Load Rates are down over 25% why ?

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by Nobroker, Apr 25, 2019.

  1. Nobroker

    Nobroker Light Load Member

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    In the past two years im making 25 to 30 percent less. Is this all due to broker greed ?. Hauling new cars seems to be the worst . I cant believe the major carriers are contracting at such low rates and is more likely an attitude of we can sub the work out and make the same profit with someone else taking on the work and liability.
     
  2. RustyBolt

    RustyBolt Road Train Member

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    This year sucks. But last year was the best I've ever done. I think a lot of folks ran out and bought their own truck leaving a bunch of companies searching for new driver's. Now there's too many trucks for the amount of freight.
     
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  3. bryan21384

    bryan21384 Road Train Member

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    Maybe people arent spending as much money. Or maybe it's too many people who are hauling for plain cheap, or maybe it's the only way to move freight farther distances. All theories, the reasoning for the last theory is that of.all.the loads paid great, many owners wouldn't travel outside of 300 miles. Owners and small fleets make up the majority of the industry. Also, it's not as many seasoned owners these days. The newer owners dont focus on every cost. They only focus on getting $2 per mile. I am not overly criticizing that, because it is possible to succeed at that rate. The point I am making is that many dont set a price according to all costs. They just haul for whatever is as close to $2 a mile as possible. Many also came from the lease purchase section where there is no negotiation on loads, those guys are working for $1.02 per mile(my buddy is a lease purchase driver, so I ran his numbers and I came up with that).
     
  4. Hegemeister

    Hegemeister Road Train Member

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    Simple supply and demand. Freight got hot, more trucks join the market. Rates then fall, and trucks leave the market and rates then steady or rise.

    It's just an ongoing yoyo. And no, brokers DON'T control the rates.
     
  5. Buckeye 60

    Buckeye 60 Road Train Member

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    there are actually more loads this year than last year, the problem is too many new trucks on the road , the new owner ops that primarily work the spot market is 1 reason but 95% came from a carrier so thats not as many new trucks as you would think but does put a lot of capacity onto the spot market , then every carrier and there brother has added trucks and looking to add more ......... and there is the problem that we are not supposed to talk about ....... where are those new capacity trucks regestered at illonois, California Michigan and Indiana. ..... except for indiana those other 3 a cdl can be gotten easily by illegal immigrants , mostly eastern European , middle eastern, and african here mostly on a guest visa or student visa and just stay ,get a cdl and head off to park at the fuel island and wait for a load ..... really hasn't become much of a problem for central Americans or mexicans yet anyways ..... i would like to know what % of accidents a driver that had a limited use of English were involved in . eastern Europeans can easily buy a cdl in Illinois without testing or proving they are a legal resident. ........ anyways there probably is a driver shortage but there positively isnt a shortage of trucks
     
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  6. Nobroker

    Nobroker Light Load Member

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    If a stinger owner makes $2 a mile he wont make his insurance payment let alone a truck payment. I usually run 600-1000 mile loads and you really need $3.60 per mile for you not ask yourself why am i doing this. 9 units x .40 per mile $3.60. Its obvious there is no driver or truck shortage and a overflow of idiots that work for cheap. I remember talking to manager from one of the major carriers before full eld compliance that said rates had to rise 25% just to stay even and since then rates are probably down 25%.
    A year or two ago i got $2800 when it was slow and as much as $4000 when it was busy for my regular run that has turned to $2200-$2800 thats a 820 mile run. Thats why i sit home half the time , i cant work when i know they are screwing us. Cars cost more as does everything else and we keep getting pay cuts, F that.
     
  7. Intothesunset

    Intothesunset Road Train Member

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    Last thing I read was JB hunt was proud to say they were undercutting the competition for 10 months at the last ATA meeting.
    But JB hunt is not in auto haul I thought??
     
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  8. Tropsnart

    Tropsnart Medium Load Member

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  9. Buckeye 60

    Buckeye 60 Road Train Member

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    I am hoping that the spot market will improve this summer, its been really good for almost 2 years and knew it wasn't going to last forever its going to take some trucks leaving the market ,most of my frieght is contract but still use the spot market at times to get out of or to a place and what these loads are paying isnt enough to make it worth while and I don't have a truck payment or house payment or any debt . so these guys with a high debt load will start to find other things to do wether its leasing on with a carrier or getting out entirely,
     
  10. CMN19

    CMN19 Bobtail Member

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    Agreed,frustrating to see more and more people from other countries come to the USA and flood certain truck driving fields with cheaper alternative equipment as well just to survive only to realize cost of living in USA is high. It's analogous to people going to Hollywood to be a .movie star thinking they are going to be rich and set for life and become pornstars and etc. instead to survive..
     
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