Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
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 blame moving fast hey Let them all cross if they hate then let them hate them make a bigger boss hey.
Speaker 2 (00:27):
What is up, ladies and gentlemen?
We are back.
We are live.
It is the Frick 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.
But most importantly, you guys provide some actual insight into what you can do with all of this information.
If this is your first time tuning in, welcome.
This is the real side of freight, ladies and gentlemen.
(00:48):
And I do say that before every single show.
And what I mean by that is I only speak with transportation professionals because at the end of the day, you guys, I want to talk to the right individuals who have done what you're looking to do or who are currently doing what you're trying to achieve.
So you can take that information, apply it, utilize it, and see a meaningful difference in your business and your life.
Happy Tuesday, everybody.
(01:08):
I got a solo show today, got some headlines I'm going to break down and got a little bit of a Tuesday training topic to drop on you guys this morning.
And, but before we get into any of that, you guys, just a quick reminder.
Every single Wednesday, we drop the Freight Coach newsletter.
If you want in on it, I need you to go to my website, thefraightcoach.com to automatically register for it.
(01:30):
I do that because, like, I don't want to just spam people at the end of the day.
So if you want to get in on it drops once a week.
We talk about the market, we talk about diesel prices, and we talk about transportation.
And that's it, you guys, because frankly, I don't want to talk about anything else out there.
There's enough negativity in the world and I just want to try and add value out there to the industry in another form.
(01:51):
So if you want to go to that, go to the FreightCoach.com to check that out.
It will drop tomorrow.
But today, again, solo show and I'm going to be doing a little bit more of these, you know, probably once a week or once every other week.
I know we did a couple of them last week because, you guys, I only have real professionals on this show and sometimes people, schedules, changes and we got to move some stuff around here.
(02:15):
But, but, you know, I want to Bring back more of that dedicated once a week or once every other week show of just like, tangible strategy and stuff that we do personally inside of my organization.
And, you know, again, there's a lot of people out there who are looking for guidance and looking for help and, you know, and then also I think, looking for some reassurance that they're not alone and they're not going crazy with how slow everything is.
(02:40):
And, you know, when I had my friend Ken Adamo with DAT on the show yesterday, I mean, he laid a lot of great information out there, you guys, and, you know, I, I've been saying this for a while and I'm going to continue to say this.
I, I am approaching this next 12 months in freight that, like, nothing is probably going to change at a, like, a pace that a lot of people are hoping for like a rapid recovery or even a mild recovery out there.
(03:06):
And I say that not to be a pessimistic individual.
I'm just trying to be real and I, I'm trying to help people avoid the waiting for something to happen before they are like gonna go out there and take action for it.
Right?
So it's like, you know, again, we talk about building a strategy to follow and, you know, every single day to develop business.
(03:28):
You know, whether that's 40, 50, 60, whatever amount of calls that you got to make in a day, you got to choose something and stick with this.
And, you know, my little training topic that we're going to be talking about today is Corey Buchan.
Happy Taco Tuesday, he says.
Sunny Sharma.
Good morning, gang.
Good Tuesday morning, gang.
He says out there.
(03:50):
But, you know, we're gonna.
Our little Tuesday training topic that we're gonna be bringing up is inspired by a friend of mine's post this morning.
He is a shipper.
He's been on this show before.
No, I'm not going to tell you what his name is because you guys got to do your own research.
But, you know, he's a friend of mine.
He's been on the show.
His name's Paul.
I'll give you guys that.
And, and he dropped some really good knowledge this morning.
(04:11):
And this is something that I want you guys all to look at from your business development standpoint, because I'm constantly looking at how are we approaching our shippers and, you know, the strategy that we follow is where are we at in the sales process?
Right?
Like initial phone call, Like, I've never actually talked to them before.
It's value only like it's very short, it's very to the point.
(04:34):
And you know he put a post out there this morning, you know that it's about kind of like saying that you're the best at everything.
Right?
And we talk about this on the show often.
Is, is, you know, he's like we hear a lot about how we can do the lower 48, 99 on time.
Delivery, sleep, snow, tsunami dot 24.
(04:54):
7.
Sound familiar?
And then he goes on to say someone who's received hundreds of carrier sales decks and email pitches.
This is one of the biggest red flags I see.
Again over promising.
Here's why.
When you claim that to be everything to everyone shippers here, one thing we're going to over promise and under deliver.
His words, not mine.
And that's the fastest way to get booted from a shipper's network.
(05:16):
Instead go into a sales call with a plan.
Do your research, look at the load boards.
You can often connect the dots.
