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Yellow | Increased consumer spending not enough to end trucking bloodbath

Americans are spending more but its buying less. Everything is expensive right now due to inflation. People are spending 30-60 dollars more a week on the same groceries they always buy a year ago.I dont see a whole lot of people doing extra or spending extra on wants. Its just that the needs have doubled in price. More people becoming homeless because the housing is so ridiculous high same on automobiles. Lumbers and home improvement stores have went through the roof.
 
Many smaller, or owner ops are closing also, partly because of how many jumped into trucking 2-3 years ago when freight rates were through the roof. Now, the industry has way more trucks available than the amount of freight there is to move, so rates go down, and the stronger, well run companies survive. The economic condition of this country has always had a large influence on freight rates.
 
BIG R GUY said:
Many smaller, or owner ops are closing also, partly because of how many jumped into trucking 2-3 years ago when freight rates were through the roof. Now, the industry has way more trucks available than the amount of freight there is to move, so rates go down, and the stronger, well run companies survive. The economic condition of this country has always had a large influence on freight rates.
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The cost of fuel has to be a major factor. Its tentacles reach to every aspect of the economy.
 
BIG R GUY said:
Many smaller, or owner ops are closing also, partly because of how many jumped into trucking 2-3 years ago when freight rates were through the roof. Now, the industry has way more trucks available than the amount of freight there is to move, so rates go down, and the stronger, well run companies survive. The economic condition of this country has always had a large influence on freight rates.
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If this true and i agree with you. More trucks than freight and freight always slows down in the winter it seems. Why are some articles on the web talking about much it will hurt the trucking industry if yellow goes out and doesnt come back like pushing rates up and such? If there is this much competition going on it should not be a problem. The economy doesnt make any sense right now.
 
Companies buy bulk fuel one price in advance for the coming year. I remember when ours went from less than 2.00 to 6.30 something on 9-11 they did not care that it cost on the pump a couple thousand that day. The fuel cost to them was what they arranged previously for it to be. Growing up we tried to pre buy heating oil at a known price prior to winter. The local dealer will deliver so many gallons at that price per which will be different than what the spot price would be for better or worse.

Its 2.00 or more per mile to run a 18 wheeler and break even in costs today. One company in the 90's was getting a average of 2.54 a mile overall. That information was privileged and left unsecured in a unlocked room in their fleet dispatch room settlements daily sheet when I read it. (Before being thrown out) that year I was paid something like .30 a mile and the truck needed about 1.45 a mile to breakeven.

My buying this year is strictly whats needed. I disposed of four dumpster loads of house stuff thats deadweight just this year. There has been less than 500 dollars worth of spending in non food items and barely 700 in gasoline for two vehicles all year total so far in 23. Car repairs was a few thousand done. Everything else was accumulated and evaporated as needed in non retail stuff. The food buying has been cut in half this year and stands to be cut another 1/3 going into next year. (Rationing to 1500 calories a day)

In days long ago when trucking became no profit truckers simply parked and did something else that brought in money whatever it was until the economy cranked up again loaded both ways. Part of the problem must also lie with the trucking industry. When I started we might get 5 miles to gallon on a good day, but only got 8 to 9 at best today with trucks that cost four times as much in inflation retail and only thrown away after 4 years of abuse. So the entire industry is too expensive for its own good. It must fail.
 
Bird Man said:
Companies buy bulk fuel one price in advance for the coming year. I remember when ours went from less than 2.00 to 6.30 something on 9-11 they did not care that it cost on the pump a couple thousand that day. The fuel cost to them was what they arranged previously for it to be. Growing up we tried to pre buy heating oil at a known price prior to winter. The local dealer will deliver so many gallons at that price per which will be different than what the spot price would be for better or worse.

Its 2.00 or more per mile to run a 18 wheeler and break even in costs today. One company in the 90's was getting a average of 2.54 a mile overall. That information was privileged and left unsecured in a unlocked room in their fleet dispatch room settlements daily sheet when I read it. (Before being thrown out) that year I was paid something like .30 a mile and the truck needed about 1.45 a mile to breakeven.

My buying this year is strictly whats needed. I disposed of four dumpster loads of house stuff thats deadweight just this year. There has been less than 500 dollars worth of spending in non food items and barely 700 in gasoline for two vehicles all year total so far in 23. Car repairs was a few thousand done. Everything else was accumulated and evaporated as needed in non retail stuff. The food buying has been cut in half this year and stands to be cut another 1/3 going into next year. (Rationing to 1500 calories a day)

In days long ago when trucking became no profit truckers simply parked and did something else that brought in money whatever it was until the economy cranked up again loaded both ways. Part of the problem must also lie with the trucking industry. When I started we might get 5 miles to gallon on a good day, but only got 8 to 9 at best today with trucks that cost four times as much in inflation retail and only thrown away after 4 years of abuse. So the entire industry is too expensive for its own good. It must fail.
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Thats why there needs to be some regulation a minimum freight hauling rate.
 
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