Todays great rate

How much produce has Cali produced in last two years? How many guys and companies grew their fleets last two years? The year before rail roads had issues and winters were much more brutal which caused more supplies to be needed. Oil was "booming" too, now majority of those worked came into trucking increasing truck number on the roads. Put a lot of these together you'll have low demand for trucks and carriers and brokers lowering prices to the customer to not lose the lanes still available.

 

Fuel falling had caused a drop in fsc. Load volume falling has caused a big drop in base freight rate. The reality of todays market is you just can't get yesterday's rates. Not consistently. But I'm still making a good profit, even running at a lower rate. Obviously not the killer money i was making, so might have to work 7 months this year instead of 6. But I'll be here when the market turns back around just like i have been for past 18 or so years

 

Actually those things do explain it. According to Morgan Stanley freight volume is currently lower than its been in over ten years, and capacity is at its highest point in that same time frame. There are simply more trucks than there are loads, this equals low rates. Always has, always will.

 

Still does not explain low freight volume right now there is 30 loads van and reefer out of st. Louis. 25 of them probably covered because they have been on the noard since this morning.

 

A recession, and an election always create a drop in manufacturing. That is the low freight volume. Less things being made, so less things needing shipped.

 

Rates are low all over. They will pick back up in a few years. 86 to about 1991 was like this. Rates tanked.. freight was slow.. brokers not budging. I was hearing the same thing from my bosses back then. Telling drivers and mechanics he wasnt sure how they would survive. He survived. He's still in business today.

I think rates are going to follow the market and economy. If true.. we are a few years yet before rates go back to what we want.

My tactic is to keep my overhead as low as possible. Do not finance anything I dont have to. Keep as much cash reserve as I possibly can, so that if I am hit with an expense.. I can see it through. Prepare now for what may happen later.

With a low overhead is why I can make money on an over size like that only paying $3 mi. I'm with you.. the rate is low. But in the current market compared to what others are paying.. its not that bad. Survival is the key here.

Hurst

 

Combination of many things.

Imports and exports have fallen off. Oil field has cut back. Retail closing stores and not shipping as much inventory.

Trucks are moving into markets that they think they can make money in. Local guys heading otr etc. Another aspect is all the poeple over the last 2 - 3 yrs that bought trucks to go the o/o route.

Its exactly what it is.. too many trucks covering the frieght. Trying to survive.

Some will be forced into bankruptcy.. others will sell off trucks. I dont think we have seen the worst yet. And I'm no expert on the subject.. this is just my observations and opinions.

Recession, economy, glut, elections.. take your pick.

Hurst

 

Florida allows 1/2 hour before sunrise and 1/2 hour after sunset. Is that when you saw it. I wouldn't past boat owners thinking they don't have to follow the rules, either. Under 10' can run all day Saturday and Sunday.

 

Oh definitely most the boat owners don't follow the rules including me in the past pulling a 34 foot 11 wide all over day or night .

Yea the boat was on a lowboy but the guy was definitely stretching the 1/2 after sunset rule.

Just under 10 can you pull weekends after dusk ?

 

It is perfectly normal for loadboard freight. It's how it has always been. I agree with you volumes are abnormally low compared to recent years. However load board freight has never really been the best freight to build a business around. It swings up and down wildly. The past several years when capacity was really tight with high rates, from guys who have been doing this a lot longer than me, that was abnormal.

Excess spot freight is leftovers. Customers paying high spot market rates in 11, 12, 13, & 14 did everything they could to lock in contract carriers on everything they could. Lucky for them the oil field bust put tens of thousands of more drivers and trucks in the pool of capacity out here. That's how these boom bust cycles go.

I don't know of any carriers with all contract work who are complaining about a lack of work. In fact most of them will tell you they are covered up with work. If you live by the sword playing spot freight you also must be prepared to die by it if you can't adapt.