RATES what is going on
- Thread starter H.Jordan
- Start date
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OMG I got a large fries and was like $5+!!!!!!!!!!!!!!!!!!!!!! maybe I'll start to eat fruit
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Igor Galanter
Well-Known Member
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The DOE fuel price jumped 22 cents per gallon to US$4.127/GAL this week. Fuel prices in Ontario have jumped quite a bit too since July 1.
The noose around some guy's necks is getting tighter and tighter. Little freight, cheap freight rates and increased costs, are just going to put the nail in the coffin for a bunch of people.
Hold onto your hats....it's going to get bumpier yet.
The noose around some guy's necks is getting tighter and tighter. Little freight, cheap freight rates and increased costs, are just going to put the nail in the coffin for a bunch of people.
Hold onto your hats....it's going to get bumpier yet.
For those that were around the 2008/2009 freight recession, would you say this is worse?
Did it get worse as time went by or was it always low during those years?
Did it get worse as time went by or was it always low during those years?
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I was around back then, but @loaders and I suffer from the same condition ... we're both too friggin' old to remember that long ago ... LOL
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Not worse.. just different. It's a cycle. Remember 2005? Capacity was super tight. 2008/2009 was wonderful if you had good accounts with lots of freight... trucks were easy to find and loads to anywhere were easy to cover. Today the market is more polarized.. more of a mixed bag. Some lanes are easy to cover while others are begging for trucks like it's 2021.
What goes up... must come down and vice versa. Survival of the fittest right now and I feel even the well established companies are struggling
It is no wonder why companies closing ( seems Daily) we need more money on loads as costs going way up customers paying more for items and rates to move freight going down. Something doesn't add up. Customers pay more, we make less and companies making record profits and say can afford to pay more to move freight? Come on here lets get real.
I...Unfortunately....go way way back as well......and yes....it's been this bad before......I think what's different is that there are several LARGE companies that are not entirely ethical and are beyond capitalizing on the situation and are now exploiting it.....at some point it will stabilize and they we start the hamster wheel all over again!!
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Do you know why freight rates go down? Because certain carriers accept low rates in order to keep their equipment moving. Low freight rates are not the result of some giant, evil conspiracy amongst shippers and freight brokers. In an unregulated market like ours, freight is a commodity, like oil, or coffee or pork bellies. Rates fluctuate as a result of supply and demand. Funny, I can’t remember too many people complaining about low rates during 2020- 2022.
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It is brokers who generally get the blame for low rates.. but I really don't see it. If I quote too low and I get the business.. then what? I can't move it.. and I'm apologising to a frustrated shipper who will no doubt never use me again. Even in a market like this, I'm reluctant to drop prices.. too risky.
I'm sure that opinions of which is worse, 2008 or 2023, will vary depending on what you had to deal with. Basing what I see so far this year we still have a ways to go before we start to see what happened in 2008.
I am waiting to see class 8 truck sales dive and build dates for class 8 trucks and trailers being numerated in days instead of months. We will see more bankruptcies and closings. Big companies like GM and Chrysler will be begging the gov't for money because 'too big to fail' mentality is still a thing.
In my opinion, the change will come around mid 2024. Can you hold out till then?
I am waiting to see class 8 truck sales dive and build dates for class 8 trucks and trailers being numerated in days instead of months. We will see more bankruptcies and closings. Big companies like GM and Chrysler will be begging the gov't for money because 'too big to fail' mentality is still a thing.
In my opinion, the change will come around mid 2024. Can you hold out till then?
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I knew it was only a matter of time before it happened to us, but we just had an example of an existing carrier partner attempting to back solicit one of our accounts. Our loyal, and favourite customer called to advise us that they had been contacted by a carrier who we use to service their account. We called the carrier out on it and they answered that it was an “innocent” mistake made by a “new” sales representative. Perhaps, but is there no supervision in the sales department? When these “new” reps are turned loose, does no one give them any guidance or help them interpret the sales leads they are provided with? I get it, times are really tough right now and everyone is looking to expand their customer base. However, there is a smart way to do it and giving “carte blanche” to your sales staff to call on anyone is not the way!
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They could be telling the truth or not, but it can be tricky to keep track which accounts not to call sometimes because some companies can have so many different brand names/subsidiaries. For example, they might look up leads and find Wendy's available but the account "Restaurant Brands" which is their parent company is not and the misled sales rep will approach the lead thinking it's available. Not saying this is the case with your customer but mistakes do happen. Of course, I'm sure if the customer had entertained the opportunity to work with them direct I'm sure that carrier wouldn't have turned it down either but because they got rejected they had to backtrack :/
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It's not something I get too worked up about. Innocent or not, your suppliers can and will call whoever they want to. Personally, I don't want them to call on my accounts.. but.. they aren't married to me nor are they blood related and most of the time not even friends.. so.. it will happen occasionally. Most of the time my customers won't allow it as they see some value in working with me. And the odd time they don't and the back solicitor gets in. Life goes on..
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No question, mistakes happen. However allowing this new sales rep to call on any account the carrier had had contact with demonstrates a lack of organization and definitely a lack of loyalty and respect to me, his customer! In this particular case the carrier had been servicing our shipper weekly on F/L inbound, to the tune of about 200K/yr. I mean if that doesn’t warrant just a tiny, wee bit of special attention, what does? I am not overly
worked up about the matter as our customer has made it abundantly clear over the last 20+ years, that he isn’t changing his supplier, regardless of who or what others might offer. My point is merely to suggest that instances like this show how easily ethics and morals can fly out the window when things get tough.
worked up about the matter as our customer has made it abundantly clear over the last 20+ years, that he isn’t changing his supplier, regardless of who or what others might offer. My point is merely to suggest that instances like this show how easily ethics and morals can fly out the window when things get tough.