Is The Market Officially Loosening Up?

Discussion in 'Freight Broker Forum' started by JimmyTwoTimes, Mar 29, 2022.

  1. autopaint

    autopaint Light Load Member

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    Pete isn't there. He's still home pumping breast milk while on endless family leave.
     
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  3. Big Road Skateboard

    Big Road Skateboard Road Train Member

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    Yep, I just kept working and not reading. Last week was my best ever. 15,100$ and I spent two days in TX. Finished in less than 7 days, with over 48hrs off.
     
  4. Last Call

    Last Call Road Train Member

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    Yeah I figured so.. and to think he tried to run for the presidential nomination ..LMAO ..
     
  5. skallagrime

    skallagrime Road Train Member

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    You misunderstand, rates in the past 2 years may have been a hair high (5-20% on average depending on category) in terms of maybe what "ought" to have been charged, but thats hardly gouging, with the fuel costs rising as they have, rates should have stayed static for "normalization" not dropped. That doesnt signal any healthiness in trucking, it will hurt YOU in the long run, yes people that bought in 6 months ago just picked a dumb time given truckings cyclical nature, but cheering lower rates as a broker is just as dumb, YOUR cut goes down, why is that good? drivers arent compensated as well, for what? So a shipper can increase THEIR margins?
     
  6. God prefers Diesels

    God prefers Diesels Road Train Member

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    I was wondering that as well. How are lower rates helping a broker? It's like cutting your nose off to spite your face.
     
  7. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    If I'm understanding you correctly, it sounds like you are also glad the price gouging by trucking companies is finally coming to an end, and the decline (and eventual) equilibrium in the truckload market is something to celebrate by all. I'm glad we ended up on the same page, thank you Skallagrime!
     
  8. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    You always seem to be a pretty respectful contributor here, so I'll give you a straight answer. Large brokers commit to long term contracted rates with shippers. When the market is in an incline, it's a very painful process for brokerage groups as they end up subsidizing the increase in rate to the truck to keep large shippers/customers happy. Because capacity is constrained, if anything goes wrong (driver doesn't get unloaded in time to make pickup, mechanical issues, etc) recovery is a difficult and time consuming process. On top of that shippers/customers are significantly more grouchy because they are struggling to find capacity as well. So your team is performing poorly from a financial standpoint, the work day is more stressful because anything going wrong is much harder to deal with and your customer contacts will bite your head off on a bad day.

    In a declining market, cost to the truck goes down but contracted customer rates take time to catch up. Financial numbers are better, capacity is easier to find and if (or rather WHEN) something goes wrong recovering is easier as well. Customers and shippers are happier because cost is normalizing and loads are picking and delivering as scheduled much more routinely.

    Long term it definitely adds some additional problems though. Demand going down means it's harder to find new customers or source the same amount of business from exisiting customers. But in the short term (especially after a long protracted escalated/inclined market period) it is a bit of a relief.
     
  9. skallagrime

    skallagrime Road Train Member

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    Wow, decide to only hear and interpret things the way YOU want people to say things much, how much more clear do i need to be so you can understand.

    NO, YOU AND I ARE NOT IN AGREEMENT ON ANYTHING.

    RATES SHOULD NOT BE GOING DOWN AT THIS TIME.

    THERE IS NOTHING TO CELEBRATE

    5-20% IS NOT GOUGING, ITS A THANK YOU FOR YOUR SERVICE LIKE A TIP

    YOU SHOULD BE WORRIED BECAUSE YOU WILL BE LOSING MONEY

    or hes a troll, meh, cant really tell
     
  10. bumper Jack

    bumper Jack Heavy Load Member

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    It’s price gouging when trucks do it, but not when brokers do it? Rates are not going down. I’ve invoiced 20,420 dollars in the last 7 days. And the market is only getting started for the year. From now till October I will be wide open.
     
  11. Long FLD

    Long FLD Road Train Member

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    I think part of it is that there are many that picture a broker sitting at home with a laptop computer with no real overhead. Sure there are some, but there are also many that go after larger long term contracts. And because so many in this industry view brokers as bad or as something that isn’t needed because these large corporations should deal with each trucker individually who wants to haul a load for them they feel the brokers are “getting what they deserve” when the market favors the trucker. They have no issue when it costs the brokers money to move a load because they don’t look at brokerages as a business with overhead costs. You can read posts that basically say that all the time on this forum. Many don’t feel a broker has overhead at all, they act like you guys don’t have tens of thousands or more dollars out simply because of quick pay.

    Sorry I’m kind of rambling. I guess my issue comes from the attitude that it’s ok for one business to lose money simply because they’re not liked or viewed as not needed in this industry.
     
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