Originally published at: The Freight Market Is Slipping — And So Is the Confidence Behind It - FreightWaves
Market chaos reigns supreme: tariffs, trucking authorities, and tender rejections spell uncertainty for the start of April.
I’m a small carrier (MC 895097); and I feel optimistic. I’m thinking of the Covid market crash of 2020; when many thought freight would be dead. Followed by the best trucking rates, ever. I feel the same optimism; though different metrics. I’m still finding excellent spot rates; just got $1500 Shelby, NC - Alachua, FL… 500 mi = $3/mile; and got $750 for reverse (deadhead to Savannah; $750 Savannah - Charltotte (dry van). So; that’s $2.25/mi round trip; which is highly profitable to me; as a very efficient carrrier. And this is the bottom, for spot market. I think, the legacy carriers may struggle , for one more quarter only; then extremely strong freight due to tariffs / finally solid US fundamentals (strong blue collar wages and balanced trade)… this will light up the markets. Last, final point: there is a huge (I presume legal) quantity of immigrant owner operators (with authority) that are used to running for far less $ than current US lows. I discovered a shop, here in Charlotte; that is not offcial; they only take cash; and half of the labor rate vs Freighliner shop, etc. There is an underground whole trucking network than can survive and thrive on today’s low rates; which the US legacy carriers with hired drivers; can not do. But these legacy only have to run at loss or break-even for one more quarter. I made net $1 /mi (after all truck expenses come out… fuel, insurance, parking, repairs, maintenance); which is $500 /day.