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

If this "market correction, new normal"' or whatever you want to call the recent spike in freight rates, was the result of ever increasing costs for carriers, then why did it happen so suddenly and why did it take so long to occur? There is no argument that the cost of operating a trucking company has increased over the last 20 years. There is also no dispute that rates have not kept up with those increased costs, but are we actually seeing a market correction that will stick, or a temporary blip that will eventually level off and stabilize? If higher pay, as a result of more profitable rates, can create more drivers then we might see an increased supply/availability of trucks, which would result in rates levelling off. Funny thing about markets is that if there is a continuing high demand for any goods or services with a lack of supply for those goods or services, someone will fill it.
 
loaders said:
If this "market correction, new normal"' or whatever you want to call the recent spike in freight rates, was the result of ever increasing costs for carriers, then why did it happen so suddenly and why did it take so long to occur? There is no argument that the cost of operating a trucking company has increased over the last 20 years. There is also no dispute that rates have not kept up with those increased costs, but are we actually seeing a market correction that will stick, or a temporary blip that will eventually level off and stabilize? If higher pay, as a result of more profitable rates, can create more drivers then we might see an increased supply/availability of trucks, which would result in rates levelling off. Funny thing about markets is that if there is a continuing high demand for any goods or services with a lack of supply for those goods or services, someone will fill it.
Click to expand...

I also want to add that a correction in the insurance market has prompted some companies to exit the marketplace. My insurance broker has told me the past two renewals that a change is coming and that some carriers are seeing a 100% increase for insurance. I have also been told that there are a few carriers who cannot get insurance - some fleets are 50 trucks. Some of this is because of company leadership but some of it is because of the hiring practices of their drivers.
 
  • Like
Reactions: Shakey, Igor Galanter, loaders and 1 other person
loaders said:
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.
Click to expand...

Loaders you are correct and that is the increase to the retailer, my guess is the increase to the consumer will be much higher as the retailer will never miss a chance to take advantage of the customers.
 
  • Like
Reactions: Shakey and chica123
JimL, I heard the same thing last week from our insurance broker. Be prepared for large increases in premiums and for a few withdrawals from the marketplace by different insurers.
 
hello industry fellow members, what $/mile rate you think should be the minimum to touch those FROZEN loads going out to USA this fall?
 
johnnyn said:
hello industry fellow members, what $/mile rate you think should be the minimum to touch those FROZEN loads going out to USA this fall?
Click to expand...
There are plenty of postings out there that discuss the $/mile question and to sum it all up it's a you decision. You have to quote it for what you think it should be. Too high and you don't get the load, too low and you get lots of loads but have troubles with backhauls.

Personally we parked our reefers - the current rates do not support a 90-100k trailer running, waiting for appointments and all the other hassles that come with it.
 
  • Like
Reactions: Shakey and 44000lbs
You must log in or register to reply here.
Top Bottom