Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Came back with a bank hey oh Got the foot on the gas pedal to the metal when I'm get to the bag hey Got the foot on the gas pedal to the metal when the lane moving fast hey Let them all cross if they hate then let them hate them Make a bigger ball hey.
Speaker 2 (00:26):
What is up ladies and gentlemen?
We are back.
We are live.
It is the Freight Coach podcast, the top podcast in transportation coming to you guys every single weekday, 8:30am Pacific, 10:30 Central to break down some industry headlines.
But most importantly, you guys provide some actual insight into what you can do with all of this information.
If this is your first time tuning in, welcome.
This is the real side of freight, ladies and gentlemen.
(00:47):
And I do say that before every single show.
And what I mean by that is I only speak with transportation professionals.
Professionals, because at the end of the day, you guys, I want to talk to the right individuals who have done what you're looking to do or who are currently doing what you're trying to achieve.
So you can take that information, apply it, utilize it and see a meaningful difference in your business and your life.
Happy Monday everybody.
We got a solo show today.
(01:08):
We're going to be going old school with some stuff.
We're going to be breaking down some articles here today.
And yeah, you guys, at the end of the day, we are just, we don't have guests on all the time because, you know, people have day jobs, hence shocking in today's day, I think.
And I swore too early in the show and now YouTube's gonna knock this.
But anyways, yeah, so it's solo show today.
(01:30):
But you know, as always, you guys, my team keeps reminding me I need to say this at the beginning of the shows as well.
If you get value in what you hear and you're not subscribed, subscribe to the show, you guys, whether it's on YouTube, iTunes, Spotify, and if you feel like really ambitious after it and you want to rank the show on any of those platforms as well, if you, it just helps get the message out into the algorithm, you guys.
(01:52):
It puts it out there.
And then frankly, at the end of the day, if you see value, chances are your network is going to see value as well.
Also, another quick reminder Wednesday, if you want to go get in on our newsletter right there, I need you to go to the FreightCoach.com to check that out and to register for it.
It will auto prompt it.
I don't auto sign anybody up for anything, frankly, because I don't know how even to If I even had that ability to do that.
(02:17):
I don't know how.
I'm not a tech guy, you guys, I'm just, I just talk shit into a mic and slang freight all day long.
That's just what I'm about.
But you know, we talk about trucking in there, obviously.
Rates, diesel prices, everything is in that weekly newsletter.
But I'm not going to auto sign you up for it if I have your contact information.
But if you want in, go to the freightcoach.com check it out.
(02:38):
It drops every single Wednesday.
But let's go here and get into some things.
So you know, I want to jump in.
Robert Cowton, good morning.
Corey Buchan, Good morning as well.
And sometimes the notifications for the stream chat doesn't come through and when I'm doing this here and I kind of get in the zone.
(02:58):
So I do see a lot of your guys's comments.
Sometimes it's after the show and yeah, my son told me this weekend, you know, I feel old now because my son is teenager and he teaches me all the new lingo on stuff and apparently you need to refer to the people who comment as chat and, but I won't do that.
And I, and I also, I will do it because in case he ever watches this, I like to embarrass the out of him.
(03:23):
So I'll put that out there and be like what's up chat?
And then also hey fam, I'm supposed to say that a lot as well on the stream, but anyways, you guys, we're gonna dive right in to it here and we're gonna break down some articles.
Obviously the, the market is top of everybody's mind right now.
And it is, I, I saw a ton of articles out here regarding it as well.
(03:44):
And there's one word that comes to mind when we're talking about the overall freight market that is soft.
All right?
It's soft out there.
And by soft I mean capacity.
There is a ton of capacity all over the place and if you break it down, this is one of the great things about spi, outside of the fact that they're a long term partner of mine, but like they send market updates into us all the time as agents, right.
(04:08):
So we can kind of get a pulse for what's going on.
They pull from a ton of different data sources and you know, the overall market right now is soft.
Van is soft, the reefer market is loose.
So that's a step up from that.
And Same with the flatbed market.
That is also loose.
And as somebody who only primarily moves flatbed freight out there, it is still very soft in the market.
I mean, hell, on my cold calls that I made this morning, I actually got hung up on.
(04:31):
It's not a while since I've had that happen.
