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You might already have a basic understanding of the expedited freight business and perhaps you've even picked up the CB mic and asked the question that expediters have heard many times, “Hey, y'all make any money in them trucks hauling expedited loads?”
Well, the answer to that question is an emphatic yes!
It is an interesting segment of the transportation industry, it's competitive and demanding, but with commitment and good business habits, expediting owner-operators can make a good living.
Shippers expect to pay more than regular freight and that is where you can do very well, says Jeff Brown of Contractor Support and Development for Panther II Transportation of Medina, OH. He says that the compensation for owner-operators and drivers in expedited freight is substantially higher than that of general freight.
“I can't say that Joe Driver will make X amount of dollars per year, because it's just like everything else in life, you get out what you put in. It's all based on effort, but I see no reason why the typical expedited owner-operator can't make 10%, 20% or even 30% more than what he made in general freight.”
“At the same time, he will also spend anywhere from 10% to 30% less than in general freight because the expediter runs fewer miles. That means less fuel, fewer tire purchases, fewer oil changes, etc. That's where the owner-operator realizes his greater profit.”
The world of expedited trucking is separate and apart from long haul freight and it comes with it's own special challenges and requirements, but it can be a rewarding career in many ways. In expediting, not only is the money good, but the customers are usually glad to see you!
What is expediting?
Expedited freight is extremely time-critical, “plant shut-down” or “red-hot” freight. Without this freight, assembly lines and/or other manufacturing processes will cease, possibly costing the manufacturer hundreds of thousands of dollars per hour in “down time”. Expediting can be defined as being the ambulance service of the freight business.
Expediting also came into existence as an alternative to keeping large stocks of inventory and the evolution of Just-in-Time (JIT) deliveries. The automotive industry was one of the first to utilize expedited transportation and to this day remains one of expediting's premier customers.
In the years since the emergence of this type of transportation service (the early 1980's), expedited freight has evolved and expanded it's scope and customer base. A wide range of industries now use expedited carriers on at least an occasional basis when the shipment has to go straight through and deliver as-soon-as-possible.
Examples of expedited freight include everything from a prototype computer chip that a driver slips into his shirt pocket for safe transport to multi-trailer loads for a National Football League team.
More typical expedited freight would be represented by multiple pallet loads of “widgets” transported from a machine shop in say, Tennessee to a car plant in Detroit.
Expedited freight loads generally have the following characteristics:
The load generally picks up as soon as possible and is safely delivered as soon as possible.
The load is driven straight through unless otherwise directed by dispatch.
The truck is generally exclusive to the load (meaning for that customer only) and generally has no stops or drops other than the final destination.
Expedited freight moves 365 days a year, 7 days a week, 24 hours a day. The driver never knows when he will be called for a load, or where he will be going until he gets the call.
That brings up one of the differences between expediting and general freight - the waiting time. Because of the last-minute, emergency nature of expedited freight, there is often a wait for the next load. Sometimes, this is a problem for the driver used to the back-to-back loads of general freight.
As a former OTR driver, Jeff Brown of Panther II is aware of that pitfall for those coming to just-in-time freight from conventional trucking:
“Don't bring a line haul mindset to expediting. Don't be of the mind that ‘I've got to be moving every minute' because that's not the case in expediting. You can sit all day, yet still make $500.00 for that day on a six hour load. You have to think in terms of revenue, not miles.”
Specialized Handling
Another growing segment of expediting is the transportation of high-value, special-handling freight. These shipments include freight from the medical, scientific and other high-tech industries along with a growing number of government shipments comprised of arms, ammunition and explosives.
The drivers involved in the transport of this high-dollar, sensitive freight are considered to be the “elite” of expediting because of the equipment, training and background security checks required.
Dave Hodge, Manager of FedEx Custom Critical's White Glove Services® division says, “Our division specializes in critical shipments that require care in handling. Vehicles are equipped with air-ride suspension, pads, straps and power liftgates to transport fragile, sensitive or high-value freight. A variety of specialized security services are also available.”
“For temperature-sensitive shipments, White Glove Services offers TEMP-ASSURE® vehicles that provide full-range climate control and protection from heat or freezing. TEMP-ASSURE ValidatedSM service offers temperature-control transport in thermal-mapped vehicles and hard-copy data receipts to facilitate regulatory compliance.”
He continues, “White Glove also offers a complete range of security services, including Constant Surveillance and Dual-Driver Protective Services. The division is approved by the Department of Defense to provide Satellite Monitoring under the Defense Transportation Tracking System (DTTS) and is qualified to handle sensitive, classified and hazardous shipments including electronics, arms, munitions and all classes of explosives.”
Where are the expediting region?
Because of it's automotive industry service heritage, expediting began to emerge in the upper Midwestern United States, with shipments going from the suppliers to the automotive plants as well as from plant to plant.
Since those beginning days, emergency freight has expanded its coverage area to include all 48 lower states and Canadian provinces, including the occasional Alaska-bound shipment. Most expediting still services the Midwestern and Southern states east of the Mississippi River, but there seems to be an upsurge of freight headed to California and the Pacific Northwest, and as importantly, there appears to be an increase of outbound expedited freight from those areas.
Expediting is in the early stages of capturing a portion of automotive freight destined for Mexico, with longer-haul expedited loads that are headed to drop-off locations on the southern US borders.
The expediting lifestyle
Whereas the OTR driver in general trucking is well familiar with the days, weeks and even months away from home and stopping only for rest, fuel and other essentials, expediting is a little different.
In the emergency freight business, there will usually be some downtime while waiting for the next load and expediters generally find a few hours for shopping, sightseeing and other personal activities.
