by Mike Kennon

Created on: January 15, 2009   Last Updated: January 16, 2009

As we enter 2009, it pains and saddens me to think about the state of trucking and our economy. With almost every phone now I hear about how drivers are looking for work, trying to keep their truck, or wondering how they're going to pay their bills.

I had the very unfortunate conversation, again, this morning with one of my shippers. 'Fuel is going down,' he says, and 'since you are still attaching a fuel surcharge, maybe that's why your rates are higher'. But our rates aren't higher than other trucking companies; our rates are higher than companies that are low-balling freight rates.

Many companies that don't even own trucks and offering freight have no idea what it costs to run a truck, nor do they seem to care. They still make their commission and pay their bills, so why not continue to keep going the way they are. In the process, however, it keeps an industry repressed -unable to grow and unable to help a failing economy.

Trucking is probably one of the worst industries I know of where rates have stayed the same through the years. In 1976 I hauled steel for about $1.35 to $1.50 per mile. In 1988 I was offered and ran for about $1.50 per mile. In 2003 I dispatched trucks for about $1.50 per mile- just to stay competitive. Everything in our lives has increased in value with the exception of freight rates. Thankfully, around that time rates started increasing due to the difficulty in finding trucks. Cost of fuel and insurance had increased about 140% and finally drivers were realizing they were running for less than they were making and refused to take cheap freight.

I watched as rates went up about 35% and then carriers started adding fuel surcharges. There was hope for trucking and our economy. Fast-forward five years. Now with fuel going back down and people spending less, trucking becomes one of the most vulnerable industries. Today with a failing economy, shippers and manufacturers are doing anything they can to keep costs down and stay in business.

Enter the brokers. Argue this if you will, but unless you own a truck, trucking company and or pay the bills to run a truck, consider some facts:

* Today, diesel still runs an average $2.31 per mile

* Tires cost are double from just a few years ago

* Insurance rates are up 140%

* Cost of living has increased significantly since the 70's.

If a driver ran strictly at $1.98 per mile, kept his or her deadhead (empty miles) down to less than 8% and was loaded all the time, they may still only make about $25,000 a year. Does

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