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low rates, No profit - alborz - 05-18-2020
Hello everyone.
I was wondering in this uncertain times that the rates are so low that barely one can cover basic trucking cost anybody see a brighter future for owner/ operators? or this is the end of small fleet trucking history?
RE: low rates, No profit - Chamberpains - 05-18-2020
Its bad right now. I'm running numbers and I'm operating at break even or very near break even. I can sustain this for a while but at a certain point It will make more sense to shut the business down temporarily. Park and store the truck. Cut insurances back to bare minimum liabilities in order to hold on to the plate and registration. And seek a company job till the freight turns around.
But to answer your question, no this is by no means the end of the O/O. In fact its times like these that will weed out some already distressed bigger companies and when the freight comes back the O/O is the fastest and most flexible to fill that demand. That is always our roll in the economy. We fill the enormous gaps in supply chains. It all comes from being flexible.
The best advice that I can give is tighten the hell out of your bills and expenditures. Do not cut maintenance and upkeep on the equipment AT ALL. If anything start doing MORE of your own repairs and start doing these much needed repairs in this slow times. You want to come out of this with your equipment in better shape to be prepared to take on work when it returns. You don't want to neglect your equipment now, only to have it finally break when your freight and rates return.
RE: low rates, No profit - Waterloo - 05-18-2020
This is the ugliest I have ever seen it, but I am in agreement with Chamberpains. How soon it will come back is the $64,000 question. Some commodities will bounce back quicker than others as will certain regions. Much will depend on how quickly the automotive sector can come back on line, what I am hearing, that is not looking good.
RE: low rates, No profit - Rawze - 05-18-2020
My low-rent, bottom of the barrel, dryvan/reefer market (0.92c/mile+national rate fsc.) arsse is thriving more than ever!. Truck now has 1.4 million miles on it and is totally kicking bootie and taking names here of late!... For me, this is what it is all about ... Cutting the throats of everyone around me while they suffer and complain about not being able to make it. I am taking everyone's low-rent loads that no one else wants because they can't control their operating costs enough to compete lately and I am bringing home the bacon just like always. Truck has been averaging same miles it always does ... been busting every bit of 9.5 - 9.7 mpg everywhere it goes here of late because the weights have gone down in some of the trailers we pull a bit (like amazon and UPS loads are down to 20k loads here lately where they are usually 35k-38K+ gross wt), and been dropping settlement checks deposit into the bank to the tune of about $2600 - $2800/week (single driver these days) after fuel and all the other expenses are sucked out. This is for a single driver w usually about ~2300 miles or less on the odo for the week. We choose not to push our equipment hard, I hate having to work on it unnecessarily because it got beat up by faster speeds.
Could I make more in other markets? -- Sure, but I don't want the headaches that go with them, I'm happy where I am at simply due to the truck always being in high demand nonstop,.. and that is pay/income that a person can count on.
-- I tell everyone on my forum... if you don't set yourself up to compete with guys like me ,... might as well go home or become company driver!, because your just wasting time and money that you could be earning, and loosing out on freight that people just like me can steal out from under you!.
-- And for those guys who say "I ain't haulin' no cheap freight" ... In my eyes, they are the idiots! ... All I see is $$$ whenever one of those idiots say that at the truck stops and on the youtube, etc... what fools!. The actual words that I hear whenever someone says that == "I am too dumb to control my own operating costs, so I blame my lack of good business management on my customers for not paying for my mistakes and lazyness".
In my own eyes, all that cheap freight = A damned decent profit right into my pocket!.
I am not greedy though .. I try to help everyone on here in how to do exactly what I do. I hide no secrets. The trouble is that many do not have the discipline to get with the times, knuckle down, lay off that fuel pedal and speed a bit, and actually achieve it ... SO... next time your looking at no pay, or very little pay, ask yourself "What would Rawze do?" and copy the hell out of it!.
(words of encouragement) ...
Ain't no money in winning the race, not one damn bit. The money is in the ... 'Haul it cheap, drive it as slow-n-steady as one can get away with to minimize every last red cent of long term operating costs, saves on wear, and saves on fuel. Smile while everyone passes you by on the freeways like the money wasting fools that they all are, prevent unpredictable downtime by keeping after everything properly. This makes for a steady, predictable future.
RE: low rates, No profit - 74bassman - 05-18-2020
The only thing I want is for fuel to go back to 3.00 a gal. This cheap fuel is costing me money.
RE: low rates, No profit - Waterloo - 05-18-2020
(05-18-2020 )74bassman Wrote: The only thing I want is for fuel to go back to 3.00 a gal. This cheap fuel is costing me money.
You still over at Landstar? Lost my job yesterday, how is it over there?
RE: low rates, No profit - 74bassman - 05-18-2020
yes still at Landstar. sorry to hear that. I`m doing good, but I know a few drivers that have park their trucks.
RE: low rates, No profit - Mr Hagg - 05-18-2020
Rawze with all the add on what it the pay per mile total.... SO one can get an idea ...SO when they compare 1.30 a mile freight to yours..
RE: low rates, No profit - Mr Hagg - 05-18-2020
I had a driver just yesterday show me his rate haul for 2 months ago and he took home 3100 .... he pulled the same frieght same loads and this week he took home 580.. Its for sure not looking good for these guys that are use to more money...