Shipper receiver equipment needs.
Match their needs to your network.
If fits your power lanes, where do you have excess capacity?
Where are you in the sweet spot?
Lead with specificity.
Show them exactly where you can add value before you even try and get a meeting scheduled.
(05:39):
And then he goes on to say the carriers who grow aren't the ones pitching 48 states, 24 7, 365.
They're the ones who know their lanes, their strengths and align them with the shipper's needs.
Don't try and be the best at everything.
And that you know, when we're out there and we're talking about this, you guys.
So again we talk about this on the show and you Paul, and Paul is a really good friend of mine.
(06:01):
We connected through the social media world.
He's been on this show.
You guys can go back and find him.
He's done a couple of episodes on here you guys and he did a lot of ask a ship or anything stuff because he genuinely wants to help individuals out there.
No, that doesn't mean to go out there and prospect him.
But like you guys, he's telling you what the overwhelming majority of people do.
The overwhelming majority of people are we're the best at everything, we can do everything.
(06:25):
Give us all of your freight, don't worry about it.
And it's very generic and that's how you don't really gain any traction.
And you know this is why I talk about being a niche based broker.
My friend Sunny Sharma who's been on the show before, he's A longtime listener, he does proteins, right?
Like that's his niche.
My, my friend Cody Kaler, who's been on the show, he does a produce show with me because he really only does produce and food at the end of the day.
(06:51):
My man, Chris Brewer, River City Logistics.
They talk about that they do a lot of dry van freight.
You know, obviously they do some other stuff now because they've grown over the years.
But the most successful people I know in this industry do one thing really well.
It's how we've grown our business since went in and started in January of 2023 to where we are right now.
(07:14):
99% of our freight is full truckload freight.
99% of it is pretty much in open deck as well.
We do some drive in work.
But our core sales message out there, you guys, is that full truckload it is that open.
And it's very regionally specific too.
So like when I'm out there, you guys, we move, and this is just based on the business that I've developed.
(07:35):
We move a lot of freight out west here and you know, primarily outbound Arizona.
We move a lot of freight up and down the eastern seaboard there through another customer that we onboarded early.
And then we move a lot of stuff in the Midwest.
And you look at that, you're like, that's kind of a lot of regions out there, right?
That, that is pretty much the entire country.
But when I'm calling people, I'm not saying like, hey, we can pick up everything out of Arizona and go everywhere, right?
(07:58):
Like, we're strong in the Western 11 from that region out there.
And then with our, you know, east coast shippers, it's pretty much Virginia down to Florida.
That's our region.
And when I'm out there prospecting people, that's my main focus when I'm going out there.
Because we have lanes that align within that network, right?
And just because you can do everything doesn't mean that you should.
(08:19):
And I think you can really get in the door with people based on that real specific sales strategy as you're going out there, whether you have assets or whether you're a broker and you're trying to build it up.
You just can't be everything to everyone.
And that is a very tough stance to take when you've been told that you can do anything and everything, just sell everything out there.
(08:43):
You know, it's like, I don't do LTL at, like at a high level at all.
I've done some of those Shipments here over the last couple of years, you guys.
But it was with an existing customer who was having trouble and they're like, hey, can you figure this out for me?
So that came after we had moved a lot of full truckload freight for them.
And then again, you guys knowing, you know, like researching your prospects is so key.
(09:07):
It's the most, I think it's the most overlooked step out there.
And it's as simple as like, this is why I preload five phone numbers at a time.
I have the company's website up.
I know Ex.
I have a really good idea what, how their shipping is going to work just based on their product offerings on their website.
So do something simple like that.
And then again, focus on your strengths, you guys, what are you guys really good at?
(09:29):
If you've got 15 plus years in the industry like I do, I'm not opposed to you going out there and especially if you've done dry reefer, flatbed freight, I'm not opposed to you going out there and developing that.
But like tailor it to your prospects at least, right?
But more people than not, I think, need to focus one thing and really build that up from there.
And then, you know, again, being realistic, you guys, is another major oversight out there.
(09:56):
Being realistic about where you're at, whether it's in the sales process or where you're at in the totem pole of priorities with your customers and prospects, you guys, it helps bring clarity to it, right?
It helps not put too much pressure on yourself as you're out there trying to develop a book of business.
But you know, that's just a little training topic today, you guys.
(10:16):
Take that for what it's worth.
All right, just here's just to summarize five quick things.
Avoid being everyone to everything or everything to everyone.
Excuse me.
Research your prospects.
Align your pitch with your strengths, okay?
