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Cheap Freight of the day
- Thread starter MyTrucksMyRates
- Start date
20
We have cut down on the number of trucks running - parked a few and servicing our long term partners only - till freight rates pick up
I understand that but I'm saying from a macro perspective, Freight Volumes in general are on a continual spiral to the bottom. In recessionary market, even the bare necessity freight are at reduced levels. Some of my customers in the automotive and F&B industries are already cancelling shifts and laying off the labor force. Relationships are key but I'm curious about how you handle having no freight?
I think you meant the rate will rise in 2024 and yes I agree it hasn't been a drop off the cliff like the one we saw in 08. This seems to be more of a downward spiral. It helps to have a diversified customer base to insulate you from these types of markets but this time around it seems like its just slow across the board.
Makes sense and it assuming some of the equipment is paid off helps for sure.
What seems to be working for some bad eggs is double brokering freight and not paying the carrier or their own drivers. (we've encountered this with carriers who we picked up loads for while stuck)
Meanwhile we have been eating into our savings and barely breaking even... hoping for the best at the same time.
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I think a lot of guys that decided to open a trucking company definitely do not have paid off equipment. Especially not buying it at record high prices last year.
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Been just okay here still making a margin but not setting records that is for sure.
with you there, having cash reserves in these times deserves a pat on the back. Keep your wheels rolling along, we will get there.
Here are my two cents worth:
When COVID hit, things shut down and everyone in North America was forced to lock down. Many people ended up saving some money that was originally destined on discretionary spending. Governments helped that by giving out billions through government programs such as CERB. When things opened up the consumer spent all that saved money on housing, furniture, cars and other durable goods-things that move by truck. This purchase power that was available gave us the big boost of Q1-2022.
Now that money has been all spent-the hangover starts. Governments printed money spurs Inflation which drives up all costs, interest rates jump, insurance rates on new cars balloon, CERB is getting clawed back, CPP and EI rates deducted on your paycheque have increased, CARBON TAX eats away at your pocketbook and to top it all off the HST on everything just robs you at every turn. The consumer now is stuck with spending on immediate non-durable items - interest, insurance, utility bills, gasoline, taxes, more taxes etc.
In other words, nobody is spending money on the things that get loaded on trucks. The new housing market is stagnant, automotive is slow along with other markets that drive the trucking industry are hitting some troubles. We will not see much turn around until both spending changes and truck capacity decreases.
I'm banking on Q3-2024 Hold on to your hats!
When COVID hit, things shut down and everyone in North America was forced to lock down. Many people ended up saving some money that was originally destined on discretionary spending. Governments helped that by giving out billions through government programs such as CERB. When things opened up the consumer spent all that saved money on housing, furniture, cars and other durable goods-things that move by truck. This purchase power that was available gave us the big boost of Q1-2022.
Now that money has been all spent-the hangover starts. Governments printed money spurs Inflation which drives up all costs, interest rates jump, insurance rates on new cars balloon, CERB is getting clawed back, CPP and EI rates deducted on your paycheque have increased, CARBON TAX eats away at your pocketbook and to top it all off the HST on everything just robs you at every turn. The consumer now is stuck with spending on immediate non-durable items - interest, insurance, utility bills, gasoline, taxes, more taxes etc.
In other words, nobody is spending money on the things that get loaded on trucks. The new housing market is stagnant, automotive is slow along with other markets that drive the trucking industry are hitting some troubles. We will not see much turn around until both spending changes and truck capacity decreases.
I'm banking on Q3-2024 Hold on to your hats!
bring a book, well actually a thick novel to read while they load is our experience.
Igor Galanter
Well-Known Member
20
In the past couple of years I had much quicker service, as long as you coming within 30 min of your appt time, and have all correct info..Actually it takes more time to maneuver between trucks parked everywhere and not using common sense.. And I'm talking about about all CHEP locations in the GTA, eh..
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Fortunately I'm not having to deal with that. I have old accounts that I've had for 25 years or longer.. Somehow they've still got freight, and I haven't been asked to reduce my rates... not sure why.. maybe I'm just that good looking. And then there are other accounts that have gone the bid platform route, and for those, sadly, I've seen a large reduction in volumes. Mostly it's me because : a) I'm not interested in playing that game and b) I'm 61 years old.. I've made my money.. house paid off when I still had hair, and I really don't give a shit!!!! I'm not going to roll over for some dumb ass kid who wants me to quote at $1.50/mile... even if he calls himself a VP of Logistics. I will quote a reasonable rate, and if they don't accept it I will go back to my little accounts or back to online chess. One of the few perks of getting older.. we can say fuck it! Therefore, to answer your question i.e How would I handle no freight? I would take lots of walks holding my wife's hand... lots of cycling around Southern Ontario and maybe a few trips afar.. Vancouver to LA is on my bucket list.. Lots to live for besides money.. and the most precious things cost nothing! I need very little in the way of "stuff".. so long as I'm fed and have clothes on and a roof to call home it's all I really need or want.
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Igor Galanter
Well-Known Member
20
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Hey if a full load goes from Etobicoke to Oshawa for $250 8 skids should go to Vaughan for 100 bucks right?
Broker probably thinks it's super generous cause it's like 4$ a mile. Some just don't quite understand.
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Couldn't agree more, been very fortunate to have had a great run the last few years and saved up some money for the slow times. My mother always said, make hay while the sun shines, so I did - cause I knew the great times wouldn't last forever, got everything else I need in life (which isn't much), and will just take the slow times as an opportunity to travel, and will also never bow to the low prices. I have too much integrity to go there, or maybe it's that and a combination of repeat clients who don't nickel and dime me every time a job needs doing. They know professional service costs professional money.
