We often talk about then/now comparisons and what inflation has done. Here's a site that will give specific figures for whatever years you want to compare.
The Inflation Calculator
The Inflation Calculator
inflation adjusted
- Thread starter LDB
- Start date
My first "B" load in 1989 paid 99 cents. That would be $1.71 in 2007 dollars
Terry's factual statement is both simple and profound.
We have read over and over again, in posts made here in the Open Forum by seasoned drivers, that freight rates have held steady or declined over time, while operating expenses have increased. That much seems to be something on which most expediters can agree on, is it not?
I have not heard of many B loads paying $1.71 these days. I wonder if Terry could tell us how much his 1989, $0.99, B load would pay, not in inflation adjusted dollars, but in settlement dollars if he hauled it today? In other words, Terry, if you hauled that same load today, how much would it pay?
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nightcreacher
Veteran Expediter
you couldnt haul a load at .99/mile,not even in a 20 mpg vehicle
greg334
Veteran Expediter
So to put this in perspective,
If you asked for a van to haul a load at 99 cents today, the actually was 54 cents in 1989.
I don't know why Leo posted this here, our world has changed a lot more than to make a simple comparison of just rates.
What was, was and what is, is.
I posted it so that rather than pulling numbers out of thin air there'd be a resource that anyone interested could use to get presumably accurate comparison numbers. Granted, there's a lot more than just the numerical change, but that's one factor and now it can be more accurate.
I agree, Leo. We can use historical data to help us to simplistically forecast the future needs for our business. By using recent inflation figures from 2000 to 2007, we can speculate the amount of money we'll need in 2014 to replace our truck we purchased this year. For example, a $100,000 truck bought in 2008 would have cost $81,054 in 2000. If truck costs keep pace and the rate of inflation until 2014 is comparable to that which this calculator shows since 2000, that $100,000 truck will cost $120,014.
My first cargo van, a GMC 1500 conversion van cost a little less than $15,000 in 1989. The calculator gives a 2006 comparison value of $25,267. My 2006 Chevy 3500 van cost $27,047. I'd say that's pretty close given the GVWR difference between the two vans. If I replace that van in six years, I should expect to pay $32,271.
As stated earlier, a full tariff van load from St Louis to Indianapolis paid us 99 cent per mile. Ninety-nine cents was not the average back then. The .99 was a full tariff load in my area. Roberts Express had many tariffs based on weight, truck size and region. Loads originating or delivering east of US hwy 219 paid top dollar; the tri-state area of IN, OH, MI paid the least and the rest of the country, except the west coast, was somewhere in between. Additionally we were paid 62% of tariff when running away from our home express center and 46% of tariff if the load delivered closer to home than the pickup.
Inflation would indicate that that 99 cents is worth $1.71 in 2007. We don't need a calculator to know that freight rates have not kept pace with inflation. My 2007 average of all loaded miles was $1.26, including <10 cents FSC.
So, what was, was and what is, is, but it depends on what your view of is, is.
My first cargo van, a GMC 1500 conversion van cost a little less than $15,000 in 1989. The calculator gives a 2006 comparison value of $25,267. My 2006 Chevy 3500 van cost $27,047. I'd say that's pretty close given the GVWR difference between the two vans. If I replace that van in six years, I should expect to pay $32,271.
As stated earlier, a full tariff van load from St Louis to Indianapolis paid us 99 cent per mile. Ninety-nine cents was not the average back then. The .99 was a full tariff load in my area. Roberts Express had many tariffs based on weight, truck size and region. Loads originating or delivering east of US hwy 219 paid top dollar; the tri-state area of IN, OH, MI paid the least and the rest of the country, except the west coast, was somewhere in between. Additionally we were paid 62% of tariff when running away from our home express center and 46% of tariff if the load delivered closer to home than the pickup.
Inflation would indicate that that 99 cents is worth $1.71 in 2007. We don't need a calculator to know that freight rates have not kept pace with inflation. My 2007 average of all loaded miles was $1.26, including <10 cents FSC.
So, what was, was and what is, is, but it depends on what your view of is, is.