... when it comes down to a dwindling fleet of capable trucks, supply and demand may command higher rates. (?)
I thought the same thing until I looked into it. These regs have been phasing in over the last few years. Our number came up in 2013 but big carriers have been putting big money into new trucks through this time period and their ongoing fierce competition keeps rates as low as always. There are several carriers outside of expedite that run compliant TVAL trucks now. I see no compliant equipment shortage developing on a scale large enough to affect rates.
If prices started to rise in a significant way, it would be an easy matter for those carriers to shift their model to meet the need expedite carriers meet now. Also, if prices rose in a big way, TVAL shippers may become more price sensitive than they are now. They have the ability to make numerous changes in their systems to ship the same amount of product but with fewer truck trips.
Also note the presence of company-owned TVAL equipment, larger fleet owners and preferential dispatch at FedEx Custom Critical now that did not exist ten years ago. If it became attractive to inject more CARB-compliant TVAL trucks into the market, the carrier and big fleet owners could quickly do so. There may be an opportunity but individual owner/operators may not be well positioned to benefit from it.
A shortage of compliant equipment is a hypothetical. If it happens, it does not automatically mean a driver-favorable change in the supply-demand equation. Many variables are in constant play. It is best not to consider one in isolation.
Hypothetically speaking would it make sense to incur the expense of an upgrade if it allowed you 3 additional years of west coast revenue?
Even @ 40K
It may, yes, depending on what profit margin is acceptable to you. But as I said, when the CARB regs prompted us to look around and a better opportunity was discovered, we went with the better opportunity.
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