Professor Bernard's picture

Three Non-Economic Problems in Trucking

By Bernard


First of all I would like to address the problem of simply getting into the market.  With today’s companies who have already proven their names and shown their clients hat they can be relied upon to deliver the goods at the target date without any problems, it is really hard to get to the surface and be a successful trucking company.  When you are just starting, it is hard to find people that will trust you with thousands of dollars of merchandise if they’ve always been with the same company for the last 10 to 20 years.  There is also no way you will be able to start as big as companies such as CRS Express.  Unless you are a millionaire, which is an economical factor, the only way you could start as big is if you worked with those big companies, if you shared clients. 


Another problem is getting the drivers.  You want, as much as possible, to get drivers with experience.  I’m not saying that a kid fresh out of driving school isn’t good enough, but experience is most of the time better.  Now the problem here is that most drivers with experience and a good log book are already employed at a company where they probably earn more than what you could offer them to start with.  Then again, you would have to be “friends” with another trucking company in order to get good labour to get started.  As I mentioned earlier, my dad has about 33 years of experience in the domain as well as military experience, during which he worked hard to climb to the top and become what he is now; Vice-President of a transport company.  Of course he worked for many companies, but he finally found one that could offer him everything he needs.  Job security, a decent salary, experience (you never have enough), etc.  


As I have already mentioned, it is really hard to get to the surface and start a good company.  The other problem remains and that is keeping up with the competition.  It is one thing to start and it’s another thing to keep going and stay efficient.  The much bigger, already established trucking companies don’t really have to worry about getting dumped by their customers if they have been providing good, cheap service.  They already have the monopoly.  In order for you to be able to compete, you need connections.  You have to know someone who will be able to give customers and recommend you as a good, trust worthy company.l