We're the reason rates are down

Discussion in 'Experienced Truckers' Advice' started by grmorr1234, Feb 13, 2019.

  1. grmorr1234

    grmorr1234 Bobtail Member

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    Rates wouldn't be down if every trucker would only take loads that paid the bills. If rates are down it's our own fault as a working division of the USA. Brokers are still making their cut and unless you want to be out of business you need your cut as well. It takes roughly $1.75 mile to break even if your honest with yourself about expenses. If every trucker would stick to his guns it would pay to come out of Florida. There's no reason Florida or any other place should get by without paying what it cost a man work and pay bills. Rates will come up if we demand it.
     
  2. STexan

    STexan Road Train Member

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    This has been going on all across the world since forever, in every business segment. You’re not saying anything that hasn’t been said countless times before. But if someone wants to hang themselves who are you to stop them? Besides, one man’s trash is another man’s treasure.
     
  3. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    Part right. Here's the deal now- All the people that went out, and over extended on their new trucks, will now drive rates down, because they gotta come up with that big nut.

    Then, at some point, many will throw in the towel.

    There's excellent money to be made right now. The question is "What are you prepared to do, to go get it?"
     
  4. little cat 500

    little cat 500 Road Train Member

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    Your bread and butter is somebody else back haul
     
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  5. STexan

    STexan Road Train Member

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    And the brokers know and understand this fact very well.
     
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  6. DUNE-T

    DUNE-T Road Train Member

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    It's funny, my buddy bought two new trucks in summer for $162k and he was lucky to find some in stock. Now the same trucks are being advertised for $145k on Truck paper.
     
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  7. Ridgeline

    Ridgeline Road Train Member

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    YOU assume that brokers control the freight but there is something that is called Capacity which governs 90% of what is being hauled in the spot market and that capacity has to come down.

    What happened this past year is the rates when up and everyone was happy but other's saw the way to make big quick bucks. At the same time there was a push from lenders to lend more money using the fear interest rates are going to rise back to the old 1982 level (Yes I have been told that lie to my face by someone who wanted me to borrow money from them) and that triggered a buying spree of trucks.

    So between trucks coming off of lease and being sold to secondary fleets (like mine), and new trucks coming into the market for both replacement leases and new O/O or new small fleets, rates took a tumble when capacity finally expanded.

    Right now my average fleet (excluding dedicated and HH) rates to date went below $2.25 as of yesterday, I had a few rescue loads at $1.25 in the last few weeks because of the split with the other carrier but overall I expect to see my average fleet rate to dip to $2 before they come back up.

    SO many are waiting for these cheap marginal owners to go under, a few of us expect more than the average, so those trucks to be repo'd will trigger a buying spree for that 'get them cheap' market and capacity with those trucks out of the market will tighten up again, rates will go back up.
     
  8. Midwest Trucker

    Midwest Trucker Medium Load Member

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    True and I totally agree on the $1.75

    But as STexan said it’s just the way it is. Supply of trucks outweigh freight demand. Too many yayhoos own trucks and think their cost to operate is $1/mi.

    They need to hurry up and go broke but it takes time unfortunately for the rest of us that do this in the long term.
     
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  9. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    Give it a little time. Next Autumn, there will be some deals for a brand new one in the 112 to 116 area.
     
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  10. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    How can the supply of trucks outweigh the supply of freight when there is a "CRITICAL" driver shortage?
     
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