Families truly founded the transportation industry.
While many businesses have abandoned their familial roots, others remain steadfast. It has repeatedly been demonstrated that drivers — and customers — place a high value on companies that maintain their heritage.
C5 Expedite began and remained a family-owned and operated expedited transportation company. Clayton Ramsden, President, and Co-Founder of C5 was the fleet’s first driver when he founded the company with his father.
The Wisconsin-based company provides rush services via sprinter vans, small straight trucks, and large straight trucks. C5 Logistics, C5’s brokerage operation, provides additional services such as dry van and airfreight.
Most shipments do not require expedited transportation, but having a top-tier carrier to rely on when the need arises is critical. C5 fits the bill, with over 25,000 units in its nationwide network.
As independent contractors, C5 employs approximately 75 nationwide owner-operators. This diverse driver base enables it to collaborate with customers from various industries and states.
However, shipping automotive parts are the company’s most frequent customer. These parts are always considered valuable, but with ongoing global shortages putting pressure on manufacturers, getting them to the right place at the right time is more important than ever.
Nonetheless, the carrier has yet to shield itself from the market completely. Declining rates are impacting carriers of all shapes and sizes. However, Ramsden’s outlook on the current market turn is optimistic.
“Even in a downturn, there is still a lot of room for growth,” Ramsden said. “It allows us to differentiate ourselves and gain market share.”
C5 operates relatively small vehicles, which means it earns less per load than companies that operate larger vehicles simply by moving less volume. However, lower revenue per shipment does not imply lower overall revenue.
The company transports freight weighing less than 10,000 pounds, making it exempt from most of the Department of Transportation guidelines that larger vehicle carriers must follow, such as maintaining logbooks. This exemption allows the company to make up for any revenue lost due to the size of its loads by simply driving longer distances.
Being exempt from DOT regulations does not imply that C5 disregards its drivers’ health and safety. However, it implies that safety rules can be tailored to the specific workforce where they are, providing a more customized experience.
“We ensure that our drivers are healthy and pass DOT physicals,” Ramsden explained.
Ramsden has stepped down from the wheel, but his desire to see the duo’s business — and its drivers — succeed has not dimmed.
“Sometimes drivers feel like they’re disposable individuals, and we want to make sure that’s not the case,” he said. “America runs on [trucking], and every job serves a different part of the supply chain.”
Practically, being committed to drivers entails ensuring that they receive consistent and predictable pay. C5 does this every week, providing its drivers with the structure they require to best support themselves and their families.
Over the last four years, C5 has worked with OTR Solutions to ensure its drivers are paid.
According to the OTR website, “at our core, OTR Solutions is committed to bringing trusted and value-driven factoring solutions to the transportation industry.” “As we develop new and innovative solutions for our clients, we will continue to deliver fast and reliable cash flow, an unparalleled level of customer service, and an unwavering commitment to our client’s success.”
OTR Solutions distinguishes itself through its true non-recourse factoring approach. In contrast to most factoring companies, OTR will assume the risk of unpaid invoices, including those from customers who are still in business. This is where traditional non-recourse factoring programs other companies offer fall short. This makes it easier for businesses like C5 to manage their finances and budgets. It also makes it easier for businesses to part ways with OTR if they need to.
This is in stark contrast to C5’s previous factoring partner. When Ramdsen attempted to leave that company, it made it nearly impossible by tying up C5’s capital with outstanding invoices.
OTR assisted C5 in navigating that difficult situation, and the two have remained strong partners.
“They made the process go smoothly in a stressful situation,” Ramsden said.
While leaving OTR would be easier than parting ways with its previous partner, Ramsden has no plans to leave anytime soon.
