Cheap freight rates, what are you doing?

What really bothers many is this idea that we are being screwed all the time, no one forces anyone to take loads and if those who don't get that the industry has a saturation level with capacity, won't ever understand how to make the good money.

Owner operators make up 9% of capacity in the country, they are larger than small fleet but not by much but what is scary is the growing private fleets in the country, it is edging up towards that 9% and will over take it if we keep complaining about the wrong thing.

As I just said they are hauling their products by themselves, one reason why access to products may be dwindling in the near future.

 

Easy to say nobody forces anybody to take any rate.

When cheap freight is moving you have no negotiation power.
Multiple times today brokers wouldn't even counter me, told me not even close that other trucks today have hauled 48k tarp loads for Sub $2 a mile. This is what normally is a good market too.

I can't demand high rates when everybody willing to work for peanuts now and the brokers know it now too.

 

I always say here
You don't get to tell the market what you going to get paid.
The market tells you that.
All too many here, I hear huffing and puffing how they will not heal cheap while eveyone else does...Well, either they will or won't at all.
There are also, of course, so called half - Gods, mythological Heros. They are above the market forces, and gravity too.

 

What is negotiation power?
If you are the only guy in town with capacity, you may have it.
Otherwise, you may raise above the average only so much. When everyone is hauling for 2 dol per mile, why would someone else give you $4?
If I am a broker and know that other 20 trucks in the area will do the job just as good, I pick the cheapest one.

Excellent service?!
You mean, not being late for the appointments or not mess up the cargo you were given to haul?
That's easy - every fool knows that arriving on time with the product intact is important.

 

You can also choose to not negotiate. In fact, don't play their game at all and sit. Nobody is forcing anyone to haul for less than what they need.

 

This is soooo spot on ^^^^^^^

 

AH. Joe ..let 'em bask in the lime light .. just because the didn't back into something or damage their freight.. and showed up on time.. like they are suppouse too ...
Let's let em think thats a hard thing to achieve level of excellence.. instead of just doing their job.. after all they deserve a good star

 

Sitting has a high cost so you have to find a balance with that.

 

Low volumes everywhere with spot reefer. Contract reefer is humming along busy as can be. That's how you have a scenario of high customer demand for them yet lower rates for spot carriers. You can put any price you want on your service in that case but it ain't gonna matter. The freight is going to move. Not enough trucks have been forced out yet.

 

To an extent but my fixed costs are the same all year long. Everything else is variable and only come into play if I turn the key and move the truck. Essentially, sitting doesn't cost me money...hauling does. So as long as I've stacked away funds to cover me for these down cycles I lose nothing. Instead I gain time to enjoy my life and appreciate everything I work so hard for when it's busy.