Biggest US truckers grab larger market share

[Mike]

Trucking may be a fragmented market, but the largest trucking companies in North America are increasing their market share, year to year and decade to decade. Truck pricing may be volatile, and subject to short-term swings in the US economy, but in the long term, the growth rate of the biggest US trucking operators reveals a steady and sizeable surge of business.

From 2009 to 2018, the 50 largest US trucking companies boosted their share of the for-hire trucking market from 27 percent to 38 percent, according to an analysis of data from SJ Consulting Group and the American Trucking Associations (ATA). That’s a big share for 50 companies in a field of more than 500,000 registered motor carriers operating in the United States.

Trucking: Biggest US truckers grab larger market share

 

[Electric Chicken]

Is this supposed to be surprising?

I mean that's how they became megas in the first place.

 

[Mike]

Is this supposed to be surprising?

I mean that's how they became megas in the first place.

Really? What do you take from this article?

 

[Electric Chicken]

Really? What do you take from this article?

I take that megas keep getting more business. What was I supposed to take?

 

[Mike]

I take that megas keep getting more business. What was I supposed to take?

You work for a Mega. How much have they increased their fleet size from 2009 to present? Actually, to be more accurate, how much have they increased their fleet size from 2005 to Present? Company trucks.

Remember, 2008 was a massive drop in fleet size for the mega companies, so they obviously grew from their downsizing after 2009.

 

[Electric Chicken]

You work for a Mega. How much have they increased their fleet size from 2009 to present? Actually, to be more accurate, how much have they increased their fleet size from 2005 to Present? Company trucks.

Remember, 2008 was a massive drop in fleet size for the mega companies, so they obviously grew from their downsizing after 2009.

I don't know overall but our parking lot is packed compared to when I started, and that was packed compared to when they opened up here a few years before that.

It's exploded. BUT we've also been more extreme with the famine due to all the new mouths to feed when it's slower.

 

[Mike]

I don't know overall but our parking lot is packed compared to when I started, and that was packed compared to when they opened up here a few years before that.

It's exploded. BUT we've also been more extreme with the famine due to all the new mouths to feed when it's slower.

Yes, your parking lot is packed.

How much property do they have compared to 10 years ago? 5 years ago? Schneider has sold off lots of acreage. They are not the only ones. I drove for JB Hunt in 91. Facilities were state of the art and everywhere.

Schneider, like many, have downsized greatly in terms of property. Downsized greatly in support staff. When i started there, they were a 24/7 staff. That was 2013, and they downsized from there to the pathetic support staff they have now. For the IC's, it is a call in, leave message, and hope to be called back by morning system.

Fact: They outsource far more of their freight now. Outsourced to people like me. They aren't growing so much as a carrier, they are growing as a broker.

 

[Electric Chicken]

Our property has always been the same size. They had about 10 or so trucks parked back to back in the middle years ago. Then they started lining them up against the fence with about 4-5 feet between. Now they ring almost the entire perimeter mirrors almost touching.

Intermodal has grown. It's only about 3% outsourced. We almost never have third parties pulling our cans. Most of it's just in a pinch.

 

[Rigjockey]

Fact: They outsource far more of their freight now. Outsourced to people like me. They aren't growing so much as a carrier, they are growing as a broker.

They have figured out that is where the money is at. Pure profit, very little overhead.
Customers think that a mega is hauling their freight, when it has been subbed out.
Probably about 15 years ago I was working for a company that brokered out all their loads going west of P.A. with the exception of Chicago.
The rates were much higher for the eastern seaboard than for the mid west and west coast. So they kept the east coast loads for company trucks and O/Os and the rest went on the board.

 

[Mike]

Our property has always been the same size.

I was referring to the company as a whole. They have sold off many lots over the past few years, downsized in many places.

 

[Electric Chicken]

I was referring to the company as a whole. They have sold off many lots over the past few years, downsized in many places.

Yeah I don't know about the company as a whole. I work and go home and at home my thoughts are elsewhere.

 

[Mike]

They have figured out that is where the money is at. Pure profit, very little overhead.
Customers think that a mega is hauling their freight, when it has been subbed out.
Probably about 15 years ago I was working for a company that brokered out all their loads going west of P.A. with the exception of Chicago.
The rates were much higher for the eastern seaboard than for the mid west and west coast. So they kept the east coast loads for company trucks and O/Os and the rest went on the board.

I think they got nervous about fleet expansion, then the losses that kept coming when the market goes in reverse for a while.

Lots of companies put themselves in a bind over the last several years but expanding, even buying up other companies, only to be strangled by debt as soon as the market went south.

So now you see growth via larger lease purchase programs, increasing owner operator programs, and the expansion of their freight brokerages.

 

[Electric Chicken]

I think they got nervous about fleet expansion, then the losses that kept coming when the market goes in reverse for a while.

Lots of companies put themselves in a bind over the last several years but expanding, even buying up other companies, only to be strangled by debt as soon as the market went south.

So now you see growth via larger lease purchase programs, increasing owner operator programs, and the expansion of their freight brokerages.

Except our little corner. They're aiming for 100% on fleet. Or whatever term they call it when it's all company drivers pulling.

 

[Rigjockey]

Except our little corner. They're aiming for 100% on fleet. Or whatever term they call it when it's all company drivers pulling.

That's a good thing! When companies are part O/Os and part fleet they tend to play each off each other.

If you are company you want to work for an all company outfit.
If you are O/O, you want a company that is all O/O. IMO.