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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 do not 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.
I just don't have the heart to 'throw in the towel', so 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
on 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 we do not
live on them. I still will not quote freight rates for less than operating costs and minimum wage to the driver, but
as always will continue to stay competitive, provide great service, dedication and we can all prosper, not just 'put
a bandaid on it'.
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