B.C.-based Reliance Logistics runs out of cash, collapses into bankruptcy

JACKBURTON said:
This sounds like the Driver Inc crackdown caught up with them? 3 million in unpaid payroll stuff. Ouch.
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Combination of cheap freight and driver inc... you can only sustain that model for so long. Anyone competing in the BC market felt it. Hard to win work against carriers operating that way, and the ones that don't play the same game are getting squeezed as well.
 
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Is anyone actually running below 2.2/km (around 3.55/mile)? I don’t see how that’s even possible unless you’re cutting corners or running illegal. There’s just no way to get under that number, especially with how crazy broker rates are right now.
 
JEAN1966 said:
Is anyone actually running below 2.2/km (around 3.55/mile)? I don’t see how that’s even possible unless you’re cutting corners or running illegal. There’s just no way to get under that number, especially with how crazy broker rates are right now.
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Here's how it happens.

You run broker freight for 3-5 years and you finally get big enough where you land a shipper or 2 direct. The problem is you land the shipper that will squeeze you for every dime and is extremely price driven.

And you don't know your operating costs or if you do, you choose to ignore it for the "long term gain"

They keep beating you up, every month its "Hey I got someone who wants your lane for 15% less"

Instead of doing the fiscally responsible thing, you keep lowering. Now you are well below operating costs and fighting to survive.

Only takes 2-3 months and a some large breakdown to wreck a small-midsized carrier.
 
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