Where is the Trucking Industry Headed? Convoy Shut Down & Freight Broker Bubble Bursting
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- เผยแพร่เมื่อ 21 ต.ค. 2023
- Most of us have already heard that Freight Broker CONVOY has shut down their business. This freight recession is affecting every player in the game, so let's chat about freight brokers, carriers and what will be happening in the future considering the current freight market conditions.
References:
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I think more people need to just deal directly with the producers and manufacturers and cut out 90% of the brokerage firms. Brokers are just like Wall Street day traders.
The problem is the shippers don't want to deal directly with with just anybody
@@charlieboy501 This is why we use computers
WAY easier said then done. Usually unless you have a large equipment pool you cannot get on directly through shippers.
That's a bad comparison - not because of the negative connotation, but because it's just straight up a bad comparison.
Brokers fill a few different roles in the supply chain. Any and all of these roles can be filled by either Customers or Carriers, but not without one or both spending time and money. Because one or both parties prefer not to spend that time/money filling those roles, they use brokers instead. The costs and investment don't change, just the people doing them. Brokers carry risk and costs right along with customers and carriers. A portion of the money and time you save not having to do the work instead goes to the broker. Markets 101.
For example, as a customer you can opt to hire a transportation manager, spend money on boards and carrier vetting, have a line of credit to finance 0-60 day invoices for shipping costs, extra insurance, etc.. By using a broker they can eliminate most of those roles/expenses and gain the advantage of a no interest line of credit for shipping costs ranging from 30-90+ days.
As a carrier you can spend time and money on customer development yourself. If you're just one person, you spend time on the load boards booking your own freight but that takes away from your drive time or is only available to you in your off time, potentially giving you sub-optimal loads. You can vet the customer credit yourself and handle all billing/collections yourself, or pay somebody to do it. The situation is different depending on whether you're a small owner/op or a multi-unit carrier, but the basics remain the same.
It’s easier said than done bud a carrier that I work with closely to get his biggest customers it took him over 5 years before he got a chance of getting direct freight from them
Say no to low rates. We have the power. Together.
I hope more drivers show some dignity and stop getting cheap loads and like you said we got the power but some drivers don’t have the ⚽️🏀⚾️ , you know what I mean..
it’s sad because i know a lot of old school truckers who used to make $200,000+/year
that’s old news now.
Less drivers. Barrier to entry by artificially limiting the numbers in . Now anyone can be a driver but you need to be certified and follow the rules.
Freight brokers are going down hard. Companies are tired of hauling back haul at $1.50. They are choosing to get direct back hauls cutting all the brokers profit. It's going to get ugly with less loads on spot market but brokers will get the blood bath they started. That's why all these trucking companies with brokerages are going bankrupt. Companies are getting pay back on the thieves by stealing their freight.
I hope, seems an app. could do it, and with less mistakes.
Brokers and cheap carriers need shaking up. With modern technology we should actually bypass brokers and direct ship, by pass the middle man
Like UBER and U-Ship?
Bitcoin fixes this.
This lady knows what shes saying im a owner operator and i book my own loads and handle all ny business by myself but its been tough because its too many people in the business with no business etiquette and now the shippers all clise on friday early to monday leaving truckers stuck, ive recently been seeing 400 mile loads they want you to take 4 days to do and keep 1 short load for days for cheap we need a change and ive been saying that the industry will correct itself but the only reason im still around is i know alot about trucks and i dont do cheap freight so i can still make some profit, this lady is one of the only people on youtube that makes sense
I agree, she does make lota of sense we are handling our own trucking company and make moves based on where the loads are and capacity is tight. WE CONTROL OUR OWN DESTINY. ❤
Do you get your loads straight from the shipper?
@@klvAcosta we do both brokers and shippers
Jones Transport went from paying 19-2100 per load to Dayton, OH to 1000-1200.00 and after speaking with someone there that was leaving, informed me that the rate stayed the same. They just found carriers to move it cheaper.
It’s sad but unfortunately, that’s how they are.
