Rates are up, and they continue to go up. Fuel is up too, but that is a separate issue for a different reason.
I do not want to jump the gun here, but I also do not want the people who follow us to miss the boat. I believe we are on a sustained climb in freight rates, and I think it may last for a while.
The rates I am seeing right now are nice. By nice, I mean they are better than we have seen in quite some time.
That said, they still are not where they need to be. That is the part carriers need to understand.
Expenses are not what they used to be. A well-equipped truck now costs $200,000 and up. Tires are at all-time highs. Parts and labor are through the roof. Insurance is high. Repairs are high. Just about every cost tied to running a truck is higher than it used to be.
Bottom line, the cost of buying a truck, maintaining a truck, and paying a driver to drive that truck is nothing like it was before 2020. It takes a lot more money to run a truck and still turn a profit today than it did just a few short years ago, and everyone needs to realize that.
So yes, rates are getting better, and that is a good thing. But better does not mean good enough. Not yet.
We are moving in the right direction. There is no question about that. I just think people need to keep in mind that rates still have a long way to go before they truly match the cost of doing business in today’s market.
I do not want to jump the gun here, but I also do not want the people who follow us to miss the boat. I believe we are on a sustained climb in freight rates, and I think it may last for a while.
The rates I am seeing right now are nice. By nice, I mean they are better than we have seen in quite some time.
That said, they still are not where they need to be. That is the part carriers need to understand.
Expenses are not what they used to be. A well-equipped truck now costs $200,000 and up. Tires are at all-time highs. Parts and labor are through the roof. Insurance is high. Repairs are high. Just about every cost tied to running a truck is higher than it used to be.
Bottom line, the cost of buying a truck, maintaining a truck, and paying a driver to drive that truck is nothing like it was before 2020. It takes a lot more money to run a truck and still turn a profit today than it did just a few short years ago, and everyone needs to realize that.
So yes, rates are getting better, and that is a good thing. But better does not mean good enough. Not yet.
We are moving in the right direction. There is no question about that. I just think people need to keep in mind that rates still have a long way to go before they truly match the cost of doing business in today’s market.
