I've been thinking about our "excess capacity" problem
#1
10-27-2007, 03:10 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
I've been thinking about our "excess capacity" pro
What if everyone just slowed down a bit, did 1000 less miles a month?
Would make about the same net cash, but our capacity would drop, causing rates to increase. 
#2
10-27-2007, 04:24 PM
Re: I've been thinking about our "excess capacity"
Originally Posted by allan5oh
What if everyone just slowed down a bit,
Alan, a lot of folks are hardly making it as it is, they can't afford to "slow down". But the reality is, they will "go down"! :sad:
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#3
10-27-2007, 04:31 PM
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
That is unfortunate, but you're right. Until some guys start sinking, the rates are going to stay low.
I run 60 mph, one week I actually ran 4100 miles! I do not see the need to run 70 mph, you're going to run out of hours anyways. A lot of states you cannot log 70 mph either.
#4
10-27-2007, 09:17 PM
There may be some excess capacity in some areas of the country, but that isn't the real problem. The real problem are those who are so heavily in debt that they think they cannot afford to deadhead out of a bad area or sit for a day or so to get a better rate. There are too many who have a truck and no business sense. They have no idea of what it takes to run their truck so they think that as long as they have cash flow they are making money. Rates should be around $3/mile right now for legal loads. Instead they range from $1 to just over $3/mile. Most are in the $1.40-1.60 range. That is too cheap. It is difficult to keep your equipment in good shape, make truck payments, buy fuel, pay a driver (even if you are the driver) and still have enough left over to earn a profit.
#5
10-28-2007, 01:55 AM
We as owner operators dont have an "EXCESS CAPACITY" problem. The big boys who brought extra tractors to beat the new emissions engines off the assembly line have EXCESS CAPACITY. They didnt have enough drivers to seat the trucks they had and they go out and buy more. A buddy of mine is Ops Mgr for a company with 130 trucks in his division and he has 37 empty, each one has a payment of about $430 / week. Too bad so sad for the big boys. If they could put drivers in all of those trucks, we owner operators may have a problem, but they cant put drivers in those trucks and cant get rid of them.
 :twisted: :twisted: :twisted:
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