During Covid when freight fell off, I was told by a broker on a load out of Chicago that “1.62 per mile is the rate, take it or leave it. You need us more than we need you.” I don’t feel sorry for brokers like that..
Hello, when you talk about brokers, your smile of satisfaction is priceless.
😂I thought I hid it pretty well but guess not
As The Saying Goes…”What Goes Around Comes Around”
@@TruckingMadeSuccessful O yaa…
@@kenb8859 True…
Am glad what is happening, if companies like CONVOY can't manage these cheap loads, truckers should take heed. Fuel, taxes, maintainance etc aren't cheap so truckers picking cheap loads..your day is coming
By far the most informative and educational youtube trucking channel i ever found in 8 years on trucking. Thank you for all the videos
Greed will do you In every time. When things were good I stayed in my lane and paid down my debts. Now I’m riding out the storm. I’ve been at it 46 years. I’ve seen em come and I’ve seen them go. And I’m still here!
That's what I basically did, paid most of my debt, I have assets, to sell to keep me afloat and to reinvest in other type of businesses.👍 while I took a hit of $50 cut from each local load here in Los Angekes,Ca.,,but I can't complain cause my shipper let's me park my trucks and trailers for free.
Average parking space in L.A. is about $600 a month.
Great video! You do a phenomenal job explaining everything. Thank you!
Really digging the new intro ! Nice to get you back,and feeling refreshed.
Convoy had too many empty tailers just parked sad because they were the first ones who open the doors for me when my mc was new
Your optimism is refreshing, but this isn't a free market. This is a Highly manipulated market, and the ones on top know exactly what they're doing in order to kill the little guy
You got that right!!!
Yup tired of this naive bs. You have everything working against you as a small business owner in this country. Especially in trucking. More regulations than you can stomach and nickel and dimed at every turn. They don’t want you to be independent they want you working for the big corps
The deregulation of the trucking industry had one main goal, to make trucking cheap.
We never got deregulation.
@@redleader7988 "Motor Carrier Act of 1980"
It was to make freight cheaper, which didn't happen.
Now its just about over saturating it with third world drivers, riding high on peanuts.
You did get auto trannies.
Great video; thank you for sharing this with us, it makes sense what you are sharing. I agree with your statement; regardless how things go, a free market is the best way of doing business. I am a team operation so we stay above the average’s but the cost of running today is very expensive it helps to really know about preventative maintenance and finding a good mechanic. I’m not sure how many truckers know this; but ever 100k miles you need to have a valve adjustment done, it usually runs about $400.00 and takes roughly 5-7 hrs.
Thank you !
Be careful with tql folks, I’m hearing bad things
TQL, will not go broke that's for sure, at times TQL can be difficult be overall not a bad brokerage to work with
TQL has to pay back Over-time to employees. Do believe DAT sued Convoy for using platform. Convoy had to pay up. Let's see if TQL closes after paying back Over-time
Good stuff ! My dispatcher and i both use information from your channel. Keep up the great work
She and i really appreciate it
I drove for CFL back in the 90s. A good company. Sad they are going out of business. Stay Blessed Miranda.
Welcome home, happy your back.
Thank you.
Wonderful analysis of a topic we usually don’t hear much about. Thanks !
I did like this video.. You had some good points.. Some are gonna go belly up but the ones that can stick it out "MIGHT" survive in the trucking industry.. Thanks for sharing!!!
I wouldn’t be able to survive without brokers as a new authority. I am OTR so I don’t have dedicated customers. I am on DAT and broker specific load boards . I just stay away from cheap freight and stay in good areas. I am very selective of who I haul for. I have been able to make a pretty decent money. Tight markets are about financial positioning. My equipment is paid off and I am personally debt free. I don’t have the “pinch” of money driving my business, smart decisions drive my business.
How new are you? Your able to find brokers working with new authority? Like who? I'm curious. Kind regards.
Which broker specific load boards? - New Authority here
@@yvmap6799. TQL. Ch. Robinson. A few others but only way to know is to call.
