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On today’s Coronavirus Freight Market Update, Michael Vincent and Kevin Hill will be talking about the economic impact that COVID-19 is having on freight and the transportation industry. They’ll cover the latest news and freight flows backed by data driven insights powered by SONAR.
On this episode they’re joined by FreightWaves founder and CEO Craig Fuller, Market Experts Zach Strickland, Anthony Smith, Andrew Cox, and Executive Vice President of Content Emily Szink.
This is a live interactive event, viewers are encouraged to comment and call-in during broadcasts Tuesdays and Thursdays at 12PM ET on FreightWaves Linkedin and Facebook channels.
This is a live interactive event, viewers are encouraged to comment and call-in during broadcasts Tuesdays and Thursdays at 12PM ET on FreightWaves Linkedin, Facebook, and YouTube channels.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Steve Joseph
Even direct shipper customers are going to the spot market because ignorant carriers will haul it at less than half of the average carriers cost per mile. Desperate carriers who probably have to factor their invoices already, and now it won’t be long before they have a breakdown they can’t afford to repair. Then after another loan, something else will happen and they’ll close the doors. It’s been happening this way ever since deregulation. No one needs to know how much it costs them to operate before getting their authority which is why there is so much churn and burn in the industry. A full 75% of carriers with new authority will not be operating two years later. Yet in the meantime they destroy the market for others until the load to truck ratio exceeds 10/1 before we get rate stabilization.
We are financed well enough that there is no need for factors, or running with losing freight rates. Our direct shippers who have gone after cheap spot market freight have come back seeking our services. By then we are generally totally booked. But now everything is turned on its head.
With the low oil prices many oil service companies have laid off their drivers. So those drivers and trucks will make their way into the general freight market thus putting more pressure on rates, even after all the other manufacturers get back to production. I hope I’m wrong, but this looks like 2010 all over again, but this time on steroids.
Drey
My Cat gives better Economical Advice.
Dave
Not a chance. Have you seen unemployment??? and it’s going to getting worse. Economics 101. Demand is spiraling down to the floor.