Highland Center, in Southeast Iowa | Chris - 6/8/2022 08:39 My wife is worried about shortages. She specifically was listening to a story about an independent trucker who couldn't afford to fill his trucks.
I see there are about 11% of all truckers who are independent. Their costs can't be any different from major companies.
Why can't they just raise their rates? I know that in certain cases a company they truck for says they will pay X cents per mile but at some point nobody is going to accept that and products will set.
If big companies have the same costs or maybe higher in some cases it seems that freight rates will just naturally rise with fuel cost.
No doubt a lot of you know a lot more about this. I'd like to know to explain to my wife.
I didn't read other replies, so I apologize if I'm redundant. Independent truckers' costs are indeed different from major companies'. Major companies have the ability to negotiate with fuel suppliers.....Pilot, Flying Hook, T/A, etc.....for a preferred fuel rate. Company drivers use the company-suppled card and get a significantly lower price for fuel on the road. Most of those major trucking companies also have in-terminal fuel tanks to supply the company trucks when back in to their home site. That's no different from farmers buying farm fuel in bulk delivered to the farm, and driving the tractor into town and filling up from Casey's off-road pump. Independent truckers pay exactly what is posted on the big sign out by the road.
Why can't they just raise their rates? I know that in certain cases a company they truck for says they will pay X cents per mile but at some point nobody is going to accept that and products will set. Right there is the situation that will result in some shortages. |
Freight rates questions
