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XPO | Truck Driver Scarcity Pulls Down Con-way Volume, Profit

Freightmaster1

Freightmaster1

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Truck driver scarcity pulls down Con-way volume, profit
JOC Staff | May 04, 2015 5:37PM EDT


Con-way_Freight%20truck%20driver.jpg


The so-called driver shortage is taking its toll on volume growth and further heightening the need for pricing discipline, according to the president of the third largest transportation and logistics company in America.

“The tight driver market is limiting our ability to fully seat our fleet,” said Con-way President and CEO Douglas Stotlar during in a statement during last week’s first-quarter earnings announcement.

Revenue at the Michigan-based firm was up 0.9 percent year-over-year in the first quarter, at $855.6 million. Operating income, likewise, was up at $37.4 million, more than double the $18.6 million the company posted in the first quarter of 2014. Revenue per hundredweight, or yield, increased 3.6 percent in the first quarter year-over-year.

Net income, however, dropped 7.8 percent year-over-year to $12.9 million. Daily tonnage, likewise, was down 1.4 percent year-over-year, the company said during an earnings call last week.

Company executives said a dwindling workforce and the higher wages it now takes to convince drivers to stay in the business have cut into profits.
http://www.joc.com/international-lo...ulls-down-con-way-volume-profit_20150504.html
 
Freightmaster1 said:
Truck driver scarcity pulls down Con-way volume, profit
JOC Staff | May 04, 2015 5:37PM EDTB/S, keep your hand on your wallet and watch out, I bet his 8 million ayear has know bearing on any of these so called problems let alone any of the others fat checks!


Con-way_Freight%20truck%20driver.jpg


The so-called driver shortage is taking its toll on volume growth and further heightening the need for pricing discipline, according to the president of the third largest transportation and logistics company in America.

“The tight driver market is limiting our ability to fully seat our fleet,” said Con-way President and CEO Douglas Stotlar during in a statement during last week’s first-quarter earnings announcement.

Revenue at the Michigan-based firm was up 0.9 percent year-over-year in the first quarter, at $855.6 million. Operating income, likewise, was up at $37.4 million, more than double the $18.6 million the company posted in the first quarter of 2014. Revenue per hundredweight, or yield, increased 3.6 percent in the first quarter year-over-year.

Net income, however, dropped 7.8 percent year-over-year to $12.9 million. Daily tonnage, likewise, was down 1.4 percent year-over-year, the company said during an earnings call last week.

Company executives said a dwindling workforce and the higher wages it now takes to convince drivers to stay in the business have cut into profits.
http://www.joc.com/international-lo...ulls-down-con-way-volume-profit_20150504.html
Click to expand...
 
Not enough drivers. It's not the company that is in demand, it's the drivers. If you aren't happy where you are doing what you are doing, now is the time to change that.

Opportunities are everywhere. Some guys are going back to running their own trucks. Why let some big company be your pimp ? Leave you a little slice of the action because they did all the hard work? Anyone can do this and more and more it seems that they are.

Many of the big players have soured their relationships with both their customers and their employees simultaneously. When a door closes. Reach out and open it. Then walk through. That's how doors work.

To many people worry about who stays and why didn't that guy do this or that. Worry about you. Do what's best for you and those that matter to you. There are always going to be people that stay. As bad as Swift is they ain't ever closed up and disappeared. Just take care of you.

Times like this in industries like this don't come along that often.
 
http://www.huffingtonpost.com/2015/05/07/self-driving-truck_n_7225490.html

http://www.dispatch.com/content/sto...7/no-driver-needed-for-automated-big-rig.html

http://www.thestate.com/news/business/article20589336.html

http://www.techhive.com/article/204...-cars-will-actually-be-a-bunch-of-trucks.html


This is the future of trucking. This is what they all want. Like every other industry. Remove as many of the humans as soon as possible. They can't do it yet. But how much longer do we have ? 10 years ? 15 ?

Get your money while you still can.
 
Attracting and keeping drivers ? When did that matter in the trucking business ?

25K short right now. 250K short by 2020.

And I bet they find a way to cut our compensation even further. Supply and demand is some garbage rich people say when it benefits them. There will be some grand reason that they simply can't afford to pay more for talent at the wheel.
 
highspeeds said:
Attracting and keeping drivers ? When did that matter in the trucking business ?

25K short right now. 250K short by 2020.

And I bet they find a way to cut our compensation even further. Supply and demand is some garbage rich people say when it benefits them. There will be some grand reason that they simply can't afford to pay more for talent at the wheel.
Click to expand...
Trust conway, you are in good hands with conway, trust conway.
 
highspeeds said:
Attracting and keeping drivers ? When did that matter in the trucking business ?

25K short right now. 250K short by 2020.

And I bet they find a way to cut our compensation even further. Supply and demand is some garbage rich people say when it benefits them. There will be some grand reason that they simply can't afford to pay more for talent at the wheel.
Click to expand...


Hahaha...that is what the Mexican cross border program is for..no driver shortage. Just a shortage of drivers who will tolerate crap wages, long hours at work.

Most respectable professions have high entry requirements in terms of cost to get in. E.g. doctors, lawyers etc.Though it is curious to note that right seat pilots at regional airlines make about 23,000 a year to start based on number I've seen thrown around. So in some sense truck drivers are doing better, but drivers also work longer hours and must deal with more B.S
 
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