Virginia Hiway, Inc.

VHI Transport

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Third Party Specialists Since 1977

Yes, We Can Do It!

Virginia Hiway, Inc. now VHI Transport

Dealing with Flagrant Carrier Back Solicitation
By David Gee

Miles Ahead
by Eliabeth McLaughlin, Kleos Magazine

Dealing with Flagrant Carrier Back Solicitation

By David Gee, CTB, President - Virginia Hiway, Inc. (on right)

When our contract motor carrier began offering services directly to our shipper, we felt we needed, for the first time since 1977, to test the strength of our contract with a motor carrier in court. Although we have been harmed many times, there had never been such an open breach as this case. Accordingly, we filed suit in Richmond Circuit Court this past September. The filing stipulated our contract and asked for an injunction to prohibit the carrier from doing business with our shipper customer. Through their legal counsel, the carrier offered a quick defense of an "open market concept." However, our attorney was somewhat surprised when the judge refused injunctive relief, but rather set the full case for trial on an expedited basis!

In preparing the case, we were confronted with some interesting questions: 1) In addition to an injunction, how much monetary damage should we ask for? Our contract did not stipulate a formula; 2) Should we, under state law, sue our shipper as well, particularly if we found he encouraged a tortuous interference. This required not only just a business decision but also more information about the case and handicapping the potential success of such an action.

Our potential court success became evident during depositions with the motor carrier's president. He acknowledged our contract and that he violated the contract with encouragement from our shipper. In fact, our shipper requested that the carrier provide them with copies of the rates we were paying the carrier and of our contract with him. As soon as the carrier's attorney heard the evidence, they encouraged the carrier to quickly settle with us, which we did. Accordingly, the order entered by the court in late November stipulated some of the following:

Enjoined them from doing any business except through Virginia Hiway, Inc.(VHI) with the shipper.
Enjoined them from using trade secrets belonging to VHI.
Allowed for monetary damages to be paid to VHI.

The TIA Board recently encouraged staff to contemplate a contract with carriers that would allow mediation and arbitration prior to court filings. Were this to have been in our contract language, as well as a proper venue for pursuing an action, the motor carrier would have saved thousands of dollars in penalties and we would have saved much in legal fees! I still dream of a day that Certified Brokers, along with qualified shippers and carriers might form a platform to bring quick remedy to areas like back solicitation, carrier cargo claim issues, and other such business behaviors that are best resolved by our industry.

Miles Ahead

by Elizabeth McLaughlin, Kleos Magazine

The National Aquarium in Baltimore, Md., recently needed an eel shipped to its new home in Capetown, South Africa. In order for the eel to make its flight to Capetown out of Dulles International Airport in Northern Virginia, it needed to be transported from the aquarium to the airport. The eel could only live for a certain amount of time without replenishing its oxygen. Therefore, there was only a narrow time slot of two hours in which to transport the eel from Baltimore to Dulles during the infamous D.C rush hour.

Virginia Hiway, Inc., a certified transportation broker, got the call

to transport the precious cargo. As David Gee, president of Virginia Hiway, explained, "We can do anything a shipper wants." Traveling a million miles a month, 50,000 miles a day, and to destinations across the globe, Virginia Hiway can transport just about anything anywhere. "We arrange the transportation of building materials, food and beverage product, including perishables, pharmaceuticals, marshmallows shipped in a green six foot diameter vinyl wrappper and a sundry of many other commodities in various shapes and sizes," said Gee.

Established in 1977, Virginia Hiway's capabilities and services have earned it a reputation as one of the most progressive, honorable and knowledgeable transportation brokerage firms in the country. The company has the distinction of receiving the highest possible rating by both Dun & Bradstreet and Red Book Credit Services, which rates companies based upon their financial strength, reputation and trading practices. Several other ratings, including the NASTC (National Association of Small Trucking Companies), rank the company in the top one percent of its industry.

What makes this company the best in the industry? "Our dedicated service is our bread and butter," stated Tim Foltz, sales manager. "We enter into agreements with our clients, and if we do not perform transportation charges can be adjusted." This rarely occurs as the company adequately provides service in divisions including truckload, less than truckload, logistics, vans, flatbed, refrigerated and intermodal.

Virginia Hiway is able to provide such services thanks to the people who comprise the company. "You can judge the character of a company by the character of its people," said Gee. But, it is Gee himself who has used his knowledge and contacts to establish the array of services Virginia Hiway offers. An active participant in national transportation issues, Gee is the Eastern Vice President of the Transportation Intermediary Association (TIA). While serving on TIA's board of directors, he has addressed topics on a national level, such as mergers and consolidations, value added sevices of third parties and standardized technology for the industry.

Technology in the transportation industry is more advanced than it is in most fields. As Connie Whitley, account executive, explained, "With our slogan, "Miles Ahead in Transportation, 'Virginia Hiway wants to convey that we stay ahead of the competition by not only offering quality service at competitive rates, but also by keeping up with technology."

Virginia Hiway is doing more than just keeping up. The company operates customer-friendly transportation software which provides exceptional inter- and intra-communications. Through getloaded.com, DAT services and others, Virginia Hiway can track and locate equipment via satellite dish. The company also has access to software interfaces which can track drivers simply by caller ID number. This technology allows the customer to know where his or her shipment is at all times. Customers can utilize this program by logging onto vahiway.com.

Virginia Hiway has always been a forerunner in the transportation industry. The company was actually the first in Richmond to receive a license as a broker. It is now estimated that one third of all domestic trucking is moved through third party firms.

Third party firms like Virginia Hiway have had a significant impact on the economy. From 1980 to 1998 logistic costs fell from 16.5 percent of Gross Domestic Product to 10.5 percent, saving the economy billions of dollars. Shippers are finding that outsourcing to a qualified and competent specialist brings significant results. "We can negotiate the best deals and have the resources to manage the entire transportation process," said Gee. "Not only do our clients save money by utilizing our services, but they gain access to useful management reports. We cut through the maze of transportation."

Pricing within the transportation industry was dramatically affected when President Ronald Reagan deregulated the industry in 1980. Before deregulation, a shipment from Richmond to Jacksonville, Fla. would cost $1,600. Today, the same load would cost only $700. "With constant changes in the domestic transportation field, it appears Congress has established an intent to allow pricing markets to remain free of regulation," explained Gee.

Virginia Hiway is staying miles ahead of the competition by not only offering quality service at competitive rates, but also by keeping up with technology. Who else can proudly report that they are responsible for an eel getting a safe ride to the airport even with D.C traffic?

"Westvaco has been using Virginia Hiway for over 15 years during which time, our business has steadily increased. Virginia Hiway has a superior grasp of our needs and the motor carrier industry resulting in high service levels that anticipate our needs. The high quality of Virginia Hiway's staff is probably the key factor. The organization is dedicated to the customer. We look forward to many more years of business together."
-John R. Smith, Westvaco

"We use Virginia Hiway, Inc. as our ace in the hole. We find them to be very reliable for the late night and early morning, week-end and emergency loads that always come up unexpectedly."
-Brother Pitts, Budweiser of Columbia

"Never have I felt more confident in placing my freight in a third party's hands as I have in dealing with Virginia Hiway, Inc. My shipments have always been handled with efficiency, professionalism and care."
-Paul Brown, ACF Environment