Trucking and Our Economy

It pains and saddens me to think about the state ofyou own a truck, trucking company and or pay the
trucking and our economy. With almost every phonebills to run a truck, consider some facts:
call I make or receive at work I hear about how· Today, diesel still runs an average $2.31 per
almost every driver is looking for work, trying tomile
keep their truck, or wondering how they're going to· Tires cost are double from just a few
pay their bills.years ago
I had the very unfortunate conversation, again, this· Insurance rates are up 140%
morning with one of my shippers. 'Fuel is going down,'· Cost of living has increased significantly
he says, and 'since you are still attaching a fuelsince the 70's.
surcharge, maybe that's why your rates are higher'.If a driver ran strictly at $1.98 per mile, kept his
But our rates aren't higher than other truckingdeadhead (empty miles) down to less than 8% and
companies; our rates are higher than companies thatwas loaded all the time, he may still only make about
are low-balling freight rates.$25,000 a year. Does that sound like a lot to be out
Companies that don't even own trucks and offeringthere 24/7? My facts come with 32 years of
freight have no idea what it costs to run a truck, norexperience, over 1700 owner operators and I have
do they seem to care. They still make theirowned and operated multiple trucks.
commission and pay their bills, so why not continueWhere do the brokers come up with their rates? I've
to keep going the way they are. In the process,heard them offering freight out at less than a dollar
however, it keeps an industry repressed-- unable toper mile, less than the truck even makes. I used to
grow and unable to help a failing economy.say that drivers are good at what they do, but not
Trucking is probably one of the worst industries Ialways good accountants. Some of them are actually
know of where rates have stayed the same throughrunning for less than they're making. They could stay
the years. In 1976 I hauled steel for about $1.35 toin business if they stayed on the road, sent money
$1.50 per mile. In 1988 I was offered and ran forhome to their wives and basically lived in their trucks.
about $1.50 per mile. In 2003 I dispatched trucks forNow there is no money to send home and more
about $1.50 per mile-- just to stay competitive.drivers than ever are losing their trucks.
Everything in our lives has increased in value with theDrivers cannot take freight for less than the truck
exception of freight rates. Thankfully, around thatmakes or we must put a law into effect that
time rates started increasing due to the difficulty inrestricts people from offering freight out for less
finding trucks. Cost of fuel and insurance hadthan minimum wage. We must either start regulating
increased about 140% and finally drivers werefreight again, stop brokers and people from quoting
realizing they were running for less than they wereand offering out cheap freight--or we will have to sit
making and refused to take cheap freight.idly by and watch as some drivers take freight to
I watched as rates went up about 35% and thenkeep moving, only to put the money back in their
carriers started adding fuel surcharges. There wastruck, not into the economy, and then have no boost
hope for trucking and our economy. Fast-forwardto our economy and no one left to move freight.
five years. Now with fuel going back down andEven carriers that should know better (since they
people spending less, trucking becomes one of theown trucks) are brokering freight out. People that
most vulnerable industries. Today with a failingfind freight on the Internet should, at the very least,
economy, shippers and manufacturers are doingoffer loads that would pay minimum wage to the
anything they can to keep costs down and stay indriver. Again, right now these loads are being offered
business.for less than the truck makes.
Enter the brokers. Argue this if you will, but unless