There's an interesting article in the Wall Street Journal (paywall) about the truckers.
https://www.wsj.com/articles/truckers-wrestle-with-oversupply-of-big-rigs-falling-freight-rates-11564311602
During last year's freight boom they ordered a lot of new power units. The manufacturers were backlogged so much of the new power is just getting delivered now. The problem is they don't need it now. The freight market has gone soft.
So, new capacity it coming on line in a soft demand period. This is driving freight rates down. According to DAT the average spot market rate for a dry van is down 18.5% from 2018. The truckers' earnings are taking a hit because of this.
Unless they can somehow get out of their order they've got to take the trucks and they've got to pay for them. So, they bid down their rates to get some money, any money. There's no way to pay for a truck that sits still.
This is a big factor for why rail intermodal volumes are down. If I was doing the railroad's intermodal pricing I'd stay right with 'em. The railroad's marginal costs are lower than a trucker's marginal costs. And that means they shouldn't be able to beat a railroad on price. (Given a reasonable intermodal lane.)
The railroad will take a hit with the lower prices, but that's the current market. It beats maintaining the current price and having idle equipment and unused track capacity. These two things bring in no money at all. And their costs just keep on going.
But I ain't in charge.
What carriers do in a situation like this is 3 things. First off trade or sell of the oldest equipment faster especially with the modern emissions control equipment on the stuff. 2nd we concentrate on our contracted shippers and recievers making dang sure we keep them happy and avoid losing them to someone else. Lastly we watch our bottom lines by hedging fuel costs watching where and how much fuel we buy in certain states that cost us more to buy fuel in overall. We may feel a pinch in profits for a quarter or so however we will be fine. We can keep the trailers a year longer if we can retire those 2016 model trucks this year and finish driving out a mega carrier out of town that is about gone.
Shadow the Cats ownerFirst off trade or sell of the oldest equipment faster......We can keep the trailers a year longer if we can retire those 2016 model trucks this year
https://www.youtube.com/watch?v=FZ36yCvFzMk
or
https://www.youtube.com/watch?v=TQ5UN1DmA8Q
Shadow the Cats owner What carriers do in a situation like this is 3 things. First off trade or sell of the oldest equipment faster especially with the modern emissions control equipment on the stuff. 2nd we concentrate on our contracted shippers and recievers making dang sure we keep them happy and avoid losing them to someone else. Lastly we watch our bottom lines by hedging fuel costs watching where and how much fuel we buy in certain states that cost us more to buy fuel in overall. We may feel a pinch in profits for a quarter or so however we will be fine. We can keep the trailers a year longer if we can retire those 2016 model trucks this year and finish driving out a mega carrier out of town that is about gone.
Thanks to Chris / CopCarSS for my avatar.
We got a new Western Star truck for our small fleet. The lead time was upwards of 6 months. We just got a second one very easily and quickly when a delaer offered us a bank repo. The pendulum is always swinging. You can have all the trucks in the world but they wont do you any good without drivers. That has been and will continue to be an issue in the trucking business.
We are doing all 3 at the same time we caught a break in a way our trailer order had yet to be placed as the boss was still debating which maker to go with. We had 2 companies that were in the running and both were and right now are trying hard to drum up business for them. We still might place it but with way better terms than before. The hedging has been SOP around here for years but now we are doing it for a 6 month timeframe instead of a 3 month timeframe for our on road purchases our bulk tank for yard use is still done on a yearly basis. My boss unlike the mega fleets doen't really have the turnover problem that the mega fleets does. Well when your treating your drivers like a human being instead of a machine it does help.
Shadow the Cats ownerMy boss unlike the mega fleets doen't really have the turnover problem that the mega fleets does. Well when your treating your drivers like a human being instead of a machine it does help.
We're already sitting on a waiting list for new drivers. It's rare when I have to go to the local community college driver training program and the students go I'm not even going to consider your company. Most of the ones that don't we can't hire anyway as they're unable to pass the background check for a hazmat endorsement. We require all driver's to have one and if you're unable to get one you're not getting on here. So we can kinda get to pick and choose who is going to be working here. Just that one required endorsement can get you the best jobs.
A lot of those older trucks get shipped overseas, like Russia and Asia.
Russia and South America are the largest market for older US trucks that are retired by fleets. They don't have the emission requirements so the first thing removed from the trucks is the DEF and SCR system plus any and all egr systems on them. Then they put them into service.
