Brokers, Please explain the plummeting rates these days.

I've read some of your other posts and think you are a fairly bright fellow, so I'm little surprised you aren't picking up what some of us are putting down. I'll try one more time though.

If McDonalds, Wendys and Burger King are all competing for the same market share, and one day Wendys has a large increase in their cost to produce product, would you suddenly pay more to eat at Wendys than you would at the other two establishments (assuming you enjoy all three equally)? Of course not, if Wendys increases their cost you would simply take your business else where.

 

If you're competing with other low rate trucks than that's your mistake. I get round trip rates or I don't turn the key.

 

You're talking markets on geographical areas. I get it. That's why I always get my rate from my yard paid round trip or I don't haul it. A Wendy's burger in NYC is certainly going to cost more than in West Virginia.

 

you honestly don't grasp it, do you? huh.

 

You're both right. Too many trucks will drive rates down if people are willing to cut each other's throats.

But look at it from another perspective. The economy sucks. You think Ferrari is dropping the price on their cars, or waiting for a buyer that can afford them?

You're used to selling Kias to desperate people. If I had a nickel for everytime I said: "I don't care what this lane pays.", I'd already be able to retire, and I just started. You can either afford me, or you can't.

 

Ferrari isn't going to put up as much revenue nor profit (also bad example as they intentionally supply less than their demand of their market any given year. You aren't in control of how many carriers {supply} are in the market)

The question, as i understood it, was, "Why are the rates dropping when fuel is going up?"
The answer is supply and demand. if you have Ferrari level costs, there are now less Ferrari load to cover for you. RIGHT NOW there are more honda civic level paying loads, and so they don't need Ferrari drivers service level, they need Honda Civic service level drivers so why pay for something you don't need.

Lastly, I hope y'all sticking to your $5+ a mile rates works out, I truly do. The market is not at that level right now, unfortunately.

 

Couldn't have said it better myself. I know my area and I know there's always a cheaper truck. Call them and stop blowing my phone up.

 

I spect he's been doing it longer than a bunch here, so i wouldn't jump on calling him wrong.

Not everyone here is in the same market, or at the same level in that market.

While one may have certain customers or dedicated freight, others are like me only working load boards, with little experience generally speaking in this business.

 

I think the flatbeds are in a different world...
I mean some of your business terminology or analogies - way of thinking- are non existent in the dry van segment.
Ferrari example does not apply to the value or merit of services we may ever offer.
We are more or less straw hat fisherman propelling boats with a pair of rows.
.

 

Flatbed had the crappiest rates through the entire boom. We don't offer anything more special than a dry van hand. There's ten times more of you, because there's ten times as much freight. You're just as valuable as me.

If people want flatbed money now, they can grab a pair of work gloves and give it a try.