Is the Hobby Trucker in trouble ???

[BigDiesel]

Maybe not knowing what it takes to run a truck has finally caught up with Stevie ?????????

How to shut down truck for a few months

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• Posted by Stephen Booth on November 21, 2008 at 5:17pm in General Discussions
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If some of you are not aware, I use to work in a lab doing research but sort of got burned out after 30 years. Well, they are in trouble and need me to come back for a few weeks to a few months. Is there anything I need to do to my truck while not being driven? Should I go down every few days

[Rev.Vassago]

Could be. With rates what they are, and him clearly stating that the loads aren't available for him, he may have simply decided to pack it up until rates get better. If he can afford to do so, then more power to him.

[GMAN]

It is difficult for an independent right now. I know of at least 2 who are packing it in and leasing to a major carrier. They feel that the larger carriers will have the freight base to keep them running through the winter months. I have been offered rates less than $1/mile recently. A number have been around $1.20-1.50 and that is going to bad areas.

[Rev.Vassago]

I have been offered rates less than $1/mile recently. A number have been around $1.20-1.50 and that is going to bad areas.

Since there are fewer and fewer carriers available to haul cheap freight, I can't imagine this particular downgrade in rates will last very long. I would assume it has to do, at least in part, to the decrease in fuel costs - shippers and brokers thinking they can get it hauled for ridiculously low rates, and some carriers complying. If it sticks around for any length of time, I'm sure we'll see more carriers going out of business. When the economy does turn around (and it will), it should be quite interesting.

There are clearly good things ahead for those who can manage to stay in business.

[scooter777]

I tell ya, step deck freight out of eastern nc has about dried up, what is available is cheap and heavy. Thinking about getting a reefer, it is the only game in town that is paying anything at this time

[Rev.Vassago]

I tell ya, step deck freight out of eastern nc has about dried up, what is available is cheap and heavy. Thinking about getting a reefer, it is the only game in town that is paying anything at this time

I've heard that tons of people went out and bought step decks because the rates were so good, thereby driving rates down. I almost feel sorry for the guys who were spending ridiculous amounts of money on RGN trailers to get into that game.

Used trailers will be cheap for quite a while, thanks to all of this.

[GMAN]

Since there are fewer and fewer carriers available to haul cheap freight, I can't imagine this particular downgrade in rates will last very long. I would assume it has to do, at least in part, to the decrease in fuel costs - shippers and brokers thinking they can get it hauled for ridiculously low rates, and some carriers complying. If it sticks around for any length of time, I'm sure we'll see more carriers going out of business. When the economy does turn around (and it will), it should be quite interesting.

There are clearly good things ahead for those who can manage to stay in business.

I agree, Rev. Rates should rise dramatically when the dust settles. I think it is the brokers as much as the shippers who are skimming so much off the rates. Rapidly dropping fuel costs have also contributed to the low rates. According to some brokers to whom I have spoken the last couple of weeks carriers and owner operators are taking these cheap loads as soon as they are posted. I called one who had a load out of Amarillo going to Victoria, TX that wanted to pay about $1.20/mile. I wound up deadheading out rather than taking something that cheap, especially to another cheap area. I am deadheading the truck just east of Dallas for a load that will bring by truck to Georgia. The rate isn't that great but will get the truck in a better position and I didn't contribute to the cheap rates from these crooked brokers. The broker who had the load going to Victoria told me that they had 48 loads per day going out of Amarillo to Victoria. Apparently, trucks are grabbing them up as fast as the broker posts the loads. Hopefully, enough carriers and owner operators who are willing to haul this cheap freight will go out of business to allow for much better rates for a while.

[GMAN]

I've heard that tons of people went out and bought step decks because the rates were so good, thereby driving rates down. I almost feel sorry for the guys who were spending ridiculous amounts of money on RGN trailers to get into that game.

Used trailers will be cheap for quite a while, thanks to all of this.

Right after I purchased my step deck a lot of people decided to do the same thing. Rates dropped dramatically. I have been giving serious consideration to buying more equipment due to the lower costs. There are some good buys around if you can get the money. Unless you can get very good pricing and interest rates you may not want to go into much debt. Rates are likely to be low for a few months. Equipment payments raise the cost of running a truck. It may be difficult to make high equipment payments during this time.

