Truck Load Rates Halt 8 Week Slide 2.0

Theoretically it sounds good, but in real life I have never met a guy that wrenches himself, saying that owning a newer model truck vs old is better.
It's just way easier to deal with a 5 sensors engine vs 50. Plus fuel has been cheap for so many years, that nobody really cared for an extra mpg up untill now

 

This is a 6 week slide already. 3 more weeks and this thread's title will regain its original meaning. I am talking about the 1st version which that self righteous moderator decided to move it to the political section. It contained some of the info about the rates sliding in the first months of 2019. It went to the point that averaging at 2 dol per mile on all miles was not too bad...or bad but still not easy to get. However, the diesel 3 years ago was between 2.5 - 3 dollars, if I remember correctly.
Perhaps the current rates did not go down to such extreme if we discuss the very loaded miles but it is difficult to build a trip triangle or any other mosaic because there is deficient freight material on some legs. Deadheading will lower down rate per mile and at the current fuel prices it becomes more prohibitive.
The rates we see now are around July 2020 but then the trend was growing not sliding.
It is amazing how quickly things change.
It is extremely difficult to mentally accept the loaded miles changing from $5/ mile on some lanes to $3/mile or less in a matter of a few weeks, especially that the good pattern lasted 20 months uninterrupted.
If it is not merely an interruption now then it still will take a few months more before we see any change of dynamics in equipment sales. I am curious if the new equipment prices, at the factory-dealer level, will go down some. If the new equipment prices stay high in 180 000 - 200 000 range then used equipment won't go down to the pre-covid levels. 4- 6 year old trucks with 400 000 - 600 000 miles will go down to $60 000 - $90 000 range. Similarly with trailers. If dry van Utility trailers increased 100% and if most of it has to do with component prices then we should not count on those to go down by a lot. The difference will be the availability.

 

SHHHHhhhhhhh

 

Non-dealer shops around Chicago are at $75-100 per labor hour.
They are busy all the time. It must be a busy business. Trying to get to the local Cummins shop is next to impossible. I had a conversation with a brand new Volvo purchaser, he had some problems with the suspension after a few months of driving (?!), it is a week or so before they can get him in. Shortage of parts, and they are always busy. He had an authorization to do it at different shop and be reimbursed for it. Buy a truck for $180K and then you can't drive it being at the mercy of those mechanics. Such a long down time on a new trucks is unacceptable and hardly affordable, besides banks don't care. It had better get better...

 

I sure wish that old thread could be dusted off and brought back into the proper area. For historical purposes alone it’s worth it.

 

I don’t see the cost of new equipment dropping even if production gets caught up just for the fact that everything is costing them more to build it. People will always be needing to replace trucks and trailers. What will go away will be the high prices on used equipment because there will be a higher inventory of that as rates drop.

 

Well this happened way sooner than I thought. “No more cheap rates” and the comments are also pretty funny. Already complaining that brokers make too much money. So it took them about 2 weeks to completely forget about how things were going for the last year and a half.

 

I look at this way. What they cry for does not hurt me. But it doesn't seem to me it is the brokers' fault but too many trucks and trailers trying to haul the same loads at the same time.
In order for everyone to get decent rates we must take take turns. This week I am off, another week someone else will be off, so I have more freight for myself...we have to devide the volume like that.
Let's make a list who books when and for how long.

 

I look at it like wow, if people are already crying this much already then there’s a lot of the herd going to thin before I miss a meal. lol

 

Yeah, it is a little early for another DC Convoy.