22 min
Hey shippers, we're out here: Small fleet resolved to sharpen biz on long haul for change Overdrive Radio
-
- Business
Last week we heard Part 1 of a long talk with Gill Freightlines small fleet owner Surinder Gill, with four trucks owned and headquartered out of Manteca, California, where Gill’s following in the draft of his owner-operator father’s 60-year trucking legacy. (As you can see in the cover image for this week's Part 2 of that talk, the long legacy is honored on the back of Gill Freightlines’ dry vans.) The Convoy brokerage's quick collapse last Fall nearly spelled out a death sentence for the small fleet, as it was mostly built around dedicated hauling for Convoy's shipper customers.
Gill’s still owed around $35,000 for loads hauled just prior to the collapse, and the collapse of his fleet's work soured relationships with a small group of owner-operators whom he previously worked with. The difficulties, in part at least, extend from what he acknowledges as a classic mistake in business.
"I guess it goes back to the age-old saying of 'don't put all your eggs into one basket,'" as he put it.
Yet as detailed in Part 1 of the talk, he profferred the notion that, given how many carriers' work went unpaid in the Convoy collapse and the company’s tech platform’s quick sale to another brokerage/forwarder, bigger brokerages ought to be required to have larger bonds in place based on the amount of business they do: https://www.overdriveonline.com/overdrive-radio/podcast/15669109/should-freight-brokers-bond-vary-according-to-company-size
In Part 2 here, you'll get a window into what Gill’s doing in the aftermath, pivots he’s making toward more direct business, and his hope that so many shippers’ attitudes toward working with small carriers in their immediate physical vicinity, regardless of size, might change for the better.
He's got a distribution center he can physically lay eyes on with nothing more than a step out the door to his office, for instance. "I can see them, phyiscally, they can see me physically," he said, "yet where it confuses me is they would rather give work to these kids right out of college who work for [INSERT BIG BROKER NAME HERE] in Chicago or Atlanta or wherever their office is and trust these kids to go vet these carriers who might be carriers or chameleon carriers. ... But they won't give it to me," with just a few trucks. That's even though, of course, Gill's "right down the street."
Though load boards and brokers themselves rose out of the need of owner-operators and small carriers to connect to freight they otherwise might not have access to, Gill feels the entire culture around brokerage has devolved with Wolf of Wall Street-type tactics now so dominant that independents become essentially "bottom feeders" in a market like the current one. Volumes have been down in a big post-pandemic readjustment, and demand has sunk back to pre-2020 levels and below, some would say, for an extended period.
Yet he's in it for the long run. He's fully invested in driving change in his own approach to customers. He recognizes his and other independents’ shortcomings, and is committed to being part of a change to re-engage direct customers, really put in the work on building relationships toward better long-term opportunity outside of this or that fancy new brokerage network’s app. "It's going to drive a change" around trucking, he feels, "and I want to be there for it."
Mentioned in the podcast: Past Overdrive Small Fleet Champ Jason Cowan's recent talk on building relationships, with customers or otherwise: https://www.overdriveonline.com/overdrive-radio/podcast/15668024/how-to-leave-trucking-better-than-you-found-it-with-jason-cowan
Enter the 2024 Small Fleet Championship via this link: https://overdriveonline.com/2024SFC
Last week we heard Part 1 of a long talk with Gill Freightlines small fleet owner Surinder Gill, with four trucks owned and headquartered out of Manteca, California, where Gill’s following in the draft of his owner-operator father’s 60-year trucking legacy. (As you can see in the cover image for this week's Part 2 of that talk, the long legacy is honored on the back of Gill Freightlines’ dry vans.) The Convoy brokerage's quick collapse last Fall nearly spelled out a death sentence for the small fleet, as it was mostly built around dedicated hauling for Convoy's shipper customers.
Gill’s still owed around $35,000 for loads hauled just prior to the collapse, and the collapse of his fleet's work soured relationships with a small group of owner-operators whom he previously worked with. The difficulties, in part at least, extend from what he acknowledges as a classic mistake in business.
"I guess it goes back to the age-old saying of 'don't put all your eggs into one basket,'" as he put it.
Yet as detailed in Part 1 of the talk, he profferred the notion that, given how many carriers' work went unpaid in the Convoy collapse and the company’s tech platform’s quick sale to another brokerage/forwarder, bigger brokerages ought to be required to have larger bonds in place based on the amount of business they do: https://www.overdriveonline.com/overdrive-radio/podcast/15669109/should-freight-brokers-bond-vary-according-to-company-size
In Part 2 here, you'll get a window into what Gill’s doing in the aftermath, pivots he’s making toward more direct business, and his hope that so many shippers’ attitudes toward working with small carriers in their immediate physical vicinity, regardless of size, might change for the better.
He's got a distribution center he can physically lay eyes on with nothing more than a step out the door to his office, for instance. "I can see them, phyiscally, they can see me physically," he said, "yet where it confuses me is they would rather give work to these kids right out of college who work for [INSERT BIG BROKER NAME HERE] in Chicago or Atlanta or wherever their office is and trust these kids to go vet these carriers who might be carriers or chameleon carriers. ... But they won't give it to me," with just a few trucks. That's even though, of course, Gill's "right down the street."
Though load boards and brokers themselves rose out of the need of owner-operators and small carriers to connect to freight they otherwise might not have access to, Gill feels the entire culture around brokerage has devolved with Wolf of Wall Street-type tactics now so dominant that independents become essentially "bottom feeders" in a market like the current one. Volumes have been down in a big post-pandemic readjustment, and demand has sunk back to pre-2020 levels and below, some would say, for an extended period.
Yet he's in it for the long run. He's fully invested in driving change in his own approach to customers. He recognizes his and other independents’ shortcomings, and is committed to being part of a change to re-engage direct customers, really put in the work on building relationships toward better long-term opportunity outside of this or that fancy new brokerage network’s app. "It's going to drive a change" around trucking, he feels, "and I want to be there for it."
Mentioned in the podcast: Past Overdrive Small Fleet Champ Jason Cowan's recent talk on building relationships, with customers or otherwise: https://www.overdriveonline.com/overdrive-radio/podcast/15668024/how-to-leave-trucking-better-than-you-found-it-with-jason-cowan
Enter the 2024 Small Fleet Championship via this link: https://overdriveonline.com/2024SFC
22 min