Freight cycles ?

joe petro

Expert Expediter
As a newbie I see posts containing the reference to "freight cycles". Apparently freight has its hot times and its slow times>

When are the hot and cold times in freight expediting?

Are the hot and cold times pretty much the same nationally or does it vary by region?

Can a team with no "home" move about the country to current hot spots to avoid predictable regional,seasonal slow-downs?


Thanks in advace.
JP
 

geo

Veteran Expediter
Charter Member
Retired Expediter
US Navy
one of the big ones is in july for auto's plant as they shut down
to get really for the next model year than xmas season is one
of hot ones as they need toy's for xmas than after the 1st of jan
it sometimes slow until march than again it's not slow
hard to firgure sometimes,

something that is bad to say now that storm's are over for abit
business will be up for awhile as people need things
it's bad to say bad weather is good for business
snow is better to more it's snow's in northeast they need stuff as
they have run out and we get it there faster
 

Tom Robertson

Veteran Expediter
In my 20+ years in the industry I can tell you that there are countless variables that affect traffic positively, and negatively. However for the most part you will find that the first quarter is the slowest, the second quarter much better, the third quarter better than the second (except for the first two weeks in July) and the fourht quarter the best (except for the last two weeks when most everyone is closed).
Hope this helps.
Tom
 

joe petro

Expert Expediter
Thanks for the response.

Anyone have a answer to

"Can a team with no "home" move about the country to current hot spots to avoid predictable regional,seasonal slow-downs?"

Thanks JP
 

X1_SRH

Expert Expediter
"Can a team with no "home" move about the country to current hot spots to avoid predictable regional,seasonal slow-downs?"

As a rule, a team will do better than a single just based on the fact that they can take anything, anywhere, anytime. A lot depends on the size of your vehicle, and how your company views "layover areas". Slow time is going to be slow for almost everybody, but if your company lets you make the call as to where you will go to look for your next load, you have more control over your own destiny. Keep good records and remember the places that have been good to you in the past. When things slow down you can sometimes retrace your steps and be productive. If you are motivated and dedicated, your version of "slow" can be better off than others who are not so aggressive. I hope this helps, and makes some sense. I just got more aggressive during the "off peak" times and my averages worked out above my expectations. Work ethic will take you a long way in this Biz. Best Wishes - X
 

joe petro

Expert Expediter
Tom: Thanks for the inpute, it gives me a good idea of the cycle. Yes it helped

X: Thanks to you for taking the time to respode. The infor was valuable.

JP
"it's a bad day when you don't learn something new"
 

ATeam

Senior Member
Retired Expediter
As has been said, there are many variables. Here are a few that come to mind:

How large of a sales force does your carrier have?

Is your carrier regional or national?

How many trucks does your carrier have on compared to the number of loads to haul? (carriers sometimes over-expand their fleets)?

What are the nation's general economic conditions? (A September in an expansion will be different than a September in a recession)

If your carrier tends to haul freight for a particular economic sector (automotive for example), what are the economic conditions and cycles of that industry?

What new markets (if any) is your carrier developing?

Is your carrier's competition eating into your carrier's business? (A price cut or new service offered by a competitor this year may significantly reduce the amount of freight that was there to haul last year.)

More to the point perhaps, and more under your control, how are you and your truck equipped?

Do you have a security clearance?

Do you have the training to haul particular types of HAZMAT loads (radioactive, explosives)?

Do you limit yourself to no-touch freight only, or are you willing to load, unload, and move freight around off the truck (which would likely require you to also equip the truck with things like dollies, a pallet jack, etc.)?

Do you have a lift gate?

Do you have a reefer?

If you have a reefer, does it have the state of the art communications and temperature recording capabilities some shippers now reqire?

How large is your truck? (a large truck can haul small loads. A small truck cannot haul large loads)

Are you willing to accept loads that pay less money than you have grown accustomed to expect?

Are you willing to accept loads that take you into slower freight areas that will likely require a lot of deadhead to get out?

Are you willing to accept loads that you'll lose money on? (You asked about staying busy, not staying profitable).

Of course, the economics of such things like reefers must also be taken into account. Having one may open you to receiving more loads (reefer trucks can haul dry van loads too), but the reefer cost may or may not justify itself.

In other words, it is very difficult to predict when you'll do well (and where), and when you won't. While economic indicators make it possible to know where the economy may be going in the next few months, longer term projections are speculative at best. And even then, while the expediting industry may be booming, poor decisions at one carrier can diminish the freight that is available to you.

My wife and I take heart in the example set by long-term veterans of this industry. They are still doing it after riding out several economic cycles and carrier gyrations (some self inflicted). Of course, a large number of experienced expediters have crashed on the rocks along the way too.

Perhaps the most significant factor of all is your cash flow and capital. Low expenses and cash reserves mean a lot when freight is slow.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Very well said.
Who ever is a good carrier this year, may not be the following year.
As mentioned
"business person first, driver second"
Davekc
 

joe petro

Expert Expediter
ATEAM: Thanks for the informative post.
I have a couple of questions if you please.

>How many trucks does your carrier have on compared to the
>number of loads to haul? (carriers sometimes over-expand
>their fleets)?

Is there a 'rule of thumb" on to this question. I mean a certain percentage of trucks to loads a person should look for?

>Do you have a security clearance?

Can a person get a security clearence on their own or do they need sponership?

Thanks
JP
"it's a bad day when you don't learn something new"
 
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