So as always, I like to laugh when I'm in the middle of my pitch and somebody just hangs up the phone.
But yeah, it's been a while since I've had that.
So if that's pretty telling about where people are at for business development right now, there you go on that hang ups.
But you know, that's part of it, you guys.
And I also like to put that out there because that's one of the most common DMS that all receive is.
(04:53):
It's like, how do I get shippers, right?
And they, people always think that they're doing something wrong with it.
And I get hung up on to you guys.
I get told we're not interested to.
I get told we're not busy enough, we're not adding new providers.
I get told all of that stuff, right?
So if you're out there and you're experiencing any of that, it could be your pitch, your pitch could suck.
Hell, my pitch could suck.
(05:14):
But more times than not, you guys, it has nothing to do with you, the individual, and it's just part of the game, right?
It's part of the process.
It's part of paying your dues in there, you know, because out of all the cold calls that we make, all the site visits that we do inside of our business, we get a lot of resistance as well.
(05:34):
But we've also been able to cultivate some really great relationships with our shippers.
I mean, our core group of shippers that we've been working with them now for over three years, right?
So it's not even three years yet, but we've been with them essentially the whole time and they've been with us, right?
And it takes a long time to build that up.
I mean, I have one of my customers who we're really busy with right now.
(05:58):
I mean, we had been set up with them for over two years and we had only moved a total of like three shipments in that time frame, right?
Because like were set up but they didn't need us.
And then that changed about 60 days ago.
And now we've done like 50 orders in the last 60 days.
And it's just, were just paying our dues, right?
We were sitting there, we're following up, were staying in front of them and everything.
(06:20):
And then eventually your number gets called, right?
And I would say that, that as we're going in to the back half of 2025, I think that's the big glaring difference between this freight market and freight markets in the past from my perspective.
And again, I don't know of anybody else out there who has brokered pre Covid and post Covid and creates content and media about it.
(06:43):
So I'm just taking it from that perspective where the big difference between business development pre Covid and post Covid is the, the ability to get approved shipment is all but gone.
I'm not going to say it's non existent out there, but we.
What used to happen, at least for me, is back in the day when you would cold call somebody, you have a couple of good conversations, right?
(07:03):
And then you would get a prove it shipment.
They would be like, hey, you sound great here's this order.
How do you perform?
That has seemingly gone away in its entirety.
They'll set you up.
But with capacity being as loose as it is out there, it's really tough to kind of crack in.
And especially if people are getting really good rates and when you're competing with asset pricing as a bro worker, it's really tough to kind of to break in to some of these operations at the end of the day.
(07:34):
But it's not impossible.
But again, you need to be set up for how this is going to be.
And I truly feel that this is going to continue for the foreseeable future.
I would say all of this year, maybe into the first half of next year, the next 12 months very well could look like it is right now.
(07:56):
And now you can hear a bunch of people out there spewing what their thoughts are, right?
They're, they're going to go out there and they're going to sit here and say it's got to change soon.
It's got to change.
This is going to happen.
Oh, our data is saying this and our data is saying that and ironically they're trying to sell you said data.
All right?
To get up and how their stuff is revolutionary and all this and it's not right.
(08:20):
Here's the reality, you guys.
You need to learn how to sell in every market, plain and simple.
Because again, I will say this, you need to start asking yourself, what if it doesn't change?
All right, what if this continues?
What if this goes on?
What are you going to do?
Are you just going to give another six months up?
(08:40):
I mean, it's alarming the amount of people that I know who have said openly admitted.
Now we're not even cold calling right now.
We're not even prospecting new business right now.
We are.
We're just waiting for things to change.
Like it, to me, it's baffling, right, because it's like there's two schools of thought right now.
There's the camp that I'm in where I develop business at all costs, at all times.
(09:03):
Like, I am never good in business and the most successful people I know in this industry share that mentality.
And then there's the other school.
The thought of, I'm just not going to cold call right now.
I'm not going to do anything.
The market's this, the market's that, and that's just the way it's going to be.
So we're just going to sit there and wait.
And then you sit there and wonder why your book of business doesn't grow or your business doesn't grow and you find a stalemate.
(09:26):
And you know, we are very close to doing more in 2025 than we did in all of 2024.
And we're like six months in.
All right, I'll come out and say it.
