Accepting every load...

[mrgoodtude]

All these great points from people I have come to know and respect this last year! I embrace topics that are thought provoking and I don't mean that lightly, that is the true benefit of this forum.....
However, the MAIN point is that the shipper is not only Hotfr8's customer, but ours as well and if one cog breaks, the whole machine fails.
Shippers will always find a way to move freight, if not, their machine fails and that isn't going to happen cause another joe schmo freight company will be there to readily take that freight and build his/her business at a discount. I will submit to you that I once worked for Conway and as much as I despised them at first, they later stepped up to the plate by taking a discount on their freight to keep drivers moving. That duality made a raving fan out of me! They actually bid on discount freight wherever I happened to be and called me before committing and took the hit on that freight to keep me on track with my goals. CUSTOMER+CUSTOMER = WINWINWIN. Forward innovative approaches to challenges separate the soso's from the Winners and I would rather be a winner with the Volume of small shares than a soso with a couple of whoppers on my way out.
I believe in that philosophy and think we should embrace it before the JB's And Swifty types figure it out.
Mike and Cyn

 

[Packmule]

I'm sure there are many companies out there that are glad that people like the Col. with that mindset exist. If you can be contented running cheap freight and looking for the law of averages to make you profitable causes me to question the Military strategy's that you were trained in.
Sir, this is business, Your decisions, good or bad determine your success. If you prefer to depend on the law of averages you would be as well off to sell your truck and take your proceeds to Las Vegas where the law of averages and lady luck is all you need to be profitable.

Successful companies, even those who try to help employees, still put their company profitability first, even if the employee has to suffer.
That is how I run my business, NO freebies, NO favors, NO cheap freight!! If it does not put money into my business account, then it's not good business. My carrier and my company are two independent business entities. We are not Partners! A contractor lease agreement in no way makes us a partnership. If it did,they would share in truck repairs and other losses my Company endures.

Dispatch as a travel agent?...Never looked at it like that,..and never will. but sometimes we do get to see some nice seanery and historic areas of interest. guess I should start calling in and thanking them for these pleasures.

Also, I don't want to hear from anyone about Half a loaf is better than none. That's the mentality that creates the Cheap freight syndrome. and it affects everyone else in the industry. When I hear that from a driver or someone in business it makes me wonder how long they can survive. A drowning man that catches only half breaths between waves will die quickly without help.

There are two sides to every story...this is mine.
(not too proud to admit I've been wrong before)

Dan

 

[LDB]

I expect hotfr8recruiter to say what he says. He's the company and they want the freight moved, period. What has to be realized by everyone is that the O/O is also the company, his own company. In the same way that Acme Expedite company isn't going to book a job for Western Widgets if WW will only pay 80cpm to AE, the smart O/O isn't going to accept a load he knows has too much deadhead delivering in too dead an area at a time that requires sitting too long before delivery.

I expect x06col to say what he says. He's the company. See above.

A good business is going to do what's profitable and sensible for the long term growth and stability of the business. A good O/O is going to run his truck in just that way. That leads back to the original comment/question of wondering about decisions. Accept/decline, wait/move. Obviously the company wants decline removed from the O/O dictionary and wants the O/O to blindly follow every suggestion proffered by dispatch.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5507, 5508, 5509
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.

 

[prescat]

It's always a mixed bag when it comes down to load decisions. During our first go around, I probably went for 6 months without turning anything down. The reality is that you're never really sure where a load is going to come from. (before anyone yells, yes I know there are traditionally bad "lanes"). Also, I really felt, and to some extent still do, that periodically you have to help dispach/your carrier out by taking a load you are not thrilled with. (The customer might be also giving a lot of great runs) With that said, I turned my first load down, after I was in the Chicago area, and I took like four "crappy" loads in a 5 day period. I felt like we were getting dumped on and I'm pretty sure we were. My turn down was a way of saying, "we're not the only ones to take the garbage and lose our #1 D truck slot in an area thats originates some decent runs! You can only give so much. I understand dispatch had to deal with the customer on turn downs, and I don't think they were feeding us the bad runs to be mean, just to get the job down, and we got sick of it, so once in a while you have to say no!

 

[cheri1122]

Mr Goodtude, I agree, the open exchange of thoughts is a big part of what makes this site, [and this country] great. I'm not being a smart*** when I ask: if Conway bids freight at a discount, to keep drivers moving, how is that different from "joe schmo" company? I don't believe any company, whether it's joe schmo's, Conway's, or mine, can survive by losing money. Of course the shippers would like us to move the freight at less than cost - but they need to face reality, same as I do - I'm not going to get $3.00 a mile. I should get enough to cover my costs and make a bit of profit, but that is getting harder to do. [I can only cut costs so much, and no more] As was pointed out: the cost of living and the cost of operating have gone up significantly in the past year, but our rates have not. I wonder why...

 

[cheri1122]

Mr Goodtude, I agree that the open discussion of ideas & opinions is a big part of what makes this site, and the USA, so great - as long as we remember to question the statement - not the person. So here's my question: if Conway bids freight at a discount to keep their drivers going, what makes them different from Joe Schmo Trucking? And if Joe Schmo Trucking consistently takes freight for little or no profit, how long will they remain in business?

 

[NEVERHOME247]

Accept every load??? I been struggling with this issue all year. I used to strive for a good acceptance rate. But have come to the conclusion. That at the end of the day it is all about the money. If I am not going to make a profit off the load. Bottom line is I'm not going to haul it. I don't work for free. And when everyone quits hauling cheap freight. The companies will have no choice but to raise their rates. When the rates go up. The acceptance rates will follow suit.

