All indications are that we still have a fairly significant amount of overcapacity. I don't know about flats, but the big seasonal surge for vans and reefers is winding down. That's what was behind the recent upswing in rates. What happens from here on out will be a much better indicator of the overall health of rates.

 

I have never understood why anyone would take a load just to pay for their fuel. There will be many more failures in the months to come. When fuel cost double you cannot continue to haul for the rates you did when the cost was half of today. :?

 

We see seasonal upswings and downturns with the reefers and vans. During produce season rates tend to go up for vans since a lot of capacity is taken out of the market. Rates will go down again when produce season is over. I think capacity is more regional. There are areas where there is excess capacity just as there are areas where capacity is limited. Regardless of capacity, if you own a truck you should be getting better rates than you did a year ago. If not, then you are doing something wrong. You don't have to haul for cheap rates. If you want to stay in business you should be getting the best rates possible. I think this is where many owners go wrong. They either don't want to negotiate rates or don't know how. Each load is a negotiation. If you think that shippers are not paying higher rates, think again. It is just that some of the brokers are not passing along the higher rates to the owner operator or carriers. That is where your negotiating skills come in.

 

I hate to hear about Jim Palmer. We will see more fail in the coming months. You have to be able to raise your rates to reflect your increased costs of doing business. One reason some of these trucking companies are in trouble is that they have fixed rate contracts with some of their shippers. When operational costs go up so much over a short time, there isn't a way for them to adjust rates quickly enough. I would not be surprised if one or more of the big carriers file for bankruptcy.

 

If I were an agent or a broker, I would try to maximize my own profit.
Nothing personal... Just business.

Yo', driver... Got a hot load paying 1.65, to git 'er done.

If the driver negotiates at all, they will try for another dime or two. Naturally, they have to hold their breath, while they wait for the call back, where the agent or broker reluctantly accepts their deal.

Then, the driver says: "Nothing personal... Just business."

 

Well, I haven't hauled a load for $1.65 in several years. There are way too many who simply don't value the service they provide or have any business savvy. The only reason some brokers continue to offer cheaper rates is because they keep finding some poor sucker to take them. I recently had a load that I was going to take for $2,500. The broker called back and told me that the shipper had found someone to take the same load for $1,700 and since someone agreed to take it at that price he would not go any higher. He had several loads going to the same area. I told him that was fine, but it would not go on my truck for less than $2,500. I got my rate, just not with that shipper or broker. The funny part is that I will likely get the same rate as I quoted from that same shipper the next time he needs a load hauled to that area. Some poor guy just shot himself in the foot and lost $800.

 

2 loads from Houston to North Dakota:
1.1774 miles/46,000lbs $3,000= $1.69 per mile
2.Same exact load diff. broker $5,000= $2.81 per mile
Now I see CH Robberson posting them at $4,200 flat rate= $2.36 per mile
Same exact loads pickup and drop


Lesson, take your time do the research and get the most for your miles.