the solution to all their problems. All they have done is now created more competition in an over flooded environment. Currently there are far too many trucking firms and not enough work to go around. Instead of a few firms getting the loads and sharing them, there are thousands of small companies trying to get what few loads there are and driving the prices down.
Most small new trucking companies starting out usually lack a customer base. Business is about the connections you build. Some firms with many years in operation have set clientele who are loyal. Getting that business is nearly impossible because years of working together and forming a trusting relationship bond is hard to break. Why would a firm give a new company business when they have years of a proven record with their existing clientele?
When the new company cannot break the strong bonds, they often go to load brokers. Unknown brokers in an unstable trucking economy are risky. I know of several firms who have lost six figures because they took a load from an unknown broker, sent the driver who did the load, paid the driver, and then the cheque from the broker bounces if you get a cheque at all. Brokers who are known and honest usually have a set clientele as well. I have seen some desperate companies try to cut the broker out and go direct. When the broker finds out, which they always do, they will never work with you again and tell others about your indiscretion. Once you are discredited, trucking will be very difficult because no one will want to deal with you. So, if you go with a broker take the time to get to know them, their reputation, and treat them with respect.
Another option for loads is LoadLink on a computer. Here I see it as a free for all. Competition is good, but only to the extent that everyone is still making money. If you want a load and you undercut the next firm in price to secure the load you made a big mistake because you drove the industry price down. People ask why are truckers not making much money now? It’s because some firms think the only way to get business is to under cut the competition. Is it worth it to take a load that doesn’t have a profit? Some even spend more on fuel than they are getting paid. Do the math. When you drive the price down, we all lose.
When trucking is slow, it’s often a time where small newer firms lose their businesses and the long-term trucking firms stay in operation. I don’t like seeing firms closing, but I also don’t like seeing under handed tactics to obtain a load; like cutting out brokers and undercutting the pricing. I see a slow economy as a reset where the people who don’t understand the industry are eventually eliminated. I would rather see less firms trying to go out on their own and instead work with a larger firm with established loads. Getting a load from a large firm at a good price is better than working alone and getting zero loads or paying for loads because they have no profit. Working cooperatively will get you something, instead of nothing. If you aren’t willing to work with others and take a hit for the industry, you will be eliminated. Your company will fail or be bought out by a larger firm. If you don’t take that hit from the dealer at the table and take that extra card when you know you will bust, the whole table loses and the dealer wins. If you take the hit, someone will win at the table and then they will take the next hit and bust out for you. Remember that. It’s not about “me” in trucking, it’s about all of us working together so the whole table wins.
