....... I was sitting in Dispatch when a call came in about a load that needed to be moved and there was only $XXX.XX amount of money in the load - basically at an LTL rate. I know this beyond a doubt, because the call was answered on speakerphone, so I heard the entire conversation - both sides.
...... The conversation ended with the o/o once again telling the dispatcher: "Well, I'll run it for $X.XX per mile .... you think about it and let me know ....."
...... and asks the guy if he will run it - the answer: "Sure, I'll cover it for you - but after I do, get me a good one" .....
The amounts being offered to the o/o's in both cases above were (at least) 90% of the revenue my carrier would receive for the load. .......
Anyways, which one of the two do you figure is Dispatch's "go to guy" ?
As I read this I couldn't help thinking....
Hmmm..
Imagine a world where..
Ok, the carrier accepts the load, even though there's absolutely positively only $x in it, even though it's an expedite load at an LTL rate. Not sure why an expedite company would agree to that in the first place, other than to help offset *their own* operating costs, however little.
Remember that the carriers' costs will be offset, no matter how unprofitable a load might be to the OO, since the carriers are already on the hook for their building, staff, utilities, load boards, etc., no matter how many or how few loads they may 'win'. So even at 10%, or even 2%, it is
something towards their bottom line.
For the OO however, the same cannot be said, because on top of the lease, insurance, and qualcomm, etc., there are costs directly associated with each individual load, ie the fuel & tolls.
Now, I'm not saying the driver should or shouldn't have taken that load, nor that the guy trying to get home may have ended up kicking himself in the end, nor whether the driver ended up in a better place and got a cooked goose on the other end, nor whether the dispatcher actually remembered to reward him as promised, nor whether that driver ends up getting all the good calls now that he's a 'go to guy'... because I simply don't have the answers, and I think the way things are, just stinks.
But.. wouldn't it be interesting if the carriers took such loads.. and alllllllllll the OOs and drivers said, sorry can't do.. carriers then have to post the loads to the outside, at which time the outside carriers also can't do, and in the end carriers who agreed to take those dogs in the first place, are the ones who have to take the loss on
their own bottom line?.... I wonder how many times that might happen before they'd discover they need to actually book a fair price, or not book it at all?
And.. wouldn't it be interesting even more if the carrier said NO, to whoever offered such a dog rate, and so did all the other carriers.. and it went all the way back to the person paying? I guess eventually it would come to be that the loads wouldn't get moved unless and until they were priced such that
all the players involved could operate profitably.
As much as we OOs and drivers must face the reality of whether it's feasible to keep our trucks running right now, so must the carriers face reality. If they need to start taking expedite loads for LTL prices because even at 10%, at least it's
something towards this month's hydro bill, then perhaps they should turn out the lights.