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Announcement & Hot Topics Industry News

Maintaining Profitability in Times of Econmic Uncertainty

If you’ve been concerned about the state of freight lately, you’re not alone. It’s been a particularly stressful couple of years, and it’s not just the little guys; no trucking company is immune to the current freight downcycle. Profit margins have been down at all of the major trucking companies and 3PLs, including Marten, Schneider, Werner, and RXO. It’s hard to say for sure when the market will turn, but most industry experts expect capacity to normalize sometime in 2025.

The current economic conditions have too many carriers chasing fewer loads, driving rates down. In order for this to normalize, carriers must exit the market, and this is happening. Larger carriers are downsizing to get by in the current economy and small mom-and-pop shops are exiting the market. While this adjustment is unpleasant, this is the normalization that is needed to bring the freight market back to equilibrium. Election uncertainty is also keeping rates static as companies and people pause spending while awaiting the results.

The right attitude to get through the downcycle is to maintain a long-term approach, focusing on good operational performance. The planning team will implement this by working to reduce downtime and minimize empty miles. As a driver, you can work on the following:

  • Practice good trip planning. You can be more efficient with your time if you know your routes and where you may need to stop for fuel or breaks.
  • Give yourself extra time to reduce the risk of delays due to unforeseen circumstances such as traffic, weather, etc.
  • If you have suggestions on how to improve, let us know. We welcome new ideas.

These are times to be innovative and cost-conscious in order to find ways to remain profitable. The market will turn, we just need to do everything we can to minimize loss and make the most of what’s out there. As always, ask your driver manager if you need help maximizing your time or need help scheduling break locations. We will get through these tough times and emerge more resilient than before.

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Announcement & Hot Topics

Supply Chain Mayhem: Hurricanes, Flooding, and Strikes

Just a couple weeks after Hurricane Helene passed through the Southeast US, leaving a vast swath of damage across multiple states with people still currently stranded and in danger, Hurricane Milton made landfall in Florida. If you’ve been to Florida or the Southeast in the past couple of weeks, you’ve undoubtedly noticed the disruptions: shippers and receivers closed or behind schedule, road closings and the traffic backups that result, or lack of truck parking due to all the evacuation vehicles. Unfortunately, there isn’t much good news on the horizon as Milton threatens to disrupt supply chains even more.

While Milton didn’t create as much trouble for Tampa as originally feared, it still dumped around 18 inches of water and left millions without power. The wind has whipped up a path of tornados and there is still the possibility of storm surges in the aftermath. Major distributors in the storm’s path such as Walmart, Sam’s Club, and other food distributors moved their products to distribution centers outside of the impact zone and will move everything back in as the storm passes and power is restored. Economic losses due to the storms are likely to be in the billions of dollars. The loss of products, buildings, and equipment in the storm area will likely add to inflation as exports will be more expensive due to the shortages, especially in Florida’s citrus trade and tourism markets.

In addition to the national disasters wreaking havoc on the supply chain, recently the contract negotiations for the International Longshoremen’s Association (ILA), the port workers union, reached an impasse in September, the union boss threatened to cripple the economy if their demands weren’t met. While the strike only lasted three days, workers are still behind as the strike affected 14 ports along the East Coast, including three of the busiest ports in the US. Any rerouting of freight bound for the Tampa Bay port might put additional strain on those ports.

At Marvin Keller, we’re adjusting our normal network to avoid the hard-hit areas, but considering a lot of our business is in Georgia, South, and North Carolina, and some in Florida, it will be difficult for a while. At this time there are still road closures from Helene that are projected to take a year or longer to reopen, causing considerable rerouting and probable traffic congestion. If you are heading into the impacted areas, you are advised to give yourself extra time for likely delays. Always reach out to your driver manager if you need help with routing or reserving parking for the night. We’re here to assist you and make sure you safely get where you need to be.

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Performance Recognition

Top Producers of 2024 – Q3

Each quarter, the Producer Badge is awarded to drivers who are in the Top 10% of the fleet in which they exceed the quarterly productivity goals. This badge symbolizes the driver’s hard work and success within Marvin Keller.

Congratulations to the following drivers who earned the Producer Badge for 2024 – Quarter 3!!

Owner Operators – Top 10% Total Revenue for the Quarter

  • Johnathon Neumann
  • Daniel Nunez & Junrey Montejo Team
  • Anthony Dent
  • Kyle Luesmann
  • Dale Benolerao

Company Drivers, OTR – Top 10% Fleet in Total Miles

  • Richard Merrill – 42,204
  • Bruchman Team – 39,244
  • Branham Team – 38,754
  • Orville Merrill – 36,814
  • Allen Fitzgerald – 35,783

Company Drivers, 4 On/4 Off – Top 10% Fleet in Total Miles

  • Caprice Dean – 25,546
  • Judy Collins – 24,139
  • Franklin Rojas – 21,990
  • Deb Coleman – 21,406
  • Kenneth Fuller – 21,052
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Announcement & Hot Topics

From Dents to Disasters: The Importance of Timely Tractor-Trailer Maintenance

Did you know that 25% of Marvin Keller’s total maintenance costs stem from physical damage repairs on our tractor-trailers? This includes collisions from third parties and single-vehicle accidents. This eye-opening statistic emphasizes the critical importance of properly maintaining our tractor-trailers. As responsible operators, it’s imperative that we prioritize the maintenance of our tractor-trailers—not just to protect our investments but to uphold the integrity of our industry.

Safety First

Keeping our equipment in top condition serves multiple purposes, with safety being the foremost. Even minor damage, like a dented fender or a cracked windshield, can adversely affect visibility and aerodynamics, creating hazardous driving conditions. This is why promptly reporting any issues is crucial for timely repairs and safer journeys.

Financial Implications

Neglecting physical damage can lead to significant financial consequences. What starts as a minor repair can escalate into major problems if ignored, resulting in increased costs and potential fines for operating unsafe vehicles. By addressing damage early, we can budget more effectively for repairs and avoid larger expenses down the line.

Spotting Problems Early

Regular inspections play a key role in preventative maintenance. Conducting thorough pre-and post-trip inspections allows us to identify issues before they escalate into costly repairs, ensuring we stay on the road. For example, discovering a flat tire during a routine pre-trip inspection enables immediate repair, saving you from the complications and expenses of a blowout on the highway.

Commitment to Safety

Ultimately, maintaining our tractor-trailers isn’t just about equipment—it’s about the safety and efficiency of our operations. By embracing a culture of safety and responsibility, we can enhance the longevity of our vehicles and protect everyone on the road.

Let’s commit to conducting those essential pre and post-trip inspections and reporting any damage as soon as we see it. Together, we can build a safer, more reliable industry—because our success depends on it.