Quote:
Originally Posted by Les2
Do you believe what your buddies are telling you? I don't, unless its material that is requiring a slider to haul it, and there isn't much that won't just fit in a covered wagon. I can tell you auto freight is paying less than coil and rust bar rates. Atleast the stuff coming out of ohio is! It's disguistingly cheap and the sad part is they want you to expedite it...LOL
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I believe these guys, as I used to work with both outfits myself. The freight they are hauling are molds, dies, controls and robotics, 3 million in cargo insurance needed to hit the dock. The big 3 are getting the auto plants back up and running as they re-tool some of these plants. There is also quite a bit of line equipment being moved from plant to plant. Most of this is hauled on step deck and flat conestogas. There is also some dry van expedite freight finally moving with some good rates between plants.
But, and this is the BIG BUT, this freight will not last long, and all involved know it.
They just started moving about a month ago and expect it may last into the 2nd quarter of 2010 and then the party is over. Also, much of this freight is short haul, under 300 miles, so the rates may not be as good they look. I know allot of this stuff used to pay us $5+ a mile, sometimes up to $10+ depending on the equipment that was being shipped and when they needed it. It was nothing to get $3000 to run down to Louisville out of Detroit, deliver and dead head back home for another load. They are not getting these rates now as they have been halved+, but still decent coin.
And on Edit: You will not see me running out and buying a truck to jump on board with this bunch. It is still not a bed of roses out there, and no one involved is expecting any of this to last very long. Once these plants are finished, that will pretty much be it. Rates will plummet back down to below $2, if not under $1.50 for all involved above real soon, and they know it. They have been running the cheap freight since 08, and usually dead heading home, that is why I got out of it and two of them, actually more, have been through bankruptcy. As Les said, general flat bed freight still sucks, and there is no light at the end of the tunnel in that regard. And then we have the fact that the economy on a whole is not getting any better, but worse. The above rates are yours and mine tax dollars at work, other than Ford of course. Most of the above work is aimed at GM right now, with a smattering of Chrysler and Ford thrown in.
