UPDATE: Arrow Trucking Co. story...

[Gary Allan]

I don't think I said that. I asked who decides where the loss is taken.

Let me turn it around.


Do you consider it acceptable to LIE to someone and swindle them into doing work with the promise of pay ..and basically being a low life scum of a thief in not paying them??

..and would said robbed have good cause to hold up said low life scums account receivable for such low handed ..under socialized ...dead dog low life behavior?

I would hope so.

 

[Doug Hillary]

Hi,
each load is a unique "Contract" - one component is to transport it as defined , the other is to pay for the service!

In Law, "holding onto" the load breaches the Contract as it has not been delivered and the Contract remains unfullfilled

Much work is done by Truckers at less than cost price. One reason is that they don't know what their true costs are - either fixed or running cost components. It can sometimes take years for the results of less than cost price cartage to catch up - even when the Customers are paying up of course

The competition aspects of Road Transport are well known around the World and well written into bankruptcies, suicides, accidents, house-equipment defaults and all manner of such things

And sadly many Trucksers are expert Drivers and very poor Business Managers. The two may be even mutually exclusive

One of my Customers sold off his Business four years ago - his father had started it in the 1950s and a colleague of mine. The new Owners lasted about two years. My friend purchased it from the Receivers about a year ago at about 25% of what he sold it for! It is now operating profitably again

Another Customer went into Receivership in 1980 - it was managed out and he retained control - a very painful process though. He then sold it off to a large Multi-national Group. They split it up and ran in into the ground. He repurchased parts of it at bargain prices. He also purchased one of their competitors and "will do them over" in 2010!

I presented evidence at one Federal Enquiry here in OZ (around 1980) about the absurd ease of obtaining Finance for Trucks. The Commissioner agreed with me but in the end it was left (under Government pressure) to "Self Regulation" within the Finance Sector. The very same situation still exists today 30 years on. Easy money equals a three years or so path to ruin for many in the Trucking Industry

It is a complex subject - lubricant types is much easier

 

[crinkles]

put it on trains. australia's rauil network is pretty [censored] poor though.

 

[Shannow]

Originally Posted By: JHZR2
Not sure how they get money to eat if they cannot break even... Unless their idea of their wage in the break even part is to high...


I've seen businesses do stuff that appears insane to keep cash flowing through the doors.

Take an owner operator, with a number of long term contracts, and a number of one off "itinerant" trips.

When factoring in the cost of ownership of the truck, many of the one-offs will be net loss makers, as they are working in the marginal part of the business.

Is it better financially to make a trip that coveres fuel tyres, and a little bit more, but doesn't cover the repayments, or have an idle truck ?

Non tangibles, like reputation, being seen on the road, etc. would play a part as well.

 

[Gary Allan]

You manage to float for another day/week/month. One that may be a better day/week/month. You would probably already be into credit of one form or another.

 

[Doug Hillary]

Hi,
crinkles - Rail is a very efficient mover of bulk freight over long distances. We do that very well here in OZ with grain, minerals and coal!

Part loads or containers are another thing as they need to be loaded and unloaded of course

No Country anywhere has a rail system that is everything to everybody. India for instance does not compare to Sweden
Rail freight in Australia had a distinct disadvantage due to various rail gauges and huge disparities in infrastructure and rolling stock! Rail can be used in consort with road - the Alice-Darwin and Nullabor links are two to pondor. In these instances road trailers are multifunctional or simply loaded onto wagons. This can work well but minimum distances are all part of the cost/benefit equation

Thirty years ago when I came to OZ the disadvantage existed in Road Transport too! Poor roads, various axle and gross mass limits State by State - and some States like Victoria were Licensed (Road against Rail) and others were not

It is a complex subject but by and large Road Transport operators need to be excellent Commercial Managers and not just "Truckies"

 

[Gary Allan]

Our rail was destroyed by the Cold War. It was too vulnerable to nuke attack and there was no way to rapidly move assets from one area to another. The federal highway network made OTR trucking advance to a high level of development (40ton rated roads to handle tanks and use as runways) and rail to retreat from most everything except bulk items that you mentioned. Time became the monetary compression tool of choice.

 

[Drew99GT]

Originally Posted By: Doug Hillary

It is a complex subject - lubricant types is much easier


You haven't been paying attention here!