Where does the money go?

[STDF.MSP.honestlogs]

We are to beleive Standard Forwarding does not make money. John Ward is gone, Al Toliver is gone, we now have a Mr. Volker who reports to DHL. Mr Volker runs STDF by controlling the budget and making deals with partner carriers and 3rd party carriers who don’t always give us profitable freight. (My opinion) saves on cost of sales. Cost more in time to deliver. A lot of this freight no STDF sales person verified was freight we want. The cast of characters running opperations has been pretty much the same since long before DHL bought it. I surmise that is because that is how DHL want it to be. With the cost advantages enjoyed by STDF the only way to not make money would be management issues. Teamster employees pay $7.5 million per year for the privilege of working for Deutche Post DHL. Customers pay a significant portion of the fuel bill via surcharges. Capitalization of an LTL company should be around 12.5% or 12.5 million for $100 million in sales. ratio of 95 or 5% gross profit. That should be about 40% gross profit on the investment to own and operate the company. Hard to imagine with the business climate and available freight the numbers don’t fall into the positive columb. Old Dominion Freight has been operating at 85 for more than 5 years. Likely fairly close to 120% gross return on capital investment.
Alas many Teamsters have the attitude give them from management. Must be the way they like it.