Where Do you "see" Trucking in 5, 10 years?

Allowme--I don't believe you know what you are talking about when you say trucking companies are afraid to demand more. Trucking is one of the closest examples to true capitalism I am aware of. Everything is supply and demand. We have seen that play out over the last 2 years. In 2009, things tanked, companies went out of business, and there still wasn't enough demand so rates suffered. This year, demand isn't really strong, but the supply has shrunk. The result...there are days when the trucker can make some money. There are also days when we sit without work.

Back to your post...as long as there is someone else willing to do anything for less, one is unable to demand a price. Trucking has a very low barrier to entry. One can start a trucking company or brokerage with next to nothing. With no overhead you can be much cheaper than my company with 2 terminals, an office staff, a maintenance staff, etc. So I have to compete against mom & pops with no overhead, and mammoths like Schneider that can spread their overhead across 20,000 trucks and expect a 4% profit margin. Again, a perfect picture of a market economy. Price is set by supply and demand not by what trucking companies demand because in the end no trucking comapny is really able to demand anything.

 

I would imagine that in 5 to 10 years, the American trucker may be a thing of the past. With illegals flooding the market with a low cost labor, this will get into trucking.

NAFTA is already accomplishing this. And like them or not, trucking labor Unions are slowing shrinking into obscurity. While the American trucker has not really had a raise since the '70's (not even a cost of living raise), I cannot see why anyone would pursue trucking other than a last resort. Some have a romantic notions of freedom and financial security.

As long as the American Dollar continues to drop in value, so will our standard of living. There may come a time when trucking appeals to people because it allows you to carry a sleeper with a bed in it helping you avoid renting an apartment for the few days you don't have to drive.

 

Really Hubcap? How many jobs do you know where someone can make $60K+ without a college degree? My drivers are making significantly more now than in 1980, even if adjusted for inflation.

 

60k net or gross???

If you pay your drivers $60k and their truck cost them $30k a year to operate, are they really making "$60k+"?

 

Not to get into a peeing match with you cpape but it seems like its going the other way. Here's a ad from the late 90's (credit to Highway Hank) offering a better deal than most companies are offering now (10+ years later).

quote Highway Hank: And that was practical miles also, and they paid all tolls, mileage and fuel taxes. They didn't just calculate them and then deduct them, they paid them!!

 

here is a simple question........are they still in business? guess it'll show you how good it really was.

 

That would only prove that they got undercut and driven out of business by businesses that did not pay as well.

 

Andy hit it on the head, period.

 

My company drivers will make $60K. They have $0 for truck expenses.

O/op's will gross around $150K, at 1.50/mi (on all miles, inc fsc), they are paid %. I don't really know what they will net as they control their own costs.

 

Sounds like your drivers are getting a fair shake cpape, unfortunately the rest of the industry isn't so generous. :-/