Home > Forum > What A Difference A Couple Years Can Make!

What a difference a couple years can make!

Feb 26, 2024 at 02:34 PM CST
+ 18

Is it just me or has anyone else noticed a shift in the attitude of drivers and dispatchers out here? A couple years ago, during the later parts of covid, the rates were unbelievably high in all sectors of transportation. Every Tim, John and Sally pulled every truck and trailer they could find out of the tree line to cash in on the never ending stream of cash that was rolling off the freight. I saw several posts saying that freight should never be lower than $6/mile. Where are those rates now? I spoke with my round table, Ronnie Milsap, Stevie Wonder and Ray Charles and they all said they could see the writing on the wall. Anyone who has been in the industry for any length of time should be able to see that it would not be sustainable! 

My solution is that I have no solution! Seems that this industry is cicular and everything needs to run it's course! I will say that this time, the down side is worse than the down side from the oil field bust about 7-8 years ago. Everyone cut a fat hog then too and hitched their wagons to the oil field and then when it went south, they were cutting rates on everything trying to pay for equipment without knowing what the real cost of operation was. Most O/O at that time were one blown tire away from bankruptcy! 

I guess what i'm saying is that this time will pass and things will get better! We just need to be able to ride out the storm and sustain until we can get to greener pastures.

Good luck and god bless

Keith, ET Trucking Inc.

Replied on Tue, Feb 27, 2024 at 07:36 AM CST
+ 1

Take a look at the whole economy, from comodities prices to interest rates, the whole economy is slowing, consumer spending is down. The culling of carriers is far from over, but we are close to hitting the bottom, now with a few mega carriers merging/ going bamkrupt... all markets over correct, just like they over corrected up thru the pandemic, they over corrected down (you make a great point about business being cyclical) they will correct back up again, but im afraid the covid rates were a once in a lifetime or once in a 20 year oppurtunity... the best cure for high prices is high prices. Ask any farmer how their doing today compared to 2 years ago! Great observation. There is hope!!!

Replied on Tue, Feb 27, 2024 at 12:54 PM CST
+ 1
Very nice, the trucking industry has always had peaks and valleys. We’re in the valley, no doubt we’ll go back up. Gotta be strategic
Replied on Wed, Feb 28, 2024 at 09:11 AM CST
- 1
Hope and change, wasn’t that on a bumper sticker back in 2008? It’s true the big rates are gone, but guess what’s not gone? The payments on everything people bought the past couple years, those will keep on coming, some folks may have to get a second driving job.
Replied on Wed, Feb 28, 2024 at 02:43 PM CST
Quote: "Hope and change, wasn’t that on a bumper sticker back in 2008? It’s true the big rates are gone, but guess what’s not gone? The payments on everything people bought the past couple years, those will keep on coming, some folks may have to get a second driving job."

That is a good point, Dave, BUT, the people who have been around a long time, took advantage of the overpriced iron and liquidated the excess. Those that bought when prices were overinflated are the ones in trouble. In the game of life, slow and steady wins the race! Watch what you do and when you do it and things should work out for you. If you are someone who jumps from sector to sector chasing the big money without a plan, you will find yourself in trouble sooner or later.

As I get older, and I am old as dirt, I find it harder and harder to hang on in this business! I need to put in another strong 10 years to make sure most of my drivers make it to retirement but the stress makes me wonder if I can do it?!

Hope all is well and you all stay safe!

Replied on Wed, Feb 28, 2024 at 02:44 PM CST
Quote: "Hope and change, wasn’t that on a bumper sticker back in 2008? It’s true the big rates are gone, but guess what’s not gone? The payments on everything people bought the past couple years, those will keep on coming, some folks may have to get a second driving job."

BTW, I never expected to see TEI go under! They were a staple in the industry for many years! When I looked at the sale bill, I saw why they were upside down. Lots of iron from the high points of costs. Sad sad deal!

Replied on Thu, Feb 29, 2024 at 07:24 AM CST

What induces change in the market? supply and demand! This is definately the biggest flip of the switch I've have ever seen. 3+ per mile to 1.85-2.5 if your lucky. My question is how long do we run below the the cost of break even.? Atleast Bulkloads could and should require all shippers to take loads off the board as booked and require any new loads for the price to be posted save us the bullshit anyway. Also, I think a shipper should be the persons or companies with the loads not the reposting big brokers bidding against the trucks for the loads. A computer doesn't cost shit compared to a set up rig to do the job! If they do decide to allow the brokers to post loads have the requirement that they also say there take, it is the law if a carrier asks for them to tell us there take. If bulkloads made a stance to require that atleast people would know whom they are working for and what they get out of it! I know the raised the inurance bond a few years ago to induce some of them out of the market.