Shadow the Cats owner Russia and South America are the largest market for older US trucks that are retired by fleets. They don't have the emission requirements so the first thing removed from the trucks is the DEF and SCR system plus any and all egr systems on them. Then they put them into service.
They are not the only places where older trucks go. Hundreds of them wind up in Texas where they are used by gravel and rock haulers. How can one tell? Because most of them have sleeper cabs. What? A rock hauler that is a day time only operator needs a sleeper cab?
Several people near where I live in south Texas have been killed by gravel trucks. In one instance a gravel truck ran through a red light, slammed into a 74 year old motorist and his wife, and killed both of them. The drive claimed that his brakes failed. The police could not find any skid markets prior to the intersection.
JPS1 Shadow the Cats owner Russia and South America are the largest market for older US trucks that are retired by fleets. They don't have the emission requirements so the first thing removed from the trucks is the DEF and SCR system plus any and all egr systems on them. Then they put them into service. They are not the only places where older trucks go. Hundreds of them wind up in Texas where they are used by gravel and rock haulers. How can one tell? Because most of them have sleeper cabs. What? A rock hauler that is a day time only operator needs a sleeper cab? Several people near where I live in south Texas have been killed by gravel trucks. In one instance a gravel truck ran through a red light, slammed into a 74 year old motorist and his wife, and killed both of them. The drive claimed that his brakes failed. The police could not find any skid markets prior to the intersection.
Brakes tend to fail when the brake pedal is not depressed.
Never too old to have a happy childhood!
JPS1The driver claimed that his brakes failed. The police could not find any skid markets prior to the intersection.
What would you propose would generate skid marks if the brakes failed?
(I'm assuming this wasn't a truck with spring brakes ... but the police would surely have checked that first before looking for skid patterns.)
Perhaps they need PTC (Positive Truck Control) that will ensure trucks stop at stop signs, red lights, grade crossings, etc., if the driver fails to act. Might save more lives than the rail version!
I suppose it depends on when they failed or if even applied. The parents of a friend of mine were killed when a truck guillotined them from behind as they were driving on the I 20 bridge over the Mississippi one night. No skid marks.
I'm sure trucking companies are doing the best they can to manage through this.
But for some it's like trying to manage getting hit in the knee with a baseball bat.
https://www.arkansasonline.com/news/2019/jul/26/freight-carrier-s-net-falls-to-1-000-20/?mod=djemlogistics_h
USA Truck managed to make a profit in the 2nd quarter of 2019, a whopping $1,000. Down from $2.5 million in the 2nd quarter of 2018.
What this means is that they're going to flail around like a drowning man trying to grab any revenue they can get. Freight rates will go down as this happens.
The rail rates need to go down to keep with 'em. But I don't see this happening. If your competition is drowning, help them do so.
greyhounds I'm sure trucking companies are doing the best they can to manage through this. But for some it's like trying to manage getting hit in the knee with a baseball bat. https://www.arkansasonline.com/news/2019/jul/26/freight-carrier-s-net-falls-to-1-000-20/?mod=djemlogistics_h USA Truck managed to make a profit in the 2nd quarter of 2019, a whopping $1,000. Down from $2.5 million in the 2nd quarter of 2018. What this means is that they're going to flail around like a drowning man trying to grab any revenue they can get. Freight rates will go down as this happens. The rail rates need to go down to keep with 'em. But I don't see this happening. If your competition is drowning, help them do so.
But one would never guess that in "Lake Shadow Cats, where all the trucks are super, all the drivers are happy and the profits above average." [freely lifted from Lake Wobegon]
USA Trucks last year had a turnover rate that was over 140% they spent more on recruiting than we did in Qualcomm costs for the year. They have over 10 people that all they do is try and get more fresh bodies into the company for the next class of drivers to start. Also USA lost their lawsuit last year over how they tried to overtake Cal/Ark trucking in Arkansas and the owners of that company where awarded a few million bucks from USA trucking for their poisoning the waters so to speak.
Overmod JPS1 The driver claimed that his brakes failed. The police could not find any skid markets prior to the intersection. What would you propose would generate skid marks if the brakes failed?
The absence of skid marks would tend to support the driver's contention that the brakes failed. Or raise the possibility that he did not even apply them.
I don't really know whether the brakes failed, or whether the driver simply did not apply them.
Unfortunately, in Texas you cannot learn the outcome of traffic accident investigation unless you were party to the accident, or you are an insurance adjuster or a police officer.