So, like we're growing, right?
We're growing with our existing customers, we're growing with new business development.
So there is opportunities that are out there.
Has it happened as fast as I wanted or expected?
(09:46):
And absolutely not.
I thought were going to be way further ahead at this point in year three than we are.
But the reality is I got to go and do more.
I got to find more business and everything else.
So I'm approaching the next six months as it's going to remain the same.
I'm actually approaching the next year as it's going to remain the same.
And as soon as I see any meaningful change in the market, you guys.
(10:10):
Because again, the difference between me and a lot of talking heads and freight, outside of a few others, I know there's a few others that have some shows out here that are actively brokering, but the majority of them aren't.
The majority of them aren't selling in the market.
They're not doing anything.
They're not booking freight, they're not doing jack shit in regards to business development right now.
The reality is it's not going to change anytime soon.
(10:32):
And as soon as it does, as soon as I see it at the desk level.
I will be the first one to sit in the position that I am in and tell you guys exactly what is going on out there, okay?
Because from a business development standpoint, right now it's going to take a lot longer than you want.
That is why when you get a customer, you get customers, you got to go and treat them as they are, the finest one at the ball and you got to keep them just as happy and you got to keep your carriers just as happy to want to continue to work with you.
(11:01):
Because with where we're at from a historical perspective, at any given moment things could tighten up.
And then what are you going to have a bunch of carriers who now are in a carrier's market and they're not going to take your freight because they remember how you were treating them in a down market.
Right.
So you have to balance that out, you guys.
That's the secret sauce to freight brokerage right there.
That's the secret sauce.
(11:22):
So I'm going to come out here, I pulled a bunch of different data that I personally use inside of my business to show how I really get a pulse for how the market is performing out there.
Okay.
So, so obviously my friends over at Green Screens, we do a bunch of market reports, comes out once a week in the newsletter if you want to get on that.
(11:45):
But you know, again, if we're looking at, there's a 30 day trend going on out there in the Norfolk, Virginia market, Norfolk to Charlotte, this is for a dry van, there was a 7% increase.
Memphis, Tennessee to Elizabeth, New Jersey there was a 6 1/2% increase that was going on Tom, in price out there.
And then Little Rock, Arkansas to Kansas City, Missouri there was a nine, eight and a half percent decrease.
(12:09):
And then Nashville to Detroit, there was a nine percent decrease in pricing out there as well.
And again, I always break a lot of this stuff down in the region.
So if I'm looking at Little Rock to Kansas City and then Nashville to Detroit, for example, I include Nashville and Little Rock in the same shipping region.
So that could be very indicative of a price softening in that area or at least one that it's not going to change.
(12:35):
So if I have any shippers in that area and you might be noticing this if you are moving freight in that area, that rates might start to trend down a little bit and again, lock in long term pricing with your customers.
Like that's a strategy that everybody should be implementing is keeping your rates as consistent as possible to your customers.
Right now, don't even raise them 50 bucks, right?
(12:57):
If you're out there and you're moving it for $3,000, for example, and you see that, you know there might be a slight increase, don't go in and ask for more money.
Keep that as similar as possible.
And again, when you're going into regions, you guys.
All right, I'm going to be brutally honest with you.
The rate from Nashville, Tennessee going to Detroit is going to be eerily similar to the, I mean, rate per mile is going to be eerily similar going toledo, Indianapolis, Columbus and Cleveland.
(13:27):
Is there going to be some slight difference in the pricing, you guys?
Yes, there are, but it is not going to be that out of line to where you're not going to be able to keep the same consistent pricing.
Now, 4th of July is coming up here soon.
Yes, there will be a difference in pricing for that, but for the most part, you guys, there's a lot of consistency out there.
This is the strategy I am taking with all of my customers right now is I am quoting the literal, exact same rate to on the same lanes day in and day out.
(13:54):
And I am going to continue to go down that strategy out here because shit's not changing, all right?
No matter what you see out there, it's not changing, at least for the freight that I'm moving.
All right?
Are there some exceptions to the rule?
There's always exceptions to the rule and that's what a lot of people love to hammer on.
But it is not the norm out there across the board.
(14:14):
Now, if you're a customer of dat, you get to go out there and you get to see a lot of the rate changes and everything else that are going on out there.
