Truck Load Rates Halt 8 Week Slide 2.0

There's a certain market, commodity, that is REALLY hot right now lol.

And it's making everything else hot competing for the capacity.

On top of that, there's groups of total scumbag agents / brokers that use a certain technique, and it's driving the market way up, and blowing up in their faces at the same time.

 

I'm going home Saturday. I have a lot to do, and me and the cat need some time out of the truck.

I'd still go for a stupid amount probably. But it needs to be REALLY stupid.

I'll take 3 days probably, id say 4 but the carrot will be too big,, and get back in the fray.

Other trucks are booked out for 2 weeks.

 

I'll drink to that.

 

I'm home for at least 4 days. Skunks have moved into my yard and my labs got sprayed yesterday. One way or another, they're leaving my yard. Then my first grandchild is due next week, so I figure time off for that too.

 

Rates weren’t bad for 30 months for one. And say the terrible rates were for 2 to 3 months, now some great ones for 2 to 3 months. It’s just the way it goes. I try and not get too excited either way. All you can do is fight hard all the time and get whatever you can.

It’s why free markets should be just that, free. Can’t take the heat, get out the kitchen.

Volume is decent but it’s a lack of importing continuous foreign workers and a glut of Americans who are not ready to come off the couch. This has capacity along with those who went broke, down enough to make rates where they always should be. I hired 1 that starts Monday but I’m going to have to get aggressive to get two more hired. I even ran radio ads for the first time and still didn’t get a single call. I’m cool with it long as rates go and stay up so I can justify paying big money to drivers. Frankly, it’s what drivers should make to begin with.

Glad to see I spurred up some convos this evening though.

 

Ain't that the truth. A couple of our newer folks were asking, "Guys, why did rates suddenly get so high?" To which I just laughed.

Trying to explain the rate cycle to baby brokers is always fun.

 

I noticed one characteristic about these cycles - they are indeed sudden. Especially, when reflecting increased volume.
It does not nessecarly happen in the other direction when capacity increases but the rate of change of capacity and volume have different dynamics too.

 

Also, @Dave_in_AZ - your friskies posts have given me an idea.

I think we should get a side business going. We can pitch this new fad diet to celebrities. You can be the mysterious "doctor" in the background, and I'll be the sales dude/hype man. I think it's a recipe for success.

 

Well, in a lot of cases, there's a precipitating event or events that drive it. When rates spiked in 18, it was the ELD mandate. Rates bottoming out around the end of March this year was because of closures due to the 'rona. When folks started opening back up, the backlog and sudden influx of freight brought the rates back up and around. Hurricanes and other natural disasters cause short-term spikes, too.

I'm sure we'll see some more shenanigans related to the election cycle, and whatever else you may figure on. 2020 has been a weird year, and I'm sure we'll see more weirdness going forward.