Rates are crashing and fuel to the moon!

When you talk about or poke fun at the esteemed members that also broker, that's when you're going to get subjugated by authoritarian type figures.

 

I am one of those that are 100% on the spot market - 6th year now. I think it is an ideal way to be independent, run your own enterprise, and don't answer to anybody else.
There were good parties and fun before the pandemic too. There are good and bad times and people are supposed to ride waves. If you miss a good one then it might be hard at times like today. But it has not even been half a year since those regular trips 500-1000 miles at $4-5, which lasted almost 20 straight months.

 

I feel for you. You are about to have your ### handed to you. The last time I pulled dry freight off the load board was 2009. It was grueling and I wouldn’t have survived if I hadn’t adapted and moved away from that market. Dry van otr spot freight is the most volatile segment in this industry. Only the left overs hit the load boards. There is a reason they are leftovers. It’s generally the rate.

 

You will also be shunned for not believing in the " My way or no way " concept.

 

What does that even mean?

 

You may have the fur coat and sword, but if you want the suit of armor at the Loves, you will need super singles and a scanguage on your truck in this market.

 

Reefer outfit with two trucks here. I still haven't turned into a charity and operating above my costs. Assuming 10,000 miles a month and $5.00 fuel my operating cost is $2.55 per mile.

There's still some good freight out there but you have to be strategic and may have to deadhead a bit further.

I can envision where these O/O's with tractor only switch from leasing onto a mega dry van and come to the reefer world and take up any excess reefer loads.

I think it's only a matter of time too where these contracted rates come in line with the spot. These suppliers see what is going in the spot market and are under pressure to cut costs and will do another RFP. I know two big food suppliers currently doing a RFP.

As carriers we over earned the past 18 months and those days are over. My motto these days is...as long as my margins are on par with mega carriers I can sleep at night. I use Marten as my benchmark and their truckload operating margin has historically been around ~13%.

 

"Leftovers" has this demeaning sound, I like to see it as overages...lol
I don't aspire much beyond that at this point. With no equipment payments, modest fixed costs, and no personal debt, running your own authority can become an environment where you become overly complacent.