The short and simple is that propped up shipping companies have poor liabilities and insurance and if they wreck shit and are on the hook, they collapse like the paper tiger they are and become a nothingburger with limited liabilities and payouts.
Here, I stole this text in the name of Communism to bring to you, comrade;
Roughly speaking— Third party carriers run cover for the mega corps by importing cheap questionable labor and bribing local govts to lower the standards on CDL requirements (campaign contributions) This keeps freight rates artificially low for mega corps and continues to destroy small business (the real goal) The mega corps can’t hire these idiot guys directly, because if they do… well… imagine the lawsuit on this wreck… If this were an actual Amazon truck with an Amazon employee the lawsuit would be in the hundreds of millions The third party companies have the minimum $2M total insurance policies and they fold the company when these wrecks inevitably happen, and they do all the time now All the equipment is “leased” from a 4th party, and that 4th party likely has it all financed through a 5th party… who’s principal shareholders are the usual suspects of course… …this means even the equipment can’t be attached because it belongs to someone else As you can see this puts layer upon layer of buffer between the mega corps and these shitfuck nonenglish speaking cunts with no real qualifications or experience, and fake CDLs Neither your govt or the mega corps give an airborne shit about the American people, they care about hitting next quarter profit projections —And, they still want to import even more cheap labor so we achieve peak shithole
The short and simple is, mega corps hide behind contracts avoiding reliability and responsibility, and the companies that they are contracted to only have enough insurance and liability for small claims. When major wrecks happen, they bankrupt and foreclose their shit, while not being able to liquidate assets because all assets are owned by a different company.
It’s like whack-a-mole with shitty skirting-regulation companies undercutting everyone with cheap exported labor. How do some of these people get a CDL? Good question.
And the theory or scam is that this is the META for gaming the model of the shipping/freight industries both land and sea. This allows to provide a sort of corporate shield to cover the mega-corps by using these pseudo-subsidiaries.
Good luck get a Goth Muscle Mommy Lawyer to ‘pierce’ that.
I don’t know about you, but if you ask any CDL truckers about the market economy and how some shitty dispatches handle their back room deals while trying to underbid them with insane at-cost contracts, then I’m sure you can get more dirt on that. It’s pretty much a freelance mercenary gig of transports and escorts, you know, like feudalistic merchants but with less bandits.
The TLDR on the industry is that you better get laughed at for shitty contracts. But because of these paper companies are driving artificially lower prices while skirting checks and liabilities, good fucking luck.
Honestly, I’m not a trucker (shouldn’t be a surprise), but I do appreciate lot lizards and a little crank on the shaft if you catch my Tokyo-drift (Also shouldn’t be a surprise).
In another way
If you look at how mortgage underwriting companies statistically last only like 5 to 10 years, but they sell 30 year mortgages, then you’ll see how the system is fishy.
Basically pump and dump companies, that bust out themselves.
It’s not unintentional, the accidents and litigation will happen on a long enough time line. Murphy’s law.
It’s intentional, it’s actually priced in to the business model from the get go. It’s their planned obsolescence for their company.
In Closing
TLDR, paper freight companies boom and bust intentionally to lower freight rates and shipping economies and skirt liabilities.
I have no clue what I wrote, I just shitted it out. Don’t expect me to give anything reasonable nor paint shit unless it’s mushroom stamped art for more than 300k.
I substantiate all of my thoughts in this solely from one tweet. Yea, that’s modern journalism for you.
*Not Valid Financial, Legal, Life, or Any Advice