@@yvmap6799good question, how ? When your authority is new, you can’t book any load . Its not possible , no one wants to work with you
Keep calling. Someone will work with you. half my calls I get denied for “no inspection” or “age of authority” but I’ve still ran for some of the biggest names in logistics…it’s about how bad you want it and make it work for you!
I learned today. Thanks. Keep going
Freight Waves had another article that came out today that did a pretty good dive into Convoy as a business. Taken down to brass tacks, it's pretty easy to be a disruptive force in the market when you don't have to worry about making a profit. If I had hundreds of millions of dollars in venture capital with which to undercut brokers and carriers on freight costs, I could take quite a bit of the market from my competition, too. Get rid of the free money and it's suddenly much harder to compete.
How many carriers and brokers did Convoy put out of business because they pretended to be something other than what they were -Just another carrier/broker?
God I missed your videos so much. My week is incomplete without your weekly updates. I hope you feel much more refreshing now.
I do! 😎
@@jayway8612 in the form of vitamin pills? Yes. I refuse to go outside 🤣
Thank you for all you do for us
Convoy is a classic example of startup failure. It can’t be compared with typical broker exit because baked by Gates, Bezos etc., Convoy entered market with idea of disrupting traditional brokerage and change the rules of the game. However, because there was nothing really revolutionizing behind their idea, they was simply swallowed by the existing market rules and became its mediocre player. As a result so called disruptive startup has failed and shutdown. Now coming to a Flexport, is another example similar to Convoy, they come to disrupt sea freight industry with weak idea, hence they won’t succeed and May soon follow the way of Convoy. I’ve got supply chain management and busyness analysis background with 15 years hands on experience, enough to observe and predict the fate of those companies. Uber freight has nothing to offer as well, another failure.
Excellent comment, Uber will be the next one to fall. One of the biggest challenges the carries face is when the brokers go out of business a vast majority of the carriers never get paid. This is criminal in my opinion and an obvious disadvantage to most one truck carriers.
I think CH Robinson is next.
Or they just took advantage of the market at the time made money and knew the outcome?
@@raheemtheinvestor What’s the reason? They look to me as a traditional broker with long market up and down experience. I believe they know what they are doing.
@@Robert-bt8cp Thanks for sharing, Robert. Yah you right, I am often thinking what if my next factored load won’t be paid in 60 days and I’ll have to suffer from recourse.
I worked with Meadowlark up until 4 months ago. Glad I saw the writing on the wall. They did not go under for the reasons they stated to the public though. They went under because they didn’t own any assets. And when finally bought some. 30 trailers only. It was to late. All their equipment was leased. And in a downturn it was too expensive to lease since all the equipment was getting paid for by the owner ops.
Moved a lot of oilfield for them 8-12 years ago
Ive been having a crazy time this month and last week i took a 6400 load into florida then got stuck because i dont move for free then i deadhead to Georgia and it was dead their also i had to wait over two days until some loads showed up, i habe access to over 14 load boards so there were no loads at all then i missed my third liad because the shipper closes at 10am now in Stuck in Missouri for 3 days now but ive figured out once again that i must get my weekend load by thirsday and pre book but some times its crazy how all the loads disappear and uts all because warehouses close on the weekends. There are good loads still its just that the warehouses close all weekend and this is because of new people that font understand that trucking was and always is 24/7 🥴 i dont know but America and its economy will be crippled if transportation is guna keep going like this
Just some friendly suggestions, focus on revenue per day and not rate per mi, never sit always dead head. you will see a vast improvement. I've been a licensed cdl holder since the mid 90's and yes this is the worst I've ever seen for sure.
Stay safe
Your are wonderful. I agree with you 100% in every word you say. That's it, no more, no less
Great information ... Thanks
Prayers for you 🙏
It was nice to hear about history of brokers. I hope in future you will make similar video about lumper companies that are used to unload and count products at receiving companies
ive been waiting for you to do this video on convoy
There are too many people making money in trucking who are nowhere to be found near a truck. There is nothing left over for the driver who is risking everything with the ever greater number of stupid and risky people on the road. It's turning into slavery and minimum wage is starting to sound better and better.