Be specific in your value proposition.
Why are you good at what you do?
And then build trust through realistic commitments.
(10:38):
All right?
Do not over commit and underperform.
It is the bit one of a major killers out there, you guys.
So take that for what it's worth and go in some freight with that, ladies and gentlemen.
I hope you guys do.
Because there's a lot of business to be earned out there at the end of the day, and that's what we need to do, you guys, I want to see everyone win, all right?
(10:58):
As much as I possibly can.
I'm literally telling you guys everything we do inside of our business and how we have grown Year over year, since we started out from cold zero customer, zero revenue back in 2023, yes, it's taken a lot longer than I wanted.
It's.
And it's probably going to take a lot longer than I want even now because of the way that things are going.
(11:20):
But this is a strategy that I will follow as we hire and grow.
All of my sales reps are going to continue to follow this because I.
It's a proven strategy in my experience inside of the industry.
And again, you guys, I'm just a guy who actually does the work that I talk about.
Now, we're going to break down some articles here, and we are going to lead in with the least shocking headline that came out there here recently.
(11:50):
But this one was from Freight Waves, and it is that UPS extends its buyout offer deadline after low driver interest.
And again, I got to give credit where credit's due out there.
I am not the biggest fan of unions.
I've been abundantly clear over that.
I understand why they exist.
I just don't think that they're necessarily a good thing per se.
(12:12):
But we won't get into that today.
But I got to give credit to the Teamsters.
At the end of the day, you guys, they negotiated a really good deal for their drivers out there.
And, you know, just to kind of put it into perspective here, I, you know, just did some quick math here and, you know, some of these guys that whether they're making, you know, they're $25 an hour base, $35 an hour base, or $45 an hour base pay out there, the drivers, which again, you guys, I'm not knocking anybody's pay scale.
(12:42):
People deserve to get paid.
But I mean, if we're looking at it, some of their drivers are no 100 grand before OT, you know, and getting up.
And this is if there is a, you know, maximum of 10 hours of OT a week for their top base pay out there, I mean, it's like 150 grand a year, you guys.
(13:04):
And now if you multiply that by all of the Teamsters drivers that are at ups, it was going to come to this point, right?
It was going to come to this point where UPS was going to try and get themselves out of this deal.
And nobody should be shocked by this revelation that this is where they're at with it.
And, you know, because they are out there.
(13:26):
So the key thing that they're trying to do is they are.
They extended the application first driver buyout by two weeks.
Now pushing it to August 14th.
So in a couple of days here, due to a lower than expected participation, I think that was a massive oversight by ups.
Why would anybody want to buy themselves out of their current wages?
(13:48):
The voluntary separation agreement or the voluntary separation program offers affected drivers $1800 a year of service with a minimum of $10,000 slap in the face.
Like, let's be honest, UPS, did you really think that was going to work?
In addition to their earned retirement benefits, separation dates are slated between August and October 31st.
(14:13):
Additional windows through March 26th for overflow applicants.
Obviously, the Teamsters massively opposes this plan, calls it a violation of the 2023 contract, including job creation commitments and urging drivers to decline this offer.
The buyout aligns with a. UPS's larger network of the future restructuring out there.
(14:35):
And you know, like, let's be honest, they extend it.
I wouldn't be surprised if they extend this again because I don't think anybody, unless you are like a month away from retirement and this somehow financially benefits you to like stop right now.
I don't see a mass group of people walking away from that.
It's.
Especially in today's job market.
Right?
(14:55):
Why would you do that?
And then it's again, there's just, there's no reason to like, why are, you're not incentivizing these guys to walk away from this.
Like, it's like we're talking.
So if you work there for 10 years, they're going to give you 18 grand.
You, you work there 10 years, 18 grand, 20 years, $36,000.
(15:15):
Like, come on UPS.
Again, I'm not advocating for the union here at all, but like, what did you think was going to happen?
And then obviously that the team starts, you know, like it's a breach of their contract out there.
They're going to probably sue ups, start a lawsuit and everything else that comes along with it.
And then it, you know, with UPS is, you know, they're trying to obviously restructure their entire network would be my assumption here.
(15:43):
Again, I'm not privy to any internal information over at ups, but I'm assuming they're going to be closing some hubs, they're going to be doing some restructuring, they're going to be changing some things, they're going to be automating some things and there's a lot of people who have jobs there that probably they view as obsolete in the coming years.
So they're just trying to get ahead of it right now.
It's again, I think that UPS, the Teamsters negotiated a really good deal back in 2023.
(16:12):
It was probably way too much money that UPS didn't think was at the time was going to have an effect.
