Why is FREIGHT SO CHEAP??

Own brokerage, 11 trucks, plenty of direct shippers, healthy profits (won't be closing doors anytime soon), but struggling.
All that and the things you have said in the first post just don't go together.
But it's the internet, a lot of times things just don't add up, I guess..

 

While I agree with MUCH of what has been said, here are some facts: I run containers 350 around Chicagoland, in the last month, I've had this happen 4 times, 4 different consignee's of import freight.

Get to a DC, 290 miles from Chicago, one of multiple trucks bringing containers from the rail....got told to bring the load back to the rail for return shipment overseas.....first DC returned 16 containers, second returned 7 and said not to pull remaining 8 from the rail as their all getting returned. Different product, different companies......

And on, and on.....it's not just trucking folks, we're just an early link in the logistics chain.....more is coming.....

 

Too many trucks drivers on the road thats why

 

I can agree with that. I think someone already mentioned Mega carriers are pushing lease options on top of their own fleet , most don't have a clue about running their own truck, the foreign drivers are coming in running loads for nothing . to them 10-20 cpm is good money, brokers look at it if they can run that cheap why can't we? Well probably because the only money they put into their trucks is fuel until they get in a major wreck or the DOT finds a major safety issue and they get shut down.

 

And again and again and again ....it's all foreign drivers fault!10-20 cpm is good money for foreign drivers?You are seriously messed up dude! I am east european driver and I know plenty of east european drivers.None of us drives for less than 45 cpm!10 cpm ?! Why would I be even thinking about driving for this kind of money if I can make double that or more working 40 h a week doing construction.get a life dude!

 

ill give u a little insight on Chicago area wages. the reason you don't see lots of imigrants driving for megas is because they make better money at those foreign owned Chicago carriers. I know a few guys that run for 50c/mile there as company drivers. yes lots of them 1099 but not all. the Russian guy I know went working for Knight and only lasted 4 month there and couldn't take it. so to say that imigrants run for cheaper is not allways true but ill agree that too many imigrants getting in to this industry thinking they will make big$. But its also the native fat yong and old and beautiful people that are ok with living in "red and white" cascadias for 30c per mile lowering the rates.

 

You got it right reefer101! Few weeks ago while making delivery i spoke to a girl who said she used to drive for CRE but said she quit because she was only making like $400 a week (i am assuming after taxes).

 

Not only we make better money at those companies in Chicago but we also home every weekend.

 

Whats this have to do with the price of tea in China? I own and operate a 03 Freightliner Century, nothing special to look at (no chrome, hub cap/lug nut covers covers, frame and truck need painted, dented up fuel tank) BUT it is very well maintained by me. Yes its ugly, yes it is a Freightliner, I dont like the truck itself but the engine and the driveline run like a dream. Just because someones truck looks a little rough doesnt mean it isnt maintained. Just because you may have a Petercar doesnt mean a darn thing, how well is it maintained, you may have a payment, I dont. I have a $10,000 truck that is paid for. Dont judge a book by its cover!

 

Here is a scenario: Get 4 relatives with CDLs Find the one relative with good enough credit to finance a truck. Everyone take turns running the wheels off of said truck meanwhile sending most of all profits back home to 3rd world country. Don't pay any income taxes, get as much free government assistance as possible, and within a couple of years retire in 3rd world country on a 1000 acre ranch with your uncles and cousins meanwhile Financed truck sits broken and beaten in a truck stop parking lot waiting for the repo man!!