Great analysis
Thank you
In the 80’s in California, the brokers would walk the lot and keep track how long you’d been there to put the shaft to rates 3-4 days later.
Once again, you inspire by example!
Reading the bible gives me hope and energy
Yes!!! When you read the Bible you realize that we're not going through anything that the previous generations experienced and survived ❤️
I try the thing with the needles. What do you call it?
@@davidtatum8682I think You’re referring to Accupuncture?
@@augusthaze8704your statement is actually biblical as well.
@@kenb8859either that or heroin..
You probably already addressed this but is there any data showing percentag or volume of truck loads moved by spot market/brokers vs contract carriers for current and previous years?
Thank you for the elaborate description. However I consider brokers selfish. All they do is negotiate and secure the load. The majority of work which is TRANSPORTING the load that the carriers manage. Even if it was a scenario of 70% to the carrier ALL INCL they would still make significant returns in volumes. Let brokers drop Luke flies and balance resume
Truth 💯
I suppose the “free market” is deeming them unnecessary and is in corrective mode.
exactly.. Sometimes they are doing nothing to help, and 99% you should be able to find out what to do
Ready, let’s go ❤
My personal opinion, for what it's worth. The trucking companies are filling bankruptcy, fuel is going to be at the highest price Ever seen. Frieght rates are steadily dropping, I think the whole industry is going to flip. No more $.60- .70 per mile driver pay, the O/O'ps gone. The influx of 30 yr old's entering the country will take over the company jobs for a 1/3 of the pay, and the nation will have to adjust to a new economy of minimal wages and higher inflation. We'll become a 3rd or 4th world country...
Facts. Young brothers and foreign drivers who are willing to run for virtually nothing is the new normal, I’m afraid. I can no longer recommend this industry to anyone seeking to adequately provide for a family.
On top of that whatever's left will be taken over by automation
True, we are not done seeing trucking companies going under. The $.60 - .70 cpm driver pay may drop, to keep the company viable. They may also cut drivers, keep the cpm where it is for now, hold on to the senior, more seasoned drivers and hopefully come out of this storm a little beat up but a company. As far owner operator's, many may fail but a good number have equipment that's paid for, cash in the bank and most likely, will tighten their belts on costs. For quite a few, this isn't their first storm. Many, myself included, have put off major purchases (such as buying a newer truck) when the Feds starting raising interest rates, freight rates dropping and of course, fuel prices on the rise. The perfect storm and a recipe for disaster, if your not paying attention. This line, "The influx of 30 yr olds entering the country will take over company jobs for a 1/3 of the pay", is a little disparaging. They still have to go through the training, most companies have a pay structure based on experience. Is the pay lower for new entrants, yes but a 1/3rd lower. That'd be $.20 to $.23 cpm, that's late 70's, early 80's pay rate. Run 3000 miles to make $600 - $690, that's poverty level income. Even if it were more money than they've made before coming to the US, they couldn't afford to live here without government assistance.
Miranda is right. We are about to do some "auto correction" in the market, many won't make it. It's happened before and it will again. Hold on, it's about to get bumpy. Save your pennies and do no major purchases (unless your paying cash) for at least the next six months but plan on a year. Good luck to all...
@@chipmckeefery6779you’re sadly mistaken if you think even desperate immigrants will drive 3000 miles a week for $600. Not gonna happen. Too many low paying factory jobs and fast food opportunities that pay more than that. Anybody that would stoop that low would need his head examined for sure
@jimmyconway6080 you totally misread that. Your making my point. Drivers in the 70's and early 80's made that and better. That type of pay today is poverty level income.
Content is right on point! Also your by far the most beautiful person on TH-cam talking about trucking! Haha
Can you tell anything by looking at the charts yet? Or is it to soon to tell?
Today, October 30, 2023 I saw a Convoy truck-trailer westbound I-10 Goodyear, AZ. What’s up with that?
You are Awesome!
Reinvented. God bless you
She's on point ❤
You have some good points i drive locally as a delivery business in a EV.
