Rates are crashing and fuel to the moon!

This was a comment on her recent video. Why would this person stay in business? Makes 0 sense to me...

 

Sounds boring.

 

Exactly

If you find yourself at the bottom of a hole: the first thing to do is stop digging.
Somebody smart said that, and they were right.

its a business, unless it’s short term losses: losing money means its a hobby.


Frustrating to bear witness to.

 

Wow! I literally just called it hobby trucking on another thread. That is exactly what most of these guys are.

 

I like the way you think and this is a great business model I use as well. If more people would worry about daily rates for everyone involved I think we would have a more realistic view from the shipper, broker, and truck.

 

something does not sounds right. How is one able to work for free for 2 years and take a loss on almost every load? If this is true I would had shut down the 2nd month at most. No way I would eat up all my savings on a losing venture.

 

1. Focus on gross revenue
2. Don't track your revenue and expenses
3. Intermingle business and living expenses
4. Don't understand fixed daily costs, opportunity costs, and sunk costs.
5. Eat an overall monthly loss of less than $400, enough so you know you're losing, but not enough to make it hurt psychologically
6. Cut back on short term expenses that lead to big long term costs
7. Go broke

It's a pretty standard pattern. They don't recognize they're losing money until they're almost out. It's like the folks playing slots, enough "wins" come in to keep them pulling the leverage and they don't see all the money going out.

 

Well when one says they have been losing money for 2 years they have to know they are losing it. On top of that they have to do taxes once a year at least so they know #### well they lost money in that first year. How would you keep going if you seen that at the min? I get how a one man operation can do it for a year maybe but after you do the taxes you have to know it is not sustainable.

 

Not sure what everyone else is seeing but it's pretty grim out there in the reefer world. This is the worst I remember it has been for a while. Volumes have dropped off and finding loads home to get my regular runs are becoming challenging (assuming you don't want to pay someone to haul their stuff).

 

I have seen some increase that last few weeks in dry van on my end. Rates have been decent as well so can't complain.