Things are getting better in the freight markets! This is indeed great news. Rates are increasing, tonnage is increasing, freight availability is improving. This exactly why we’ve been telling truckers they need to keep on truckin‘.
Let’s look back a few months. Things were bad. Lots of trucks on the road, very little freight. The loads that were available were shipping at extremely low rates. Many of the people we spoke with were running loads at rates below operating cost.
Keep on Truckin’
Our message however did not change. You need to keep on truckin‘. Our reasoning was simple and it still makes sense today. We knew that it was a matter of time before market conditions would improve. They had to. The concept was simple. You keep on truckin’ to pay your expenses so that you can stay in business long enough to make it through the tough times.
Those who listened, are still open and are now beginning to take advantage of the increasing rates and freight availability. Let’s look at the numbers. Q1 of 2020 saw 88,000 truck driver jobs lost. When you dig deeper, you see that those numbers mainly came from March 2020. I guarantee that we’ll see more truck driver job losses in Q2 of 2020.
Freight Market Stabilizing
This means the market is stabilizing. The companies that were considered too big to fail, failed. The companies that mismanaged their balance sheets, failed. The companies that didn’t put away money into a rainy day fund, failed. The companies that operated in a smart way, are still in business.
Things will improve and we’re now starting to see the beginning of it. We’re booking loads for our customers that allow them to cover operating costs and make a profit. Couldn’t say this just a few months ago. Things are changing though. We have customers grossing well over $20,000 per month per truck. We’re finally coming back to grossing closer to the old figures.
Let’s get real. Let’s say you gave up, shut down, cancelled insurance, and let it all go. It didn’t make sense to run at a negative. It didn’t even make sense to break even. You didn’t get into business to lose money. No one did. The log sticks, I get it. Here’s the problem though.
In business, much like in other aspects of life, you win some, and you lose some. The idea is to win more than you lose. With that in mind let’s consider something. Let’s say you continued to operate at a negative or a break even rate. You didn’t bring any money in, you worked hard, but all you accomplished was to pay for your fixed and variable expenses.
Here’s the thing though. Those who went out of business, locked in their losses and will never be able to recover them. You on the other hand incurred additional losses and from the looks of things have dug a deeper hole. It’s not the case though, and here’s why.
You’re a Survivor
You survived and stayed in business. This means that when the time came and the markets improved, you were there and in one piece. You lost money but unlike the other guy, you’ve positioned yourself to be able to recover while the other guy locked in his losses.
The same thing happens in the stock market. All those people who lost their retirement money in 2008, would’ve recovered it all and then some had they stuck with the market. Unfortunately people panic and make decisions on emotion and history shows us that it’s a bad idea. Everyone who pulled out of the market locked in their losses. Those who stuck around inevitably bounced back and actually made money on top.
You want to be in the latter category. You want to be the one to keep your wits about you. You want to look at the long game. The markets can’t continue as they have been. Stores will need to get stocked up. Warehouses will need to get replenished. People will need to get products. Things break, get used up, will need to be replaced. People need to eat, drink, and take medicine. There is no way that things would continued as is.
This is why we kept telling people to keep on truckin’ and are we glad that so many listened. Companies have shut down, jobs were lost, lives were ruined. This is all true. Those who stuck round are the ones who will benefit from the resurgence of the freight markets. We certainly hope you listened.
In previous paragraphs I mentioned our customers. Well, we have two different types of customers. One is a carrier operating under their own MC authority and the other is an owner operator leased on with us. We work with both types of customers and this is how we’ve been able to help them get through the difficult times these past few months.
Our phones were blowing up from people calling us wondering what’s been going on. Carriers were calling in saying their dispatchers aren’t picking up the phone and their stuck in some truck stop somewhere. Owner operators were calling in saying they’re not making ends meet. So here’s how we helped both the carriers and the owner operators.
When the freight market was at it’s worst, the load to truck ratios were all out of whack! Lots of trucks, and very limited amount of freight. This made things very difficult no matter if you were a carrier or an owner operator. Unless you had an excellent team of dispatchers working on your behalf, you were pretty much out of luck.
