4 Ways to Survive the Slowing Market
Hello Owner-Operators and Carriers,
As you know, the market continues to slide when it comes to rates. Not only is the spot market moving down, but the contracted rates with direct shippers are falling too. Blood is in the water, and the shippers are looking for revenge after the market beat them up these past few years.
That being said, the sun continues to rise in the east and set in the west. The market needs a little time for capacity to exit and equilibrium between freight and trucks to return. This will happen, it's just a matter of when.
So right now, what can you do?
- Find patterns of freight that keep you running.
- Mix in shorter loads with longer loads to help increase your margin per mile.
- Slow down! Freight is soft, and there is no need to hurry up and wait until you get to the next load. If you can keep your speed to 65 mph or less, you might be able to increase your fuel efficiency by 0.5 to 1.0 mpg. It works!
- Stay away from Colorado, Florida, West Coast, New England, New Mexico and Utah. Yes, you might get a slightly higher rate to go there, but you may lose 1-3 days waiting for a load, and to add insult to injury, that load won't pay.
The one thing that we can predict is: what goes up must come down. The good news is we are close to bottom. We may not be there just yet, but we are close. And for those who can get their business in order, you will benefit on the turn. What we have seen in the past two years, we may not witness again. Perhaps for smaller periods of time, but not for extended periods like we are seeing now.
TrueNorth has some of the best owner operators in the industry. You are agile and entrepreneurial, and for the most part, you manage your businesses very well! It is our pleasure partnering with all of you. Let's stay focused and together we will make it through this.
As a side note, for any owner-operators looking for more normalized, dedicated freight, please reach out — we may have a lane that fits your preferences. Nothing is perfect, but consistency is sometimes the best recipe for uncertainty.
Thank you all,
Jeff Resch
VP of Demand Gen, TrueNorth