You may recall in an earlier edition of Spotlight News we spoke with former Contractors Ed and Susan Petersen about their recent decision to become Owner Operators with their purchase of a used 2015 Cascadia from friends and fellow Expediters Ray and Lilza Gloria. As promised, we’re back to talk with Ray about upgrading and financing equipment, and his take on why now is a good time to purchase a new truck in anticipation of an uptick in freight and the economy in general.
Some Background
We began our career in Expediting, signed on with FedEx as our carrier, shortly after the market crash of 2008. Up to that point I had been in the electrical contracting business for over 20 years. (Read More of their story here) The crash left that segment of the economy pretty well decimated and I was looking for something that was more stable and provided a better quality of life. My brother was already in the business, so I purchased an older truck from him, a 2007 Colombia. Our relationship with Expediter Services also began at that time because we utilized Expediter Equipment Finance to purchase that truck. Lilza and I drove the unit until it had just over 800,000 miles on the clock. The truck had reached the end of it’s lifespan, we knew it was time to upgrade.
Their Next Step
Once we decided to upgrade, we were faced with the dilemma to either purchase another used truck or to buy a new one. We felt that since we had been successful in our business driving an older truck, a brand new 2015 Cascadia reefer unit would help us reach our goals more efficiently, as we would soon be transitioning into FDCC White Glove service with much more earning potential. We reached out to Expediter Services to help with the specifications. ES was helpful in getting the details right and Stoops Freightliner soon began the process of building our truck. ES stood by us throughout the build, even offering to let us drive a truck from their fleet until our new truck was ready. We took them up on the offer for a few months, which helped us maintain a revenue stream until we took possession of our new truck. I don’t know any other company in the industry that would have gone to these lengths to keep us on the road and help make our business a success. With Expediter Services, you truly Never Stand Alone.
Selling Their Truck and Purchasing New Equipment
Lilza and I have known Ed and Susan Petersen for many years and recently spoke with them about wanting to sell our 2015 Cascadia, as we were looking to relocate out of Florida and take our business in a new direction until we got resettled. They were keen to buy our truck, and I put them in touch with Steve Kochensparger at Expediter Equipment finance who arranged the financing. As usual, Steve was able to help complete the transaction quickly and smoothly. (Read the Petersen’s story here)
After selling our truck, we hadn’t really made plans to purchase another one for at least a little while longer. But my CPA informed me that I needed to purchase another truck to avoid capital gains taxes at the end of the year. I reached out again to Steve Kochensparger about financing a new truck and he told me about a very low mileage 2015 Cascadia (79,000 miles) that another owner was needing to sell. Lilza and I looked at the truck and we both liked it very much, as it was very similar to the one we had just sold to the Petersens but with 300,000 less miles. We decided to buy it and Steve and Expediter Equipment Finance put the deal together. As usual, everything went smoothly!
Ray’s Philosophy on When to Buy a Truck
There have been some important changes in the industry over the last few years. Teams today put in a lot more miles than they used to. For instance, when I first started in Expediting, we would log around 110 — 120,000 miles per year. Today, that average is 140 — 150,000 miles. New trucks from the factory have a 500,000 mile warranty. As a result, many owners try to sell a truck as it reaches the 400,00 mile mark. This way, the next owner has a little warranty left, and the truck is more desirable when it reaches the market. This makes the turnover for a truck about every three years (four years tops). As an owner, you either get new or newer equipment or pay it off and take a chance — which is something I don’t personally like to do. As trucks reach over the 500,000 mile mark, repairs are more likely and they can get pretty expensive, not to mention the down-time. I prefer to purchase new vehicles for this reason. Having said that, there’s definitely a case for purchasing used equipment. Especially when it’s low mileage or it has extensive maintenance records and remaining factory warranties like vehicles for sale at Expediter Truck Sales.
The Economy — Why Now is The Time to Buy
I think there are a lot of indicators that the economy is on the upswing. At the moment, I’m not seeing a large uptick in freight. But new FMCSA rules requiring drivers to go to electronic logs is just around the corner. I believe the new rules could cause a disruption, slowing down loads causing freight to get left behind. This situation will make for a very favorable climate for Expediters. Combine this with a growing economy and it will be good for everyone. I’m looking forward to it. Looking at it this way, now is a good time to buy a truck to be ready for the uptick. And anyone looking to finance a new or used truck should definitely talk to Expediter Equipment Finance and Expediter Truck Sales to take advantage of the favorable freight climate. Combine this with the support you get from Expediter Management Services, and I believe you can greatly increase your opportunity for success in practically any economic climate.
