Brokers, Please explain the plummeting rates these days.

Driver Shortage is a fake label shippers/trucking companies put on the inability to hire as many drivers as they want at the low wages and poor working conditions they offer.

Imagine an ugly, nerdy, smelly high school boy claiming there is a supermodel shortage because no matter how many 6 foot, 105 pound fitness models he asks to the prom, none of them say yes. If instead of a smelly, nerdy high school boy it was a millionaire, Olympic water polo athlete asking the same women to some social event, he would report there is no shortage.

If trucking companies pay enough and improve working conditions sufficiently there will be more than enough truck drivers to move all freight.

 

Great analogy!

 

Funny how there's no driver shortages at the places I want to work.

 

only those O/O will be out of business whose expenses are more/equal than/to the revenues.

most of the failed O/O will first be defaulting on the taxes then the huge truck payments.

 

In a lot of cases what they did that was counter to their best interests was buying a truck. What they do after that just compounds it.

 

And then they turn around and blame the rates, rather than their own stupid business decisions.

 

Most of them have no clue what the rates are. They’re going by what some freight pimp told them the rate was. That road only leads one place.

 

Not only that, they don't realize that even though some rates have slipped, they are still near historic high levels. For most of them, they don't know how to run an efficient business. With the recent rates, you could make decent money on accident.

 

Rates have increased pretty steadily since de-reg. But so have the numbers of clueless wannabes with their load board subscriptions. I regularly see people hauling the same stuff I do, just a lot cheaper. I get $4/mi because that’s the rate, but the guy that loads beside my truck has this awesome broker, so they’re hauling it for $2.50/mi. The freight pimp gets $4/mi same as everybody else. I could get the same load 3rd party from another carrier and still see $3.50-$3.75/mi. I think I know what the problem is, and it’s not the rates.

 

The brokers will never admit that. As long as there's an endless supply of dreamers who think they can make a bundle of money right out the gate the brokers will be taking advantage of them
Start reading between the lines here and there are a lot of O/Os that are hanging on by their fingernails.