TruckTalk:
LESSON 6
The Power of Supply & Demand
By Kevin Rutherford
Here’s a truth that’s as old as business itself: nothing works if you don’t understand supply and demand.
This is one of the most basic principles in economics, and yet—it’s the one too many owner-operators still don’t take seriously. Rates are too low? Freight’s too hard to find? That broker won’t budge? Before you start blaming the market, you better understand it.
Because supply and demand isn’t just a theory—it’s the engine behind everything in your business. It determines what you haul, who you haul for, how much you get paid, and whether you stay in business at all.
Let's break it down.
Why Supply & Demand Is the Backbone of Trucking
If there’s no demand for what you’re supplying, you’re not running a business—you’re just moving metal.
Think about it. There are over 300,000 trucking companies in the U.S. with authority. That means when the freight dries up or rates fall, the market doesn’t care how hard you work. The rates don’t go up because we want them to. The rates go up when capacity tightens and demand increases. And if you’re betting on everyone agreeing to stop hauling cheap freight to force prices higher—not only is that unrealistic, it’s illegal (that’s called collusion).
Here’s the hard truth: the market decides. Always. Your job is to understand how it works and position yourself to win.
What You Can Control
If you’re sitting around waiting for rates to improve, you’re already behind.
Instead, focus on what you can control:
- Who you choose to work with
- How you build relationships
- The level of service you deliver
- The kind of freight you target
You don’t have to take every load. You don’t have to work with brokers you don’t like. You don’t have to play the load board lottery every morning. But you do have to own your decisions.
That means defining what your perfect load, perfect rate, and perfect customer look like—and then pursuing those targets with purpose.
Because the most profitable freight? It never makes it to the load boards. It goes straight to the carriers that brokers trust. And trust is built on relationships, not rate haggling.
Action Plan
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Study Your Market. Pick two lanes you run often and analyze current supply and demand trends. What’s hot? What’s overcapacity?
- Define Your Ideal Customer. Get specific. What kind of freight? What kind of broker? What rate? What terms? Write it down.
- Build Relationships. Reach out to three brokers you’ve worked with in the past. Not to beg for freight—but to connect, check in, and offer value.
- Say “No” With Intention. Turn down at least one load this month that doesn’t fit your model. Not out of spite—but strategy.
- Listen to the AudioRoad Network. We go deep into market trends, rates, and mindset. Call in, ask questions, and sharpen your understanding.
Ask Yourself
- Am I operating based on market realities—or wishful thinking?
- Do I have a strategy for attracting the right freight and the right customers?
- Am I blaming the market, or building a business that can thrive in it?
Closing Thought
You don’t rise above the market—you rise within it. Mastering supply and demand doesn’t make you an economist. It makes you a smart business owner. And smart business owners don’t wait for better rates. They build better businesses.
The market isn’t broken. It’s just competitive. Learn how to play the game—and play it to win.
