When will freight rates ever increase?

[JoeMP2]

Does the invisible hand of competition have a death-grip on expediting? We compete not only against other expediting companies but same-company trucks as well. I don't mind fair and open competition as it has a healthy effect on every enterprise. Those providing good service are rewarded, at least in theory, and those doing a poor job will wither on the vine and eventually leave the industry.
The issue I grapple with is the stagnant freight rate passed on to owner/operators. In my six years of expediting, rates have either held firm or, gulp, declined. Despite ever-increasing fuel costs, insurance, maintenance, cost of new equipment, cost of energy and maintaining a household... stagnant freight rates do not acknowledge these realities. At some juncture, owner-ops will reach a point of diminishing returns.
I would like to hear from other expediters on this subject. Where are you in this struggle?
Just wondering, do companies quietly raise rates to their customers and simply don't pass it on to owner-ops? How would we ever know?

 

[fortwayne]

All of us hear the same story - competition competition competition and with that competition goes the price........downward.

It is one of those supply and demand things that is working against us, right now there is to many trucks out there for the supply of freight for expediters.

I believe if the companies would freeze their hiring and stop bringing on more trucks we would be able to see an improvement for the o/o and drivers.

Less trucks - more demand for trucks - higher rates!

However, the problem with that never happening is, the companies want to make sure they have their clients covered at all cost, and if a few drivers suffer the cost - well, they still have their customers and life goes on in the corporate world of expediting.

The only true way this is ever ever ever going to change is if this lacklaster economy has such a boom that the freight comes busting out at the seams.........and well you take a guess if that is going to happen soon.

The only thing to do at this time, is to cut your on road expenses, watch your deadhead miles, mpg cost, etc etc.







Fort Wayne
Like Is Good!

 

[Lawrence]

We have a very interesting article in the next issue of our magazine - Expedite NOW Vol. 4.6 that focuses in on this concern. There are many factors that go way beyond over staffing. In fact, in the expediting arena - we don't have as half the over staffing that is going on in other trucking areas - like flat beds. AKA Major housing crunch. Make sure you read it.

Lawrence,
Expediters Online.com

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[nightcreacher]

Rate issue is supply and demand,just like price of fuel,they know we need it,fuel price is going to be high,stop buying, fuel price will drop,and that aint happening folks.Even with biofuel,do you see where biofuel costs less than regular fuel,it costs more.It will help the farmers,but not us.
Now in expediting,if you work on percentage of what the customer gets chatged,you will see if rates go up or down.When you get your pay sheet,if you think your getting the shaft,you can go into company,and they will show you the charges.If your on a flat rate,doesnt matter what the charges are,this lets your company charge what ever they want,it doesnt matter cause you agreed to haul it for what ever they are paying you.
Competition makes the world go around,there are more companies everyday claiming to be in the expedite business.You want the rates to go up,the only way this could possibly happen,is all the companies doing this type of work would all raise there rates,and this will never see this happen.
In trucking, we cant raise the price we charge like other businesses,so the other side of that is cut our expenses.Save 1 mpg,thats about 10000 bucks a year,maybe equal to your house payment.If you dont drive as fast,lots of good things happen to your truck,from tire wear,to fuel savings,wear and tear on your motor,brakes last longer,there is a whole list of thngs.Manage your time,you wont need to speed to get your load delivered.At least this will offset the pay we arent getting.Take those loads you think arent that attractive,then the company wont put on more trucks,so your not sitting around as much.Dont worry about the Mexicans,the more freight that doesnt get delivered,the bigger need for expedite.
We dont need a union,we just need to unite.
You think you need to wait for that special load,it may never come.last year my acceptance was under 60%,This year its over 80%,and I've made more money right now,with 2 months to go than I did all last year.
As a cowboy legend once sang,Happy Trails

 

[kangar0085]

Talk about low rates, owner operators for Crete, US Xpress, CR England and most big companies, are only getting an average of $1.22 a mile in tractors. Average diesel price is probibly up in the teens now.

 

[JoeMP2]

Kangaroo... how can they survive at those rates?

 

[csands007]

Kangaroo... how can they survive at those rates?
JoeMP2

they use a Kentucky Credit Card

For ones who do not know what this is its a ....................
Chuck

 

[arkjarhead]

Well they get 1.22 per mile. Plus they are buying fuel just like the fleets are in big numbers. Look at FedEx Ground. I think they are getting about 1.20 per mile but they are only paying 1.25 for fuel. That can make a big difference to the bottom line. True that's a low rate. I don't see how anyone could run a t/t for less than 1.60 per mile.

 

[kwexpress]

KW Express
o/o till i die

when people stop buying 100k+ trucks and haven to run them 300+ days a year just to keep from going under.


when the fmcsa puts a frezze on motor carrier authority registration
and makes truck driver training last at least 4 years and gives them a degree in tranportation management

and mostly when pigs fly

 

[Broompilot]

Nightcreature said supply and demand.

The reason I entered the Trucking Industry was the PROMISE by the forecasters of such a SHORT FALL OF skilled drivers.

All these grey haired guys were suppost to retire. Now with benefits cut, etc.... they are gona have to drive for another 20 years and now with the competition thanks to GEORGE BUSH for the open inviation to any DL holding person you are now a qualified Hazmat Truck Driven Welcome to the USA and all we have to offer. (no back ground checks either since Mexico has no way to check its own people)

So much for my forecast being right on, or somone elses advice?

 

[davekc]

The reason I entered the Trucking Industry was the PROMISE by the forecasters of such a SHORT FALL OF skilled drivers
===========================
I think that still holds true. That was under the presumption by many that we (The USA) wouldn't be stupid enough to let foreign competitors in and let them operate on a unfair playing field.
It all comes down to money. Follow that, and you will see where the push for all of this is coming from.












Davekc
owner
23 years
PantherII
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