MFT - Mainfreight. Global Freight & Logistics

[Walter]

There is lots of whining in USA about lack of truckers, treating them like **** will bite them on the bum. If the capitalist model works expect massive increases in trucking costs. In the UK they have doubled wages in some cases, but they are still short.

[BlackPeter]

There is lots of whining in USA about lack of truckers, treating them like **** will bite them on the bum. If the capitalist model works expect massive increases in trucking costs. In the UK they have doubled wages in some cases, but they are still short.

I guess this is not surprising since they removed thanks to the BREXIT their access to a large pool of good and reliable truckies from what used to be Eastern Europe. If you cut your workforce in half and don't allow new people to come in, it doesn't matter how much you pay whover stays ... it won't increase the workforce.

Just shows how braindead the populists are ...

[dobby41]

I guess this is not surprising since they removed thanks to the BREXIT their access to a large pool of good and reliable truckies from what used to be Eastern Europe. If you cut your workforce in half and don't allow new people to come in, it doesn't matter how much you pay whover stays ... it won't increase the workforce.

Just shows how braindead the populists are ...

There seems to be a shortage of truck drivers around the world - not just in the UK.
It seems that many have worked out that there are better ways of living their life post Covid times.
Same with bus drivers.

[Bjauck]

There seems to be a shortage of truck drivers around the world - not just in the UK.
It seems that many have worked out that there are better ways of living their life post Covid times.
Same with bus drivers.

True. I wonder how much of it is due to the fact that potential truckers realised during the pandemic the benefits of holiday and sick pay that come from being employees rather than contractors. However in the UK their problem is compounded by their leaving the EU common labour market during the pandemic. Many of the truckers working in the UK had been other EU nationalities. The inflationary effect on the UK from Brexit trade and other impediments is probably getting mixed up with the inflationary effects from Covid and The Russian Invasion.

[Rawz]

Mainfreight's truck drivers choose to be contractors so they can own their truck. Its painted in Mainfreight livery sure, but the truck is owned by the driver.

The main benefit of contracting and owning your own truck is after a few cycles the truck is nearly debt free. And when you have a long haul tractor + trailer unit you can be talking around $600k in a freehold asset.. most truck drivers prefer this vs on wages with holiday pay, sick pay etc. Companies like MFT like it as they dont have to for example 1000 x $600k truck/trailers on the balance sheet.... repairs and maintenance on P&L blah blah

You can do okay in NZ driving trucks. You can pay yourself up to $100k a year in a salary and work on that freehold truck cycle. It's not bad. You dont need an expensive education. But must love driving. I certainly couldn't do it lol. But if i was to i would chose to be a contractor rather than drive on wages.

Edit: a cycle typically being 5 years. I.e. 100% finance a truck over years 0-5. Trade in truck and fund 80% of next truck years 6-10, trade in and fund 50% year 10-15 etc etc

[Bjauck]

Mainfreight's truck drivers choose to be contractors so they can own their truck. Its painted in Mainfreight livery sure, but the truck is owned by the driver.

The main benefit of contracting and owning your own truck is after a few cycles the truck is nearly debt free. And when you have a long haul tractor + trailer unit you can be talking around $600k in a freehold asset.. most truck drivers prefer this vs on wages with holiday pay, sick pay etc. Companies like MFT like it as they dont have to for example 1000 x $600k truck/trailers on the balance sheet.... repairs and maintenance on P&L blah blah

You can do okay in NZ driving trucks. You can pay yourself up to $100k a year in a salary and work on that freehold truck cycle. It's not bad. You dont need an expensive education. But must love driving. I certainly couldn't do it lol. But if i was to i would chose to be a contractor rather than drive on wages.

Edit: a cycle typically being 5 years. I.e. 100% finance a truck over years 0-5. Trade in truck and fund 80% of next truck years 6-10, trade in and fund 50% year 10-15 etc etc

Thanks for the info. How many hours/week has to be put in to earn that 100k per annum? Can you truck drive for Mainfreight as an employee or is the only option as an owner-driver-contractor?

A fair amount of risk is also transferred to the truckie/rig owner. is overwork burnout an issue for NZ contractor Truckies? How long (how many cycles) does the average NZ truckie stay in the business and is there a good second hand market for a depreciated rig should they need or wish to quit?

[Rawz]

Thanks for the info. How many hours/week has to be put in to earn that 100k per annum? Can you truck drive for Mainfreight as an employee or is the only option as an owner-driver-contractor?

A fair amount of risk is also transferred to the truckie/rig owner. is overwork burnout an issue for NZ contractor Truckies? How long (how many cycles) does the average NZ truckie stay in the business and is there a good second hand market for a depreciated rig should they need or wish to quit?

I don't truly know mate. However it would be fair to assume a contractor would work longer/harder than someone on wages. It's like anything in life, when it's yours you will put a lot more effort into it.

Yes, a lot more risk is transferred to the truckie. But with risk comes reward. I have seen plenty of examples of guys starting from nothing and before you know it they have 3 trucks with 2 employed drivers. This type of business can generate enough income to live a very comfortable life and by the time you go to retire you have 3x $600k rigs freehold... that's the nest egg.. you can sell the operation at book value or run the last cycle in freehold trucks which would generate enough ebitda to repay $1.8m in debt in 5 years.

And yes, conversely I have seen owner drivers left high and dry.. they then need to scramble and find new contracts. But I havnt seen this for a long time.. it has been a strong market for a long time now.

In general you will be ahead of the depreciation curve on a truck after 6 months of repaying it. The secondary market is extremely strong at the moment for trucks because of covid/chip related delays and inflation on new trucks.
I wouldnt know how many cycles they would do. The true truckies go forever.. i once saw a guy add $80k of chrome, lights and a mint paint job to his $400k truck. That $80k generated nil extra income.. but boy that truck was the best looking truck running the golden triangle (Auckland to Hamilton to Tauranga and back to Auckland) its a lifestyle for some. They only care about earning enough to drive a beautiful truck and live a modest life.

[Beagle]

Hey Rawz. I'm really enjoying reading your insights into the transport industry. I'd give you more rep but I have to spread it round first.
After leaving University I took a gap year and was a motorcycle courier for a year...I actually really enjoyed it and the camaraderie with the other guys. We all used to hang out at the Waldorf café in central Auckland between jobs drinking coffee and talking all sorts of crap. Didn't make much money but a lot of fun and enjoyed riding my motorcycle a lot except on really rainy days of course lol.
I then hit the books as a junior in a Chartered Accounting firm in the early 1980's. Sometimes wonder if I would have enjoyed the transport industry more but its too late now to change career's LOL

[Bjauck]

I don't truly know mate. However it would be fair to assume a contractor would work longer/harder than someone on wages. It's like anything in life, when it's yours you will put a lot more effort into it.….

Thanks for the industry insight. Freight companies should be keen on keeping reliable good contractors.

Bj and the bear!!
https://www.youtube.com/watch?v=Rcozed_BJWM&t=29s

[Rawz]

Cheers Beagle. The old saying "choose a job you love, and you will never have to work a day in your life" comes to mind. This would apply to a lot of truckies