Rates are up, where are the trucks even when we have budget to pay current rates?!

ShawnR

Site Supporter
#1
who has trucks today, tomorrow, next week, that need to load up and come back?

we're being offered all sorts of freight with great rates!

you email us or call us, if we have a load nearby, we can get you the rate you want on it!!

888-476-2488 or dispatch@groch.com

don't let the name and apparently "cheap" rep stop you from working with us, rates have changed and we're paying way more than before!!!
 

MikeJr

Moderator
Staff member
#9
Some off topic posts here. I'll do the same.

Aren't we all trying to keep our hands on the same trucks and build relationships with the same carriers? Lets be frank, rates have literally doubled or more on most TL lanes both in and outbound. Manufacturers were in disbelief so they went to market (why everyone got a bazillion rate quotes) only to find that rates had in fact increased that much. Now everyone knows the new norm is 'double' previous.

My question: Are drivers earning double like they should be if the rate is double? Where is all this money going if not to the drivers and support staff? I'm not sure how much other fixed costs have increased... Perhaps it's owners that have made extreme sacrifices throughout the years to keep the business a float finally taking what they deserve. I can't tell you how many carriers we talk to that are receiving 'double' previous rates and then telling us that they have lost 20%+++ of their drivers... Where are these drivers going exactly and why not just give them a raise to keep them on board? I suppose the grass is always greener 'over there'.

Perhaps I should change the header of this thread.

Keep well and happy Friday,
Mike
 

Freight Broker

Well-Known Member
#10
Rates have gone up, but I don't think they've doubled. I'm struggling with this as well, but I'm still able to move most of my loads at near normal rates provided my customers are patient enough to wait. If they need it moved now come hell or high water then yes, rates are going to be high. I do very little Canada outbound, so maybe in that market rates have gone above and beyond. But outbound Canada rates have always been high (at least for me), and I attributed that to carriers not wanting brokers to get in on their accounts.
 
#11
Some off topic posts here. I'll do the same.

Aren't we all trying to keep our hands on the same trucks and build relationships with the same carriers? Lets be frank, rates have literally doubled or more on most TL lanes both in and outbound. Manufacturers were in disbelief so they went to market (why everyone got a bazillion rate quotes) only to find that rates had in fact increased that much. Now everyone knows the new norm is 'double' previous.

My question: Are drivers earning double like they should be if the rate is double? Where is all this money going if not to the drivers and support staff? I'm not sure how much other fixed costs have increased... Perhaps it's owners that have made extreme sacrifices throughout the years to keep the business a float finally taking what they deserve. I can't tell you how many carriers we talk to that are receiving 'double' previous rates and then telling us that they have lost 20%+++ of their drivers... Where are these drivers going exactly and why not just give them a raise to keep them on board? I suppose the grass is always greener 'over there'.

Perhaps I should change the header of this thread.

Keep well and happy Friday,
Mike
Great point, if I ran trucks my drivers would be on an amazing bonus program, they should enjoy the wave too !!!!
 

loaders

Site Supporter
#12
We have seen general increases with our regular inbound lanes of between 30 - 40%. Any rates negotiated last year are pretty much out the window. We haven't seen as dramatic an increase in LTL rates, but availability is severely diminished. Whether the carriers additional revenue is being used to increase drivers wages, or being applied to updating equipment or technology, who knows. That decision rests entirely with them.
 

Rob

Site Supporter
#13
This is a market correction. Rates have been steady (cheap) and or decreasing since 2007. If this did not happen with the way costs are increasing I firmly believe trucking companies would of dropped like flies this year. Carriers are giving well deserved raises to drivers and yes a lot of driver are saying screw it I am not working with an eld and calling it quits.

Our industry is in a lot of trouble and while money will fix some of it we need people and ladies and gents do not want to be drivers anymore. Can't say I can blame them as what will the next BS rule be? Only stopping between x and y but only if the light is green and the sun is at the back of a camels ass?

