Sounds like they were already hauling the freight cheap as they could and their customers still cut them for someone cheaper.
I am thinking these shippers are going to pay when freight picks back up and there is no one around to haul it because they bankrupted half the industry. I will look forward to that day.
Truck Load Rates Halt 8 Week Slide 2.0
Discussion in 'Freight Broker Forum' started by Scooter Jones, Mar 7, 2020.
Page 679 of 682
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Unfortunately for us, the existing players, there's nothing special about this industry that would prevent it from regrouping and regrowing too fast to our liking.Rideandrepair Thanks this. -
Sure is a good time to have paid off equipment.
Loving my old freightshaker right now.77fib77 and Rideandrepair Thank this. -
Midwest Trucker, Long FLD and dwells40 Thank this.
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So like you not having a payment not every company is financing when they upgrade or expand.Midwest Trucker, dwells40, Siinman and 2 others Thank this. -
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Right now inflation is having a huge impact on the rate reductions in shipping. The cost of consumer goods has risen a lot over the last year, and receivers of those goods are screaming at manufacturers (aka shippers) to put the brakes on their pricing. If a manufacturer's costs for making products goes up and their customer base is having trouble paying for it, you cut costs anywhere you can. That includes cutting staff and of course cutting the shipping costs of your products. If shippers have contracts with freight carriers and the bottom falls out of the freight rates, no shipper in their right mind would continue to pay double or triple the current spot price to get their products to customers. So they demand a renegotiation of the contract, or they just cancel it, like what happened to the company in that video. I relied on contract freight during my short time as an O/O and I was getting no less than $4.60 per mile from all of my customers, some much more. But I have no doubt that they're moving that same freight today for less than half that cost, and I picked the right time to retire. The trucking industry has simply gotten too volatile for most to survive getting in now. The boom times were never the norm, but the bust times are exactly that now. Good rates are too unpredictable and short-lived to make a long-term strategy in the business. Small companies need some kind of reasonable stability to survive. Trucking just doesn't offer that, and right now nothing else out there does either. Everything is a crap shoot.
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Or one does not gouge their customers on rates like I haven't.
dwells40 Thanks this. -
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Anyhow,
This week was the poorest I've had for a while. The loop consisted of 3 legs: $3220 on 1490 miles: $2.16 p/m : Wed - Fr - to deliver on Monday at home location.
It is what it is.dwells40 Thanks this.
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