Rates are crashing and fuel to the moon!

trucking is interesting, because people in the business do NOT behave like “rational actors” as economic theory assumes. The theory of supply and demand suggests that as prices go down, supply decreases and demand increases.

Truckers are not well versed in economic theory, apparently, because many run less when prices are high and they make what they “need” before running hard. When rates are low, many will increase their miles because they want to make the same net as when rates are high.

Economists call that a “negative price elasticity”, and it’s one of the reasons the boom and bust swings are so extreme on the spot market.

 

. Prices go down due too much supply. A glut of whatever product is being sold. Prices go down if there is no demand. If no one wants unicorn cake mix anymore. It will get cheaper. I carried two skids of that had to look it up.

But the negative price elasticity, very true. Although I live and am from the mid west. I have a mindset of making money and sitting on it when things are bad. I just want to work enough not to deficit spend at this point

 

I suspect that they cut each other's throats just the same. The difference is that they do it while wearing pajamas while truckers are doing the hard work.
Going bankrupt with sweat and grease on your hands much worse from while sipping coffee and eating bagels in front of a computer screen...if you ask me.

 

So supply is still increasing, which means the rates will go further down. And sooner than later flat, reefer, and contract markets will join the party. If they already didn't.

 

Step deck for the win.

 

I bought a step deck, flatbed, and a lowboy just to mess up the market. Ha ha

 

Are any extendable? That's where the money is.

 

Money is growing out of each hole.