NO PEAK SEASON THIS YEAR. Swift CFO breaking the news

Loyalty is pocket deep. All these “my service” bs goes so far. If company can’t afford the cost anymore it’s going to cut somewhere.

 

Here are the relevant quotes related to contract rates from Knight Swift Management:

"Second thing I would note about and trying to predict and anticipate contract rates, the best example we have to go with, Amit, would be to go back to 2019 where over that 15-month period, when we went from peak to trough took 15 months give or take a few weeks to go from the lowest and to see the highest rate.

We went from an unbelievable period of '18, grossly oversupplied the industry, saw the downturn take place. And then by late spring 2020, things had bounced back... Over that timeframe, we saw a massive drop off 50% to 55% in spot rates. Now, arguably, what we've seen this year may even be more than that for small carriers spot rates. And we saw contract rates only off approximately 5% in that full 15-month period."

"...recall how the bid season really played out this year. Early about this time last year is what started, spot rates were still elevated, there was probably opportunity to move contract rates up that needed to be. But as you got halfway through the bid season, spot rates had come off. And so there wasn't a lot of contract rate improvement on a year-over-year basis in the back half of the bid season. And so as you go through this year's bid season, there's not going to be near the movement needed with those customers in those lanes based on what they renewed at."

 

These guys have just been licking their chops to gobble up small carriers, here are a few more quotes outlining their strategy"

"...over the last year we've followed our playbook in preparing for the economy and the truckload market to slow. We reduced our exposure to the spot market at the beginning of the year"

"Similar to 2019, we expect that this will be a tale of two cities with shorter term challenges for the well capitalized, highly profitable carriers versus those already challenged in what has been a very strong freight market. We expect meaningful, attractive acquisition opportunities over the next few quarters"

"I would say that we continue to pile up free cash flow. And it has not been a buyer's market. And things are working in our favor a little bit here as things start to adjust that will give us hopefully better opportunities and more opportunities to acquire businesses that are transportation related"

 

It was the best of times it was the worst of times

 

Oh lord that's terrible and 48,000 ?? So cheap freight and burning fuel like crazy??? Yeah some fool will definitely take this lol

 

Why would you do it? You would have to be an idiot?

 

But, But, But....
It will get me home and pay for fuel.

Oh wait...

 

Wont even pay for fuel, and why work for just fuel? I'd go empty first and park it.

 

And used 2017 t680 with 600k+ miles are still being advertised on truckpaper for $70-$80,000 lol