And the market goes down, things go down, things change.
And this is where we're at right now.
I think that this is probably going to get drug out a lot longer.
And then UPS and the Teamsters are probably.
(16:37):
I, I just look at it as is they.
Okay, excuse me.
It says in this article they're aiming to close 200 domestic package sortation centers over the next five years and invest more in automation.
All right, so it's right there.
You guys are trying to get people out of the way.
I think it's a bad look by ups, if I'm being completely honest.
(16:58):
And it's one of those situations that the Teamster shouldn't be shocked that this happened.
You know, again, I, I look at it as the Teamsters negotiated a really good deal for their drivers.
And now that automation is front and center for a lot of people, there's going to be a lot of people who are going without a job.
And I think the in my assumption is UPS is like, well, at least we're trying to offer them a buyout here and it's their fault for not taking it.
(17:22):
And then they're probably just going to end up getting laid off or fired in the coming months.
That would just be my assumption at the end of the day here.
But that article, you guys, is from UPS or excuse me, from FreightWaves.com and from our perspective here, you guys should go check that out and read it because it is interesting, to say the least, on what might happen out here.
(17:48):
Now, another of my favorite situations that's going on out here in the world is, is this article is from ttnews.com you guys.
Four top truck makers Sue Carb and Governor Newsom over emissions rules out there.
(18:08):
And this article, you guys, I think this is one.
So, like, the CARB stuff has been going on.
I think it was like 2012 is when it like kind of first rolled out, if memory serves me right.
I remember that because they were essentially every piece of equipment within 10 years couldn't be brought into the state of California.
(18:29):
I believe it was 2012.
But yeah, it's.
They Daimler Trucks, Volvo Packer and International Motors, formerly Navistar, filed a federal lawsuit in the Eastern district of California.
They are challenging carb, California Air Resource Board and Governor Gavin Newsom over enforcement of emission Standards tied to the Clean truck Partnership.
(18:53):
The suit urges that Congress used the congressional Review act to revoke EPA waivers for California's advanced clean trucks and omnibus low nox regulations.
As a result, the state lacks legal authority to enforce those rules of the associated voluntary agreement upon clean truck partnerships.
(19:18):
Then this lawsuit hinges on Congress revoking that stuff out there, right?
So that's why all these truck makers got all over this.
I think the current administration has been very clear about their desire to roll back a lot of these green initiatives we'll call it.
And it's just this to me is it should never have been a thing, all right?
(19:47):
Like living in Arizona, you guys, you have to get your, you know, out west, you got to do smog tests on your trucks and your vehicles and stuff like that out here every couple of years.
And you know, I look at it as a lot of things.
Is it actually making the environment cleaner or is this just another line item for the states to charge its citizens more money and it's not actually doing anything.
(20:11):
My knee jerk gut reaction always leans towards that.
It's just another way for them to tax us, to make us pay fees to do all this other out there to line their pockets even more out there.
It does go on to say in here, the United States Department of Justice has issued cease and desist letters to the plaintiffs OEM stating that those same standards are invalid and unlawful and that only the EPA regulations apply out there.
(20:42):
The Clean truck Partnership, which was unveiled in July of 2023, is an agreement signed by the four plaintiffs.
So essentially, let's be honest, they all got in on it back when the past administration was in office because there was a lot of green initiatives, probably a lot of tax incentives to do it.
Now that it's gone, they're like pound sand.
We want out.
(21:03):
And then it goes, you know, it's just coming from the rollback out there.
And then I just look at this, you know, again, it's just another thing, right?
Like the state of California, everybody out there knows what it is.
It's an absolute nightmare to do business inside of it, right?
Like, that's why a lot of people run away from that.
That's why a lot of drivers don't like going in it.
Like, the amount of drivers that I talk to out here just in Arizona, who pick up for me in Arizona like that, refuse to go in to the state of California is like 85% like no joke.
(21:37):
And it's like, you got to ask yourself why at the end of the day.
I just think that there's, this is just another thing.
I think CARB is an overall joke.
I know all the climate activists out there are going to vehemently disagree with that.
But like if, and one thing that this article was lacking was like the, from my perspective is this, like how is this measuring if the air is actually cleaner from it?
(22:02):
Right?
Like that.
That's the report that I think is missing is that there's no data in here that shows what pre carb and post carb environmental effects were out there.
The ATA was among the groups praising this out there.
You know, and Chris Spear said this is not the United States of California.
President Trump is restoring the certainty that the trucking industry needs to deliver for our nations out there and essentially rolling back more loss because that's essentially what we need to do here.
