DAT noted in its monthly wrap-up for the first month of the year on the spot market that, for every January but one over the past 10 years, spot rates have declined in the dead-of-winter month, for every segment. That said, after a December that appeared somewhat promising for haulers, the downward push has been no doubt disheartening for plenty owner-ops in efforts to improve negotiating positions with this or that broker. To top that off, at the chart above notes, freight volumes (at least for vans) were up, certainly over the last two months of the year, in any case. Rates? No way.
Today on the Channel 19 blog, a guest — reader Jeffery Hanson, owner-operator out of Texas. Hanson argues hard that these kinds of dynamics have persisted for much longer than many realize, with too many brokers’ unrealistic fishing for a losing rate over the long-term akin to participation in a strategy that will ultimately bankrupt independents — and themselves, too.
Following, find Hanson’s considered thoughts.
Sub-$1/mile broker rates are putting the independent truck drivers out of business. How many went out of business last year? The year before that? How many will make it through this year?
Used truck sales lots are at capacity. No one is buying used trucks, because they can’t afford to get into the game.
I’ve heard people talk about overall capacity having stayed the same over these difficult times. When full employment still allows the large companies to hire all the drivers they want and drive freight rates down below a dollar, it will not be long until all of the independent truck drivers give up and go out of business. They get replaced with company drivers at these large companies, or they go lease to them out of necessity themselves, and thus, yep, capacity does stay the same.
