How do they expect us to survive on these rates? I broke out my old profit margin worksheet from my days as an owner- operator. And I tell ya, the ham and cheese diet is the best I could do to survive on the leftovers. When you add in bills, personal spending, and some to the maintenance fund, what do you really have left? Spot rates still sliding, down $1.03 from the peak, and 37 cents from last year. I hope everyone used some fiscal restraint and saved back for the rough summer ahead.
Hope that the rates will fall soon is not around. The PADD 1 inventories for the East Coast are still falling. With diesel fuel prices over $6.36 per gallon in PADD 1a and 1b, the notoriously low rates in New England aren’t helping.
The “discount rate” of $5.60 per gallon in the Southeast (which is due to the proximity of the Gulf Coast refineries), might help things. But unless the rates pick up soon to bolster the wallets that have slimmed down significantly since the fuel price increases, a lot of owner-operators might change careers (or have to change careers).
Since FreightWaves TV had a little bit of a refresh to its look and lineup, I’ve included the May 17 episode of “Research Corner” with Tony Mulvey, Senior Analyst, and a new member to the team, Michael Rudolph, Freight Analyst. They go into detail about the differences between the Truckstop.com 7-Day Rate Index and the new FreightWaves National Truckload Index. And they also introduced the new SONAR Container Atlas, an outbound tender volume index, but for the ocean shipping side of logistics.
And yes, we are about to breach $8.00 fuel in NYC. But looking on other fuel pricing apps, in particular Trucker Path, I see $6.50 around the Thruway and up around Newburgh and Albany at the Pilots. Just mind that MPG and don’t get in too big of a hurry to get to your destination. The foot feed is the difference maker in cost savings. Why get 7 MPGs when a little slow down could net you 10. The old “time versus fuel cost” argument is getting harder to stay neutral on.
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