Shippers and receivers treat driver like crap, DOT and the cops treat everyone like a crook and take half a weeks pay because someone forgot to cross a t or dot an I all in the name of safety of course. Plain and simple trucking used to be Knights of the road and now the world looks down on us. There will be a leveling out but what used to be 1.50 is now 3 bucks etc and it is about time. Truckers be it drivers ,owners or support staff made a buck.
 

loaders

Site Supporter
#14
My biggest concern is how and when, these across the board freight rate increases will be passed on to, you know who, the consumer. Unlike say, a steel tariff that yes affects many products, freight increases affect every product. Like the old OTA slogan, "if you got it, a truck brought it", no product is exempt from these increased costs. Some manufacturers might try to absorb some of it, but how can a produce supplier eat an extra 20-30% of their freight costs, without raising the price on their tomatoes, melons, etc.? Processed/frozen food that fills the supermarket aisles, is another example of consumer goods that can't absorb additional costs without a corresponding increase in price. My feeling is that major shippers/manufacturers are attempting to ride out this new environment , in the hope that it is short lived. I also feel that they are already preparing new product pricing, in the event it is not.
 

lowmiler88

Site Supporter
#15
My biggest concern is how and when, these across the board freight rate increases will be passed on to, you know who, the consumer. Unlike say, a steel tariff that yes affects many products, freight increases affect every product. Like the old OTA slogan, "if you got it, a truck brought it", no product is exempt from these increased costs. Some manufacturers might try to absorb some of it, but how can a produce supplier eat an extra 20-30% of their freight costs, without raising the price on their tomatoes, melons, etc.? Processed/frozen food that fills the supermarket aisles, is another example of consumer goods that can't absorb additional costs without a corresponding increase in price. My feeling is that major shippers/manufacturers are attempting to ride out this new environment , in the hope that it is short lived. I also feel that they are already preparing new product pricing, in the event it is not.
We sell to a lot of retailers and we are talking about a 1.5 to 3% increase in the cost of goods so the consumer will not see a crazy price swing but it will go up. Remember transportation is not the major cost in the price of goods.
 
#16
We have seen an average or 20-30% increase for most TL freight. Starting to hit the Domestic market too, used to pay 3200 for a reefer to Winnipeg from Toronto and today paying 4k. Maybe due to last minute, but it's quite the swing.

Regards,
 
#17
Some off topic posts here. I'll do the same.

Aren't we all trying to keep our hands on the same trucks and build relationships with the same carriers? Lets be frank, rates have literally doubled or more on most TL lanes both in and outbound. Manufacturers were in disbelief so they went to market (why everyone got a bazillion rate quotes) only to find that rates had in fact increased that much. Now everyone knows the new norm is 'double' previous.

My question: Are drivers earning double like they should be if the rate is double? Where is all this money going if not to the drivers and support staff? I'm not sure how much other fixed costs have increased... Perhaps it's owners that have made extreme sacrifices throughout the years to keep the business a float finally taking what they deserve. I can't tell you how many carriers we talk to that are receiving 'double' previous rates and then telling us that they have lost 20%+++ of their drivers... Where are these drivers going exactly and why not just give them a raise to keep them on board? I suppose the grass is always greener 'over there'.

Perhaps I should change the header of this thread.

Keep well and happy Friday,
Mike
Good job of changing the topic LOL.
 

bubba-one

Site Supporter
#18
It's about time for rates to go up. In 1995 an Int'l 9200 tractor cost was $105,000, in 2006 the same truck was s106,000. by 2013 it was $113,000, now in 2018 a prostar tractor with similar spec's is up to $158,000. That's a 50% increase. thus a need for rates to go up, and yes my drivers are on percentage so they love these increased rates.
 

loaders

Site Supporter
#19
Lowmiler88, I agree that transportation costs represent a small component of the total retail price of goods. Although the increase might be small as you suggest, it will be for all consumer goods. An extra 3% at the grocery store, at the drug store, at the clothing stores, etc., etc, etc. Although they may be small individual increases, the cumulative effect will eventually become noticeable.
 
#20
It's about time for rates to go up. In 1995 an Int'l 9200 tractor cost was $105,000, in 2006 the same truck was s106,000. by 2013 it was $113,000, now in 2018 a prostar tractor with similar spec's is up to $158,000. That's a 50% increase. thus a need for rates to go up, and yes my drivers are on percentage so they love these increased rates.
I'm sure the price of desks and internet access has gone up a lot as well. ;);)
 

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