I currently work in the transportation industry as an Account Manager. I have been in this industry for 5yrs and have seen some major changes over that time. When I first came in, there was an abundance of available equipment to haul product to wherever it needed to go. Now, with MAJOR driver shortages, all that available equipment is dwindling because there is no one around to pull it.
Logistics firms utilize the available equipment in the market. Most transportation companies prioritize logistics firms at the bottom of the pole. They put in a bid to a company with the lowest price possible and then "expect" the transport companies to match that price. Alot of transport companies will just turn this freight away because they realize that this logistics firm will take the quoted pricing, which is usually dirt cheap, and jack it up 20%.
I have alot of connections in the transportation industry and debated about establishing my own logistics company. After weighing the pros & cons, I finally decided against it not knowing on any given day if I could provide the services by prospective customers would require. You are utterly dependent on these transport firms. If they have no available equipment or you are not a priority, your freight could sit for days, even weeks.
If I were you, I'd think long and hard before making the jump into the logistics business. If you have the right connections, it would be a great venture. If not, could be a costly one.
Just my two cents. Good luck in whatever you decide.
CrazyCaper
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