Truck Load Rates Halt 8 Week Slide 2.0

I have seen it a lot lately. Scares the L outta me.

 

Maybe I'm wrong but I'm optimistic about things.

I think if the economy can fully open up in May recovery will be OK. The hospitalization rates are down in New York so far that is a good sign. If it is only 2 months I think that some businesses will close down but the majority will be able to survive.The question is how many employees will they retain?

Now if this goes into June or later that's when I think we're going to see the economy struggle whenever it's opened up again.

 

I was initially shocked how few loads there are out there, and how low the rates on those loads are. Some are below a buck per mile. Then I got to thinking, there are thousands of trucks just sitting out there right now trying to be first to get those loads, so shippers can move their product for almost nothing because of over capacity.

I just got home today from Portland OR and I noticed that the truck stops are filling up really early and never really empty out in the mornings as they usually do. That means drivers are sitting waiting for their dispatchers to send something their way. I was talking to my next door neighbor at a PFJ last night who works for Central Oregon, and he said it's getting scary and loads are slowing way down. If what Scooter says is true about the lumber companies closing, these guys may have to fold. Lumber is their bread & butter.

My gut is telling me that there are going to be a butt load of layoffs in trucker jobs over the next 2 weeks, mostly company drivers. Small and medium size carriers without any cash reserves will start dropping like flies, as will O/O's without any rainy day funds. If that happens, in 2-4 weeks, capacity should decrease greatly, and rates should improve. Of course about the only thing we'll be hauling will be emergency relief supplies and food stuff.

I heard on the radio this morning that most dairy farmers have been dumping all of their milk since March coast to coast, and the spring fresh produce market is being gutted with all of their product rotting in the fields. We're all about to see just how bad things can get. The president is talking now about re-opening up the economy May 1st. Let's hope he can.

 

I was thinking now would be a good time for a new truck.

2020 - 680 / 500HP X15 / Auto / $142K out the door.

 

I’m thinking that the used truck market is going to get to be a real buyers market soon. With a surprising uptick in mysterious fires.

 

I'm thinking an abundance of posters have called for a culling of the herd since I've been on this forum.

Now the culling is nigh.

Guess a bunch of them didn't realize they wouldn't be the one's to pick who takes that trip to the air gun.

 

I'm quite the history buff. I'm going to go over the last 250 years or so, and see what period offered a guarantee in the free enterprise system.

 

The culling is an ongoing process that should speed up soon but this government cash giveaway will be a disruption.

 

So was I! And it may never get any better than this, either.