Brokers, Please explain the plummeting rates these days.

Normally I see 10 times more flatbed loads posted, OK maybe 5 times. They include more special requirements, it seems. Some are more difficult. Dry Van loads are mostly all the same. Slam the doors. Might need a couple straps. Might take a while to unload. All I’ve ever heard is the need for a niche, in Trucking. I don’t think it exists, as far as guaranteeing profits. When things slow down, everything’s vulnerable. If not from lack of Business, to Competition willing you work for less. I found out that Dry Van at least had some remaining Loads, while many So called niche segments had little or no work. Prime Steak and Lobsters always proffered. Get hungry enough, and half a peanut butter and jelly sandwich tastes great.

 

Basic math will force the parking of Trucks. In many cases, running till it gets repossessed.

 

I might park mine. I stay parked 30-40% of the time already. It’s all paid for. Just have to cut back on insurance premium as much as possible. I’d still need a Job somewhere for living costs. Even if you have the greatest Business plan, with parking costs built in. Living expenses have to come from somewhere. Savings? I don’t think that’s a viable Business Plan. I’ve done it more than once Savings disappear quick, and return slow, without any revenue coming in. Once it’s gone, so are all the gains from past work.

 

Most O/Os and Company Drivers quit for one reason. Aggravation. The record number of new Authorities granted the last 2 years, will disappear just as quickly, if not sooner. The frustration and aggravation associated with going from excellent rates to terrible rates, takes a big toll on happiness. Add the time involved with Trucking, for mediocre results. A lot just won’t do it. I can’t blame them. I’ve often questioned myself.

 

What happens now is a bunch of O/Os jump to carriers and lease their equipment on to soak up some of that contractual gravy, only to have that tank in the next few months. Never ending cycle. But hey, if it was easy anyone could do it

 

All it will take is to get covered head to toe in tarp grime In the hot and humid summers and they will March back to van... Or maybe just a big wind gust when they finally get that tarp nice and square while folding. Then WHOOOOOSH there she goes into a big pile of tangled tarp that u will spend the next 10 minutes undoing only to have another gust come thru right when u get it straightened out.

 

For me I figure that trucking is nothing more than a commodity. Just like wheat or corn or cattle. It has crazy ups and downs. If you love what you do, you figure a way to survive. Ain't no easy fixes. Complaing about cheap freight surely won't do it. I'm still not sure what the true definition of cheap freight is. Maybe the one I booked for tomorrow is according to some. I couldn't give a flying F what anyone thinks. Worked for me is all that matters.
I have to leave trucking for a little bit to take care of family business. Hope to be back soon. Actually it's inevitable. Most of you guys couldn't quit it if you wanted too, but love a good ##### session.
Two weeks left of driving and have a buyer for my truck. Makes me sad really. Got a good regular job and invested a little in a start up goat and goose farm. See you in a year or three. I'm getting ready to show you what broke really is.

 

Well said, my friend. Well said indeed.

 

You might be correct, as there is always some dummy willing to do stupid things against his own best interest, but the reality remains. As those O/O's have parked their vehicles and the fly by nights that are prey to low freight rates fall off in bankruptcy because of the low rates and high fuel, the shippers and brokers get more desperate for trucks, and that balance changes.
I agree, those O/O's that haven't planned for this kind of downtime will have a hard time, maybe even catastrophically, but again, that is a business risk, so keeping a large reserve is important, more important than chrome, new gadgets and creature comforts, the latest truck, etc. This has become a society happy to live on credit and that is who the brokers are allowed to manipulate. Many of these others that have had a more conservative cash is king old school upbringing, is the ones you seem to be trying to convince they are mad. They aren't. Not in their cash reserve business, and most likely, modest living style, are they unable to outlast this period, pick and choose their loads that meet their price range. When the market has thinned out of those people that got into the business because of ego and without thought of actually holding their money instead of squandering it, or chasing bad money down the rabbit hole are gone, they can emerge once again when the demand makes the price more normal and then they are really busy instead of leisurely busy.
Your argument, though obviously valid for many that haven't thought their business plan out, isn't applicable to those that have braced and prepared for the worse, and operate like professional businesses, rather than just glorified steering wheel holders.

 

Your PERSONAL expenses have little to do with business expenses or rates. Your business expenses also have little to do with market rates.