By Timothy Brady

I find it interesting that many in the political scene are calling for less government regulation and intrusion into our lives, whether we’re discussing health care, Wall Street reform, or trucking. In trucking, we have CSA 2010, the upcoming new HOS rules, the Motor Carrier Protection Act of 2010--and many in our ranks are saying this is too much government. But at the same time, many truckers are saying in the same breath, “We need the government to regulate hauling rates and control fuel surcharges.” I don't think you'll ever see us returning to the ICC age, but be careful what you wish for; it might happen, but not in the form you wanted.

So what do trucking companies need to do? Particularly the small ones? Stop doing business in the manner they have been and do it in a way that works with the way the industry does business. Get off the per mile way of doing business. Trucking is far more about time than it is about miles. Miles are very arbitrary. The more miles your trucks travel over a period of time, the lower the cost per mile; the fewer miles a truck runs over time, the higher the cost per mile. I know this is contrary to what most think it should be, but it is a fact. Looking at revenue requirements per day and then adding fuel and other cost per mile items, there’s never a concern on how long your trucks sit at a dock. Your costs are covered and most of the time a profit can be made.

Waiting for the regulations to come down the pike to address your revenue and hauling rate concerns would be like waiting for the temperature at the South Pole to go up to three digits. Might happen; but would you want to be there? There is a way to work within the current insanity we call trucking, but it takes a very large change in how small carriers approach the way they do business. If the way you do business depends on developing and passing new regulations to create a level playing field, this means you’ll be out of business long before the wheels of government get around to helping. That is especially true with the current legislative environment in Washington and most state capitols, as the different sides have drawn their lines in the sand; one wanting less government and the other looking to the government for answers. The wheels of government may go round and round, but they move very slowly and at times in different directions.

Your best course of action is knowing your costs and knowing your capital needs. This is required for sustainability and growth, as both are what determine your revenue needs; not a shipper, not a broker, not the government. It isn't their job to know your numbers. They don't have access to them. You are the only one who can know what it costs you to do business and what you need to make above that cost to sustain and grow. So even if you got all the regulations you asked for, if you don't know your rate range, you'll be sitting in the same place and your wheels will be standing still.

Good loads and good roads, everyone.

Timothy Brady
© 2010