State Of The Union

MikeJr

Moderator
Staff member
30
So,
How is everyone? Keeping busy? :)
I thought I'd start a casual thread where people could talk about how life is currently with regards to the state of transportation.
I'm sure we are all seeing the same things, right?
Causes - Elogs, some vacation time for drivers this time of year, a couple of stat holidays in a row on both sides of the border...
Effects - increased demand and a decrease in supply (anyone take Economics 101, I sure did) can only do one thing to price, right?

All the while, you are educating customers about tight capacity and price changes - how are they taking it? Do most people have a solid grasp of what is going on and are they willing to accept some volatility or is everyone losing their mind at the moment?

Keep well,
Mike
 

lowmiler88

Site Supporter
30
We raised everyone up with no issues, actually have 2 left to do first of next week and I'm pretty sure they will have a problem with it but not many options. The trucks are pumping and we have 70 loads coming to our own facility to still book not counting any outside customers. Not sure if it's going to be a 2 week bump or it's going to continue but we are finding that since ELD not as many Americans are prowling the highways up here according to our outside customers that use to rely on them and are now calling us to be turned down. We will see hopefully it holds.
 

loaders

Site Supporter
30
One of our largest customers had a number of loads to move during the holiday period. At the best of times, it is a real tight market over the Christmas/New Years week. In order to cover these loads we asked for and received a "temporary" rate increase. When they asked for us to now go back to the old rate, we refused and fortunately the customer has agreed. I hope the situation wth this particular customer will continue but I fear that as soon as some of the asset based carriers they use clear up their own backlog of freight, the rates will shrink again. As you said Mike Jr., supply and demand drive the rates, not service.
 

bubba-one

Site Supporter
15
Booking 3-5 days ahead with only noting of am or pm loading time, is great!!!, a lot less stress on dispatch. Planning ahead, won't be long and we will all be on 4 day weeks. Or am I dreaming
 

MikeJr

Moderator
Staff member
30
Good point Loaders,

We are discussing with carriers and customers recent/present increases. Of course customers want it to be temporary and carriers want it to be long term. In the end the market will dictate what happens, I feel like the increases will remain but not to the spread we are currently hearing.

Take laneway X that has typically (prior to October 2017) been $1000 to move a TL, some carriers we work with are rightfully asking for $1400 on the lane and everyone understands that. Others are asking $2000 on the same lane (and may be getting it today). I feel like the 'gap' or range of the pricing will tighten but increases will probably remain, especially on the lanes where people could previously run 3 rounders a week and due to weather and other factors can now only run 2. Costs sure haven't decreased 33% so it needs to be made up on the 2 existing rounders.

While we're all feeling the push to get freight moved, taking the time to speak to your suppliers about their business and yours will help both parties understand a clearer picture of the market.

Happy Friday - keep WARM!!!
Mike
 

loaders

Site Supporter
30
Obviously I can't speak for others on this site, but we are finding it increasingly difficult to source trucks, especially inbound from the US midwest, mainly TL's. There just doesn't seem to be the numbers of available trucks as was the case a month or so ago. We have asked for, and received in some cases, rate increases to struggle through this period, but having a few more dollars to offer doesn't automatically translate into an available truck. In fact, I am almost hesitant to ask for more money, get the increase, and then fail to secure a truck. Hey....no one said this business was easy, did they?
 

imx_kang

Member
5
Obviously I can't speak for others on this site, but we are finding it increasingly difficult to source trucks, especially inbound from the US midwest, mainly TL's. There just doesn't seem to be the numbers of available trucks as was the case a month or so ago. We have asked for, and received in some cases, rate increases to struggle through this period, but having a few more dollars to offer doesn't automatically translate into an available truck. In fact, I am almost hesitant to ask for more money, get the increase, and then fail to secure a truck. Hey....no one said this business was easy, did they?

Hi Loaders, I have trucks in Nashville area on wednesday and thursday. Let me know if you need any trucks in that area
 

loaders

Site Supporter
30
Danny, you're always one of first calls for that area. I was referring to more like lL and WI. Chicago, Milwaukee and surrounding areas. No question there are trucks in these areas, but not enough to satisfy the current demand. Therefore the trucks that are there sit back and wait to see just how much they can be offered before committing to a load. I don't blame them for trying to get the highest possible return for their services, it just makes it a difficult sell to a customer accustomed to paying a different rate for the last year.
 

imx_kang

Member
5
I hear you...I'm not sending any trucks to IL, WI or MN these days as it's too many tolls along the way.
 

loaders

Site Supporter
30
I have to say that it has been a long time since I have seen such a general shortage of trucks available for inbound. We have a board full of freight, at pretty much whatever rate the carrier wants, and very, very few takers. With many customers with whom we have set rates, we have had to go to a "spot rate" system to get the loads covered. Some have agreed, some are reluctant. Just asking, but are any other brokers on this site experiencing similar problems? Again, forget the rate, just can't source enough available trucks.
 

loaders

Site Supporter
30
It would appear that especially with LTL, "off route" shipments, carriers are reluctant to pick up for fear of running out of hours and delaying the return of the truck by a whole day. Still can't understand why otherwise good paying TLs and regular route LTLs are so difficult to cover.
 

lowmiler88

Site Supporter
30
I would say with the implementation of ELD's you are seeing a reduction in the number of miles run by every company by even say 10% (which I would guess would be low) and an already tight market and we have the perfect storm. "They" say it will get a little better Feb/Mar but go right back to no trucks for the summer season.
 

Rob

Site Supporter
30
will happen before summer the spring rush will be insane, March will be crazy


I tend to think there will be no slowdown as I see fertilizer and seed moving already and paying the we need the truck rates. Come spring and when everything kicks into high gear what are we in for then? Produce season could be one for the books looking at the amount of available loads in the South in January it is already out of control.

I must admit I was one of the wait and see on the rate increases part of the eld's but so far it is coming back to the carriers favor. Shippers and consignee's have had it on their side for a long time and maybe we can now get the rates up to attract new drivers and pay attractive wages to make this profession great again and get rid of the steering wheel holders which inturn will boost us again to knights of the road status.


I just hope the lack of trucks does not do the opposite and cause inflation to go through the roof and slow the economy which inturn is bad for everybody.
 

loaders

Site Supporter
30
Absolutely right Rob. If this tsunami wave of no trucks and higher rates is left unchecked, or at least controlled to some degree, we could all be looking at higher inflation. My hope is that over the next few weeks we will see some leveling out. For sure rates will be higher than last year, but the sooner these "spikes" are gone, the better. Walking into the produce section at the local supermarket in the weeks to come could be a real scary experience.
 

Freight Broker

Well-Known Member
30
I'm getting trucks still, but the rates are higher for sure..My spot market shippers are ok.. they expect to pay market rates. Those shippers who have defined rates may have to wait awhile for trucks unless they're willing to have a look at their rates..
 

chica123

Site Supporter
30
I would usually expect to see the typical January slow-down by this point in the month. We are still going strong. It is almost like a perfect storm working in the favour of carriers for a change. I have found brokers for the most part very understanding of the situation and willing to work with us to get the rates closer to where they should be. I have heard that some carriers are trying to get greedy though, and they may not understand that this could come back to bite them down the road. Brokers are unlikely to forget that temporary greed and overlook them for future shipments when things settle down. I think we should all work to get the rates up to where they should be, but not dig our own grave...
 
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