Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Came back with a bank window down yelling now money anything hey oh got the foot on the gas pedal to the metal when I'm get to the back hey Got the foot on the gas pedal to the metal when the blame moving fast hey Let them all cross if they hate then let them hate them make a bigger boss.
Speaker 2 (00:24):
Hey what is up ladies and gentlemen?
We are back.
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It is the Freight Coach podcast, the top podcast in transportation coming to you guys every single weekday, 8:30am Pacific, 10:30 Central to break down some industry headlines.
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If this is your first time tuning in, welcome.
(00:45):
This is the real side of freight, ladies and gentlemen.
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(01:05):
Happy Thursday everybody.
Man, we got a lot to talk about today.
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(01:34):
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(02:02):
So check that out, you guys.
The FreightCoach.com Corey Buchan.
Happy Thursday.
Thursday everyone.
Good to see you, brother.
Sonny Sharma, my man.
Orange shirt gang in the house.
All right, so we're going to jump in here.
We're going to be talking about, you know, some of the load board stuff that's going on out there and you know, some of the English proficiency numbers that have started to come out and kind of like comparison to what that actually does for the freight market.
(02:28):
And you know, also I'm going to be talking about just kind of like where the market is at right now.
And again you guys, if you don't know like a lot of the load boards that are out there, well, especially dat, I get a weekly report from them on kind of like what's going on in the market as a whole.
And I pay a lot of attention to this.
(02:49):
It's not my basis to decide on what I'm going to do in my business, but I pay attention to a lot of this because I like to see what's going on out there and just kind of some takeaways from this, you guys.
Spot rates held steady and if you're actively moving freight out there, you understand that's exactly what's going on.
And that's across van, reefer and flatbed.
(03:10):
Load volumes did increase across van and reefer set and that's on the load board itself.
On DAT's load board dry van, the spot rate is, has remained unchanged $2 and 2 cents a mile nationwide.
It is the line haul rate.
Obviously line haul is minus fuel.
That's at $1.65amile out there.
(03:31):
Loads were up it was to 1 point or 1.01 million for drive in out there.
And then trucks decreased though.
Trucks posted decreased by 11% out there and that they do remain flat.
But you know, one thing to keep in mind you guys right now, and I've talked about this on the show before, but I think this is another good reminder between the fourth of July and Labor Day or whatever one is in September, I always get it mixed up.
(03:58):
It's generally a lull there you guys, and then Labor Day you'll see an uptick in volume and then there'll be a little bit more of a lull.
And then by the end of September, early October, that's when you're going to see a lot of the seasonal freight push for holidays and stuff like that.
So what we're experiencing right now is fairly normal out there.
Yes, I'm sure anybody could make a individual argument about certain lanes and stuff like that and commodities that might be moving hot right now, but at the end of the day that's just kind of where we're at in the market.
(04:28):
Like this is very normal in a normal freight market that this time of year is generally kind of slower out there.
Reefer is that's at 233amile across the board.
Linehaul is at A$69.96amile.
Excuse me, that is unchanged.
That's national average.
And then again you guys, there was about 500,000 loads posted but there is a 10% drop in trucks posted out there as well.
(04:54):
Flatbed, same thing.
243amile and for spot rate and then line haul $2.06amile out there.
Loads are flat across the board but there was a 12% drop in trucks posted out there.
So again, I mean it's interesting to see the drop in trucks posted at a double digit mark.
(05:16):
I'm not weighing into that being a significant oh this is it.
Capacity is leaving at a rapid pace or anything like that.
But those are the numbers that I pay attention to on if I'm looking at it from like an overall perspective here you guys, what is going on?
What are some indicators?
If we see that week over week and that number remains consistent and grows that is probably a very clear sign on what is going to inevitably come to light.
(05:46):
Right?
And we all know that, right, like capacity's got to tighten up.
Carriers are going to continue to leave the market.
Brokers are going to continue to leave the market as well.