[Rev.Vassago]

I agree, Rev. Rates should rise dramatically when the dust settles. I think it is the brokers as much as the shippers who are skimming so much off the rates. Rapidly dropping fuel costs have also contributed to the low rates. According to some brokers to whom I have spoken the last couple of weeks carriers and owner operators are taking these cheap loads as soon as they are posted. I called one who had a load out of Amarillo going to Victoria, TX that wanted to pay about $1.20/mile. I wound up deadheading out rather than taking something that cheap, especially to another cheap area. I am deadheading the truck just east of Dallas for a load that will bring by truck to Georgia. The rate isn't that great but will get the truck in a better position and I didn't contribute to the cheap rates from these crooked brokers. The broker who had the load going to Victoria told me that they had 48 loads per day going out of Amarillo to Victoria. Apparently, trucks are grabbing them up as fast as the broker posts the loads. Hopefully, enough carriers and owner operators who are willing to haul this cheap freight will go out of business to allow for much better rates for a while.

It genuinely shocks me that the carriers who have managed to last this long have suddenly lost all common sense, and are now willing to operate for cheap rates. I guess when the economy was better, and freight was still moving better than it is now, they could afford to suck up the high fuel costs. Now that fuel costs have dropped, but the economy has tanked, they are willing to take whatever they can get to survive. It won't take long for them to fall by the wayside.

I think it just goes to show that fuel costs don't play as much of a part in running a successful trucking business as what some like to think they do.

[Ricky]

Landstar rates are in the crapper too. Your lucky to get $1.20 per mile after they take their cut!

[Rev.Vassago]

Right after I purchased my step deck a lot of people decided to do the same thing. Rates dropped dramatically. I have been giving serious consideration to buying more equipment due to the lower costs. There are some good buys around if you can get the money. Unless you can get very good pricing and interest rates you may not want to go into much debt. Rates are likely to be low for a few months. Equipment payments raise the cost of running a truck. It may be difficult to make high equipment payments during this time.

When the freight I haul picks up (and it certainly will), I'll be buying myself a good used dry van with cash. I've been eagerly watching the prices on trailers dropping.

[scooter777]

That is what I am hoping I can do is pick up a good used reefer for cash and hold on to my step deck. The only reason I am hesitant on purchasing a reefer is like Gman stated about step decks, everybody and their mother will purchase one and drive the rates into the ground. But it would be nice to have so I could utilize the reefer when deck freight slows down each year. You can probably tell I have not made my mind up at this point as what to do.

[Rev.Vassago]

That is what I am hoping I can do is pick up a good used reefer for cash and hold on to my step deck. The only reason I am hesitant on purchasing a reefer is like Gman stated about step decks, everybody and their mother will purchase one and drive the rates into the ground. But it would be nice to have so I could utilize the reefer when deck freight slows down each year. You can probably tell I have not made my mind up at this point as what to do.

I've heard a lot of people saying they wanted to buy reefers.

[scooter777]

I've heard a lot of people saying they wanted to buy reefers.

That is what I was afraid of. Maybe I just need to hold on to my money and ride this one out. It just gets so boring hanging around the house. To damn cold to go fishing. Momma did want the living room, dining room and kitchen painted. That sounds to much like work. Damn now I need a nap

[GMAN]

A friend of mine bought an insulated 53' Great Dane dry van for $4,500. He also owns a flat bed with a side kit. He is planning on giving up his authority and leasing to a carrier. He will probably lease to Landstar. I am not sure that he will be any better off than running his authority but Landstar does have a strong freight base. Landstar also hauls a lot of brokered loads just like the rest of us. I suppose how well he does with them will depend mostly on whether he can get with agents who have enough direct freight with decent rates.

[GMAN]

I've heard a lot of people saying they wanted to buy reefers.

If enough people buy reefers it will drive prices down just like it has with step decks. To be honest, it has less to do with the type of trailer than the willingness of people who are willing to give their services away. You don't need to cut prices to get business. If you continue cutting prices where you are not making a fair profit it is only a matter of time until you go out of business.

[mike3fan]

If enough people buy reefers it will drive prices down just like it has with step decks. To be honest, it has less to do with the type of trailer than the willingness of people who are willing to give their services away. You don't need to cut prices to get business. If you continue cutting prices where you are not making a fair profit it is only a matter of time until you go out of business.

I think it's all about desperation right now,those that were just hanging on the last few months are now completely desperate and would rather just be running miles to be running thinking that will save them. As I told a friend of mine I wouldn't wish bad luck on anyone,but a little weed thining wouldn't hurt this industry.

[GMAN]

I think we are going to see a lot of weed thinning during the coming months. I have received several notifications about equipment auctions from GE Credit. They are one of the primary lenders for class 8 equipment. I would guess you could get a very good buy in a truck or trailer at one of their auctions. Some are on line.

[rank]

It's going to be a long winter for anyone who needs to make payments on anything.

[dobry4u]

It's going to be a long winter for anyone who needs to make payments on anything.

Amen, brother