looking to become a oo, and have ???s
#11
Heavyhaulerss is correct about the current economy. I have been around this business since around 1970 or so. I have a couple of friends who have been around the business for longer than I have. None of us can recall when we have seen business this bad. These are people who have run their own authority and leased to carriers. There have always been seasonal changes, but this is different. There is a lack of decent available freight. I am seeing rates 1/2 to 1/3 or less of what they were just 6 or so months ago. Thousands of carriers have gone out of business. Hundreds of thousands of owner operators have lost their equipment. I am fortunate that I don't have big equipment payments. Those with big payments are the ones who are losing their equipment. It doesn't matter if you lease to a carrier or run your own authority, you will be doing some sitting and running for rates that are lower than you may want. We have been seeing many of the costs associated with running your business continue to escalate. All of us have been forced to make adjustments. We will continue to make adjustments as needed. I don't know of any who have been around this business for any length of time who are making the money they really want or need. Most are doing good to make drivers wages after expenses. For years my average deadhead has been around 10%. Now it is considerably higher. When you look at rates you need to look at not only your paid miles but also your deadhead. Areas that have usually been known for having decent paying freight are no longer considered good areas. I base in an area that normally has a good amount of freight. During peak times last year we had around 3,500-3,900 loads within a 150 mile radius. During the last few months I have seen as few as 84 loads in that same area. I checked this morning and there were just over 300 in that same area. These are the realities of our current economy.
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