But at the end of the day, you guys, those are the numbers that I kind of pay attention to.
I do not base any business decisions on that other than that's a kind of a clear sign on if I think capacity is going to start tightening up sooner than later out there.
(06:10):
And you know, I just look at it as spot rates.
Nothing's really changed across the board, you guys.
As a whole tightening capacity again it could create some rate pressure coming up here.
But again that has to be a lot more weeks in a row for me to sit here and decide is that going to be a real thing or not overall.
(06:31):
And then yeah, I, I look at it again a big note is it's kind of what the current administration is doing on tariffs as a whole right now.
It's again, it's interesting to see and that's another one that I think is kind of playing into this right now on why things are kind of dragging along as a whole.
On the bottom is, you know, with that, with a lot of uncertainty in the tariffs and you know some of the market indicators that I read out there is it just naturally breeds apprehension out there for people to go and buy inventory at a high level and that confidence.
(07:06):
And then I think furthermore our glorious friends at the Fed don't seem to want to drop interest rates as well.
And I think there's a lot hinging on that.
Well, more than anything at the end of the day.
But I don't think that's going to be changing anytime soon and hopefully there's a change at the Fed to where that will be changed out there.
(07:29):
So hopefully the current administration makes a change and that can help us out at the end of the day.
So that's kind of a little bit of a market report as a whole.
But now let's jump in here you guys.
Let's talk about this.
So this article came out yesterday.
This is from Transport Topics.
Obviously the ELP English language proficiency thing has been a, it's been a hot topic out there in the industry.
(07:52):
I'm not going to get into anything other than the data that is in this article, but you know, my stance has been pretty clear on it.
I believe if you're going to run trucks in the United States of America, you should be able to read and speak the language that you are operating in, considering all the road signs are in English.
But we are here to talk about this and title of this article.
(08:13):
More than 1200 drivers fail the English language tests out there.
This began in June 25th and the Western region had the most violations out there and almost all drivers cited work for US based carriers.
So more than 1200 drivers have been removed from the highway since late June for being unable to communicate adequately in English or read English language highway signs.
(08:41):
The the FMCSA said the data also found that the vast majority were employed by US Domiciled motor carriers.
The findings were posted to an FMCSA database that publishes roadside inspections data followed and followed a July 30th social media update out there and Secretary Sean Duffy said since I took action to enforce a language proficiency requirements, our state partners have put roughly 1500 unqualified drivers out of service.
(09:12):
That's what I call results.
If you can't read or speak our national language English, we won't let you truck let your truck endanger the driving public.
Sean Duffy said while his estimate was higher than the actual violations, we're talking 300.
The results reflect a substantial increase in out of service violations out there.
(09:34):
But you know, just to put into context because you know you can see that number and you're like oh, 1200, that's a lot.
That's a lot of trucks right at the end of the day.
But I like to look at what is that in Comparison to the overall driver truck drivers in the United States of America and between light and heavy duty truck drivers that are out there, you guys, there are 3.5, 3.05 million drivers and 3 point as high as 3.6 million drivers out there.
(10:07):
You know, there's about 600,000 owner operators as a whole.
And you know, as of, let me see, the estimated for hire drivers out there on the road is about 2.5 million.
So you know, combining everything they're saying about 3 million drivers on the road.
So again, I went to public school, but if we're looking at 1200 divided by about, we'll just go 2 million.
(10:32):
This is.
That's 0.06%.
All right, so that is a very small drop in capacity.
Right.
Because I think a lot of people kind of hang on some of this data and I like to put the big number out there that explains how many, like how big the pool is compared to what was actually put out of service out there.
And again, I'm not opposed to this.
Right.
(10:52):
I feel like again, you should be able to read the.
And be legally driving in the United States to operate a truck.
Right.
Because I think that's what to me is the big issue here.
And then so again.
But I just wanted to put that sample size out there for the individuals who are like, oh my God, this is going to be the thing.
