This is total BS!!!

Most O/O"s i know are running more miles a year and staying out longer to make the same they did 20 years ago. Rates where the same or better than they are now and fuel was only $1.19 a gallon and i have old invoices to prove it.

 

When I talk to O/O's (and I talk to a lot of them) I am hearing a mix. Some are running their bu tts off and barely getting by. Others have it figured out. Of those that have been independent for more than 10-years what I am hearing one of two things.

1. They can't get the R/T rates they used to so they have resorted to a multi leg trip vs out and back (making their time out longer).

2. They can't get the rate on longer hauls to make it worth it so they have shifted to a shorter run model running less miles and getting a better rate (and being on the road less time for each run).

Most of this has been for dry van so can't really get a decent feeling for other types.

One thing that is for sure, you can make better money but have to do things differently. Most of the better paying freight has left the typical spot market. Last week I talked to an O/O that in '04-'05 he ran GM freight for a broker almost being dedicated. This broker handled all the excess freight that the contract carrier could not cover for a particular lane for GM. Now if you find a brokered load for GM you can guarantee it was double brokered or being brokered without consent of GM. All of the excess freight for GM goes through LSCS and Active.

So while rates to the market over all have increased, the spot segment is depressed because the better freight is leaving this segment. Sure there are some other contributing factors but when a market loses almost all of the better paying customers it is going to hurt.

 

Bill, I think what you have heard is pretty accurate. I use a BIG MIX!! My own freight for MOST outbound legs; and broker freight on the way back. About 15 brokers I've used over and over. Some of my own freight originates far from home; I do a lot for two used equipment brokers and also an insurance liquidation outfit. (all of this is step deck w/ramps work) Most runs are 900 miles or less BUT that varies. ( for instance am enroute from MA to CA now) I netted more in 2012 than I did in '92 by FAR.

Several independents I know are doing just fine as well.....but some are trying to get by hauling lumber and such and it ISN'T working. I guess what I am saying in a very long-winded way is that you have to look for ways to add value, find people you can work with and figure out where you fit in the grand scheme of things. I am never gonna haul TMC or Maverick's freight....and their guys are NEVER gonna do the things I do. You can find a niche, doing things noone else WANTS to do....and make a handsome living.

Guys, whatever you do........if what you have always done is not working today.....STOP. I mean it!! You have to change, adapt, and find what DOES work for YOU. None of us are identical; all our income requirements, work schedules, etc. are different. So find YOUR place!!! I have and LOVE IT!!

 

what kind of freight are you hauling? just curious.

 

Was that question for me? If so.....hang on: high value hardwood lumber (furniture grade) , all kinds of equipment; from basic tractors and construction equip. to sawmill, aggregate, and other industrial equipment, military & government vehicles, especially going to or from locations with no loading dock, fire & emergency response vehicles, plus a mix of general open deck LTL stuff to fill open spaces. There's more but that's the bulk of it.

 

I find it interesting that so many people seem to constantly complain about rates. What we have here is a fairly pure, relatively free and unregulated market at work. Which is exactly what a lot of the people doing all the whining claim to want, at least until they have to compete in one.


There are no more tariffs or rate regulation of any kind in the trucking industry.


Barriers to entry are very low- buy a truck and have at it.


There are no wage protections in placef or employees- Drivers are exempt from the Fair Labor Standards Act,so no minimum wage, no overtime,no pay for loading or unloading etc.


About the only things you could do to free the market even more would be to remove safety regulations,which exist (at least in theory) to protect the public, or implement regulations mandating greater transparency such as requiring brokers to disclose what they are being paid by the shipper.


This should have all the free market Objectivists & conservatives out there smiling all the way to thebank. Why are so many people complaining?


The brutal truth is that rates are set by the market. (Business) Man up and deal with it or exit gracefullyand allow a more efficient operator to take your place. That's how afree market is supposed to work, it's a race to the most cost effective producer. So you can't buy a 4 MPG large car with 10% down,haul off the load boards and make bank these days. Oh.... Boo.... Hoo