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From TTNews.com Freight Rates Rising

NEW ORLEANS — Shippers are facing a shortage of freight-hauling capacity and as a result are paying 3% to 5% more for truckload freight service compared with a year ago, freight brokers and logistics service providers say.

Same article -

Voltmann said he had heard from many brokers who said their business was up as much as 25% so far this year.

Why is there still so much cheap freight out there? The so-called shortage isn’t shortage enough to raise rates where they should be. There needs to be more of a “shortage of freight-hauling capacity”

Most of the time I don’t work directly with brokers, but there are times when my office says they turn down freight that won’t even pay me what they are contracted to pay me. I’m just a leased driver, no trailer, no authority. And brokers expect companies or independents to take less then 90 cents a mile? By taking cheap freight that enables brokers to keep offering cheap freight. Every once in a while I will look for my own freight and call brokers direct. I hold myself back from exploding when someone offers .80 a mile and that’s shortest miles and just hang up.

Trucking will always be around. But there will always be fools that think the faster they run the more money they make and cheap freight is just part of trucking. I’ve got to believe the turnover rate on these guys is pretty quick. From starting to going out of business can’t be very long for these truckers. The sad part is that there seems to be an endless supply of people that think they can outsmart or outrun the business. Eventually cost cutting catches up. Running with no insurance or hiring outlaw drivers something is going to happen to take back everything these guys have earned, plus some. It’s just sad that these people give the rest of trucking a black eye every time they do something stupid and someone gets hurt.

The only answer is to continue to have a “shortage of freight-hauling capacity” by not hiring so many drivers. The market will take care of itself. Everything about trucking is cyclical. From driver shortages to fuel prices. There are still people in trucking that survive and prosper. If we can just get through this little period of high fuel raise the rates a little more we can enjoy this economic recovery along with everyone else.