My point is the trucks appear to be hand-me downs. Moreover, at least some of the gravel trucks operators in Texas are marginal operators, which may mean that they are not mainting these old trucks very well.
cx500 Perhaps they need PTC (Positive Truck Control) that will ensure trucks stop at stop signs, red lights, grade crossings, etc., if the driver fails to act. Might save more lives than the rail version!
You raise a valid point that I have wondered about.
Every year big rigs kill or injure thousands. In Texas, where I live, they routinely exceed the speed limit, run in the "No Trucks" in the left lane, etc.
I drive more than 25,000 miles a year. So, I am on the road a bit. It is rare to see a truck pulled over by the police. Makes me wonder how much the truckers give the policeman's benevolent association?
JPS1It is rare to see a truck pulled over by the police.
To use the analogue of the same argument you tried a few posts back: the government tries a version of this via enhanced penalty points for a wide range of 'offenses' for CDL holders. The problem quickly becoming that even a couple of Mickey Mouse offenses will suspend the CDL ... which is the only valid qualification ... for driving an over-the-road truck legally ... and you shouldn't find any more surprising there's a 'driver shortage' than there's a 'nursing shortage.'
Some of the horror stories about driver 'persecution' at weighing or inspection facilities -- one that was apparently common a while back being a trooper asking a driver to pull up a bit to clear a lane while getting out paperwork, then issuing a citation for 'no seat belt' during that short move -- reflect something of a disregard or even ignorance of the more 'global' considerations. In a very real sense, then, increased 'enforcement actions' would result more or less quickly in perhaps vastly increased expense to be passed along in the cost of services to end users of trucking. Be interesting, perhaps, to see implementation of specific surcharges, like the ones on fuel during each 'crisis', for driver-related issues: one thing that would do would be squarely establish for the public (which is where the policy choices should be fairly assessed) where the tradeoff between stricter traffic-law enforcement and higher, say, CPE will be.
As to niggling things, I received one non-hazardous load that was held at an inspection stop because the bill of lading indicated that the shipment was hazardous (the shipper failed to mark through that printed section on the form). Of course, there were no placardson the tractor or van. The OTR driver told me of the interchange between the inspector and him (the driver was something of a smart-xxx), and the inspector went through the load (all one liquid) and found nothing hazardous. The driver should have looked at the form carefully before accepting it.
A local driver whom I saw often was of quite a different character. The first time I shipped "empty" gas cylinders, he could not accept the shipment baecause I had two certain classes of hazardous gases that may not be shipped together. So, I took the cylinders of one class off, altered the bill of lading,.and shipped those cylinders another day.
Johnny
Shadow the Cats ownerRussia and South America are the largest market for older US trucks that are retired by fleets.
It's probaby minor compared to the foreign market, but here in the plains, farmers often buy used trucks. The trucks usually sit for a majority of the year, but get used heavily at harvest. For farmers with their own storage capability, the trucks may get used other parts of the year, but nowhere near the OTR companies .
JPS1Because most of them have sleeper cabs. What? A rock hauler that is a day time only operator needs a sleeper cab?
Same for farm trucks. It's not unusual to see corn being hauled to the ethanol plant or the grain elevator by a truck with a sleeper cab.
York1 John
York1Same for farm trucks. It's not unusual to see corn being hauled to the ethanol plant or the grain elevator by a truck with a sleeper cab.
I haven't noticed any sleeper cabs, but one farm I pass on a regular basis has so many cows that they have to spread manure literally all over the county. The liquid manure tanks are hauled by semi-tractors, likely former OTR, or at least day rigs.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
Overmod JPS1 It is rare to see a truck pulled over by the police. To use the analogue of the same argument you tried a few posts back: the government tries a version of this via enhanced penalty points for a wide range of 'offenses' for CDL holders. The problem quickly becoming that even a couple of Mickey Mouse offenses will suspend the CDL ... which is the only valid qualification ... for driving an over-the-road truck legally ... and you shouldn't find any more surprising there's a 'driver shortage' than there's a 'nursing shortage.' Some of the horror stories about driver 'persecution' at weighing or inspection facilities -- one that was apparently common a while back being a trooper asking a driver to pull up a bit to clear a lane while getting out paperwork, then issuing a citation for 'no seat belt' during that short move -- reflect something of a disregard or even ignorance of the more 'global' considerations. In a very real sense, then, increased 'enforcement actions' would result more or less quickly in perhaps vastly increased expense to be passed along in the cost of services to end users of trucking. Be interesting, perhaps, to see implementation of specific surcharges, like the ones on fuel during each 'crisis', for driver-related issues: one thing that would do would be squarely establish for the public (which is where the policy choices should be fairly assessed) where the tradeoff between stricter traffic-law enforcement and higher, say, CPE will be.