I drive 5k to 6k miles a nonth a majority of that on the interstate.
Been in business for 6 years.
Also sell on e-commerce.
Cant help to think about the trucking business always being on the interstate driving along side truckers.
I can say regardless if business alot of ehat you say is true regardless of what type of business you have.
Save capital in good times., price matches demand, working capital and business debt.
In regards to capitalist society business tends self regulating due to how business owners manage their company.
Ive thought if i get into trucking i need to be self employed buy a truck cash and use it as a another source of income that im not dependent on.
Like go run up and down the interstate corridor delivering loads that i feel are worth it.
But i do feel for any trucker who depends on the next load who is always out there in a situation where they need the next paycheck to make ends meet. I just wouldn't want to get myself into a situation where i find myself in that boat.
I been looking 4 you
Hey Miranda,👋🙂
There's a saying" When the pigs are full, a knife is best when sharp"
I'm glad you brought up deregulation/ regulation policy shift changes.
To have a well "deregulated militia".... doesn't make any sense or does it🤨🤔
Hello Ms Miranda 🎉 blessing I hope all is well
I am a carrier and i have an unpaid load with Convoy. It’s only 1300$.Is there a way to get that money back or at least a portion of it and if yes what are the steps?
Spot on. Where I grew up… my people had no options. I’ll take down shift over NO SHIFT any day🙌🏽
Cool Intro!
Cool intro!!!
I’d say let me suffer as we have with those low rates,freight brokers are one of the things destroying this profession!
the only professor I can actually pay attention to for more than 15min. If I’m Harvard president I’ll create a transportation doctorate program and you’re the dean😊
Can you supply the name of the vulnerable brokers? Im guessing TQL might be one
I don’t know they didn’t say
it seems the only way to make money in this industry is by working for walmart or sherwin williams. i can’t see any other way right now.
Bottom line Economics 101 (except our Govt is in the back pocket of Big Business so when the rates start to climb as over capacity decreases you can count on the Shippers to pressure Govt to bring more foreign born drivers over here with work visas and grants to help with the “mythical driver shortage” thus killing rates,again!)
Glad to know that someone else knows knows the code the oligarchy uses to bring cheap laborers from abroad.
Got over $7000 load with them , anyone know how long it take after u filed a surety bonds
🤔 Convoy wasn't even listed in the top twenty freight brokerages.
See. This is why I don't like this industry. Why be in business, if I can't live my life. What are we doing. Saving our profit to give it back when the industry sucks. Naw. I will pass on that. That is a silly way to work, to not be able to live.
I remember before covid it was easy to build relationships with brokers. They appreciated people back then. You use to be able to have a good relationship with brokers and carriers there was a mutual respect. Now days everyone feels like they don't need each other. Rates shot up because we had the savings to sit. Corporations like Convoy really aren't built on valuing people. If investors aren't making great profits this is what happens money pulled and invested in other businesses, doors shut and the people that actually do the work are left on the street.
Very informative as usual! The bad thing with brokers closing such as Convoy to be example is we will probably never see any outstanding balance due. People will say run and file against there bond but guess what Convoy owes on thousands of loads and the 700 bucks they owe me is gone. That is just reality! So wishing bad on brokers that may or may not owe you money but definitely owe someone money is still bad news for us as small carriers. Very important to get rest now and try to take our minds off this any chance we get as best as we possibly can with all things considered! Thanks for all you do and your positive energy. :-)
I did a load for them for $400 means it's gone?
How can we get paid from them?
Got over $7000 load , my factory trying to take that money Back from other invoices I m sending and told to file bonds which I did
How long it take to get a bond approve
Hang in there yes
I am a percentage paid driver, my company shaved 1000.00 off one of my loads that i caught them on and i dont know how many other loads they did the same thing to!! Not only are Brokers quilty but some companies are quilty as well !!
Where can I collect my money from my last load a haul with convoy, they not answering emails or calls?
I want to know too
RTS start collecting money from my other invoices I m sending them and told to file surety bonds. Which I did but I don't know how is this process
Don't forget CFL. They are gone too.