1200 drivers is not moving the needle at the rate that I think some thought it was going to.
(11:17):
Let me see here.
The cvsa, the Commercial Vehicle Safety alliance director said that our members conduct the inspections and upload them to the federal database.
The CVSA does not collect data on this directly.
And she noted about the disparity between Duffy's numbers and reported figures are likely based on inspection data.
Again, we're talking 300.
(11:38):
Of course people are going to pull any and all discrepancies out there.
And hang on that.
But you know, here's the thing.
If a driver can speak some English but lacks proficiency in other areas, inspectors can issue a variation of different violations that are coming on out there.
And of the four Western Regions, the violations came 412.
(12:04):
Excuse me, Western Region had the most violations at 412, followed by the Southern Region, 364.
Midwest, 273 East 163.
The Western Region also had the most violations for inability to understand traffic signs at 68, followed by 65 in the Southern, 41 in the Midwest and 25 in the east region out there.
(12:28):
So again, if we're looking at this as a whole, is it making the road safer?
I would argue yes.
If you probably shouldn't be out there if you cannot read the road signs at least.
Right.
Like I understand broken English and stuff and, but this is.
Again, I, I look at something like this because there's been a lot of talk out there about that and I look at it as who's really to blame here?
(12:53):
All right, how did somebody actually.
Is it the carrier that hired them?
Are they to blame?
Is it the individual who's just trying to do a job out there or is it the person who actually passed them at the, you know, is it, were they actually at a real driver's license facility, you know, or a real facility to get their CDL?
(13:19):
I would 1000% place the blame on the person issuing the actual license out there, followed closely second by the carrier who hired them.
So again, is this an issue of our own making?
I could argue that yes, it is the people who are out there who are issuing the CDLs and as well as the companies that are hiring and employing these drivers out there, I would say that's where we got to look to kind of put an end to a lot of this.
(13:48):
And again, I think that most businesses as a whole, I mean, I don't know if this is going to affect their insurance or anything like that, but I think a lot of people are going to have to start self selecting on what strategy they are going to take with their business here moving forward out there.
So again, I don't think it's that big of a deal.
I don't think it's going to drop capacity to the levels that people think.
(14:12):
Again, I think it's a very subjective implementation out there in the, in the real world as a whole, you guys.
But.
All right, so that is you guys again.
Hit it up ttnews.com if you guys want to check that article out and.
All right, another one.
So I know everybody and their brother, we're going to talk about load boards here for the remainder of the show.
(14:34):
Everybody under the sun had an opinion about when DAT announced that they bought the Convoy software.
All right, I want to put that in bold, italic, underline that software.
All right, again, they bought the software, the technology, they didn't buy the company.
(14:55):
And you know, it's like wild the amount of people that just have to have a fucking opinion on everything before all the information tends to come out.
And you know, when I see something like this come out and then you see other reports out there about, you know, highway building, an internal load board that goes on and then truck stop, they also unveiled a private load board and everything else and book it.
(15:22):
Now features have been a thing for quite some time now.
And again, I feel like a lot of people are quick to judge.
I look at it as is.
Again, this is just straight up my opinion.
I don't have any inside information on anything, you guys.
I'm just a guy with an orange shirt who's just trying to build a freight brokerage here.
But if I'm looking at this as a whole, you know, because there was a lot of people who are like, oh, DAT is now going to be a freight broker.
(15:51):
If you're looking at it from that angle.
I want you to ask yourself something.
If you've built a business, and again, I'm just going to say a split 50, easy conversation here.
You build a business, would you buy a product that would put potentially 50% of your revenue out of business?
(16:18):
Would you actually do that?
I don't think so.
I, I would probably argue that the software side of trucking is probably a lot more lucrative with higher profit margins than freight.
Right.
I, I would probably argue that it has a lot higher ROI than a 12% margin, which is what most freight kind of runs for across the board.
(16:41):
From a freight broker's perspective, I don't think that's what's going on at all.
