I load 53 steps and hot shots ranging from 35 to 48 ft. We technically haul lower 48, but mainly we stay east of CO. For the past five years or so I have had an understanding of how freight pay works exactly with supply demand diesel price etc. But right now I am in total confusion. Everyone predicted a great second quarter. For flatbed that lasted all of 3 weeks. Now some articles are out talking about how flatbed is doing bad...same companies that just said they would do good. Same happened last year so I should be used to it. Anyway here is what I am noticing: there are plenty of loads, more than I have seen in years. The loads are hanging around. I mean normally I call 100 loads a day that are gone before I dial the number. Today that happened with 2 loads. And one of those was going to Chicago so of course it was gone fast. So the loads are not moving and there are plenty of them. Why then is the freight pay so horrible and why is it not budging in springtime which is the only real shot flatbed has to make money. As bad as spring was last year, at least the spring was a little booming. I imagine that 20% plus will go out of business after this year. All of my competitors who do the exact thing I do went out of business last year. I figured the phasing was about over. All I can think of is that no one is doing anything because the economy is really a whole lot worse and we are being lied to. Or someone is freezing freight as much as possible. Or drivers are just taking crap when they get desperate instead of holding out (which doesn't go hand in hand with loads sitting all day). It is sad when it cost $1.60 to run a truck and you can not even get $2 per mile. The brokers have been blaming it on shippers for the past year ALL THE TIME. And I know that has some to do with it, but I do not think that is all of it. I know for a fact sometimes a broker makes more off a load than we do after cost. I had a hot shot sitting in AR for several days waiting for a great load a few weeks ago. I watched all the same loads sit for 4 days. I had never seen anything like it. Before and since then it has pretty much been the same except I haven't been looking in same area 4 days...more like 2 or less. I have watched freight go down down down since November 2011. And I keep hoping and praying for some relief. A week or two is not enough and only pours salt on the wound. Does anyone have a clue what is going on and if it might in deed change. I know we cannot believe any of the "experts."
I think it's due to way to many brokers its easier to become a broker than it is a trucking company!! I have a customer that I have moved loads for years going into a good area 1,000 miles I've always charged around $2,700 and $2,000 on LTL, some jack ### TQL guy calls my customer starts talking to them and ask to send them a quote. They cut me by $1,000 yes $1,700 a load $1,400 on LTL I said no way and they gladly showed it to me, two weeks later I seen a load going to the same town so I called on it what do you know same load $1,600. Way to many brokers cutting each other to get the work, I see it everyday full loads marked as LTL I'm sorry but just because your load don't use my top deck don't mean it's a LTL, just today I called on a stepdeck load 38ftlong x 8ftwide x 10.5 tall 42,000lbs had to drop by 12:00 Thursday only paid $1,500 on 1,130 miles but he didn't care if I put something on my top deck.....REALLY!!!!
My opinion is the economy is still very fragile, there are more trucks than needed to haul what freight there is, and shippers are setting the price at which it moves for. If this keeps up I see alot of companies and owner operators closing up, this is not sustainable at these rates.
You forgot another reason - Too many people watching Shipping Wars . Too many new "carriers " thinking the way to succeed is to underbid everybody else to get a load . While the economy might be recovering when it took a dive carriers started dropping rates to keep their trucks moving . They let shippers know they could run that cheap so shippers aren't willing to pay more . Expedite is a good example . When they lost a lot of automotive freight they dropped rates to less than LTL . Some carriers gave preferred customers discounted FSC's . That was really wrong .
I had thought about shipping wars too, but maybe not enough. That show is crazy. I watched two episodes and in one a lady drove several hundred miles to haul a load in TX for $1 a mile on the loaded. My guess is that $1 per mile is about the cost for a set-up like that. We used to run 30ft trailers with no apportioned tags or ifta back in the day when diesel was less and we were getting $1.30 and then at one point $1.50.
prolly all of the above. I have to think brokers and shippers are becoming more unscrupulous though. Called about a load from Pevely, MO to Green Bay, WI. I know it's Dupont insulation. I used to haul out of there as a company driver just a few years ago. Those loads were paying $2.50/mile plus. This crazy broker tells me $850 on 550 miles !! I'm supposed to believe what ? The rates have dropped or the broker is trying to gouge me for a big payday ?
haha I figured that one went with "economy." Also I did not want to start a political battle. I know many have been doing this longer than I but 2011 was the best year I had for loading trucks. My company tripled in size and we were so busy we could barely breath, eat, or sleep. And it was busy in a good way. Gosh we took it for granted!
Well kid you not fellas, I have parked the good ol stepdeck and latched on to a company hauling van freight. Im not saying where but Im doing better than I was doing flat freight this past fall/winter and spring. Rates for flat are way down. I think everybody jumped from van and reefer to flat and then started taking cheap rates so the rates went up on the van side.