Independent truckers may be run off the road

Truckers say they want caps on diesel prices, or tax credits for truckers, as well as increased regulation for the middlemen who broker truck loads.

While independents struggle, the large public trucking companies seem to be on a different road. Their stocks have, for the most part, climbed since January.

J.B. Hunt Transport Services Inc. and YRC Worldwide Inc., with more than 10,000 truck tractors each, buy everything from fuel to tractors in bulk. The big companies buy thousands of gallons of diesel at a time on the commodities market, then store at their depots; Griffith buys his at truck stop pumps, where prices increased 38 cents a gallon over two days last month.

Independent truckers are increasingly dependent on freight brokers, middlemen who match shippers with drivers one load at a time, taking a cut for themselves. At one of the country's largest brokers, Landstar System, Inc., revenue from brokered loads was $881.57 million in 2007, more than double what it was four years before. But the company said it paid less for transportation in fiscal 2007, while its revenue per load was nearly flat at $1,612.

Jim Gattoni, Landstar's chief financial officer, said payments were lower because volume was lower. Drivers carrying brokered loads from the company earn between 80 and 90 percent of the value of the freight they carry, he said, depending on the weight and complexity of the load.

"Our margin, at the end of the day, is seven percent," he said.

At brokerage sites like getloaded.com and internettruckstop.com, freight rates are where they were in 2002, said Roger Carpenter, a Binghamton, N.Y. trucker who hauls dairy and chickens. The middlemen behind the boards "are so competitive, they chop each other's rates up like hungry dogs trying to get a scrap of meat," he said.

Truckers complain that the brokerage system is unregulated and lacks transparency: They know what they're getting paid, but they don't know what the shippers are paying the brokers. They say they're also forbidden from showing the shippers their contracts. Many independents have a story about a shipper's shock after finding out what the trucker was being paid.

A load traveling 800 miles that cost a shipper nearly $3,000 to send may pay the trucker $1,000, out of which the trucker would pay all expenses including fuel and insurance.

"It's truly highway robbery," Misilewich said.

Jim Butts, vice president of transportation at C.H. Robinson, a company whose business includes brokering loads, said his company serves truckers well, acting as their sales and marketing arm and paying them even when shippers fail to pay.

"Not all these competitors are playing the same game and not all abide by the same rules," he said.

Griffith, who's been driving a truck for 20 years, stopped working with brokers six months ago and started hauling specialized loads, which pay $2 or $3 a mile more than standard.

Not that it's helping.

Three-quarters of his pay is going to fuel and maintenance, up from half in the past. And how much work he can cram in is regulated, with the number of hours he can drive capped by federal regulations at 11 a day, all of which must be recorded in a log book.

"People will say, 'Run harder,'" he said. "I can't run harder. You can't run beyond your log books."

Back on the CB, "someone will get on about trucking, someone will get on about the fuel prices, then everyone will start arguing and cussing." Listen to CB for an hour he said, "you'll feel the animosity, the hatred, the despair."

Griffith longs for the old Teamsters Union boss Jimmy Hoffa, who led truckers in their most powerful — and profitable — years. Hoffa disappeared in 1975 and was declared presumed dead in 1982.

"We need to band together instead of fight each other and somebody needs to help us do that," he said. "I wish Jimmy Hoffa were still around."

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