Rates?

Rates have been soft for open deck freight longer than usual this year. I have been getting some decent rates lately. But, there are plenty of cheap rates for those willing to haul them. I rarely haul coils these days. I could not tell you how long it has been since I hauled coils. I am not sure why rates would be impacted by those dumping steel in the U.S. It still requires a truck to haul it. I have regular customers that I have been doing most of my business, so that may also have an impact on my business. One friend of mine told me that he is down about $10,000 this year from last year at this time. He pulls a Conestoga or flat bed.The economy is still sluggish and there are a lot of trucks looking for freight. I have a number of friends who pull flats or open deck freight and everyone is down from last year. It is difficult to say how long this will last, but it is not a time that I would want to go into debt. I am doing a lot more deadheading due to lack of freight, or at least something with a decent rate out of some areas. I don't expect to see things change much for at least the next year and a half.

 

On the flip side of that coin, it is a good time to buy equipment. When everyone else is holding back, dealers get antsy and are willing to bend over backwards to sell you something.

 

I haul 100% covered wagon, and that covered wagon has come off a few times this year. I have been surprised by how much more revenue I make by not hauling steel.... I do have direct customers and not brokers that helps, but the slow down has kinda been a good thing. I'm not as busy as I want to be but I'm surviving and learning some new things. Good luck!

 

I'm thinking a lot has to do with fracing companies shutting down. Not as much pipe being hauled compared to 2 years ago.

Am I wrong?

 

I think that is a major factor, plus the market is flooded with cheaper Chinese steel. It's simple supply and demand, July is coming typically I see a summer slow down. The problem is I've not really seen the spring early summer uptick. Even building materials are slow for us right now, as compared to years past. IDK, the up coming winter kinda seems scary. I can say that with my directs even this week is half as busy as last week, that's across both steel mills, and building material. Roller coaster, one week it's good the next it's all gone.

 

Then haul the Chinese steel.

 

I have no problem the were it came from, the problem I have is I haul for steel mills. I'm not saying I won't haul it, I'm saying there has been a slow down because of it. A lot of it has slowed down the need for American steel on the international market.