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Wednesday, April 22, 2009
Crucial Update on Kennon Transport...
This is a very difficult blog for me to write. Just last year I
noticed quite a few of our shippers using brokers and/or carriers that were quoting and hauling freight cheap
(or for whatever price it took to stay in business or just to get the freight) and said to myself, 'here we go again.' Several
times in the past our shippers, along with several other carriers, saw a surge of brokers quoting and getting freight, basically
telling the customer what they want to hear, however, it never lasted. Some brokers are very reputable and although most dont
even own their own trucks, they understand that if the drivers don't make a living they don't stay in business, hence
the broker won't stay in business. Brokers and carriers have to keep rates up to where trucks, trucking companies and drivers
can, at very least, make a decent living (not less than min wage). Brokers get paid commission whether the drivers
stay in business or not and apparently the government is not going to do anything about this regardless of multiple efforts
by multiple carriers and supporters. (Read an article I wrote http://www.helium.com/items/1298063-whats-happening-to-trucking-and-our-economy-as-we-enter-2009) Right now brokers are quoting freight for less than minimum wage, less than the costs of operating a truck and someone
is hauling it. As many of you know, Sue is my office manager here and we have typically had 2 or 3 full time dispatchers
moving anywhere from $1M to $2.32 M dollars in freight a year. So far, this year we've moved 17 loads. Typically, just
on average, we move 3 to 7 loads a day... which last year for example we had moved 202 loads by this time. I absolutely
love my job, my career, but refuse to quote less than minimum wage; which may put us out of business... at least for now. Unless
something changes like tomorrow, it looks like I'll have to go get another job as well. Luckily, I still have a chauffeurs
license with a passenger endorsement and even updated my DOT physical just in case, and, I have an extensive knowledge
of this industry. (I'll have to update the resume I have on Monster.com, but it's on there if anyone knows someone
looking for a hard working, loyal employee). Eventually, we will be back and will continue to provide service
when we're able. We will keep the web site, phone lines up as long as possible but have already downsized a great
deal. Thanks to everyone for their patronage and support over the years and as always, it's been my privilege
and my pleasure to serve !! Thursday, April 23,
2009 In Response to April 22nd Blog...
I am stunned !! I've heard back from so many people (of course I have an ungodly amount of people in my address
book) with words of encouragement and support--I am eternally grateful and wish I could reply to each of you individually
!!!
In
answer to some questions: Sue does have another job already and I am going to continue to work Kennon Transport as long
as it does not interfere with my next employer (which I do not have yet). But I did have an impeccable record while I
drove (for nearly 20 years...if you're doing the math-- I was 14 when I started driving... it's all in my book ;) and I
still only have one speeding ticket on my record)...will continue to promote the book (Memoirs...) and am a licensed vendor and put a Golden Tee machine in at Sticky Fingers in Summerville, SC (sad to say that's doing better
than Kennon Transport) while looking for another job... hint hint.
As for trucking; this job has always treated me
well and I'm so sorry for what drivers and certain carriers are going thru (like ourselves). I have been on both sides
(shipping) and as an employer/shipper I would not even think of offering an employee with experience less than minimum wage.
I think offering freight out for less than minimum wage is a disgrace and should be illegal. This all started
last summer when we discontinued business with our best shipper. At that point we still had 72 active shippers and that one customer
was only a third of our business. Around that time we were competing with brokers that do not own trucks but would quote
less than we did... figure that, we call drivers direct and offer them what we quote or what they've quoted us; the brokers
were quoting less, taking their percentage, and then farming it out to anyone they could find (mainly off the internet). As
competition grew and the economy suffered --rates went lower and lower to the point that even we were willing to move freight
for minimum wage.. and we still were not getting the freight. As many of you know we also started moving big and heavy
loads (plant relocation, etc) but brokers were jumping on that as well quoting half and even less than drivers got in
the 70's and 80's. I won't name who quoted (and is still quoting) these loads but shippers were calling us 2 months
after the loads were not moved asking us if we could match their cheap brokers rates and unfortunately had run those rates
by their customers so were stuck waiting. I have told every shipper that we will match most carriers, drivers and trucking
companies (with actual trucks) but cannot match someone giving out phantom rates. Even when we did lower our rates I
could not get drivers to haul it (as they'd make no money--some loads would have even cost them). Then the calls poured
in (and still are) from drivers going under and losing everything. Hence the end. It will be awhile until
things change or someone steps in (again, not wanting to mention names), but we can only hope and pray to be here upon it's
triumphant return.. and if any shippers still wants a very dedicated team to help them, we are at this point, still for hire...
but, for now, I hope to honor another place or person in my life and move on.
Please
feel free to comment (guestbook below or send emails). Again, my appreciation, gratitude and heart goes out
to all. I wish us all the best.
Tuesday, May 5, 2009
Reblog
After
careful consideration I would like the opportunity to reblog: (Please
allow me to explain...) Many of you have already read my previous 'Critical Update' blog and I am grateful for
your support. If I didn't know better, I'd almost believe some of you know me better than I know myself... And
the fact is, this maybe a long road (has been and will be), but you cant keep a good man down. I'd like to 'get back
in there and fight'. (so to speak)... So, thank you. I am grateful to be from and living in, America. Things could be so much worse. One of the reasons
we felt like 'throwing in the towel' is not just because of the economy, but because we did not feel like we were contributing
to this industry as others prosper by taking advantage of others in this economy. Not only do I not have a problem with
competition, but I thrive on it. *But I am not in competition with fast food or dollar stores; which is what these brokers
quoting less than trucking companies have become to me. I know that shippers cannot rely only brokers quoting less than
an actual truck or trucking company and then farming it out for even less.
This country has certainly entered economic hardships before, but we are still
being provided for now and will get through this again. For now, I am in and out of the office and prefer all drivers
leave a message at the office so we can keep track of them. If you're a shipper, I am able to retrieve my emails and will
have my cell phone with me.
In 1988, when I bought
my first truck (after running mainly independently for a gentleman since 1976) I was dispatching trucks while being on the
road, with great success.
At
one time United/ Mayflower made the comment that we were one of their top 3rd party agencies dispatching vehicles. As
you may know we have not been transporting cars for some time, but am going to make a rededication to moving buses, boats,
rv's, machinery, oversized equipment and hopefully Kennon Transport. *I do not have no problem with fast food or dollar stores (we use them ourselves), but I believe you
get my meaning.... I do hope the carriers we're an agent for will continue to stay patient with us as I still will not
quote freight rates for less than operating costs and minimum wage to the driver, and I hope to hear from our customers more
frequently (and new customers) so that we can provide great service, dedication and we can all prosper, not just 'put
a bandaid on it'.
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