And with so going on here, I got an email this morning about this.
Dry vans, van loads are down 7% out there.
Line haul rates, net fuel are down $0.01.
(14:37):
Loads per truck are down.
It was our.
They're at 5.4 down from 5.5.
The four week average of that is 5.8.
Reefer loads are up 1% week over week.
Reefer equipment is up 5% out there.
Line haul rate fuel is up $0.01 net or it's up to 198 net.
(14:59):
Fuel which is up $0.01.
Loads per truck are unchanged, 9.1.
The four week average is 9.4.
Flatbed loads are down 10% week over week.
Flatbed equipment is up 1% out there.
So again, if load counts are down but equipment is up, what does that say, you guys?
Supply and demand all Right.
There's more trucks on the road than there is freight out there.
(15:22):
All right, so again, back to what I was saying about keeping consistent pricing across the board, going to your customers, that is all you need to focus on right now.
And loads per truck are down.
They're at 25.
They were at 25.95 week or four week average is 28.2.
Now that is another data set that I look at.
I also am on Truck Stop.
I pay attention to all of those trends when I go out there.
(15:44):
Truck Stop has a phenomenal pricing tool as well for flatbeds that we utilize.
And again, I'm out there and I'm looking at all of this because at the end of the day, you guys, you need to compare.
You need to compare and contrast.
You need to see what's going on.
And what you'll see is for the most part, you guys, from a rates perspective, if you're looking out over the last 12 months and you're looking at historicals, there's a couple of peaks that are out there, but they have remained fairly consistent.
(16:11):
Okay?
So keep that in mind out there as you're going and bidding on more freight.
And then if you guys want to win more loads though, go hit up my friends over at Green Screens, you guys.
That's who we use to bid on all of our freight.
And yeah, that.
That is who I would highly recommend the most.
All right, so first article we're going to get into today, you guys, is from my friends over at the joc.
(16:35):
It's been a while since I've had that mod, but this one is US Trucking Rate Momentum stalls amid volume decline.
Trucking executives may say that there are increasingly, if still cautiously optimistic about a recovery in their market.
But the latest on freight demand isn't encouraging.
I.
E.
Like I said, you guys need to be approaching this like it isn't going to change.
(16:58):
The monthly Cast Freight index, which I've had Cass on the show a few times.
I love those guys.
And the US Producer Price Index report released Thursday show freight demand and pricing either declining or stalled on a month to month basis.
And just for an example, you guys with Cass represents the manufacturing and shipping community out there, all right?
They are out there doing payments for the shipping side of the industry, right?
(17:20):
So they have that hard data coming from the people who are actually tendering out the loads, right?
So keep that in mind.
Truck and intermodal rail shipments fell 0.4% from April to May and dropped 4% year over year.
According to shipment component of the CAST freight index.
The 4% decline followed a 3.6% year over year decrease in shipments in April.
(17:41):
The May shipments decline bucks normal seasonal trends.
Cass said consumer spending in the first quarter before the new administration introduced higher tariffs and is still propping up freight demand, but that support is beginning to weakened.
Pre tariff inventory stocking has started to turn to destocking and those stocks will continue to thin in the coming months.
(18:01):
A further drop in domestic freight volume is likely this month.
Normal seasonality would have shipments decline by 2% year over year in June on the year over year basis.
The CRASS Freight Shipment Index has been falling since February of 23 month over month and the index rose 0.4% in April before dropping in May.
Truckload rates are still rising year over year, but they have been decreasing on a consecutive monthly basis.
(18:27):
The Truckload Line Haul Index, which includes spot and contracted rates, dropped 1.5% from February through May.
The long distance US truckload producer price Index was flat in May from April at a reading of 177.3 and up 3% year over year.
(18:48):
The weighted JOC shipper paid to truckload rate rose 4 cents per mile on average in May to 2 to $2.18amile, although that was down 2 point or down from $2.21amile.
And then however the those three months represented the highest rating of the that was LTL excuse me, the US lawn LTL PPI shows more stability but also the impact of lower LTL volumes out there.
(19:14):
And that's that article about that.
And again you guys, those are some very large organizations who are pulling a lot of this data out there.
And again, I'm bringing this up because this is another source that I follow.