The owner-operators determine when they will work, so it's quite common for expediters to take themselves, “out-of-service”, and visit with friends and family in remote locations, take in the sights of the more exotic US and Canadian cities, or just see a movie. Or, as many expedited recruiters put it, “See the country, and be paid for it.”
Who are the owner-operators of expediting?
The owner-operators in this business come from all backgrounds and walks of life. They include retired people from a variety of occupations - particularly the military, corporate management personnel who have been victims of downsizing, entrepreneurial types who see the opportunities available in multi-truck ownership and former general trucking drivers who are looking for a change.
mpty nest”, recently retired, husband/wife team have long been a mainstay of the emergency freight business and among the most successful owner-operators of expediting. Team operations have many advantages in this business and it truly is a way for a couple to spend quality time together after years of working and raising a family.
Ms. Lori Blaney, Director of Recruiting and Business Development of Con-Way NOW, Ann Arbor, MI says, “The team drivers in expediting can run non-stop and still remain in compliance with the Hours of Service regulations. The single-income teams, i.e., husband/wife, boyfriend/girlfriend teams, etc., can do quite well in this business.”
She adds, “The single driver in expediting can be successful as well, although limited by the HOS regulations. For example, he can take those longer runs as well, possibly a weekend load that picks up in the Midwest and delivers out west.”
What size truck is best for expediting?
Phil Weiner, Recruiting Director of Tri-State Expedited Service of Perrysburg, OH says, “Success in this industry requires the contractor to be flexible, available, and always professional. The operators that seem to have the highest success rate are those who are able to adjust to the uncertainties and who are available to haul the majority of the freight they are offered.”
He continues, “Some expedited freight companies cover the whole spectrum of equipment from pick-up trucks to tractor- trailers. That is to say, each piece of equipment has its place in expediting.
“Cargo vans seem to be ideal for individuals new to expediting, or people that are retired or semi retired, while some owner/operators are looking to step down to a smaller vehicle to bypass the logging and scaling headaches.
“Owner-operators should, however, be aware that there are times when carriers fulfill their quota and stop leasing to the smaller units. It always helps to find out beforehand which companies are currently leasing on the different types of equipment.”
Phil goes on to say: “Straight trucks, tag axles and tandems are the next step up from the cargo van. These are great pieces of equipment that are extremely useful and by far the most common in the expediting industry. Usually, companies have more demand in the straight truck division as opposed to the cargo van.”
“Tractors! A hot commodity and the most sought after in the industry for its flexibility in carrying freight of all dimensions and weights. For those who are semi drivers now and who are involved in the long haul industry, expediting companies are seeking tractor- trailers and will pay handsome sign on bonuses in addition to a whole host of other perks. Without a doubt, tractors have the highest earning potential of all the units.”
The expediting fleets
Unlike general trucking, expediting utilizes virtually 100% owner-operator fleets. These small-business people generally own an expediting truck which they drive and manage themselves. Fortunately, this business readily lends itself to replication and there are a number of multi-unit owners in the business, sometimes with fleets of 30 or more trucks, complete with sub-contractor drivers that they lease to the carriers.
The owner-operators lease their trucks to an expedited carrier and operate under the carrier's trucking authority. Quite often, the carrier will also provide permits for the various states the driver will operate in as well as certain types of insurance. The carrier will generally carry the “Primary Liability” insurance and many carriers will also provide the “Cargo” insurance.
John Mueller is the Safety and Recruiting Director of Premium Transportation Logistics, LLC, a carrier based in Toledo, OH. He states, “Every contractor is his own businessperson, and he decides when to operate. I believe that we offer our contractors true independence in managing their businesses.”
“At the same time, our contractors are aware that our customers are also his customers, and for both the company and the contractor to be successful, the customers' needs must be addressed.”
The expedited carriers' fleet sizes range from the 20-30 units of the modestly-sized companies to over 1000 trucks in the case of industry giants like FedEx Custom Critical. A possible advantage of signing with a more modestly-sized company is the “personal touch” - the office and dispatch personnel know the driver's name and will possibly return a favor to that driver that bailed them out of a difficult load situation.
On the other hand, the larger carrier may be more impersonal, but it typically has access to a greater quantity of freight over a wider area, which could translate into less deadhead and more revenue for the owner/operator.
If it seems that Expedited Freight might be your ticket to a successful career, it's time for some research!
One of the best sources for expediting career information has been available on the Internet since 1999 - Expediters Online.com. This web site has links to virtually every expedited carrier of note with online applications for those carriers accessible with just a mouse click.
It also features articles on the business along with a very active message board where expediting questions are answered by experienced people in the business. Each August, Expediters Online presents the Expedite Expo, a trade show specifically for the emergency freight business. •
Expediting Information Resources
www.expeditersonline.com
www.expeditexpo.com
Expedited Freight Carriers
Bolt Express
Recruiting Phone# 866 873-2658
www.bolt-express.com
Con-Wa=y NOW
Recruiting Phone# 888 679-7091
www.con-waynow.com
FedEx Custom Critical
Recruiting Phone# 800 944-8690
www.fedexcustomcritical.com
Panther II Transportation, Inc.
Recruiting Phone# 800 830-7592
www.pantherii.com
Tri-State Expedited Services, Inc.
Recruiting Phone# 800 831-8737
www.tstate.com
Metro Express
Recruiting Phone# 800 805-0073
www.metroexpressinc.com
Premium Transportation Logistics, LLC,
Recruiting Phone# 800 661-6800
www.ptlllc.com