In a recent Overdriveonline.com article found here, Todd Dills discusses the spot freight market dip with the CEO of Truckstop.com. Truckstop.com is one of the leading freight load boards in the U.S. and happens to be the one that I use primarily. The information found within the article was very interesting and it caused me to take a look at where I was a year ago and compare it to where I am now.
The conversation was around the spot freight market, which is the game I play. 
In short, the spot freight market can be defined as the price to move a load of freight from point A to point B on any given day. That rate changes daily based on day of the week, amount of trucks in area and weather for a few examples. A load from Dallas to Atlanta will pay a different amount on Monday then it will it on Friday. That’s the volatility of the market. When it’s all you do and you don’t have any steady contacts to count on, you quickly learn to anticipate the market trends.
At first glance, the market is down from where it was last year. May was the month examined and in May 2014, the average flatbed freight rate was $2.41 per mile. In May 2015 it was $2.28, a drop of .13. But don’t despair, when we look at the price of diesel, our largest expense, we quickly find out that the nationwide average is approximately $1.00 a gallon cheaper or nearly a 30% decrease. Look at the data below from my record keeping. I buy fuel through my discount fuel program which keeps me well below the national average pump price.
- May 2014 Nationwide Average - $3.94 per gallon
- May 2014 My Average - $3.71
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- May 2015 Nationwide Average - $2.89
- May 2015 My Average - $2.71
My fuel costs were .58 per mile in May 2014 and I was averaging 6.45 mpg. My fuel costs were .37 in May 2015 and I was averaging 7.3 mpg. The increased fuel mileage was due to an upgrade to the Cascadia Evolution in July 2014 plus the $1.00 per gallon drop in my fuel prices. So my cost to operate was reduced by .21 per mile in a year’s time; mostly because of fuel prices and partly from better fuel economy. If I kept the same truck, my fuel cost would’ve been reduced by .16 per mile – still significant and more than the decrease of .13 in freight rates. So in a year’s time, freight rates have dropped and I’m still making more money than last year. Let's take advantage of the lower fuel costs right now and make hay while the sun is still shining.