Sooooo; here's a question guys for the brokers and shippers who are lurking on this forum. I've been wondering for awhile now to look at entering the "LTL" world of business. Being an LTL driver myself, I already know the ins-and-outs. I already have price modeling; but what I dont have is an idea if it's something that is "wanted as a niche" market. I'm talking about true LTL in a sense that you make 5 or so p/u's. Then I'm looking for approx. 30-35 skids onboard. The trailer that would be used would be a Multi-temp trailer, so that I have bulk heads up in sections. Its handy because customers always have partials, that are hard to move sometimes.
Some of the freight would be specialty items such as; ie...icecream, seafood, chilled, dry...etc. Then making approx. 15 drops and reload trkload to come back. I would do all unloading(to a degree). I'm not talking about FFE or H&M bay; I would say in comparison to "mom-n-pop" service or attentitive service..Like I said guys, I dont mind the work, but I'm not working for free either. Most drivers wont touch anything more than a few drops or so; and there are'nt that many LTL guys around I dont think.
The lanes of interest would be for example: Outbound to drop-off: Dallas-KC-STL-IN-IL-WI. Maybe possibly something to include SLC/Denver or KY- Ohio. Just an example! I would look at other lanes if it could all gel together(East Coast as well). Also; this would be team operation MORE THAN LIKELY, to offer the customer expedited delivery.. I reside in the DFW area, so origination would be in TX. I know FFE's rates are "stiff" from what the customers say. Service; I cant really say either good or bad.
Any feedback is welcomed guys Thank-You!
Refrigerated ltl.....true ltl modeling??s
Discussion in 'Refrigerated Trucking Forum' started by Pilot1, Aug 26, 2012.
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You have a complicated business model there. It would take a lot of work to develop into a viable operation, I believe. Probabaly better to start as a regular T/L carrier, and work into your model.
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@Jbatmick...Yes complicated; very! However I forgot to mention that in reality I probably wouldnt start with 30-35 skids unless I got lucky from brokers and clients. Something more like 15-20 skids is more realistic of an approach. I do believe that once the name is out there and job performance; it will take off. You might be right on the T/L carrier option as well. I just know that there are quite a few customers looking to move partials, and they need someone reliable. Won't disagree you on the complication!! LoL..
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I used to haul perishable plants out of south Florida. 8, maybe 10 pickups, 30 to 40 drops. Now that was work, but it paid excellent.The biggest thing was communications. Everyone had to be on the same page.
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Here is the challenge I see in theplan! Most major carriers have already downsized to OTR, Regional,and picked up cheap trailers and labor from the struggling Householdgoods industry is trying to give their employees enough hours to keepthe lights on and feed their children! with secure drop yards andmore employees and equipment then they can use! After our economystarts to rebound and unemployment drop closer to 10-12% you may beable to find a niche! At the moment their are to many retirees,unemployed, empty trailers and struggling local companies that havethe labor and equipment to under bid you! The budget at FT, Hood forexample was cut 60% All the new veterans are standing behind oldveterans looking for jobs! who is paying for relocating newemployees? almost no one! United, Global, American, Estes, Brown,consolidated and the list goes on and on and on are all taking smallloads not only anywhere in the state but, dropping trailers in Truckstops and rest stops near state borders to use local drivers to movesmall loads from state to state! Great Idea Bad timing! "Use to"is becoming a common word things just do not work the way they did 2years ago! I am so Glad you are thinking it through! Wish you thebest, hope you can find a way to make money in it! THGHost
Last edited: Aug 27, 2012
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The LTL refridgerated segment is very alive and very niche market. You have to know someone or have a great reputation to get near any of the good stuff. It does take a lot of work to schedule and load/unload the freight...not to mention figuring how the temps and loads gets distributed in the trailer. The biggest hurddle will be a dock for you to move freight around or store it. I have been pulling LTL reefer out of Wisconsin for the past 2 years and love every load. I load on Fri night/Sat morning for the northeast. Usually I leave with 26-28 pallet positions used (the floor is full) with a total of 35-55 pallets all together. It is very challenging to get the bigger loads scaled, get my electric jack on, and load the freight so I can get the pallets out at the recievers. With 8-16 drops in 2-3 days from Jersey on up into Maine I reload whatever we find or deadhead back depending on rates, times, and my gut feelings. This past week I was irrated and needed to get home so I bounced from Portland,ME to northwest OH. Once back in WI I make pickups at 3-4 shippers and bring them back to my carriers dock to be cross docked, temp checked, and inspected. Mostly the freight I pickup isn't for my outbound and with 85 trucks things get pretty hectic.
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Getting a customer to only give you the LTL to the areas you want is pretty tough. @pullingtrucker,are you with Bill in Germantown?
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@Wichris - I wouldnt say that getting a client to give me only LTL is hard. I say this because being a broker, there are times that customers ask can I help them to move a partial. My response is normally no. Unless I have one of my trucks close by with room onboard, and he's interested. I gotta figure a way to market the service. I believe I can get a cross dock contract. I have one in the KC area and the Laredo area as far as connections are concerned.
It's complicated but it can be done- but what debaticle! LOL -
@Pullingtrucker - You got a pretty good deal there! Something like what your doing; maybe not to the capacity though. I only say this because, with 50 pallets or so like you have, takes a lot of time to put together for distro.-routing-billing.. Quite a bit of work; but it pays you well!
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