Rates are starting to skyrocket already

I have been ready for $5 corn dogs ever since I went to the state fair in the 1980s.

 

I am trusting you! Can't see it where I am at though.

 

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South is heating up. I just did MI-TN 550 miles for $1250 and TN-MI for $1700.
Midwest is gonna be dry for few more weeks.

 

That's probably why you're not seeing a rate increase. Direct shippers are keeping the guys that they're set up with directly at right around where they've always been. They aren't giving you the same rates that they're seeing on the spot market. Now, I'll admit that I don't know enough about the hopper market to say if it's increasing outside as well, but I'm definitely seeing an increase in rates in the freight that I do.

I just paid $4100 on a lane I moved all last year for $3000-$3200. Spot rates are up, and still trending upwards. Open deck is moving upwards. I'm paying north of $3.00/mi on a good many lanes. About the only place that I'm seeing is still even close to last year's rates is Houston.

 

My last employer hauls mostly on the west coast and I still keep in touch with my former co-workers. What they're seeing is a lot of undercutting by competing trucking companies to take over accounts because the spot market is going through the roof and some are bidding way under spot to get long-term accounts. My former employer adjusted his rates to stay with the spot market, and lost a ton of business in the process. Many small shippers are in panic mode trying to keep costs down. It's the wild west out there right now and a good time to be an O/O as long as you're good at negotiating.

 

I think hopper stays pretty steady about all the time unless grain prices would go through the roof.

 

Fair enough. Like I said, not an area we deal in as a company. Just seeing my segments steadily rising.

 

And I honestly don't think grain prices going through the roof would help either because then nobody's buying more than they absolutely need.

 

I can't believe you're not paying $6, $7, $8 a mile on 500 mile legal no tarp flatbed loads. I saw 2,600 flatbed loads within 100 miles of my house in podunk TN today. To put that in perspective when a huge market like Atlanta is pretty hot for vans you might see 2,500-3,000 loads within 150 mile radius. I think most flatbed guys don't realize the leverage they have right now and think they've hit gold on $5 a mile loads. If I had a flat I'd be quoting a lot higher than that and surely scoring something after a couple of dozen rejections. Somebody would pay it for sure. They always do. They will with van and reefer when its smoking hot I've seen it. You flatbed brokers are doing a good job tamping down rates if all you're paying is $3-$4 a mile on 500+/- milers lol. I need to get a flatbed.