Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/391783
26 | Overdrive | October 2014 S uper-high rates on loads such as the one pictured above have become more common, partic- ularly in the spot market, where many independents specialize. A prolonged capacity crunch among more sizable carriers has helped. Alarmism over shrinking capacity seems to repeat itself every couple of years, always with the assumption that drivers stand to benefit from such tight supply of trucks and drivers. Yet as Overdrive readers have pointed out over the years, freight rate stagnation has remained in large part a fact of life. This year, however, is different. The 2013 hours of service changes and other regula- tory developments have put pressure on the supply chain. While freight volumes have been on the rise, trucks are getting more expensive, mak- ing fleet investment in new units less likely. Where fleets do invest, it's harder to find a good driver to take the wheel than to find an owner-opera- tor to haul the freight. The horrendous 2013-14 winter further limited capaci- ty and threw rate and volume dynamics into turmoil. The typical early-year bid process at the shipper level was dis- rupted as miles were low and carriers held out for higher rates, according to DAT's recent "Truckload Capacity in 2014" white paper. A lot of that contract Riding the spot market boom Independents: Learn to identify high-demand freight situations and negotiate for top-dollar rates. BY TODD DILLS This tiny load booked by owner- operator Chad Boblett of Lexington, Ky., in August ran just 186 miles on Don and Chris Cartledge's team truck between Florence, Ky., and Napoleon, Ohio. The rate: $6.98 per loaded mile.