Stay tuned for a future Spotlight News story featuring Lilza Gloria as she discusses Women in Expediting.
The things in life worth having most often revolve around hard work, opportunity, and timing — and the business of Expediting is no exception. Just ask Ed and Susan Petersen, a husband and wife FDCC White Glove/TVAL team who have recently taken the step of purchasing their own truck in order to fulfill their dream of working for themselves. The transition into truck ownership can be a big step, but according to Ed Petersen, the timing was right for them to become truck owners and take their Expediting business to a new level. Here’s their story in their own words.
The Decision to Own
We’ve been working for an owner as contract drivers for about three years. Susan and I have worked hard to be successful in this business and after a while, we began to realize that our efforts were paying off. Our earnings were above average, which got us to thinking that if we can generate this kind of revenue for someone else, we can do this for ourselves.
We weren’t sure which direction to go, having never owned a truck before, so I talked to our friends Ray and Lilza Gloria who mentioned that if you can’t get a new truck, how about a used one. I didn’t really feel comfortable doing that, since I wasn’t sure who would have driven just any used truck. Ray then mentioned that they were soon going to sell their 2015 Cascadia and maybe we should consider buying it. I’ve known them the whole time I’ve been in Expediting, and he takes great care of his vehicles — it was just too good of an opportunity to pass up!
Financing Their Truck
For financing, Ray highly recommended Expediter Equipment Finance. He explained all of the benefits of being under Expediter Management Services’ umbrella, including fuel discounts, insurance, discounts on maintenance & parts, also the fact that if my truck goes down, we can use one of ES’s trucks from their fleet until our truck is fixed. It’s such a win-win. What they say about ES is true, you truly Never Stand Alone.
I took Ray’s advice and contacted ES and was quickly put in touch with Steve Kochensparger at Expediter Equipment Finance. He was able to handle the whole thing for us. Having never financed a truck before, it was extremely helpful to have someone who can just take the ball and run with it and help complete the transaction quickly and easily. It really saved us a great deal of time, hassle and stress!
The Time to Own is NOW
We’re now on the road with our new truck and driving to pick up our first load. I can’t tell you how excited we are about this new chapter in our Expediting careers. Our journey to being truck owners is due to hard work and opportunity. But TIMING also played a factor in our decision to buy. The economy is showing signs of real growth and freight is growing right along with it. We feel the right time to buy a truck is NOW. We’re looking forward to the future and what it holds for our business.
Stay tuned for an upcoming Spotlight News featuring the Gloria’s new truck purchase!
Mother’s Day just happens to fall on the same weekend as the Fourth Annual 2017 EGG (Expediter Group Gathering) at the Landers Center in Southaven, Mississippi — which takes place on May 12 & 13. That’s OK! Because Mama says “EGGs are Good”! And YOU should be here!
Why Should You Make It to This Year’s EGG?
Because the EGG features industry experts and focuses on the new year and new opportunities for anyone looking to purchase their own truck or grow their fleet. (see scheduled speakers here)
Just what is the EGG (Expediter Group Gathering)?
The EGG is an event, hosted by Expediter Services that affords Expediters the opportunity to gather in order to meet others within the industry — and it gives ES the chance to get to know you personally. In addition, the EGG isn’t a “one size fits all” event. Each EGG is different, covering different topics that are important to Expediters, including Truck Sales, Financing, Support Services, and any number of services and products offered by Expediter Services. Or an EGG can simply provide a venue for everyone to get to know each other better, as with our highly anticipated EGGs at the Expo.
Mama knows best! SAVE THE DATE. Come to The EGG to Bring Home the Bacon, register here — It’s FREE.
We look forward to seeing you here at the Spring EGG 2017 at the Landers Center in Southaven, Mississippi. Learn more, watch Danny Vernon, Expediter Truck Sales Manager’s video as he talks about the upcoming Spring EGG 2017. (click video to view) To learn even more, check out what happened at last year’s Spring EGG 2016.
Register Here for the Spring EGG 2017 or call 877-349-9303 for more information.
There has been a lot of buzz in the media recently about self-driving or autonomous vehicles. There’s also been a lot of talk about this technology permeating the trucking industry. In this issue of Spotlight News, we take a look at what’s down the road for autonomous vehicles and how these advancements may effect you, your business and the industry as a whole.
