"Nobody Pays Faster Than Scott's"            

Scott's Express: Trucking industry the star of the produce trade

By Tad Thompson

Out of the truck brokerage office windows of Scott's Express in Grand Forks, ND, John McDonald overlooks the fuel price sign of a truck stop.

If there is one positive in rising fuel prices, Mr. McDonald noted that the man in charge of keeping that sign updated must be physical­ly fit. "I saw him go up the ladder four times one day. And he went up three times the next," said Mr. McDonald, noting that in none of these cases was he lowering the cost of his diesel.

He doesn't know what fuel prices will do next.

"At one point I thought there would be a quick spike. Then Hur­ricane Katrina came. That hurri­cane was bad, and then, a week later, there was another one. I thought fuel prices would go down, but they've done nothing but go up.

"I thought fuel prices would set­tle down a little because they went so fast to all-time highs," he contin­ued. "Today [Oct. 6] as we talk, western North Dakota is shut down with 16 to 24 inches of snow. That will keep up demand for a long win­ter heating season. I hope fuel prices will settle down, even if [they settle] to a happy medium."

In the trucking business, mean­while, fuel surcharges have been accepted by buyers "which is a very positive step." The surcharge "can go up or down, depending what fuel does. Last week, when fuel took a 20-cent-per-gallon jump at one shot, it cost truckers a lot of money. If a trucker has to buy 300 gallons of fuel on a truck and put 50 gallons in his reefer, that's a thousand bucks. That is why a fuel surcharge is good in my mind." Wavering costs "are not the fault of the trucker, the shipper, buyer or the produce industry. We have no control of what fuel does. We can only pay for it and drive away."

Mr. McDonald said that the trucking industry "is the star of the show" in the produce industry these days. " We're definitely in the hot seat." He joked, "It's not all my fault, but I get a lot of the blame."

The truck broker and trucking company Scott's Express has no company-owned equipment, but is an owner-operator-based company. Mr. McDonald, who is Scott's operations manager, personally owns "a few" trucks that are part of the Scott's mix.

Red potatoes are a large part of Scott's business, said Mr.McDonald. "The largest share of our busi­ness is potatoes - bagged and bulk - plus turkeys and beans out­bound. We do several loads of turkeys, beans and a few other dry products.

The sugar beet industry is "a big part of the Red River Valley." While it's not a huge business for Scott's, Mr. McDonald said that sugar beets are a large presence and shipping consideration for the region.

"There is a lot of stuff that goes out of the valley here. It is maybe a little bit slower than typically because fuel and rates are high and people don't order until they need it. It's `Give me a load here Wednes­day because that's when I need it,' not just, `Get me a load because I need it."'

In early October, the truck situation in North Dakota was "a little tight. If I want a load to go today [Thursday, Oct. 6], you may have to live with it going Friday or Satur­day." Shippers need to get them­selves "in position to get a load out as best you can, rather than expect a truck at the snap of their fingers. The shippers are doing a better job of giving us advance warning. Advance warning is good planning for all parties."

Scott's has been in truck bro­kerage since 1952, having "ridden many ups and downs. We had the high fuel and shortages of '70s." But Mr. McDonald said he's never seen a fuel shortage like there is today. "This company has been proven by the test of time. We've been through that and we will live to see another cycle, both up and down. The industry is all cycles."

He added, "I think you'd really have to want to be in this business to jump into it now. It's not some­thing I'd think of if I was thinking, `Where can I make some money?' It's not like there are a million opportunities here. But I think it is an OK time if you are already in the business. I'm just not sure trucking is a business you'd want to jump into with both feet."

September 22, 2003

By Bill Martin

Scott's Express not taking equipment and drivers for granted

    GRAND FORKS, ND - When the red potato season stretched out for a number of extra weeks and finally ended in July, some shippers barely finished the old season before the new one began. That wouldn't have been bad if the market were strong, but lack of demand made this season one of the longer in memory for Red River Valley shippers.

    From a transportation standpoint, it meant a longer hauling season for Scott's Express Inc., one of the older truck brokerages in the nation.  "We had a late spring last year," recalled principal Brad Seymour. "We actually hauled reds into July. That is OK for us as haulers." 

    As for the new season, even when there was light volume at the start of shipping, trucks were in short supply. Some shippers said that the situation had improved by Labor Day weekend, but when it comes to finding trucks for shippers, Mr. Seymour isn't taking it for granted that the equipment will be available. 

    "We are most effective with our contingent of trucks after it frosts" usually sometime in October, he said. "The drivers have their [local hauling] schedule with beans, grains, etc, before they start doing their over-the-road hauls."  This often results in very tight supplies of trucks through October or when the sugar beet harvest is completed. 

    Concerning fuel costs, Mr. Seymour said that a year ago when diesel prices jumped five to 10 cents a gallon, it required "a mental adjustment" for the drivers. A similar jump in fuel costs occurred this year around Labor Day. He noted that it takes awhile for the drivers to adjust when there are such price increases. 