 

[x06col]

This has been a great discussion so far. However, for typing about "cheap" freight, we need to understand that not everyone lives in Columbus, Ohio. Now, I submit that if you were in columbus, Ohio and have an agenda in Denver, Sioux Falls, Bozeman, wouldn't you rather go to your agenda for a buck a mile instead of dead head there? I really feel most of us not able to control our own destiny can identify with this. Now, if, you had an agenda in Columbus, OH (lets say everyone lived there) and were in Denver, Sioux Falls, Bozeman, wouldn't you rather run for a buck a mile to get there than Dead Head? Point is, YOU are not the only expediter on the road. YOU, are not the only expediter choosing to be close to Columbus. And, this whole thing is not just about YOU. So, YOU, must decide if it is right for YOU or not. It's pretty simple!

 

[Jefferson3000]

Unfortunately, sometimes the best tactic in slow season is to try and stick it out a little longer than the "cheap freight guys." I know guys who will run for peanuts. It's sad that most of them are so in debt over something like putting new tires on or getting the brakes replaced. It's all done on credit.

Unfortunately, there will always be some of these guys running. This year's guys will be out of business next year. They will be replaced by others. You have to decide now that you will have a business plan that will help you to outlast all of the fluctuations in the economy. No one will ever care as much about your business as you do.

That's my two cents!

Jeff:9

 

[Packmule]

Jefferson3000,

Well said Jefferson3000, and I'll put my 2 cents with yours on that statement.

Dan

 

[mrgoodtude]

#####, I do not PRO-advocate cheap rates....The point I tried to make was simple and yet I seemed to have struck a nerve with all the bretheren in misconstrue (no spell checker)(Greg please Help).I just tried to point out the synergy of the freight chucker (me) and the company that was "trying" Again "trying" to step up to the plate by keeping everso mindful That I Am the Freight hauler and YES I have to make a profit and Yes Mr freighthauler we are in it for the longhaul and yes we realize that you cannot take freight for free so we will take the hit to insure "our" future success.....I hope you get the picture.
Just for the record I am running for a different company....I am NOT employed by Conway, my acceptance rate is less than 30% ergo I don't do cheap......I get paid that is all that matters and paid well and as long as it is acceptable to my current carrier I will do my deal. If life changes for me I have no compunction about signing on with the "C" and here is a new twist...I will do so knowing they have my back and yes I will cover theirs.
Mike

 

[ATeam]

One of the best descriptions I've seen of the relationship between the owner/operator (or fleet driver) and carrier is in the preliminary prospectus Panther recently issued. In that document, Panther refers to owner/operators as "purchased transportation."

In that document, Panther says, "Purchased transportation represents the amount we pay our owner-operators or other third-party capacity providers to haul freight and does not include fuel surcharges. We pay our owner-operators on a per loaded mile basis for their services and the amount of fuel surcharge we collect from our customers. Purchased transportation for brokerage services is based on a negotiated rate for each load hauled. Purchased transportation is the largest component of our operating costs."

Panther refers to "owner/operators" and "third-party capacity providors." Landstar calls them "Business Capacity Owners." FedEx Custom Critical calls them "Contractors."

Expediting carriers make the best deal they can with shippers and then go looking for trucks (contractors, capacity providers, capacity owners, owner-operators) to fulfill the carrier's end of the bargain. It's easy for carriers to find trucks if they pay the price trucks demand. But to operate profitably, carriers seek to minimize the costs of their purchased transportation. Expediters stand ready to provide purchased transportation. But to operate profitably, they seek loads that cover their operating expenses and a bit more.

Both are in the business of moving freight. Both make the best deals they can, either under contract or load by load. Neither should begrudge the other's desire to profit from the services they offer. And neither should expect the other to give away the store.

 

[geo]

well said

 

[Packmule]

EXACTLY !!

Dittos A team,
Dan

 

[Jefferson3000]

BTW, let me also say that there will ALWAYS be cheap carriers as well. These kind will do anything to get the jobs from someone else. Normally, these carriers place no value on the SERVICE they offer, and so they will never place any value on the men and women who run their freight.

I just spoke to the ops. mgr. for one of the two largest air freight
P & D companies in my market on Thursday. His comment about cheap freight was, "I don't sell rates. I sell service. That's why all of the 'big boys' play with us!"

 

[x06col]

Absolutely, this business was in fact built on service (pulling peoples fat outa the fire). Have a fine fort o july folks.

 

[highway star]

Good post A-Team, well said. The problem is, every time a shipper succeeds at getting a discounted rate, the less incentive there is for them to pay a "living wage". If the freight is hot enough, it will be easier to get full rate. But as we all know, it's not all "get it there yesterday" hot and then they can hold out for a better rate. Every time someone takes a load for fuel money just to get home, that's one more nail in the good rate coffin. And it happens every day.

 

[highway star]

I'm not the kind of guy that needs a pat on the back to do my job, but my favorite runs are when they are waiting at the door and tell me I've helped them avoid some kind of disaster. Kind of makes up for the times you go to the big plants and the union morons try to make you feel like you just screwed up their day.

 

[RichM]

I couldn't agrre more.I did a load today and the customer was so pleased to get his shipment on a Saturday he bought me a nice lunch.Somehow food alwasys tastes better when it is free.

 

[x06col]

Yes Rich, this job can be extremely personnaly rewarding (warm and fuzzy rewarding) as well as financially rewarding. Unfortuneately, the next one might not be as warm and fuzzy.