Low rates

Everyone thinks their freight is special and not subject to change

 

#2 is realistic . I have seen this kind of situation before. We will see many returned truck and trailers, many people leaving this industry. Actually I already see that. This year is gong to be slow and probable half of next year will be slow... Just look around who had a savings bought a truck last year ....

 

Yeah Ohio was depressing today. Snagged a 200 mile run for 550 to get out of there and felt very lucky. It was totally dead today.

 

If the economy somehow fed the oversaturation of capacity people would just keep adding more trucks. Attrition is the only option to getting rates back up.

I think it’s 2015 level for sure.

I posted a truck for sale today on truck paper for 15k less then I was expecting to get back in December. Probably still have trouble getting it moved. Guess I didn’t order it’s replacement soon enough and it’s costing me. :\

 

Hate to disappoint but I dont think much attrition is happening. I sold my 4 year old 53 van wholesale to a dealer a few days ago for $21,000. He said a good newer unit like that would quickly sell. In truck paper they post similar units for $25,000-$26,000. And if you call them asking about one they will not negotiate on price either. Who's buying all these trailers?

 

Amazon

 

And Convoy also now targetting all mega carrier contract freight plus all other freight everywhere else too probably? Convoy introduces application to handle drop-and-hook shipments

 

I mentioned this the other day, I signed their power only agreement and their offers are now showing up in my app.

I can see this platform presenting a potential threat to conventional contract carriers by attracting smaller carriers to utilize that option, especially as supply continues to constrict.

 

Convoy was financed by Jeff Bezos from Amazon so it makes sense they are buying all the trailers. The only freight that was changed in pricing is broker freight. I've heard other guys talking that customer freight is still booming.

 

Well they better get it while they can. JB Hunt reports freight volumes are dropping. What J.B. Hunt Just Said About the U-Turn in Trucking What starts with spot freight eventually affects contract. This drop in freight volumes started last July on the load boards. Some people are saying this is normal and how it always is because 2018 was unusual year. I guess we will just have to wait and see about that.