Fuel cost is High, Does rates goes Up

Ding, we have a winner. So whats the difference between the guy who's already in and endures the BS. Vs the guy just starting out with the BS? We are all in it for the same reason.....prolly. except for the BS investor crowd those as.shats can go eat a bullet!

 

I don’t think he was saying never do it. It will be a much harder row to hoe in a bad market. You can’t deny that. That’s not to say it can’t be done. I got my MC number at the tail end of 2007. I survived. Don’t want to go through it again, but I did survive.

 

I am shocked no one has said stop hauling cheap freight. That 2.50 is cheap freight. You should be aiming for double that at least.

 

That all depends on the market. Coming out of some places, that 2.50 is pretty good......others, no way in hell. That being said, there are places I just won't go....not worth my time or hassle, no matter the money.

 

I understand, however the logic is still the same. Whats the difference if you've been in the game for 20 years and have to replace a truck.....vs the guy just starting out and buying that same truck? Costs the same either way.

 

Hopefully after 20 years you have figured the game out. There is always a learning curve to a new venture

 

And 5.00 a mile on a hundred miles is cheap freight

 

Yes it is. All we do is short haul. 1000 minimum to even think about turning the key. More like 1250 to turn the key

 

Anyone can throw rates and numbers around. Every Operation is different. Every Lane is different, Every Load is different. Different amounts of time invested. $2.50 is cheap freight. Soon it will be considered good. 700 miles at $2.50 pm. Today’s fuel cost being around $500, leaves $1200 for a days work. Not long ago, $750 per day, netting $500 after fuel was considered decent. Less than 10 yrs ago. There’s really only been a few good yrs. 2004, then 6 yrs of misery. Followed by a bottoming out, and a steady increase. A couple good yrs. after that, then mediocre. Mediocre will return. That’s how it’s always been. A Business like Trucking doesn’t suddenly go up, and not come down. Very few things do. Always runs in cycles. Last 2 yrs. are a fluke, Dumb Luck at best. It’s all going to end soon. When it does, Used Truck prices will be 60% today’s price. Just a matter of time. What goes up, always comes down. FSC May be in place on every Load out there. Doesn’t mean a Broker or Trucking Company can’t bid the freight lower. Brokers will only pay what’s necessary to move the Load. Freight tightens up, they’ll keep every dime they can. Eventually others will be competing with them, and they’ll have to drop their rates. It’s a race to the bottom. It’s all Supply and Demand. Once this supply chain bottleneck gets caught up, and more Drivers enter the Workplace. Everything will go back to normal. Average rates, average pay, average everything. To think it’s the new norm right now is wishful. Competitive Business doesn’t work that way. Hang on, it’s going to get Ugly. Ugly like some have never seen or imagined could happen. It hasn’t always been so easy to run a Truck. Anyone can be profitable in the recent Market. It’s been a no brainer. Next will be a hard Learning experience for some. Tough on everyone.

 

Yes AND No
It depends on DEMAND. If there are more drivers available than loads, then the rates will go down.
Relationships play a big role here to keep up.