Home > Forum > Bulk Rates Not Rising...Could It Be Due To

Bulk rates not rising...could it be due to

Feb 10, 2018 at 12:35 PM CST
+ 6 - 3
Could it be do to the following factors?

Farmer owned trucks.
Farmer owned trucks don't have the same pressure to produce revenue that those owned by people trying to support their families and a truck payment have. They
own them as part of their larger business.


Semi retired owner operators
Guys that have had their fill of being away from home for weeks and now have their trucks, homes, cars paid for. They have the social security checks coming in so they are just supplementing that.

In either case, they aren't wanting to rock any boats by demanding a higher rate. They just need to get out of the house so their wives think they are working. I'm not their yet but I'm getting closer every day.
Replied on Sun, Feb 11, 2018 at 09:34 AM CST
+ 4 - 1
Road construction work here is all fancy corn-bought newer trucks and shiny new dump trailers driven by farmer or his spoiled kid, or Latinos driving JUNK
Replied on Sun, Feb 11, 2018 at 08:26 PM CST
+ 1
All of the reasons you have listed play into it..... The other part of it is competition from the railroads and river barges. Back when I was knee high to a grasshopper, every trucking company around here, had hopper bottoms. After deregulation the number became fewer and fewer. By the end of the 80's, 95% got rid of them. Then you noticed a couple of shysters pop up, and exploit the hell out of the owner operators, until they finally exuasted that supply of cheap labor. Around this area it is considered bottom feeder work, even the foriegner' won't touch it with a ten foot pole. Typically anymore the only way to sell a company when you want to retire, is to have a auction and sell the equipment and property, and pray like hell you have enough left over to pay the capitol gains tax.
Replied on Mon, Feb 12, 2018 at 01:56 PM CST
+ 4 - 1
the actual selling price of what you are hauling.
Replied on Mon, Feb 12, 2018 at 02:19 PM CST
+ 2
Quote: "the actual selling price of what you are hauling. "

You raise a good point Nancy. Let's look at that article over in the news section that originated in Bloomberg about Tyson foods expecting to pay a additional $200 million dollars more for trucking this year, becuase of this ELD mandate. Tyson will try to pass that added cost on to the consumer, but what happens if the consumer decides to consume less as a result of that? Then Tyson will be loosing $200 million this year. What will that do to the price of their stock? And how many more Tyson stories are out there? Does anyone see a crash coming?
Replied on Mon, Feb 12, 2018 at 02:39 PM CST
- 1
If you think the rates in the bulk market suck now, what do you suppose they will look like when the Dow plunges right down to 6000 points, and it puts us back where we were in the Great Depression? I wonder if China and Russia will bail us out, after all of the saber rattling that's been going on? The folks from the ATA might want to flee the country.
Replied on Mon, Feb 12, 2018 at 03:05 PM CST
+ 1
Just look infront or behind you most of the time the people who say they don't haul cheap are the ones getting loads to go home for 1.25 a mile we all need to stop hauling cheap but nothing going to change no one is willing to do anything about it
Replied on Mon, Feb 12, 2018 at 03:30 PM CST
+ 2
Why would shippers raise rates when you have guys accepting low paying loads? We have guys hauling for 36 cents a bushel not making a dime and the shippers are telling us they have guys that will haul for the 36 cents. We refuse low paying loads.
Replied on Mon, Feb 12, 2018 at 03:37 PM CST
+ 1
Quote: "You raise a good point Nancy. Let's look at that article over in the news section that originated in Bloomberg about Tyson foods expecting to pay a additional $200 million dollars more for trucking this year, becuase of this ELD mandate. Tyson will try to pass that added cost on to the consumer, but what happens if the consumer decides to consume less as a result of that? Then Tyson will be loosing $200 million this year. What will that do to the price of their stock? And how many more Tyson stories are out there? Does anyone see a crash coming?"

without a doubt this is going to drive the matgins down and the shareholders will not have a choce but to take that dive with it. you can only suck so much blood from the market expense rock coupled with a fair market price to the consumer.
Replied on Mon, Feb 12, 2018 at 04:13 PM CST
+ 7
Quote: "without a doubt this is going to drive the matgins down and the shareholders will not have a choce but to take that dive with it. you can only suck so much blood from the market expense rock coupled with a fair market price to the consumer."

All these guys want 6 bucks a mile, and that's fine.... But what they fail to understand is that the market can't give you what's not there. Remember back when OPEC thought we could afford $200 dollar a barrel, for crude oil? How did that turn out for them? They shot themself in the foot, our economy collapsed and they wound up getting 25 bucks a barrel, and then we started fracking to ensure market stability. This is no different. It's insane to think that as truckers, our standard of living can rise overnight, while every other working consumer remains stuck where they are economically. For us truckers to make more, the consumers need to make more, everything has to work together, just like all of the components in your drive line.
Replied on Mon, Feb 12, 2018 at 08:52 PM CST
Quote: "the actual selling price of what you are hauling. "

The best answer yet.
Replied on Tue, Feb 13, 2018 at 08:43 AM CST
The retired owner operator angle only works until you run out of money due to fixed expenses or your retired a millionaire or have a large subsidy other than a truck that’s paid for. This I know for a fact.
Replied on Tue, Feb 13, 2018 at 07:04 PM CST
+ 1
The government's worst nightmare is about to happen. They have lost control over the truckers, the rates keep going up, and yet drivers continue to quit. Shippers and brokers are now fighting over trucks, and a bidding war has broken out. Some have doubled or tripled rates, and there are no trucks to be found, it is now discussed daily in the news cycle, from CBS to Bloomberg there are stories of shippers begging for mercy, at the slowest time of the year for trucking. The economy it seems is now in a chokehold, and any future economic growth is now constrained by what many shippers are already calling the worst transportation crisis they have ever seen. And on Wall Street it has spread fear of mass inflation and higher interest rates. There are fears that many shippers may not be able to get their products to market as spring time grows near, and America's farmers who are still struggling to cope with last year's losses, are expected to see higher costs from seed to fertilizer, and everything in between. At the heart of it all, is the controversial ELD mandate, that The ATA aggressively promoted............... It is now commonly referred to as the Death sentence mandate, by many small businesses owners, who struggle desperately to find trucks.
Replied on Wed, Feb 14, 2018 at 09:09 AM CST
+ 2
Wait until April when enforcement kicks in if they don't change something first. Many are thumbing their nose at it so far.
Replied on Wed, Feb 14, 2018 at 12:48 PM CST
+ 1
Quote: "Wait until April when enforcement kicks in if they don't change something first. Many are thumbing their nose at it so far."

That will be about the same time that the ELD or me folks all go on vacation, road construction really kicks off, and the farmers park their trucks, and start planting their crops. Hymmmmm.