I, I think that when you are out there and you're following acquisitions in the industry as a whole, I think you see a lot of stuff is, hey, this is some pretty good technology.
Should we just buy this as opposed to investing our own time and resources into building it?
(17:04):
Right.
And that was one thing I was kind of shocked that some of the tech people weren't talking about.
Again, this is just what I did not see out there.
Nobody made the argument about like how much cheaper it might have been just to buy an existing platform than it would be to build all of it out over the course of a couple of years.
Right.
When you have a proven product that actually works, the technology.
(17:25):
So again, I look at it as is, the industry's changing, things are changing out there, things are going to look differently.
But I just, again, I don't have any inside information, but I do not think that DAT bought this software to put half of their customers out of business and be in competition with them.
I think that again, I could be wrong.
(17:45):
I just don't see how it Works out.
And again, if we're looking at this as a whole, you guys, this is a very hard pill for a lot of freight brokers to swallow.
Hate to break this to you, a lot of your freight can be auto tendered like this, right?
Like that.
Digital booking.
The digital freight broker, that got a lot of shit, you know, I know convey got a lot of shit for it and I probably said some stuff back in the day about it.
(18:08):
Now all my stuff's out there if you want to find it and say, yeah, Chris, this is what you said, cool, go for it, take your time, have fun.
But that is happening, you guys.
Like that will be a thing in due time.
I think there is a lot of consistent freight out there.
If you look at all the freight that moves between Atlanta to Chicago, hypothetical example, that's all the exact same pallets, you know, 26 pallets, 40,000 pounds, one pick, one drop.
(18:33):
You don't need a broker to do that.
Like there are a lot of people who could sign up for an app, go in there, and then again you could go out there and do it.
And brokers, you should be building out something like that.
Have a driver able to go in there and digitally book their own freight.
Why not?
If you have a select group of carriers who move specific lanes for you, give them access to that stuff, have them go in there, set your pricing parameters.
(18:58):
Some people have a hard time with that.
I don't.
If I trust a carrier I would, I like, why wouldn't you go in there and do all of that?
But again, that's my little rant on that.
But let's get into the article here.
This came out a few days ago.
Again, I purposefully wait to talk about this shit because I do not need to be the first person to have an opinion about stuff, especially one that I am not privy to any information on at all.
(19:21):
It's just so many knee jerk emotional reactions by so many people.
It's very telling though.
But anyways, you guys, this one.
Overdrive Online DAT buys Convoy in a bid to become the safest freight marketplace out there.
It's reported that they paid 250 million to that.
Again, it's unconfirmed, but in this article it lists that.
(19:42):
And then what will DAT Convoy look like for carriers out there?
The acquisition of Convoy demonstrates dat's ongoing commitment to enhancing network value for our customers, said Jeff Clements, excuse me, he's the CEO of dat.
Clements told overdrive carriers that use DAT won't see any changes to their experience of dat.
(20:04):
Itself.
But Bill Dragger, the former Flexport head of trucking who moved as part of the acquisition, becomes DAT's EVP of the Convoy platform.
What will change is carriers will see more loads within the Convoy app, said Dragger.
There's a significant amount of inbound on the broker side and a massive influx of interest out there.
(20:25):
In theory, the partnership will provide Convoy with greater visibility and volume as DAT reaches out to select carriers on specific lanes that might benefit from using the Convoy platform.
On the broker side, DAT will offer Convoy's automated freight transaction and carrier vetting steps.
Clement said Convoy's onboarding process should be pretty lightweight for carriers.
(20:47):
And Drygart said Convoy does not ask for ELD integrations.
He's aware other carrier vetting platforms get flack for that.
Instead, Convoy tracks loads through the application itself.
So I look at that as you know, I'm a firm believer.
I think that is a smart move as a whole to not require the ELDs to get set up out there.
