Current rates are now below fleet operating costs! It's official!

A lot of MCs have paid off equipment from the boom. Combine that with insurance for people with a few years experience being around 10k/year and there are now a lot of people who can run for a lot less than before covid. That will slightly exacerbate the problem.

 

no it’s who can survive…..

 

I’m even seeing a down turn in the LTL side, I rolled out of the barn with 24 pallets this week at 34k, one of the local guys I haul the bucket for has basically just enough to keep his trucks/operators working, pretty much nill for the flat bed, the other guy that I part time bucket for says he has a bit to keep me busy, but they can’t really up rates from last year, told him I can make that work as long as fuel doesn’t shoot back up to $5+ again

As for running below cost if I’m going to to bankrupt I’ll do it sitting in my chair at home not in a truck, I don’t need practice driving at this point in my career

 

Takes longer to go bankrupt at home…..

 

Ain’t you been at home like the last five years? Sheeeeeeeit

 

Yup…..we’ve just come off 2 sepsis hospitalizations……

 

The fleets supported by investors can run very long with no profit. It’s apples and oranges but just look at Uber not sure about now but I remember hearing they ran for years at a loss. It’s all about just keeping the investors with the large bags confident that the company can outlast the hurdles. Either way the mega companies never roll over cause the government loves to bail out “too big to fail” companies. However the mom and pop carriers that joined the bandwagon when the market was hot will end up losing the house if they haven’t jumped ship yet.

 

No carrier is thriving with $1.30/mile . That barely covers driver pay and fuel cost . Let alone maintenance,breakdown,plates,tolls,ifta and othe b.s . Counting the truck and trailers are paid off

 

Lots of Trucks out here. Still enough freight available. It’s not going to change anytime soon.