I follow the JOC probably more than anybody out there in regards to their network and the people that they interview for their articles and stuff like that.
They're a phenomenal resource.
(19:36):
But again, a lot of the stuff that I see out there is just another telling sign from me that it's not changing anytime soon, you guys.
And the one thing that comes to mind, and I was just talking about this with Gabe Pinken and last week is LTL right?
If and when or not if when the NMFC code changes happen on July 19 that could potentially stoke a massive opportunity grab out there in the market for a the people who never told their customers about the change and b customers are now going to be assessing their modes of transportation if they were getting up into that volume LTL space of like 10 pallets or 12 pallets or whatever that looks like they might now start wanting to shift into the truckload partial truckload space because again rates are very well established out there right now and it might be cheaper to move it on a dedicated truck now than it would be to ship at ltl.
(20:33):
So again, that is the only thing I can see in the foreseeable future that could cause a little upheaval to from an opportunities perspective because again depending on how the codes change in their LTL freight, it could very well switch into trying to ship it in a different mode out there.
So check that one out.
(20:54):
Next article also from my friends over at the J O C and I pulled this one because it is titled Schneider and J.B.
hunt see U.S.
truck capacity shrinking in the second half of the Industry and again, like I say often I pay attention to what a lot of the large companies in the industry are doing, but their strategy and my strategy as a startup are very different, right?
(21:20):
Because I'm still building my brand.
They have an established brand out there, so they're looking at different investments and their business strategy is different because my main business strategy is this cold call.
More shippers, get more revenue and then build out my team from there.
But trucking executives are increasingly confident the freight market is approaching in equal equilibrium.
(21:40):
Excuse me, not due to higher demand, but because they believe capacity is about to cut faster by multiple factors, including tougher enforcement of U.S.
regulations.
They're looking for a lift, any lift, further off the bottom of a trucking downturn that has lasted three years and speaker told speakers told the 2025 Wells Fargo Industrial and Materials Conference in Chicago this week.
(22:03):
I think there is going to be fragileness in the supply chains, in the supply side, and any little lift will start to be felt, said Bradley Hicks of JB Hunt.
I think we will get back to net growth in the second half, said Nicholas Hobbs, JB Hunt, COO.
And I can't guarantee it by the end of Q3 or if it's in Q4.
There's the timing that comes in terms of dedicated contracts.
(22:25):
We can sell a deal even today and we might not start at that location until November or December.
And despite a soft economy, manufacturing contraction and the tariff impacts on China and Mexico that the truckload market is not that bad if not yet completely normal, said Mark Rourke of the president and CEO of Schneider.
(22:49):
The worst case scenario that we are being band aided about haven't even played out, he said.
We can certainly see a downturn in the west coast volumes that would normally see at this juncture.
But there's also a lot of bonded warehousing activity still starting to come inland and some of the slack in the west coast truckload volume has been taken up by volumes in the Midwest and Southwest and cross border volumes to and from Mexico, he said, adding that domestic demand has been fairly steady, if unspectacular.
(23:15):
Although Roark, Hicks and Hobbs believe truck capacity is tightening, shippers have told the Journal of Commerce that they have not seen any tightness yet, noting that they have no trouble finding a truck.
Again, I.
E.
The markets I said from the SPI email that I get once a week, still very soft out there.
All right.
There's still a lot of factors that can come into play and again the majority of us need to operate in real time because a lot of us operate off of that spot market last minute freight that comes through from our customers.
(23:44):
So again, when some of the biggest providers out there are positively optimistic and again I look at it like this, publicly traded companies for the most part, again, I'm not speaking on behalf of them, but one thing I've noticed in my life, a lot of them like to they're very strategic in their messaging.
Right.
Because you don't want to instill any shareholder, give your shareholders a lack of confidence and what's going on out there.
(24:09):
Right.
And then obviously trucking.
Another part of the article, the Sorry, I lost my.
There we go.
Trucking executives see new factors emerging beyond low rates and higher insurance premiums.
In particular, federal enforcement of the English language requirement for drivers out there.
It's a matter of how consistent and broad based the enforcement is.
(24:32):
Under the new guidelines U.S.
department of Transportation that take effect June 25, an inability to communicate in English with officials or read road signs will automatically lead to drivers being placed out of service.
