[quote author=radman link=topic=78735.msg820701#msg820701 date=1270909841]
From what I hear, Con-way truckload is on the outs and the all the others are on the ins when it comes to hauling purchase loads. Does not make sense to me, why pay some other company to haul our freight when we could pay our own sister company to do it and keep all the money going to Portland. I know alot of dedicated teams are upset "truckload" because there dedicated lane is gone.WTF???
[/quote]
I guessing here...
But it seems to me that using 'truckload' for sub-service generates no 'outside' revenue.
CWTL would have to be paid to haul the loads as they would from any shipper...in this case we are the 'shipper'. We pay them to haul Con-Way freight. All we are doing on a company-wide scale is shifting monies from one entity to another...the only way to justify using CWTL for sub-service would be if their price was significantly lower than other TL carriers.
The key to any endeavor is to keep revenues up while trying to control costs. There may be some not so obvious costs in this.
Using our own TL carrier for sub-service puts miles and wear on equipment...wages and benefits must be paid. Using CWTL is not a bad idea if they are not servicing their own customers at the time...but if they are being used by us instead of servicing other customers who pay 'outside' revenue then the company is losing money.
Other TL companies are on the dole as well...they too must generate outside revenue to keep afloat. By hauling for us the are making money at some level (or at least should be.) I imagine the whole sub-service gig for TL companies is a fairly sweet deal...come in at the right price (which I am sure the competition for this is fierce!) and your in.
Just go to the FAC...go to bed either there or somewhere else...X hours later return...get your load and go. No waiting in line...no setting around in some truckstop waiting for a load...no babysitting the phone. I have seen the way these TL carriers are treated...and it has to be good from their standpoint...they are treated with dignity and respect...something they may not be used to on a regular basis.
Not using CWTL may be a smart decision...let them generate their own revenue...they have costs just as we do. They too must replace and maintain equipment...pay wages.benefits...and all the other costs associated in running a profitable enterprise. Not hauling for us lets them make monies that add to the bottom line of the company as a whole...rather than just moving money around on the corporate spreadsheet.
There you have it...my $0.02...(less 2.5%)...and NO!...it doesn't add to your VPP!!!
YMMV.
Rat