Brokers, Please explain the plummeting rates these days.

With people having less disposable income, they are buying less. I know we are.

There isn’t a need for all the van trailers. Soon flatbed. Volume of freight is dynamic, and the swing is to low volume.

Equipment prices in our industry are going to get real cheap if demand doesn’t rise in order to stay on top of raising fuel prices. Hard to accept, but some of us will have to be driven out of business before rates go up if demand doesn’t rise. So if your a large trucking company with much debt or a O/O that is getting sucked dry at a carrier, your at risk. If you got a job tomorrow, you made it. Nobody has experienced this as bad as it is and seems to move towards worse. We are in a historic event. Diesel is of tonight in many places 6 dollars and around 7 in some.

 

Less disposable income indeed but I'd blame it more on the overcapacity.
1. Trailer or tractor backorders were not even available if you asked a year ago!
2. Utility 4000DX dry van priced at $62 000 at the dealer who sold me one 5.5 years ago for $31 000!
3. 500 000 mile trucks for $160 000!
4. Driver's pay increased to over 70 c a mile - mostly on 1099 but still....
5. Record high number of applications for new authorities!

It is hard to compute volumes, not all the freight is going to load boards either but it can be some gauge.
Some brokers such as CHR or Coyote have their listing for a current-day depleted by early afternoon hours. Record high rates allured not only newcomers but enticed capacity expansion with existing carries. I am not surprised at all, the record highest will be followed by the record lowest. The question is how long it will be.

 

Rail road fuel surcharge is built in the rates.
That model is working fine for them.
It should be adopted by trucking too.
Why don't you ask for this change?
You, me and every other stakeholder in trucking?
I'm ready to add my voice to this request.
Are you ready too?

 

Here is what a broker told me today when I said fuel costs $1.50 / mile and his rate was $2.07 / mile.

 

Even if that statement is 100% true. It’s us who actually set the rates

If there was 1 load in timbucktoo and only 1 truck in the area. Pretty sure truck would win
But we as a group always have a truck ready and willing in an area to move it for less because a) he thinks he can or b) he made $$ all month and this gets him home

 

At the end of the day it’s the job of the broker to inform the customer of realities and expectations of the relationship between the carriers, customers and brokers.

Just because you CAN flock the carrier, doesn’t mean you SHOULD.

 

That's on par with every load they post. It's always a rock bottom rate.

 

Because other truckers are behind em giving the shaft. Own worst enemy

 

Shelves are still empty. People are still spending money like normal from the looks of it. It’s all BS. Always is.