Rates are crashing and fuel to the moon!

A lot of people are getting out. I had a call this morning from a friend that has half a dozen trucks. He's been trucking for 30 years, has good contacts, a decent customer list, and a good business plan.
If he could, he'd sell out today.
He's reached a point where his profit margin has almost used up his reserve capital and he thinks, as do many, that the worst is yet to come.
His trucks are older and according to CARB he'll have to replace most of them next year. The money to buy new trucks isn't justified by the return.

 

How’s that loyalty to your one customer working out for you now? Not trying to pick on you, but this why you always look out for yourself over a customer.

 

I did raise it a bit. The rate is still lower than what the lane paid two weeks ago on DAT. Now, I got what it pays now. With negotiation, probably one could reach $100 more per load of the DAT for a similar lane. I did raise the price, and the loyal customer accepted it. I think he's okay with the price increase since everyone is feeling it at the pump.
So, not bad. But with fuel cost up and everything else, I'm rocking the same boat.

I paid $30,000 last year on maintenance. This year didn't start well as well. So, I can't put away reserves. I'm feeling a noose over my neck. I paid IRP recently and renewed insurance. Now, taxes are due. So, I'm balancing my books. Tollway for me was $5,000 last year.

 

That’s for sure, my Freightliners Cabs held on by 2 bolts and 2 air bags. I’ve seen many of them come completely off the frame in an accident. Not sure if that’s a good thing or not. Depending on where an accident happens, could be thrown off a mountain edge or into the water.

 

hope not bud. But if I’m home and you need tools to fix things in Vegas hit me up.

 

Doesn’t look good.

 

They surely will. When they do, the prices will drop fast. A lot of these prices are just wishful thinking. A few sales maybe to those that can get good money for existing equipment. Maybe a few to those that are just ignorant to the realities of Trucking. Easy come easy go. They’d all get absorbed over the next few yrs. after they’re repossessed.

 

Than doesn’t look like crashing. It’s lower, but truckloads go up and down. If there are more loads than trucks it’s not crashing.

 

Truckloads nationally are down, but not enough to get hysterical and talk about crashing. Just haven’t seen em down in recent times. Other markets are hot. Stop operating where there is no shortage. Snap shot is today 150 miles around Edinburg. Reefer. Guess what, not enough trucks here to take the loads. It will be a sht show, name your rate! If van rates are not as high as you like, ditch the trailer and pull a flatbed. Too easy. Stay away from Reefer, only weirdos like me enjoy Reefer.