(21:11):
Again, I'm not here to argue what is right or what is wrong, but I am here to come from a standpoint of I've actually worked in environments, you guys, when you're begging carriers to take your freight as a broker, a lot of the requirements that are out there right now that some people are enforcing, not everybody, but if you're on social media at all, you see screenshots of a lot of this stuff.
(21:35):
That's the one thing that I think will be rolled back immediately when capacity tightens up and carriers are like, we're not doing it.
And then brokers are going to be like, well you have to.
And then they're going to be like we're not doing it and you're not going to book our truck.
And then that broker who's been struggling to cover that load is all of a sudden going to have an override for a lot of that stuff.
Again, that's just my opinion on it.
(21:56):
I just think that's where things are going to go, you know.
And then it goes on to say in here that in the next year or two they added that expect the Convoy and DAT apps to become one where carriers will log on to see freight posted by brokers just like any other load.
The carrier might end up negotiating against the automated process of Convoy.
(22:17):
But Dryger said that the outcomes of the AI powered negotiations fall within preselected price ranges from the broker and don't really vary from negotiating with real humans.
The acquisition of this demonstrates dat's ongoing commitment to enhancing network value for customers.
Clement said together we will give customers a better, broader freight matching network out there.
(22:40):
Again, just looking at all of this is a very smart move in the long run.
I, I like again, the not doing the ELD integrations I think is going to, and again, that could change.
But based on this article here, I think that's a smart move because people do complain about that.
(23:01):
And then again, brokers are given a lot of Runway in a broker market, a lot of Runway that might not be there when capacity tightens up.
All right, So I think that again, I'm not here to argue if it's right or wrong.
I'm just stating from an operational standpoint, I think that's smart because I think that in due time that will be a sticking point out there and you are going to start seeing a lot of people probably provide some overrides in that for that to happen.
(23:33):
But again, I think overall, you guys, what they're talking about here, that automatic transaction, because as of recently, best to my memory, you guys, when were talking about this recently on the show, that digital transaction between a broker and a carrier that Convoy tried to initially build and that Uber Freight seemingly is trying to go, I just think it was an early adoption thing.
(23:55):
I think there was a lot of, there's a lot of opportunity in that space and I think that is where a lot of the standard freight that you see out there is going to start.
And it's going to be a reality here coming up.
I truly think it is.
Again, I'm not here to argue what's right or what's wrong.
I'm just here to give you guys my opinion on it.
And I think that the digital matching out there and brokers being able to go in and put their freight on a specified load board and not have to actually interact with the carrier, but as long as that carrier matches some specific parameters out there, it's going to be a thing, you guys.
(24:30):
And the way that technology is advancing, I, I think that it's going to be a lot more common than people think out there.
So that article was on overdrive.
You guys should check that one out.
And then again, the same day, Truck Stop, they also unveiled a private load board.
This article was on freight waves about this.
That's streamlining freight matching for brokers and carriers out there.
(24:54):
And then again, this comes with public and private loads in one platform.
All right.
And then it goes on to say that we understand the daily pressures broker face to find trusted capacity quickly and the frustration and lost time carriers experience switching between public and private loads out there, said Scott Moss Crip, the founder and CEO of Truck Stop.
(25:15):
By bridging private and public loads together, we're not just adding a feature, we're delivering a critical solution that enhances trust and boosts efficiency.
For freight brokers, the platform provides a high reach challenge to connect with pre vetted carriers who are already seeking freight.
Carriers benefit from this from the consolidation of private and public loads in one location, eliminating the inefficiencies of juggling emails, phone calls and multiple load boards.
(25:43):
The centralization allows carriers to quickly identify, compare and secure desirable loads while strengthening their relationship with brokers.
Again, this is a very smart move by Truck Stop to release something like this.
Again, I think this is where things are.
It's going to start with your very generic freight.
(26:06):
And by generic I am just saying again that standard one pick, one drop, 26 pallets, £40,000, you know, stuff that you should have a core carrier group on there.
And I think this is where a lot of really good automation is at the end of the day.