But wait, I thought brokers were keeping 50%of the load and didnt have to do anything but make a phone call.
Everybody is cutting each others throat by taking cheap loads thinking they will survive.
Yes, the free market always better.
What's the average monthly gross for a flatbed/stepdeck nowadays?
Crap 😂 I’ll have to check and report back on Thursday
We are averaging 19k-26k for our flatbed monthly. Our dispatch company make strategic moves based on capacity, which helps.
Another great video, as I sit in my rig in Atlanta wondering what am I doing with my career. I have my Broker Certification from UTC, and soon ill be CSCP certified. OUR Industry is changing and will not be the same. When I was a Safety Coordinator at USX, the then CEO Mr. Fuller said in 2019, by 2025 there will only be about 3 mega carriers. He knew this back then. Also, how odd is it that so many Brokerages and Carriers are owned by investment firms? Think about that, so many!
Godspeed Miranda.
Drove truck OTR a couple different times in my life, 2006/2009, then from 2011,2012. There was a huge contrast in how annoying the company;s and dispatchers acted just in that short period of time, at least in 2006 they just used the Qualcom to get you load info and let you do your job, the stent in 2011/2012 they used the Qualcom to bitch at you for not making the safety conference calls on my personal cell phone. Just being out there dealing with the loads is enough, I do not want the office crap in my truck.
After the deregulation all gone wrong, you mentioned, but you affirm the free market as the thing you are behind, so why not to ask for another deregulation to make free market even more free.
auto correct. i agree
It is always difficult to start. Do you offer mentorship for novice
I do not
Miranda you are amazing. Love the new intro.
Thank you for being so honest. Free market capitalism is by far the best system in the world, butt its definitely not without its faults. The less government involvement we have the better it is and the faster a market can self regulate.
Worked for Certifated freight logistic for 5 years left 2 years ago. They are good people but financial strategy was wrong and they didn't want to listen. Now it's over. At lest they will pay for the drivers .
My last day driving is December 10
Waiting on a certain huge brokerage company with Three letters to shudder its doors….
TQL ? 😂
get out of it while you can if you have leased trucks/trailers, most of my long time trucking friends quit and doing something else
you have to be blind and not see where this is heading for the small trucking companies, not too complicated to understand
The industry needs to get rid of swift, jbhunt and schneider because what they cant deliver they load in trailers as power only but all i know is killing the trucking industry will hurt America
I hope all these large brokerage corporations go under. Fragment the market, give us back a bargaining chip.
The one to blame for thisbubble are the youtubers encouraging everyone to be a trucker. When have you seen a yt advice folks how to build manufacturing company or something that doesnt involve purchasing a truck.
Podcasts? You have podcasts available somewhere?
Spotify and Apple
@@TruckingMadeSuccessful Unfortunately, I don't mess with either of them, Miranda. I'm an Android, Google Podcasts, anti-Apple kinda person (Also, for streaming music, I use SiriusXM, Amazon, TH-cam, and apps from 2 of my hometown's terrestrial [FM] radio stations). That's all I ever need.
I know 2 OwnerOperators that sold off this summer.
Brokers are the barnacles on the hull of the trucker industry. They should not be allowed to take anymore than 10%!
Its fuuny how all this works CONVOY went bankrupt and screw customers governmant and everybody else and today couple months later their brokerage is back up an running, how is that allowed???
Hi Miranda , What do we call Convoy closing ? A good start.
😂
CFL is out as well after 95 years
So no sunshine days for trucks 😕
How do you get paid for load that haven't been paid from convoy?
I need to know too
I’m going to see what I can find
@@TruckingMadeSuccessfulthere not answering the phones anymore or answering emails
The first thing I would personally do is call the shippers and receivers- they are still liable for payment EVEN IF they paid convoy
I have over $7000 load , rts told to call a surety bonds to file claims which I did
But I don't know how long it take for that process to get approve
Fuel is still 1.35 too high.
Is Uber freight one of those 3 ? I hope tql because it’s rates are bs.
I dont know, they didn't say in the article