Some Background
The dream of autonomous vehicles goes back almost to the invention of the automobile. As far back as the 1920’s manufacturers have experimented with various methods of self-driving cars. World War Two spawned the development of guidance systems for bombs and missiles. After the war much of this technology made its way into automotive manufacturing, including today’s radar assisted self-braking and lane departure systems that can take over from the driver when certain parameters sense danger. Although not fully autonomous, these systems can wrest control from the driver under some circumstances.
It wasn’t until the advent of the GPS (global positioning system) in the early seventies that autonomous vehicle technology was beginning to move out of the realm of science fiction. Fast forward to 2017 and the advancement of digital technologies and the internet brought all of the pieces together to make self-driving vehicles (and trucks) feasible, and a soon-to-be reality.
Where We Are Today
According to the American Transportation Research Institute (ATRI), self-driving trucks will dramatically change the trucking industry and have dramatic consequences for the entire supply chain. They site a number of advantages to autonomous vehicles, including significant safety benefits. But before any of this technology reaches the road, there are a number of hurdles that must be overcome, including: significant infrastructure upgrades, legal and regulatory frameworks put into place, and cyber security checks — to name a few.
Needless to say, self-driving trucks won’t be on the road in the very near future, but as technology advances, they will begin to be used in some applications as systems, infrastructure and government regulations advance.
Where does Expediter Services Stand? With YOU!
Throughout the history of Expediting, there has always been technological advances resulting in better communications, increased safety and enhanced maintenance monitoring and procedures. According to Jason Williams, President of Expediter Services, no matter how advanced technology becomes, only You can drive your business. “Expediting and trucking in general has always adapted to change. Can technology someday operate a truck? Maybe. Can it operate your business? Never! No matter how technologically advanced the industry becomes, Expediter Services is here to support YOU and your business. Only you drive your business and ES is here so you Never Stand Alone.”
One thing is for sure, no matter how much technology advances, ES is here with support and programs to help provide opportunities that work for YOU! Here’s to your future!
In a recent Spotlight News article, we met Larry Rater and his wife Sherril, a husband and wife who have built a successful Expediting fleet, signed on with Panther. (Read more of their story here). Throughout their sixteen year career, their business has experienced ups and downs, reflecting business cycles and market conditions. Their ability to capitalize and prosper during both good times and bad can be attributed to one of the most important precepts of business: PREPARATION.
As we head into 2017, early economic indicators are showing that market conditions and freight will be moving in a positive direction, and Larry is prepping for the uptick by upgrading and investing in his fleet and his teams. “Over the past year or so, we sold some units and upgraded others in order to consolidate and become more efficient. Back in November we purchased our latest unit, which brought the number of trucks in our fleet to five,” said Rater.
Preparation and Changing Conditions
Part of Rater’s preparation for an anticipated economic uptick is to make further upgrades to his fleet by investing in an existing team to keep them happy and operating at their full potential. “We’ve begun the process to upgrade one of our trucks to a Custom Dry unit. We believe that an exceptional team that has proven themselves is worth the investment. I’ve already reached out to Expediter Truck Sales and they’ve found a custom dry unit that should fit our criteria nicely; a Cascadia, sourced from their fleet. As with our other trucks, we’ll be using Expediter Equipment Finance for financing. Rater is looking to finalize the purchase of the unit by the end of the month.
Specs for Larry Rater’s Custom Cascadia upgrade:
– 2016 Freightliner Cascadia
– Bolt SST100 sleeper 100” side by side bunks
– Large fridge/freezer
– Sink w/running water
– Fantastic Fan vent fan
– Built-in microwave
– Wood-grain cabinets
– Laminate flooring
– Thermoking Tri-Pac Evolution APU
Jeff Tacker, Expediter Services VP of Operations, said ES is always seeking ways to help contractors produce at their highest level. “Larry Rater’s need for upgraded equipment is just one example of how Expediter Services can provide opportunities for fleet owners looking to keep an exceptional team together and producing. The anticipation of this type of circumstance along with wanting to incentivise and reward teams for their loyalty and production is why we utilize Custom Dry units in the ES fleet. The enhanced amenities found in these custom trucks give owners options to keep and maintain teams who may not want to own their own truck — but seek a higher level of comfort and functionality. These low mileage custom units represent a great value. Combine this with our Owner Operator Program, Expediter Management Services, Expediter Truck Sales and Expediter Equipment Finance, and you have a potent formula for success.”
