Low rates

I did, and things are progressing nicely.

If I relied entirely on the load boards I would be hurting, but I have my own clients.

 

I am twisting the knife... ))) Friend of mine who was in the trucking 1.5 years bought a new truck last October. Just called me asked me if I want to take over...

 

if rates will continually go down your clients will fly away ..

 

I know a guy. Oh it hurts to listen when he calls

 

A blanket statement that the megas will not pull cheap freight is just plain false. We used to bale hay in Kansas, there were several big companies that would haul it to Texas, much cheaper than we could on our own paid for truck, period. I kept the road burned up, but would typically load 10 trucks and take one to pickup the check. If I didn't have a need, I would have not untracked, period. They bid the loads, no way would we have thought to offer them what they bid it for either.

 

If the spot market is dead for a while, all the brokers and trucking companies will start calling your clients and offer to do it for much less.
Guess what, your customer will ask you to match or get out. If you get out, there is a chance, that you will get those loads back, but for that to happen, your competitors really gotta provide crappy service.

 

If it's a regular dry van freight, its pretty hard to mess it up. I was doing 1000 miles loads for my direct customer for $3000. 0% failure rate. A broker offered to take over for $2400, now someone is doing it for $2000. Guess what, it's been a year and I was not offered to take those loads back, unless I match the price

 

That happens when rates are good, it seems like anytime someone thinks you are making good money, there will be multiple people willing to cut the rates, and it takes forever for them to get back to where they should be, if ever.

 

Only two ways out of it.
1. Economy will expand further to encompass all that recent increased capacity.
2. Attrition. This is more realistic. The current rates are too low for many already, especially those who recently added equipment, hired drivers and are relying on load boards at the same time. These rates are already at the level of April - May 2017 but they keep mowing downward. Now would be the time for a reverse trend which is nowhere to be seen.
Who knows... maybe being able to make a living at 1.50 per mile for the next year and half will be what it takes to endure this.

 

#### I hope not, there is still money there but it's getting harder an harder 2 find