All costs up, Rates continue downward

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by Nobroker, Sep 19, 2018.

  1. Nobroker

    Nobroker Medium Load Member

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    I almost believed that eld enforcement would help rates, I spoke with major carriers that said rates would have to increase 20% just to stay even with productivity loss with eld enforcement. Well here we are 6 months in and all expenses of transporting cars have increased. Including the prices of the cars. Yet rates continue lower.
     
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  3. Ziggy319

    Ziggy319 Medium Load Member

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    People are getting desperate and still are taking freight at sub standard rates trying to survive. Costs have gone down for many by working together and using the strength of group purchasing by joining IATA.Biz
     
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  4. Kozakvod

    Kozakvod Medium Load Member

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    So right Ziggy! Im AMAZED at how cheap some of these people are willing to carry a car. I.E. Denver to Phoenix- $700 for 2 units, car and suv, $.30/mile each. And it was gone in less than 5 mins.

    Screw that. For all you picking up that cheap stuff do us all a favor and just get out of the business. Stop ruining the business because of your willingness to carry anything regardless of cost. That saying of, “well I’m going that way anyway” is just a death trap.
     
  5. scorpiorias

    scorpiorias Light Load Member

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    I finally decided to leave the game. The standard have become 3 per mile and much less coming back if any. Refuse salvage or pov door to door work and watch you go under. No daylight between regular freight and what we do. A few years back at the truck stop, I was laughing at general commodities hauler bragging about their 1.20 per mile rate. (I guess I was laughing at me too). We car haulers are so full of pride that we barely talk to each other. We will see a rookie struggling to load them cars and watch him destroy a few and not lend a helping hand let alone look beyond car hauling to see what rates are doing else where.

    Check this out. True story!

    I have a friend, who's clocking 13k to 16k bi weekly pulling dry van. No touch no count freight, don't even have to maintain a trailer or any insurance beyond physical damage on his 140k 2018 cascadia evolution. 8 to 9 mpg all day and everyday. One pick one drop equipment. 18 percent to the company he's leased to. Barely ever clocks over 3k miles weekly. Home on weekends.

    I also have a friend leased to a major car hauler company out of Colorado ( youall know who it is ) Makes about 14 to 16k bi weekly, maybe 18k if full moon and pushing it. 2018 374k peterbilt cottrell 9 car stinger. Cummins 4.5 to 5.5 mpg. Rain or shine, loading and unloading. Always in arguments with dealers over the slightest of scratches. Maintains insurance on truck and cargo. 17 percent to the company. 3 to Maybe 4 bucks per mile on a good day with a ton of dead heads. Multiple drops most of the time. High maintainance cost. Always dirty, forbid he dressed in good cloths or they get ruined quickly. Butt hurt DOT always excited when ever they see him coming up the road. Got to worry about weight, load securement, hieght, over hangs 90 percent of the time.

    if any of these two were to convince the other to jump ship, who's got their work cut out for them?

    For all intensive purposes, car hauling is dead, too many people got into the game. Moore transpor grew exponentially and laid down the last nails on that coffin. Adkins and Hansen didnt do much north of mason Dixon, I now see them in jersey and Philly western suburbs. They actually outbid jack cooper in on those Toyotas from Jessup MD. Virginia transport is now chasing work you couldn't pay them enough to do a few years back. Brothers auto transport is the ultimate sh1t rate gate keeper, they got the map figured out and just viciously slashing and burning anything on their part for work. Cubans from florida and Ukrainians in volvos paired up with 8 car high mounts got in too. Its mess. God help us all.
     
    Last edited: Sep 26, 2018
  6. Jazz1

    Jazz1 Road Train Member

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    I don’t know why anyone have thought ELD would improve rates
    CC your thoughts to the Easter Bunny and Santa Claus:D
     
  7. Oldironfan

    Oldironfan Road Train Member

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    Running cheap. Is the best way to run yourself out of business and the easy way to get homeless status.
    Keep up the good work cheap skates.
     
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  8. pavrom

    pavrom Road Train Member

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    Just look at Central dispatch ...they keep raising pricing every quarter now ...I was keeping my account in case if I need something for step deck or flat ...used it 2 times during summer , finally closed it
     
  9. pavrom

    pavrom Road Train Member

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    My point to get out from car hauler was :
    Insurance 21k vs 12 flat bed
    Mpg 4.5-5 vs 6.5 flat bed
    Maintenance $0 vs car hauler ...don't even need to wash my aluminum flat ( will never rust )
    25 stops vs 8-10 stops flat bed per week (some people move new cars and have less stops , I did dedicated route - salvage to NJ , lease returns and dealer trades back )
    Less headaches ( finding cars , worrying about dents and scratches etc )
    My gross per mile was 3.15-3.25 car hauler , now 2.75-3 flat bed ..I'm talking all miles ( deadhead too )
    I finally starting spending weekends with my family ( car hauler needed hose repair , graphite posts and moving parts )
    Find me mechanic who is happy to do repairs on car hauler ! I doubt you got one , in Chicago Volvo dealer I believe charging already 160-170 per hour for car hauler repair
    ...almost forgot
    Brand new aluminum flat bed 36000 vs brand new easy loader stinger type trailer I guess 65-70 , my high rail was 100k plus 35k basic headrack from Cottrell
    Still not convinced ?
    ....and we didn't get to slow market times yet , maybe guys who long in business don't have this situations like ziggy or Kansas and life is better for them after many years of hard work but if we talk owner operator with 1 truck or small fleet 3-4 trucks it's not worth it
     
  10. Ziggy319

    Ziggy319 Medium Load Member

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    There still is money in car haul. Set your price. Refuse to do it for less. Provide the best service. And treat your team like family. In a 4 car rollback. My guys can make 60,000 a year. Home all but 10 or 12 nights a year. Paid on a w2. Holidays paid off. New equipment. Stinger guys $90,000 and up a year. Home most nights. No weekends. And all the others mentioned above.
     
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  11. scorpiorias

    scorpiorias Light Load Member

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    You can set your price all you want, as long as you don't have any contracts, no one will consistently seek you out to do their work especially if they can get it done by the next guy at a cheaper rate. At least I can speak for myself. I ran mostly Manheim PA to Seattle. Before eld I ran 3 round trips a month. I know how many times I kissed ### and pleaded with Eliot bay, auto quest, 405 auto, auto shoppers in Yakima and more. Always over weight. Consistently runing 10 cars with up 92k pounds gross weight. Yes I said it. 92k gross. ( anyone claiming to have a contract with these guys is a liar) to let me run their work only to look on central and see that mafuka just posted something on central right after we talked. There's no loyalty in the game, its a dog eat dog world. The advent of central and all these other brokerage firms killed it off. Yes even if the world was to end today, you can make 90k on w2 driving a stinger, the question is how hard are you working that truck and driver, how much weight did he gain drinking red bull and 5 hour energy since working with youb, how much REAL profit did you turn beating up the body and the truck. IS IT SUSTAINABLE TO KEEP GOING LIKE THAT? Also factor in the LOADING AND UNLOADING TIMES. Claims. Is it really worth the slight difference POVs offer to ride through peoples backyards and neighbourhoods with low trees to do a 9 pick 9 drops?. Any driver willing to do that deserve at least a 6 figure salary and a month long paid vacation. That's the truth. I have no doubt someone figured out a way to still make money out there but it will never be like the old days. There was a time when no one cared about what the cubans, eastern europeans or Ukrainians did out here. There was enough pie for everyone. Big pies too. If it works only for 10 percent and 90 percent struggle, I will say its burst!
     
    Last edited: Sep 28, 2018
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