And inability to communicate through English has been a violation, but not an out of service violation since 2016.
In 2024, state police and federal inspections handed out 9,500 English language proficiency violations out of 1 million driver violations out there.
(25:05):
It's.
Let me see here.
Sorry.
And then the LP has been a little dismissed too much in particular in certain geographies where there could be have more concentration out there in the market.
So yeah, again like that.
That's another thing too.
And I feel like it will boil down to how strict states want to enforce this.
(25:26):
Again, I am pretty impartial on a lot of this stuff, but you know, I feel like at the end of the day, if you have a valid CDL and a valid driver's license in this country, you, it's very clear that you need to be able to read, write and speak in English.
At least that's how it was when I got my driver's license back in the day.
(25:46):
And I think that's very common out there.
Right.
And again, some states are going to enforce it, some are not.
I think you can pretty much just follow party lines for how that is going to roll out here inevitably.
And again, could that be a big shift in the market?
Yes, but probably not.
At the end of the day, I, I don't think it is going to be that big of a deal.
(26:08):
It could, it very well could.
And from that perspective, it, if it does, you know, again, that will be another thing and we'll talk about it as it gets a little bit closer.
I just don't personally think it's going to be a thing because a lot of this stuff has been in effect already.
They're just enforcing it.
And again, I feel like follow state party lines in what states will probably enforce it and what will not.
(26:33):
So that could have a pocketed effect on the market as a whole.
So again, you guys, that article was also from the JOC and that is from Schneider and JB Hunt says us they see US truck capacity shrinking in the second half of 2025 out there.
Again, it'll be, there's a lot that is kind of riding on that.
(26:54):
But we will see a positive though as our third and final article for the day is from ttnews.com and Trump removes California Emissions Waiver.
I have spoken about this at length on it in past shows about my disdain for further government rules and regulations.
(27:16):
And, and this is another one, right?
It's, it's one of those ones.
You can go out there.
We, we don't have enough time left in the show today to go through all of it.
But again, the state of California has been very vocal about their want to remove any and all gas powered vehicles outside of electric vehicles by like 2036.
All right.
(27:37):
And this is removing it from it.
And it goes on to say today common sense prevailed.
We want to.
This is coming from.
Sorry, my screen just updated here.
And this is from the ata.
Excuse me.
Today common sense prevailed.
We thank President Trump, EPA Administrator Lee Zeldin and congressional leadership for taking decisive action to end crippling, detached from reality rulemaking that would have imposed devastating economic consequences on American businesses and families, said Chris Spear.
(28:07):
This is not the United States of California.
With the stroke of his pen, President Trump is restoring the certainty that the trucking industry needs to deliver our nation and we continue to reduce our environmental impact.
Gina Jones, a driver for Warner, said, we cannot allow one state's regulations to disrupt our entire nation's supply chain.
Allowing California to do so would have negatively impacted the hundreds of thousands of truck drivers who deliver critical goods across the country.
(28:33):
Per informal information provided by the ATA, takes about 15 minutes to fuel a diesel truck to go 1200 miles.
Conversely, it takes six to eight hours to charge an electric truck that can at most travel 200 miles on a single charge.
More trucks would be needed to move the same amount of freight at a much slower rate, said the ata.
(28:53):
And and then with President Trump's signature today, we have successfully ended California's attempt to establish a nationwide electric vehicle mandate, which would hurt our economy as a whole.
And you know, again, I would wholeheartedly agree with that.
Right?
I am not against alternative energies at all.
I am against the federal government in any government telling me that I can only drive electric or that's it.
(29:20):
Right?
Again, I'm vehemently against that on all levels.
And I think I've said it before, California's power grid is bound to fail this summer like it always does.
And how can we over like our electrical infrastructure is not set up to actually do that nationwide.
So I think this is a very solid win for the trucking industry and it's definitely a solid win for everybody in the Southwest and who does business inside of the state of California out there.
(29:48):
But that article was from ttnews.com that's going to be for today, you guys.
We got guests coming on tomorrow.
And as always, guys, if you guys got value in what you heard, subscribe to the show.
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Speaker 1 (30:11):
Came back with a bank.
Move fast.
Hey, hey.
Let them all cross if they hate them, let them hate them Make a bigger ball.