Crystal Ball ?

[PatTetro]

I’m a long time reader, but first time poster.

Am I the only person who’s noticed that freight has finally started to pick up? It appears that the demand for trucks has increased, and the rates are climbing. I’m sure there’s multiple reasons why, (trucking companies closing shop due to the unbearable rates and growing costs). We receive calls from new drivers looking for work practically every day. It appears the flood gate might be loosening up, we were hoping for things to heat up Q3 of 2024, but is it realistic for us to believe that it might be happening sooner or even right now?



We’ve received more calls in the last 3 weeks from customers looking for equipment than we’ve had all the last 4 months of 2023. Some of the freight brokers are still trying to offer their low prices, but many of my main contacts agree to our rates.



What are your thoughts?

 

[Fr8Guru]

Doing 2 very large RFP's right now. Feedback after round 1 was that they are getting double digit rate decreases offered from assets trying to secure business for 2024.

I think we are seeing seasonality / weather related increases right now.

I am hopefully it is a recovery but too early right now to call right now.

 

[Rob]

Doing 2 very large RFP's right now. Feedback after round 1 was that they are getting double digit rate decreases offered from assets trying to secure business for 2024.

Here is to hoping they get the business at double digit decreases and go broke quick. Idiots JUST SAY NO. Why do carrier want to secure business at money losing rates I just don't get it. Rater sit on the couch and wait for the repo depot to show up before busting our ass all day to lose money.

 

[Fr8Guru]

Here is to hoping they get the business at double digit decreases and go broke quick. Idiots JUST SAY NO. Why do carrier want to secure business at money losing rates I just don't get it. Rater sit on the couch and wait for the repo depot to show up before busting our ass all day to lose money.

Most of these lanes are US domestic to be fair but here's an example

MI to TX.
Being run at $1.80 + .42(current fuel) = $2.22 per mile
RFP Price - $1.65 + .42 = $2.07 per mile

Bare bones but workable

 

[AgentSmith]

Doing 2 very large RFP's right now. Feedback after round 1 was that they are getting double digit rate decreases offered from assets trying to secure business for 2024.

I think we are seeing seasonality / weather related increases right now.

I am hopefully it is a recovery but too early right now to call right now.

Many drivers take time off during the worst part of the winter and return to their home country, causing a brief shortage of equipment, they will be returning in March / April, just in time for west coast nursery stock to start shipping causing a 6 week surge in pricing during normal freight markets

Also working on several tenders

We are 20% - 30% too high on many lanes, it is not worth it to commit to 1 - 2 years at those rates.

We will see what happens when freight picks up and carriers and brokers walk away from the contract or try to renegotiate

 

[EricG]

If anyone is looking for get GTA / Southern Ontario cartage / P&D rates for their RFP docs, don't hesitate to reach out to A&B. We are also seeing a recent spike in RFQ/RFP's. We've won a few that we didn't expect to win in recent weeks, at the quoted rates. Definitely seeing some light at the end of the tunnel in Southern Ontario cartage.

So far 2024 Jan/Feb is looking better than Jan/Feb in 2023 for us.