Low freight rates

Prior to 1980 trucking was regulated in the federal level, and some states still regulated intrastate authority well into the 90’s. Back then about the only way to get authority was to buy out an existing company. So you had regulated rates and heavily regulated authority that spelled out exactly what you could haul and exactly where you were allowed to operate.

For example: Back in the day my dad had a contract for livestock feed coming out of Iowa but he didn’t have authority to haul anything to get to it. So he used his South Dakota grain dealers license to buy wheat to haul towards Iowa and then he’d sell it at an elevator that was close to where he was picking up, hoping to make a profit.

Now all you need to go trucking is $300 and a down payment for your insurance, and the rates reflect that.

 

Why does everyone always think the Megas haul for dirt cheap? Not true

 

Rofl I was thinking the same thing. Let's see, they broker their own freight and then haul with cheap drivers. Megas are making bank, high broker prices, and cheap drivers to move the freight.

 

Wages were better back then because cost of living wasn't as high.

Putting a roof over your head has practically doubled in the last almost 4 years.

Throw in tariffs and now a pandemic.

Gas for the motorcycle is about the only affordable thing these days.

 

“All the foreigners willing to work for very little “

Isn’t that racist ?
Your not allowed to say that right ?

 

Too easy to get in business, internet load boards Too many trucks and brokers

 

He misspelled " megas pay drivers dirt cheap " !

 

IF Megas don’t haul cheap Why is their profit so low % wise ?? They have better buying power and low pay. Shouldn’t profit be sky high.

 

6,000 trucks making a penny per mile profit adds up.

Same concept as idle shut off.
6,000 trucks idling during their 10. That's a hefty fuel bill every day for 10 hours per truck. So, they're not allowed to idle.

However many trucks they have.

 

They don’t haul cheap, and do make a lot of profit. They get the big contracts, because they can handle the freight volume. Rates overall are lower, since Deregulation, original reason for Regulated rates, was to prevent price gouging, and insure an adequate system. No different than other Industries, Airlines, Utilities, once there’s enough Competition, regulated rates are no longer needed, free market competition, keeps rates affordable. Cheap Trucking rates are good for the economy. That’s the real goal.