Truck Load Rates Halt 8 Week Slide 2.0

Wow, that’s low miles!

 

that's good!

 

Been putting rounds together loaded both ways. Last round was over 6 a mile on about 400 miles. Goal for this year is to be around 4.50 for all miles

 

Dang Joe wish I’d got to read what you said before you edited it. Looked like a long post but I got sidetracked.

 

I know I like reading Joe's long posts

 

Never mind that...it was just a word of short/local trips not necessarily better than the longer over 500 miles, But then I changed my mind...thinking that the short trips, if for the same money, are still better than longer hauls. Generally speaking, I am glad that new members are contributing their achievements to illustrate the current situation, taking over here. I hope that contribution will also continue to illustrate any downward trends so that the thread can be also more objective.
So far we've had:
1. period of mediocre rates of 2019 which followed the rates "thought to be good" of 2018.
2. Continued slow rates at the start of 2020 which unexpectedly jumped to "charge'em 5 dol a mile" rates before the pandemic lock downs were in full effect.
3. Marasmus of April and May of 2020
4. Resurrection of rates in Summer 2020
5. 2021 and so YTD 2022 - The period of prosperous rates we see until today where 5 dol a mile is no more something that would surprise anyone.
However, towards the end of 2021 and ongoing now, there are different problems involving equipment and part shortage and raising fuel prices.
What's next?

 

Zombie apocalypse?

 

Since the beginning of 2022 - 6 consecutive weeks now - Chicago market (100 radius) - Baltimore market (100 mile radius) has been paying the record high rates of $4000 or more and then even as much as $2500 for for a backhaul and that's just call and book.
How much longer one might hope that they will pay you $6500 - 7000 for the round loop which as recently as February 2020 was merely half that?

outbounds:

backhauls:


On the other hand, fuel spiked again - even at cheap Speedways and Thorntons around here...looks like soon enough $4 dol per gal - will be considered cheap even with the discounts.
.....
This lane configuration (round trip) takes about $900 in fuel and $600 in tolls. You are left with 5 grand after 3-4 days on the road and maybe 5-6 days committed to the load, meaning you can be home but still under load. It is a very doable loop on weekly basis...heck, if you are determined, you can squeeze two more round trips in a month - up to 6 and still be legal on HOS - just do it on recaps. 7*40 (out of 52 possible) realistic weeks = $280 000 on 60 000 all miles. You are left with $200 000 after fuel and tolls then you take whatever other costs you have away from it. I am fond of this lane, because I know its ins and outs: shippers, receivers, routes, terrain, truck stops, rest stops, scales, restaurants, climate, etc. but I am sure there are similar or better lane configurations in the areas you operate too.

Superficially, it looks good, doesn't it?
This is no brainer that everyone wants a piece of it. However, is it good enough to afford a new truck and van trailer for over $300 000 from a speculative seller? I doubt it....but only because, I don't believe that it will go on like that forever. I am sure that many disagree...but paying $6000-8000 per month for truck and trailer surely does not make it any effort competition for those who don't have any payments at all with or without higher maintenance costs. On the other hand, how much longer are we to see this? Or maybe I am wrong...what if someone can see a bigger picture and may even enlighten me that it is not as good as it looks.

I am a little concerned that game is becoming about "not falling off the horse" vs, financial discipline. It is about a contingency plan. You need to have spare parts, ready to take you in shops, enough cash to tow it from Baltimore to Chicago (at least $10 000), ready to buy another truck and trailer for these exorbitant prices and most of all - lots of luck - as even these new truck are often immobilized due to stupid sensors or trivial parts.
There is a lot of fish to catch, but the waters are treacherous as never before.

 

True, but at least the shipped hasn’t sailed!

 

I don’t like doing short hauls, so my per mile isn’t as good as some, but I haven’t had any trouble running Midwest to Phoenix or SoCal for $11-14k a round.

I’ve also been pleased with the new truck saving me $4-600 a week in fuel cost compared to my old truck.