Carriers couldn’t find the loads they needed because every time they called on a posted load, it was covered. Owner operators were stuck in an even worse conundrum because all too often they were leased on with companies that charged them way too much money and also didn’t provide them with any loads.
Enter AFT Dispatch, Inc.
When it comes to motor carriers operating under their own MC authority, we helped them by getting them the loads they needed to keep on truckin’. Our dispatchers know what to do under any market conditions and because this is so, our dispatch customers kept on rollin’
A few things to keep in mind is that our dispatch team will not only make the many calls needed to find you the loads you need, but they’ll also negotiate the rates, take care of the paperwork like packets, and get an updated insurance certificate from your insurance company listing the broker as a certificate holder. Once you’ve delivered the load, we’ll even take care of the billing and invoicing which includes your factor.
Our dispatchers have the knowledge, skills, technology, and data to find the loads and negotiate the rates. We’ve booked thousands of loads over the years. We have our fingers on the pulse of the freight market all day long. We know what’s happening and what the lanes are paying. This is why our dispatchers have consistently averaged high rates even when the markets weren’t paying well. At the worst of times, they were able to get our customers loads when others were sitting around at truck stops.
Enter A2C Logistics CO.
As mentioned before, we also help owner operators who have their own truck but prefer to operate under someone else’s MC authority. There are lots of benefits to leasing on. The big one is quite straight forward, you don’t need to run your own trucking company to make money in the trucking industry. This is precisely what leasing on helps accomplish.
The problems with most lease on operations is that they’re simply too expensive. They charge much more than they really need to and the packaged everything is an all-inclusive deal so most owner operators never find out where their money is going.
With A2C Logistics CO., we charge 12% plus deductions which ends up costing the leased on owner operator considerably less money in total than pretty much any other offer we’ve found to date. What we do differently is we actually show you where your money is going. We allow you to run under your own plates. We allow you to book your own freight if you want. We don’t charge you for factoring. We let you use your own fuel cards. Seems common sense but unfortunately most companies don’t offer any of the above mentioned and they charge a ton of money.
I’ve spoken with lots of people who are paying upwards of 45% (worst case scenario), and others who pay 27% plus they have to pay for their own insurance. When you break everything down and run the numbers, you will see that you’re over-paying. What happens during a market crash as we’ve seen lately is you simply go out of business because you can’t cover your basic fixed costs.
You’ve made it this far! Congratulations!
So here’s the offer. You can’t lose with AFT Dispatch, Inc. or A2C Logistics CO. and here’s why.
If you’re a carrier, you only benefit from having a strong, experienced team of dispatchers working on your behalf. We keep you rolling and work on commission so you always know that we’re fighting to get the highest possible rate the market has to offer. We only have one service level and it costs 7%. It’s straight forward, the more money you make, the more money we make. This keeps everyone on their toes and motivated.
If you’re an owner operator, then you benefit from leasing on with A2C Logistics CO. You work with the same team of dispatchers who’ll get you the loads you need. We take care of the operations behind running a trucking company. We take on the liability of running the loads under our MC. We’ll keep you safe and compliant and will handle all the day-to-day operations.
There’s a lot that goes into running a trucking company and we understand why so many folks just don’t want to deal with it. There’s a lot t deal with. We get it. This is why we’ve created this offer in the first place. How you benefit is simple. You gross more every month by working with dispatch (no extra charge by the way), and you net more because we offer a truly “bare bones” program. You never over pay and you always know where your money’s going.
Tell Me More!
If you’re a carrier and want to learn more about our truck dispatch service, then click the link and it’ll take you where you need to go.
If you’re an owner operator looking to lease on, then click the appropriate link and it’ll take you where you need to go.
You can also learn more by watching the quick one-minute video below or by calling us with your questions at (801) 448-6363
You may have noticed the chat box on your screen. You can always send us your questions there and we’ll reply via email. Just make sure to include your email address in your message so we can get back to you.
We look forward to hearing from you and working with you very soon!