Why are market rates so high?

Many factors come into play when 

  1. CHINA IMPORTS: Record imports from China are still surging and hit the highest levels in 12 years in July. This puts a lot of pressure on capacity, especially in California.
  2. CORONAVIRUS: Many drivers are staying off the road due to the risks involved with the novel cornoavirus; as the average age of drivers in the U.S. is over 55 years of age.
  3. STIMULUS CHECK: Government stimulus checks took some drivers off the road so they could stay at home instead of sleeping in a cab for similar net pay. 
  4. APRIL LOW RATES: Back in the April timeframe drivers were picketing Washington as truck pay dropped to historic lows, due to demand dropping, and some of this capacity has still not returned.
  5. BANKRUPTCY: Trucking companies have been affected like the rest of the industries as smaller firms went out of business due to these challenging times.
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Current-Market-Rates-Infographic

RETIREMENT: Older drivers are accelerating their retirement plans due to the current climate; with very few new drivers back filling those positions.

REGULATIONS: 21,000 drivers temporarily lost their licenses after testing positive in the DOT new drug & alcohol clearinghouse. DOT week and E-logs also contribute to lower capacity.

BUYING BEHAVIOR: The historic spike in grocery and home improvement shook up capacity. Changing demand has created unseasonable peaks and valleys in output and capacity across states and different lanes.

FINAL MILE: Skyrocketing demand for final mile delivery has created higher pay that entices OTR drivers to take on more local gigs.