(22:30):
There's enough hoops to jump through you guys and CARB is one of them.
And I hope this wins.
I hope they repeal this and I hope they do something at the end of the day to make it a little bit easier for these businesses in the state of California, especially in the trucking industry, to actually operate and operate profitably out there.
But that article, you guys was from ttnews.com check that one out.
(22:52):
All the links to the articles that we broke down on today's show will be uploaded into the show notes for you guys to do your own research on it.
Right?
Don't just take my word for it at the end of the day, although I think I have a pretty good opinion on some stuff.
But I don't.
I'm not right.
I'm not right all the time, just most of the time.
Third and final article is.
(23:14):
Excuse me, this is from the JOC.
Joc.com US Domestic Rail Intermodal market share shrinks.
I think that's just because it's probably cheaper to move it full truckload and you can get it faster than it is.
You know, just quick summary.
Without reading the article yet, that is my assumption is as everything to do with the fact that OTR is as cheap, if not comparably cheap in price comparison to Intermodal and they can get it a lot faster via otr.
(23:47):
So more companies are probably electing to take that route out there.
And then the market share numbers from IANA.
And speaking of that, I'm going to be at IANA's conference here next month doing my show from there.
So I'll probably get some more information on this.
Typically concentrate over year changes out Here the seasonally adjusted trucking numbers have been relatively flat, gaining just 0.3% from the fourth quarter of 2024 to the first quarter of 2025 and then easing back 0.4% in the second quarter.
(24:18):
The story was different in the second quarter.
Unadjusted intermodal volumes dropped 2.1%.
But in a normal year, the second quarter is always stronger than the first quarter.
Therefore, seasonal adjustments magnified the drop.
The resulting market share calculations Show A large 0.7 drop overall intermodal share of the, you know, from the first to the second quarter out there and then in like.
(24:45):
And then.
But the intermodal share for the domestic sector, domestic containers and trailers on freight car also declined in the second quarter out there, but it was not, let me see.
Domestic share dropped 5.9%.
Wow.
The lowest since 2011.
No doubt the continued soft trucking conditions bear the blame on this.
And.
And I would agree, right?
Like, anytime the full truckload market is comparable to rail, the majority of the people will opt for full truckload, especially in those rural areas that probably when the intermodal market's down, they don't get as consistent service out there.
(25:22):
Same thing with ltl.
This is why a lot of people change modes with the market, you guys, because at the end of the day, they need their stuff picked up, right?
We were talking about this yesterday with Ken.
All right, at the end of the day, you guys, price is one thing, but if your shit's not getting picked up, you got to explore alternative options and to kind of tie in what I always talk about, you guys, this is why I always got to be making sales calls, all right?
(25:44):
Like at the end of the day, you got to be making sales calls.
You got to be getting in front of people because somebody.
There's a high probability that there's somebody out there not doing what they say they're going to do, you know, so it does.
It just talks about how from 2018, 7%, you know, just like we're talking millions of fewer loads out there.
(26:05):
And I think, like, overall they've just shifted modes.
And this is something that probably will improve as the market, you know, as the truckload sector improves and stuff like that.
Again, I'm not saying it's improving in the current moment.
I think that's far away from a full on recovery or anything like that.
But you'll start to see that, right, if the truckload volume, you know, pay attention to this.
(26:27):
All right?
When truckload rates start to increase, you guys, you will see articles that say intermodal market share has grown ltl market shares.
They're going to look into that, right?
Because people shift modes when markets shift, right?
And whatever the most highest price one is, or if there's a comparable way to get it faster and within a similar budget, they're going to look at the full truckload and take that away from the intermodal, you guys.
(26:51):
So this is just kind of how it works.
All right.
So, like, nothing I'm reading in this article outside of like the drop that it took since 2011, that's.
That's kind of a big deal.
But other than that, though, you guys, this is very standard out there.
When the market shifts, people will explore alternative shipping options out there, you guys.
So again, this is why we always sell.
Get out there, pick up the phone, start dialing.
(27:12):
But that is going to be it for today, ladies and gentlemen.
I got guests coming on for the rest of the week, so you will still get to see my pretty face.
So just be another one on the screen with me, you guys.
But that'll be it.
As always, if you guys got value in what you heard, subscribe to the show, you guys.
And if you're feeling really ambitious after this one, which you should be, do your boy a solid, rank the show on itunes and Spotify.
(27:33):
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 (27:45):
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 lane moving fast hey let them all cross if they hate then let them hate them make a bigger boss hey.