What's Ahead For Trucking?
 

With the economy still struggling and rates dropping what is ahead for this industry? Rates typically drop in the fall but it seems a little early. I was speaking with a friend of mine and he is having a difficult time getting the rates he wants with his van. Freight is getting soft (in some areas) and rates are dropping. Apparently, some people are grabbing anything they can without concern for a rate. Fuel is not coming down, although gas has dropped in many parts of the country. For those who are new to this industry, trucking tends to be ahead of the economy. We see a drop before it is recognized by the general public and the first to benefit or see a turnaround. I have no doubt that the herd will thin this fall and through the winter. In a typical presidential election, the administration that is in power wants to give the appearance of a strong economy. I am not sure that this administration will be able to present that image. Too many people are out of work. Apparently, carriers are still buying equipment. Companies are still hiring drivers. I have not heard any new figures as to turnover rate recently. The last numbers that I recall was at 136% per annum. Products will still need to be moved from one place to another. I don't know if companies have the excess inventory they had a couple of years ago.

In any case, I would like to hear some thoughts about what you are seeing and thinking about the business and economy as it concerns trucking.

At first, I wasn't going to reply, because there are some things (and more, I'm sure) in this industry that I don't know anything about. Rates, and how freight is doing are a couple.
It's funny how the economy is in the hole, but yet, everywhere you go, folks are out shopping, etc. Lowe's, Home Depot, WalMart are always full of customers. Even the malls, and shopping centers. And going out to eat at 7:00 on a Friday/Saturday night? You can forget it. Everybody and their dogs are in line for a table. Retail stores have to keep their shelves full. Therefore, the freight has to be moved. Since everyone wants the freight delivered yesterday, you would think they would pay better.
Diesel around here is around the $3.79-$3.95 range. Gas is around $3.50-$3.60.

I'm sure the drought has helped the beef industry. I heard Texas is flooding the beef market. Seems like it hasn't slowed down. I've seen a lot of cow trucks. More than usual for summer.

I could wear my fingers out replying to this thread. I am very frustrated with the offers I'm getting. I did finally get a load the other day at my minimum rate BUT, it goes to Dallas, TX so it's nothing to brag about. I'm a little scared about what I'm going to find once I'm out. It looks like AR,AL, and MS are the only active states right now for flatbed, we'll see.

Around here, restaurants and bars are down, liquor stores are above average. (don't ask how I know that :lol:)
Walmart shelves are pretty bare, they're not stocking like they were a few years ago.
I read the other day that canning supplies are up 30% this year. Me and my wife are going to start canning as well.
I have friends that made damn good money before this economic disaster and now are struggling to pay their bills. None of them were huge spenders either, it's just that tight.

At this point I'm fully convinced it will only get worse, prepare yourselves.

Why?

Because these boobs in office haven't a clue what to do. None of them, either side.

See you at the riots.

Potholes.....Potholes....more Potholes.....lies......lies......more lies.

what i'm finding strange is how much building supply is being delivered. i'm doing alot of delivering.. but i dont see any building.

This is one of the reasons i moved into the septic business. Its alot less cut throat and you can make a good buck. Plus you have your own customers and you can name your price (to a point).
I dont see anything good coming out of For Hire trucking anytime soon. CSA, Mexicans south of the broader. Its going to get tuff.

time to change your gear ratio :)

I don't follow the "political" economic indicators to close these days. I just wish that all the heads in DC would take a nonpartisan stance to get America going again. But as rates go, I've been getting quotes of less than a buck a mile for loads out of middle PA into the Carolinas. I didn't haul them when fuel 2.60/gal and I certainly won't haul them now. I can get 2.50 to 2.80 from central NC to mid PA from some brokers I deal with often. That’s down about a buck from back before Independence Day. The first 6 months of this year I did $4800 to $5300/wk, on 2000 to 2500 miles/wk for all miles. Now I’m doing about 1200 miles/wk for about $2400 for all miles. Rates and freight are down in my area. If we happen to have a harsh winter I wonder what it’s going to be like when No 2 fuel is diverted to heat homes. I hope I can survive it.

Rates continue to move down in most areas. It is stacking up to be a difficult winter and spring. The storm on the east coast should help sustain or perhaps push rates up going to those areas, when they begin to rebuild. It is likely to take at least a few weeks before we see much movement in freight or rates to those areas. I expect outbound freight to be sparse and cheap due to the expected abundance of trucks going into those areas. It could help to find a niche where you can keep your rates up.

I hear ya on the mid PA rates. I had a broker call me the other day offered me a load out of PA to somewhere (I know it went to a dead area can't remember which one), paid 1800 on 1200 miles and had two or three stops, and tarped. She acted like she was doing me a favor with the 1800 bucks.

No thank you I said.

This could ugly.

I'm gonna go get a septic truck and go up to PA and slash prices just to piss off Mackman. :lol: