Rates are crashing and fuel to the moon!

I don’t see any improvement. Just less Loads posted. If this quarter doesn’t improve, probably won’t improve for a long time. Next 5 weeks will tell a lot. Anything’s possible, but I’m guessing spot market rates are going to be down for at least a year.

 

I was trying to find the truth and it looks to me that rates are relative.

From 2014 to 2016 I was running 145 000 miles per year and grossing $220 000 and I thought, I was doing good. I could not care less about miles.. wallet was much thicker from the days of my working as a company driver, I did not need any other proof.

As someone said,

A bug in a garden living on a horseradish leaf, has no idea that it could live a better life a few feet away on an apple tree...

I still asked, what if it does not care?

If you take into account that you are not walking barefoot and hungry, you can pay your rent and bills, it can be asserted that the rates are good.
What does an owner-operator, let's face it, someone as exchangeable and replaceable, think he deserves?

 

I’ve always thought I deserved more. Whether as a Company Driver, A Leased on O/O, or now as an Independent O/O. Personally I think most Truck Drivers settle for much less than they deserve. The reality is, like everything, pay is only going to be enough to get the Job done. I have no problem with that. The current situation has evolved from Companies controlling O/O’s through Lease agreements, to 3pl’s controlling Independent O/O’s. Look at Companies like Convoy, TQL, etc. We’re working for them. They’re making the real money. Years ago, Guys used to say that someday Drivers will be making the same pay, except they’ll have all the cost and responsibilities added on. The numbers your quoting, ( same as mine) are in reality, just that. $1.10 after fuel cost in 2016, equals today’s rates. $2.40 all miles
minus fuel@ .90 along with higher fixed costs, and inflation attacking what’s left. True it’s all relevant. Today’s rates are the same as 14-16. Same pay, as a good Company Job, when you figure benefits, paid vacations, and especially the cost to park a Truck. That’s the real killer. Not only does gross revenue suffer, but fixed cost per Mile go up. Bottom line is a drastic reduction in actual money (pay) earned. To succeed with mediocre rates, you have to stay busy. Anyone can do it. But not many want to. I for one have ran hard for years, always trying to maximize revenue, minimize expenditures. Trying to get the most from my skill as possible. After all I’d be Driving for someone, anyways. Honestly though as a Business, considering the high overhead, high risk, and time involved. Trucking is not a good Business. True, almost anyone can do it, but most don’t want to. Even those that do, usually don’t last long. That’s why I think we’re some of the most underpaid workers. Beats a lot of Jobs, there’s worse Jobs. Much worse. But as far as investing into Trucking, it has to be one of the worst Businesses someone could spend money to get into. Not a very good return. The break even rule can’t even be applied, when financing a depreciating piece of equipment is concerned. The amount of energy put into trying to educate a Driver in Business and convincing a Driver to buy a Truck through a Lease Purchase is a joke. To compare revenue against a Company Drivers Job isn’t good enough justification for all the added Liabilities.

 

To succeed with mediocre rates, you should not be moving.

 

DOOM

 

You should shut it down now and lead by example. Don't haul another load until the doom and horror of low rates is over.

 

Exactly. If it's so bad then practice what you preach and park it.

 

There must be a point at which shutting down is better than running cheap.

Perhaps, it is difficult to arrive at that point with a formula that would reflect it on with a given "minimal" rate threshold but one must feel the point, intuitively.

Obviously, if you burn more money on fuel than they pay you on the load, you are way past that point but whatever money you have left after fuel, it could be or could be not enough to turn on the ignition key.

If we were able to "predict" all the maintenance and repair costs in the truck life span and divided it by all the miles its wheels would spin before it goes to the junkyard or it is sold, then we'd be able to decide what it is too cheap or what is still good enough to book. But that's all right only when you sit on a pile of saved cash and can afford to do so.

On the other hand, you might find yourself in a pinch, when a truck bill is due in one week, your mortgage or rent too, all you need is $500 to make it happen...you will take that 1.5 a mile load to be left with that $200 after fuel from a day's work to be able to pay the bills so that no repo man knocks on your door.
You do that hoping that next week will be better...or next month...you do that for as long as you have to or until you can afford not to.