Shain Ferriss, a moderator for the popular Rate Per Mile Masters group on Facebook, recently wrote his thoughts on the state of the freight market.
It begins with, “2018 was an anomaly! The sky is not falling!”
Ferriss urges fellow carriers to refrain from using the record rates from 2018 to measure the current market.
We sat down with Ferriss to hear more of his thoughts regarding current rates compared to what was seen in 2018. Read on for his expert insights.
Disrupting the supply chain
In December 2017, the freight world was shaken with Electronic Logging Devices (ELDs) mandated nationwide with the exception of a few field trucks. The mandate couldn’t even match up with the demand for the devices themselves. The Federal Motor Carrier Safety Administration (FMSCA) has to extend the deadline to April to ensure carrier equipping.
“In contract freight, the ELD is a great tool for tracking and enforcing detention. The ultimate goal, of course, is to minimize wasted time,” Ferriss told Shipwell. He goes on to say that the spot market is a different story, creating hurdles for some.
In the middle of all that is the first quarter of the year, which is notorious for being slow, having low rates, and terrible weather keeping drivers off the road. However, rates increased and drivers took the incentive to make some money.
FreightWaves made a statement at the end of 2018 that solidified the year as exceptional. “The history books will say many things about 2018, but whatever else is recorded, it will go down as one of the strongest years for spot and contract pricing increases in the history of trucking in the U.S.”
Growing business from learning
Ferriss is the owner of a small carrier business and leverages ELDs to work for him by utilizing reporting features to monitor truck efficiency. Smart business decisions can make the busy months sweeter and the slow months comfortable.
“Be a student of the game. Learn from history,” Ferriss states at the end of his original post.
When we asked him if he had any advice for new drivers in 2019, he unloaded a wealth of knowledge and insight.
“The business side of trucking is easy. All it really takes is hard work and integrity. Always promise less, and deliver more. Great service will build great relationships. Great relationships will sustain you through the lean times.”
Instead of going into each year with a hope that the market will maintain or increase, hit the ground running prepared with Shipwell’s TMS platform designed to connect and centralize freight shipments and communication.
Carriers get free access to our platform and all the benefits that come with it. If tracking is activated for the duration of a shipment, carriers are given free Quick Pay. That way, carriers can get their money in 72-hours so they can better manage their finances.