JPS1 It is rare to see a truck pulled over by the police.
For every one of those tales, I'll bet there are 50-100 stories told by truckers of how overweight trucks avoided any weigh-in penalties by various nefarious means.
charlie hebdoFor every one of those tales, I'll bet there are 50-100 stories told by truckers of how overweight trucks avoided any weigh-in penalties by various nefarious means.
You betcha! But remember that avoiding weighing isn't really a 'safety' concern any more than revenooers are concerned with health when going after moonshine stills.
Of course I feel very differently, and if I were in charge trucks would have far lower weight limits, better mandated suspension, required on-demand weighing with stiff penalties for any overage, etc. so it's not about letting the industry get away with something. Be nice to have mandatory safety inspections but you couldn't practically do it other than the way it is now ... probably with more than a little JPS1-style nudge, nudge, wink, wink in the contracted garages or with the contracted inspectors, not to impugn the road equivalents of FRA men.
One solution that was discussed fairly long ago was the idea of allowing an extended version of an event recorder on a truck, which would take readings from the data buses and allow remote download of some of the safety-related data at nearly any time. Aside from making sure folks with experience in gaming tech inspections and the like couldn't fake the data ... there are security problems.
The question I'd ask is whether there are 50-100x the stories about defeating limiters or EGR, or figuring out how to cheat or exploit e-logs, or driving impaired. I'm reasonably sure there are some.
The fueling system in use by our school and emergency services (FD, PD, EMS) now links directly with the vehicle, providing a record of mileage (we used to have to key that in manually), fuel usage, and potentially a host of other parameters.
It's not too far fetched to imagine RFID technology, combined with weigh-in-motion scales at prime locations (some perhaps on those back roads favored by weigh station avoiders), and even some two-way communications with e-logs, to monitor trucks.
Overweight? Over hours? Your ticket is in the mail!
Overmod charlie hebdo For every one of those tales, I'll bet there are 50-100 stories told by truckers of how overweight trucks avoided any weigh-in penalties by various nefarious means. The question I'd ask is whether there are 50-100x the stories about defeating limiters or EGR, or figuring out how to cheat or exploit e-logs, or driving impaired. I'm reasonably sure there are some.
charlie hebdo For every one of those tales, I'll bet there are 50-100 stories told by truckers of how overweight trucks avoided any weigh-in penalties by various nefarious means.
More, by a power of 10!!
Another way of enforcement of traffic laws is the use of remote devices to photograph offenders and then send the miscreants a ticket by mail. That's used here, mostly at traffic lights. In Germany, stretches of Autobahn with heavy traffic loads and thus speed limits (more and more) have inconspicuous cameras to catch speeders. It works.
charlie hebdo Overmod charlie hebdo For every one of those tales, I'll bet there are 50-100 stories told by truckers of how overweight trucks avoided any weigh-in penalties by various nefarious means. The question I'd ask is whether there are 50-100x the stories about defeating limiters or EGR, or figuring out how to cheat or exploit e-logs, or driving impaired. I'm reasonably sure there are some. More, by a power of 10!! Another way of enforcement of traffic laws is the use of remote devices to photograph offenders and then send the miscreants a ticket by mail. That's used here, mostly at traffic lights. In Germany, stretches of Autobahn with heavy traffic loads and thus speed limits (more and more) have inconspicuous cameras to catch speeders. It works.
Camera enforcement is all about revenue enhancement! Safety never enters the equation.
JPS1 Overmod JPS1 The driver claimed that his brakes failed. The police could not find any skid markets prior to the intersection. What would you propose would generate skid marks if the brakes failed? The absence of skid marks would tend to support the driver's contention that the brakes failed. Or raise the possibility that he did not even apply them. I don't really know whether the brakes failed, or whether the driver simply did not apply them. Unfortunately, in Texas you cannot learn the outcome of traffic accident investigation unless you were party to the accident, or you are an insurance adjuster or a police officer. My point is the trucks appear to be hand-me downs. Moreover, at least some of the gravel trucks operators in Texas are marginal operators, which may mean that they are not mainting these old trucks very well.
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