All State Express
- Thread starter brycey2010
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That rate confirms what I had said previously in this thread. When I see the total rate of freight, it tells me what the margin is to the carrier when I know what the truck pay is.
Just a couple of things. Van rates at the Cat are likely all over the place just like they are for other vehicle sizes some are at .85 plus FSC, some at 77 plus FSC and I hadn't heard the 70. Certainly could be as I don't follow the vans very close.
I do know one thing. Some (no names mentioned) of the larger carriers better wake up. Many are too top heavy, waste resources on trying to reinvent the wheel, pit drivers against each other, or spending a dollar to take a dime from the owner operator. With a driver shortage looming, those sins will be costly for the carriers that participate.
I think we are seeing it impact some carriers already.
The biggest question is, how long will it be before they actually figure it out?
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Mike99
Veteran Expediter
I hope the two guys from ASE see this numbers and will and saying that their rate an FS is a ''great'' rate and FS....
greg334
Veteran Expediter
no no no no, we do not want those to wake up at all, please please tell them how great of a job they are doing to keep doing what they are doing because it will mean more for all of us.
What driver shortage?
Vans are exempt so they will need just to increase the van population again and everyone will be happy.
The sins will prolly be nearly if not life threatening steada jes costly if they don't wake up. It is kinda funny tho, watching those bean counters step over that dollah to pick up that dime. Been watching this fo a long time and the reinvention works fo a while.
Had one happen jes today for a tomorrow pickup. Fella called me about a load picking up in Jamaca. Said i'd run it for him my rate for going over the bridge is $2.25, he tried $1.80, didn't work, an i'm on my way to Maryland tomorrow.
Had one happen jes today for a tomorrow pickup. Fella called me about a load picking up in Jamaca. Said i'd run it for him my rate for going over the bridge is $2.25, he tried $1.80, didn't work, an i'm on my way to Maryland tomorrow.
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Mike99
Veteran Expediter
Unfortunately Panther pays just 70 cents plus fuel on the new contracts.Plus 3 cents if the driver has hazmat and plus 3 for team. Good thing that the old rates remain untouched...
Some won't get it and will just essentially become logistic companies. Driver shortage I was refering to was more for straights and tractors. Vans would fall into it only if they become regulated.
Probably will be more outside work for a time as those larger carriers can't cover their existing freight. That is why you see cheaper rates to entry level trucks, or pitting drivers against each other to cover a load at the cheapest rate.
They need the excess to subsidize uncovered loads they pay a higher rate on to brokers/third party carriers.
Keep in mind also that smaller fleets means less income coming in from other sources whether QC profit, insurances, escrow, and I could go on. When those little profit centers start shrinking, they start looking to recover that lost income from somewhere. I bet most can guess where.
Probably will be more outside work for a time as those larger carriers can't cover their existing freight. That is why you see cheaper rates to entry level trucks, or pitting drivers against each other to cover a load at the cheapest rate.
They need the excess to subsidize uncovered loads they pay a higher rate on to brokers/third party carriers.
Keep in mind also that smaller fleets means less income coming in from other sources whether QC profit, insurances, escrow, and I could go on. When those little profit centers start shrinking, they start looking to recover that lost income from somewhere. I bet most can guess where.
What else? I personnaly think paying or collecting FSC is BS. Jes quote the job and get it done having figgured all your costs. But, i'm wondering now that someone a long time ago opened this FSC can of worms, why can't we jes all get along?
With regard to vans and the 12
LDB wrote
FSC this week is 12.33cpm but you have to remember that's on every mile not just loaded miles provided you are going where they ask you to go and if it's over 50 miles of deadhead there's deadhead pay on top of the 12.33fsc.
That will make some difference if it is just on the loaded.
LDB wrote
FSC this week is 12.33cpm but you have to remember that's on every mile not just loaded miles provided you are going where they ask you to go and if it's over 50 miles of deadhead there's deadhead pay on top of the 12.33fsc.
That will make some difference if it is just on the loaded.
CharlesD
Expert Expediter
We do a lot of brokered freight and NLM is the only broker we deal with that separates the fuel out on the rate. All the other brokers want an all inclusive bid, so would it make sense as a carrier to place an all inclusive bid and then simply call some of the driver's pay a surcharge? Why not just lump it all together and pay the drivers a rate competitive with what they would get from someone else with the fsc? It's still the same money no matter what you call it.
It would depend on the truck type you are talking about.
"Fleet owner layer"??? No comprehendo. I understand "good return", and good times and bad. Splain please.
Are you a bean counter? Is this counter speak?
greg334
Veteran Expediter
Dave,
What I sometimes wonder about small carrier who are doing well, why are they doing well?
I think a lot of the problems carriers have is a lack of understanding how to manage resources within their company. One carrier I knew well had too many people doing too many single jobs - not a lot of multitasking going on. They treated everything as a priority within the office and failed to understand that there is no need for 20 when 4 can to the job.
What I sometimes wonder about small carrier who are doing well, why are they doing well?
I think a lot of the problems carriers have is a lack of understanding how to manage resources within their company. One carrier I knew well had too many people doing too many single jobs - not a lot of multitasking going on. They treated everything as a priority within the office and failed to understand that there is no need for 20 when 4 can to the job.
The smaller ones seem do things in a much more direct manner.
They also have a fraction of the overhead.
Some (not all) live and die by the success of the larger carriers and 3pl's as that is where they source their freight from.
That is why when the economy went south, many smaller outfits became casualties.
CharlesD
Expert Expediter
The key is keeping the overhead at a minimum and providing good service and good communication with the customer. My goal is to keep overhead low enough to be able to bid competitively and still be able to pay drivers a rate equal to or better than what the larger carriers are paying, and to provide good enough service so people will want to use us instead of a lot of carriers who might be larger.
bgansman
Seasoned Expediter
With respect to Pareto Efficiency in modern supply chain times, I don't think the Shipper (OEM/Distributor/Etc.), the 3PL, the Carrier, or the Driver are going away. The only PE diagram I have seen is not a pentagon/pentagram, but a quadrilateral...
That Lean thinking and the overly analytical customer is bound to find some chink in the armor somewhere as life goes on...and someone's always bucking for a promotion in Washington...
That Lean thinking and the overly analytical customer is bound to find some chink in the armor somewhere as life goes on...and someone's always bucking for a promotion in Washington...
Unless they were intuitive and resourceful. Not to mention, not afraid to knock on some doors. When it is bad, find your own, when it is good, find the gravy.
CharlesD
Expert Expediter
And that low overhead is why some survived. (by the skin of our teeth)
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