Also, I would Like to See Bulkloads do a real study on what hopper carriers real costs are to run. compile the information and give shippers an estimated cost for movement on real nuts and bolts numbers not this race to the bottom idea of supply and demand that we have now. I have flipped my business model from running the most amount of miles I could in a week for the most amount of money possible to the least amount of miles with the least amount of fuel burned etc. We have gone from $1500 a day on 500 miles to $450 per day on 100 miles. Face it fixed cost stay the same and variable costs can be shaved down to minimums. Another question I have for Bulkloads is this how does factoring or fast pay really help my cash flow if I am losing money on the run I am doing? I hear words like survive the storm etc. I get it but..... I hear words like well then your running for the wrong carrier? Maybe I am our my guys are? but then why am I cut on a 15 year dedicated run? Please, Bulkloads use your platform, to help educate the shippers where the carrier needs to be money wise per mile. As a carrier I believe in Capitalism but its the crap we are dealing with right now that creates unions. I thought about doing an email blast to my competetion to try a union style attack at the rates in our area, but really its the brokers beating us out of the bids, posting the loads, racing to the bottom, and preying on the guy whom has a family to feed and truck payment to make. To the guy who said some people bought to high of priced Iron and those are the ones getting hurt the most. Your statement is true, but will the replacement trucks or trailers really go down? what is your goal for replacing your ride? Yes a guy can maintain them fix fix fix. Those costs are typically or atleast traditional higher then newer equipment. I have have them both in my business, new and old paid for and borrowed. What number should be used as cost of operation? Come on bulkloads help be our voice. I Have a new improved calculator to give to those whom don't know how to calculate. Even as I sit and write this, I have educated customers on the cost and I am run out by the cheaper guy. In the 70's they created the fuel surcharge for trucking companies, in covid Trump put a cap on toilet paper costs for people whom wanted to gouge others in the market of supply and demand. Maybe Biden can put a cap on the rate from going further down on transporation cost? Jared can you reach the President with an immediate concern for our industry? Do the podcast on that. I know you are a postive person and you want to keep the spin on what is going good in the industry I commend you for that, I commend on bulkloads on their ability to connect the shippers and recievers, I think it starts with booting the big broker take it and leave it guys. talking to the President or whomever can help us from the stop of the Bleed. Please and thank you! Godspeed!

Replied on Fri, Mar 01, 2024 at 10:21 AM CST
+ 1 - 1
Remember back in 2017 when you had all these boneheads running around saying that the ELD would solve the problem of low rates? Unpaid detention time and insurance issues? It was that idiotic belief that caused this whole mess in the first place, now everyone needs to take their medicine, meanwhile government will continue to replace those of you who go broke with immigrants from some other county, the CDL mills are full of them.
Replied on Fri, Mar 01, 2024 at 12:46 PM CST
+ 2

Scott - I love that we share the same passion caring for our industry. You have been gracious in helping us share your calculator with others to help them better understand their costs. Many shippers and brokers read this forum so your voice is being heard.

I would love for you to come on the Bulkloads podcast. I know many would resignate with the issues facing our industry.

Also, I'm in the process of reaching out to some of these organizations to bring them on our podcast.

Again, thank you for wanting to help others in our industry!

God bless you!

Jared

Replied on Fri, Mar 01, 2024 at 07:40 PM CST

I've been an owner operator truck driver for 5 years now. It's never been easy and I never expected to get rich. When covid and the inflated market it created showed up, seemingly every fool under the sun jumped in and bought an overpriced used truck and trailer. I expected the bubble to burst, but it took longer for it to happen then I thought it would. We have witnessed the biggest shock to the supply chain since WWII, so the correction is bound to be rough.

Trucking in all sectors is in a war of attrition. Who can afford to stick it out?

Replied on Sat, Mar 02, 2024 at 07:16 PM CST
Quote: "I've been an owner operator truck driver for 5 years now. It's never been easy and I never expected to get rich. When covid and the inflated market it created showed up, seemingly every fool under the sun jumped in and bought an overpriced used truck and trailer. I expected the bubble to burst, but it took longer for it to happen then I thought it would. We have witnessed the biggest shock to the supply chain since WWII, so the correction is bound to be rough. Trucking in all sectors is in a war of attrition. Who can afford to stick it out? "

I've had my authority for 27 years. I've kept my expenses in check and try to stay away from the "boom and bust". Steady as she goes. I'll be here when the dust settles.