No one can do it cheaper
There is the myth out there, that Eld's will push rates up. It won't happen. Rates are determined by competition, and no one can run a truck cheaper than a farmer, becuase to him the truck is just a tax write off for the farm, it doesn't have to make money, and thats what we will compete against. As we see our revenue decrease with miles,we will go broke, and its the farmers that will buy our trucks, until the farmers are the only ones left in the market. We make 100% of our revenue off the truck, while the farmer makes his off of the farm. Even the big boys like swift and schnieder, cant compete against a farmer. The farmer can park his truck 8 months out of the year, and still be profitable. Some farmers have one truck, others have a fleet of trucks, and more and more are getting authorities, and brokers bonds. Look around at all the farm trucks you see pulling flat beds, dry vans, hoppers and belt trailers.