INBOUND SLOWED DOWN?
- Thread starter Paul S
- Start date
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Not from what we've been seeing so far. The outbound rates seem to be going down as well on certain lanes that we service. Something's gotta give eventually so hopefully it's sooner than later!
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Part of the problem is that when there was a sudden rate spike once the elogs came into effect, there was an influx of small fly-by-night carriers who wanted to get a piece of the action. Now, many of those same carriers have driven down the rates, will likely shutdown soon, and that leaves the rest of us trying to recover from the mess that they created.
I could be wrong but take a drive up and down the 401 and observe how many "new" trucking companies have appeared.
I could be wrong but take a drive up and down the 401 and observe how many "new" trucking companies have appeared.
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Fuel is at a four-year high but rates are plummeting! Crazy.... and now winter will wreak it's usual havoc as well.
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If you look year over year, typically in September-December there is a higher demand for outbound trucks (so I see) and it has an impact on availability (limited) and price (increasing).
Likewise some of the states where you had to pay through the teeth in May to get a truck home trucks are now lined up hoping to take the same shipments that were available in May. I don't see less freight in these areas just more trucks going to them. Why? They aren't running the lanes that were paying very high rates through the summer and are taking outbound to these areas instead.
It's the same every year at this time, I'm sure there will be a thread in May about increasing rates inbound from the lower states. We all know why.
Keep well,
Mike
Likewise some of the states where you had to pay through the teeth in May to get a truck home trucks are now lined up hoping to take the same shipments that were available in May. I don't see less freight in these areas just more trucks going to them. Why? They aren't running the lanes that were paying very high rates through the summer and are taking outbound to these areas instead.
It's the same every year at this time, I'm sure there will be a thread in May about increasing rates inbound from the lower states. We all know why.
Keep well,
Mike
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I hope you are right, Mike. I guess we will find out soon enough!
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I'm never right, my wife is 100% of the time though. I'm still learning. 
I wish rates were a science, a formula that always applied (for example, perhaps a poor example on rounder business $3/mile on TL within 500 miles, then $2.50/mile up to 1000 miles and $2.35 a mile beyond that), all you would have to do is know one of the inbound or outbound numbers and the opposite would be apparent. Unfortunately, it's not a science.
Isn't this why so many of us spend so much time figuring out 'what does it cost right now'. All we have to base this on is 'what did it cost yesterday, last week, last month, last year'. With ELD's we've thrown away last year and only look as last week/month.
It keeps the analytical people working hard and also keeps us guessing 'why is this different than what I would expect based on the past?'.
Keep well,
Mike
I wish rates were a science, a formula that always applied (for example, perhaps a poor example on rounder business $3/mile on TL within 500 miles, then $2.50/mile up to 1000 miles and $2.35 a mile beyond that), all you would have to do is know one of the inbound or outbound numbers and the opposite would be apparent. Unfortunately, it's not a science.
Isn't this why so many of us spend so much time figuring out 'what does it cost right now'. All we have to base this on is 'what did it cost yesterday, last week, last month, last year'. With ELD's we've thrown away last year and only look as last week/month.
It keeps the analytical people working hard and also keeps us guessing 'why is this different than what I would expect based on the past?'.
Keep well,
Mike
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I'm never right, my wife is 100% of the time though. I'm still learning.
.............
Now that is indeed an EXACT science! hahaha
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Now that the YMCA (Yankee Mexican Canadian Free Trade) is settled I think things will pick up as I believe a lot of companies where holding back.
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I am guessing the guys asking for stupid rates are now wondering why the phone is not ringing? Are we working a little harder to cover the trucks coming home I would say yes but we are still getting calls on posted trucks from brokers with rates we can live with and more than one has said it is because we do what we say and never bent them over during the rush in the spring. I have made a few calls to the usual suspects that are playing the game also but who cares we all know what brokers are all about them and could not give two shits about carriers.
Shakey
Site Supporter
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@Rob why does a carrier get blamed for rate increased, just took a call from cleveland to london paying $850. Example that freight brokers take advantage of the market more or less the same as a carrier would. Fuel up, Eld, City Drivers, Driver Pay Up, rent up, truck repair etc. fair rates haven't been paid in years to carriers. Yes mileage is shorter than Texas but driver won't make ends meat if they were paid the same rate for cleveland and pittsburgh, Michigan runs
Shakey
Site Supporter
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@Paul why do the brokers get blamed for the opposite?
It's the market, live by the sword live by the sword.
Best to make good relationships for both sides and keep your rates steady, keep trucks steady, keep happy clients.
BUT the sweat shop brokers and rate chasing carriers will never learn and never change their games.
Cheers
Shakey
It's the market, live by the sword live by the sword.
Best to make good relationships for both sides and keep your rates steady, keep trucks steady, keep happy clients.
BUT the sweat shop brokers and rate chasing carriers will never learn and never change their games.
Cheers
Shakey
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We are getting similar types of calls as well. We run to OH and back every week and rates are WAY down from where they were even one or two months ago. I'm talking about significant rate drops of $500 to $600 in some cases. Even when I call our usual contacts, they tell me the rate now is X dollars even though the last 20 times it was several hundred dollars more. The answer: "Oh, our customer is now demanding this rate and we cannot go higher than that anymore."
I call BULLSH*T!!! There is no way that their customers' rates are going to fluctuate that much in such a short time.
On the flip side, if other so-called carriers would stop accepting cheap rates, we would not be in this position at all.
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Getting trucks for US domestic has become like shooting fish in a barrell over the last month. post a load and wait for the calls to roll in. What a turn around from just two or three months.. couldn't get a truck for some stuff no matter what.. wasn't able to quote high enough or fast enough. But important not to take advantage.. the market will tighten up again soon enough.. time to make friends now.. not when you need them.
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Hey don't get me wrong here. Carrier's have to be profitable but I could never understand carriers that live and die by the link. Go out and get customers! If the rate is not right leave the truck in the yard but the guys that wanted 4-5 bucks a mile just because they could and you would pay that (at a loss) just to keep a customer happy (on a had to go load) and then the carrier calls back and says sorry I got more money from someone else and drop the load back in your lap. Well screw that carrier during the slow times I know I have a list of idiots that where telling me blah blah this and blah blah that 3 months ago how 2500 to Baltimore and 3000 back was the new rate! BS it was us ( I am a carrier) gouging because they could.
I know inbound is slow and we are all having to work harder to keep the trucks moving but did you really think that it was going to be like last spring forever? This is a supply and demand industry but working with people and everyone making a buck is a whole lot smoother and better in the long run in my theory of business. Dropping your drawers to keep the truck rolling is not profitable and you might as well run home empty before doing so in my humble opinion.
I know inbound is slow and we are all having to work harder to keep the trucks moving but did you really think that it was going to be like last spring forever? This is a supply and demand industry but working with people and everyone making a buck is a whole lot smoother and better in the long run in my theory of business. Dropping your drawers to keep the truck rolling is not profitable and you might as well run home empty before doing so in my humble opinion.