    "We're anxious for the potato harvest to get going," he said in late August. "Trucks were tighter than usual for this early in the season. It is tough to get a truck on short notice. It's not bad if you can plan ahead to pick up a load."

    Scott's John McDonald, who drove his own truck for years, still has his commercial driver's license. The veteran owner-operator had made his share of deliveries to the old South Water Market, and he recently hauled a load of beans to the new Chicago International Produce Market.  He called the new market a "great improvement." 

    Mr. McDonald cited the spaciousness of the new market, which makes it easier to maneuver an 18-wheeler. The new market "is a nice, enclosed facility," he said. "If nothing else, you get in and out of the market easily and there are no unloading delays." This was the first time he had returned behind the wheel of a big rig in five years. "Gosh, I saw more cars in that trip than I'd seen in five years in North Dakota. It gave me a renewed respect for the drivers," he said. 

    The primary concern of drivers, Mr. McDonald said, is the cost of diesel fuel and how the drivers are going to get a high enough freight rate to pay for the rising costs. He said that recently there were three straight days where the price of diesel increased three cents, for a total of a nine-cent increase per gallon. 

    As the Big Lake, MN, potato deal was getting ready to start a number of weeks ago, he visited the area in July. He told the Big Lake shippers that he thought truck supplies would be about the same as last year, but the season started with equipment in shorter supplier than a year ago. 

    "Some carriers just don't want the hassles associated with hauling produce," Mr. McDonald said. "Some carriers are seeing less hassle with dry freight." 

    The Big Lake potato deal started with truck rates on potatoes at $6 per cwt. for delivery to central Florida, an increase of 75 cents per cwt. over last season. That translated into a gross freight rate of about $2,500. "That is what drivers are saying they need to go to central Florida," he said. "They figure they will have to deadhead out of Florida to Atlanta to get another load." 

    However, Mr. McDonald doubted that the $6 rate would hold as more truckers became involved in hauling potatoes as the local runs with gravel, sugar beets and other items came to a seasonal end.
 

September 23, 2002

By Bill Martin

      GRAND FORKS, ND - "What do you do when you are 40-something and in charge of Ford Motor Co. and wanting to know what contribution will be made?"
      That question about the grandson of the founder of the giant auto maker, who was pondering his own legacy at Ford, came from Brad Seymour. While Mr. Seymour isn't the president of a company the size of Ford, Scott's Express Inc. has established a rich history as a truck brokerage over the past 50 years.
      The brokerage was founded by Archie Scott in downtown Grand Forks. The late Mr. Scott owned what was known in those days as a filling station. At that time truckers were driving trucks powered by gasoline engines and needed loads out of the Red River Valley. Mr. Scott would tell the truckers he'd get them a load of potatoes if they'd buy his gasoline. He was later joined in the operation by his sister, the late Betty Perrin.
       Bob Pederson, who bought Scott's from Mrs. Perrin many years ago, told The Produce News in 1997 that he thought that Archie Scott was the first truck broker in the United States, although that could not be proven. To indicate how fast the world is changing, during that interview five years ago Mr. Pederson talked about obtaining e-mail service.
   Since that time, Mr. Pederson died and his family sold the company to Mr. Seymour, who has been with the company for years.  It is apparent that Mr. Seymour has thought about the legacy of Scott's.  "We're proud of our heritage, but we've got to try and stay current with all the changes," he said. "We've just updated our computer system." He added that the company has a rich history and it is now a matter of working to make his own mark and build upon the tradition.
   To celebrate the company's anniversary, an open house was held June 26 where an estimated 60-70 people attended. The company also has it 50th year commemorated in several ways ranging from logos on shirts and coffee cups to stickers on envelopes.
   As to the potato trucking outlook this season, Mr. Seymour expects supplies of equipment to be a little tighter than a year ago. "We're excited about this season," he noted. Frito Lay was expected to start its potato deal in the valley sooner than normal. The tablestock deal, although down by perhaps 20 percent, was showing good quality.
   Concerning unloading charges, Mr. Seymour said that the situation usually improves some when there is a strong potato market. Shippers are more inclined to help with the unloading charges.
   John McDonald of Scott's said that the consolidation of growing operations which has been taking place in the valley has actually improved some aspects of doing business. For example, even though there are fewer growers, the remaining operations tend to be high quality growers "that take pride in what they do."  This has resulted in fewer rejections and claims at destination.
   Mr. McDonald also spoke of the attrition in the trucking industry. "I like to think that the stronger carriers are still here," he said. "Therefore they need a little stronger rate to ensure they will still be around. The equipment today is better, and that warrants a better rate." Scott's has 15 trucks under lease. Mr. McDonald, who is a former owner-operator, has two trucks leased to Scott's.

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