But again, I, I, I, I want to say this, you guys, a lot of you out there blame load boards and vetting software for inefficiencies in your business.
(26:34):
All right, yes, I understand the marketing behind some of these tools out there, but at the end of the day, it's on you.
It's on you.
You cannot rely on a piece of technology to do your job for you.
You still need to be having conversations with carriers.
Right?
Like when I look at some of these, the freight matching and all of that stuff out there.
Am I going to use it?
Absolutely.
(26:54):
I'm going to use something like that.
But I'm still going to talk to the driver, I'm still going to talk to the dispatcher.
I'm not going to automate everything.
But it's not, at the end of the day, you guys, you still need to be having those conversations.
And I think fundamentally, again, when you see freight theft rising and all of that stuff out there, what's going on, I think that you can't blame the people who are building a solution to a problem that the FMCSA seemingly is not working to fix.
(27:24):
Because ultimately, at the end of the day, I place a lot of the blame on this, on the fmcsa.
And I say that because of this.
Where does everybody get their authority from the fmcsa, right?
They got to register on all of that.
Why does the FMCSA allow 800 carriers to have the exact same address at a strip mall in Stockton, California.
(27:52):
That just making that part up.
But there are a lot of known examples of that out there across the country in LA and Wyoming of all places and stuff like that.
Until the FMCSA gets their stuff together and actually puts an end and makes it harder for that to happen.
I think that's a great first step out there.
(28:13):
Again, you guys, the good thing about criminals is they're just going to switch their hustle to something else.
They'll find a way.
But I think that we're at a spot now where it has to change.
At the fmcsa, that is where things have to say, Sean Duffy, the dot, all of that, you guys need to focus on that.
That's where the real problem is.
(28:34):
Everything else is an after effect of you guys not doing your job.
All right, tough pill to swallow, but that is where the real problem lies.
Because if you don't allow 800 businesses to be registered at the exact same address, if you have just a little bit of a stricter policy on all of that, I think some of these other things start to go away.
(28:56):
The FMCSA makes it worse.
Way too easy for this stuff to happen out there at the end of the day.
So I look at that as that is where things have to start.
Load boards, vetting software, there are great tools, you guys, for you to use, but you as the actual service provider have to do your job.
(29:19):
Okay?
It is not any of their fault that stuff is going on because I book carriers for freight every single day.
All right?
I can tell within about eight seconds if these guys are full of shit or not.
All right?
And we're going to roll this into tomorrow and tomorrow's show because I am going to put on a kind of an operations show, all right?
(29:42):
I'm going to talk about how I vet carriers.
I am going to talk about how I prospect for freight and everything because I get a lot of DMS about this, you guys.
And I just had a conversation the other day with somebody who was like, do I pay for lead generation software and all this other stuff?
So I'm going to go and I'm going to put it on a show about that tomorrow because the beauty of a guy like me outside of this stunning face of mine is I actually do this job, you guys, and we're going to talk about all of that stuff.
(30:08):
And yeah, Corey, thank you for putting that in there.
Says Sheridan, Wyoming, where he's from.
And that's that the address is across from the post office out there.
And Jeff Dickinson.
Absolutely.
It comes down to genuine, authentic relationships which we are lacking as an industry.
Amen to that, Jeff.
But that is going to be it for today, ladies and gentlemen.
I got to get back after and book some freight.
As always, if you got value in what you heard today, subscribe to the show, you guys.
(30:30):
And if you're feeling really ambitious after this one, which you should be, rank the show on itunes and Spotify.
Because if you saw value, your network's going to see value as well.
I appreciate you guys.
I love you guys.
And we'll be talking to you soon.
Speaker 1 (30:47):
Came back with a bank window down yelling now money anything hey oh got the foot on the gas pedal to the metal when I'm getting to the back hey got the foot on the gas pedal to the metal when the lane move fast hey Let them all cross if they hate then let them hate them Make a bigger ball.