Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rates?

[fifaref2]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I think that is a good case for some/many carriers because it is a supply/demand business. At the same time, I am mindful that some nameless carriers are making millions. In many cases, on the back of their operators. I'm all for capitalism and it should flourish here. But, "IF you put that lipstick on a pig, it is still a pig". Some carriers are above board and many clearly aren't.
My quote of "bottom feeders" didn't happen by accident. Just have to look around and see how some operate. And quite frankly, some should be downright embarrassed.

You make very good points. Does one of these carriers have four letters in their name beginning with the 2nd letter of the alphabet? Lol

 

[runrunner]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Please keep in mine that the IRS is hot on killing the IC payment system and like to have everyone on employee status to collect taxes. This system raises its ugly head every so year or so.

An IC has to pay taxes too!

 

[Dynamite 1]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

An IC has to pay taxes too!

Funny you should say that. Cause there are a lot that don't !!!

 

[Tennesseahawk]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

It doesn't help when the industry is overloaded with people who "want it easier." When the bottom falls out, the easiest then becomes the hardest, meaning survival. Survival is dependent on getting just under the lowest guy, and having Pilot hotdogs for every meal. This is the age of the frugal expediter.

 

[jelliott]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I don't see the industry moving away from the IC model in expediting. I think it is very engrained in the industry. Much more so than truckload world. Actually I wonder why that is?

 

[cheri1122]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I don't see the industry moving away from the IC model in expediting. I think it is very engrained in the industry. Much more so than truckload world. Actually I wonder why that is?

Because: tradition!
"That's the way it's always been [done]" is a tough nut to crack.

 

[rollincoal]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Maybe rates have something to do with it or the fact that percentage pay is more the norm in expediting? Tough way to make a living on flat rates anywhere which seems to be the norm for contractors doing truckload pretty much everywhere. Of course expedite rates, at least what filters down to the contractors after these brokers try to make $500 a load, sometimes are not as enticing as the last minute hurry it up general freight. Someone said expediting is the new truckload. Sometimes it seems expediting needs to catch up to general freight crazy as that sounds and the trend seems to be moving expedite contractors over to flat rates. Pretty much making it the same thing as truckload. Nothing special about it at all. Same service, same low rates. But hurry up everywhere ASAP cause it's expedite and you can't be late!! That is screwed up. Can't believe people put up with that for peanuts.

 

[hedgehog]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I don't see the industry moving away from the IC model in expediting. I think it is very engrained in the industry. Much more so than truckload world. Actually I wonder why that is?

Stop wondering. Here is the answer:

MONEY BOTTOM LINE GREED

What a perfect business model for the carriers.

The IC has the burden of supplying the equipment and costs of transporting goods at a 1995 level of rates.

If the carrier owners are really concerned as we are led to believe, they certainly have the power to raise the per mile rate.

Who's first ??

 

[Dynamite 1]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Stop wondering. Here is the answer:

MONEY BOTTOM LINE GREED

What a perfect business model for the carriers.

The IC has the burden of supplying the equipment and costs of transporting goods at a 1995 level of rates.

If the carrier owners are really concerned as we are led to believe, they certainly have the power to raise the per mile rate.

Who's first ??

That's not something easily done. For the carrier owners to be able to just raise the rates you would have to be able to get them all to agree on a raised bottom line rate and get them all to participate. There are a few reasons that won't happen. First one is, that would be called " collective bargaining " and that is not allowed. Reason two, most of the carriers are already on flat rate, with the exception of Landstar and present company and a few small carriers. The flat rate carriers are making a buck so they are not as concerned. Three, this is one I'm not sure of, not sure if the larger publicly traded carriers with stock holders would want to lose their share profit in the interim while this was being implemented. An easy answer would be great and I'm sure we are all for higher rates but that is not the way it would get done. Granted, if they could all get together and say, ok, from this point forwards we are not biding or quoting any freight that pays our contractors any less than 1.70 all miles. What a wonderful idea but essentially you would be putting the entire expedite industry on a " flat rate" cause that's all that would be paid. It is a hard task to find an answer for. I would be happy if shippers would all go back to direct call in to the carriers or at least more than we have now. We use to have a lot more direct call ins then we do now. Shippers had their favorite, trusted carrier and that's who they called. We still have this but not has much as in the past. Most brokers don't care as long as price point is met for them to make a buck. Getting back to customer service and trust style goes along way toward a healthy bottom line !!!!

 

[davekc]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

My educated guess is that our economy is barely moving along. Some good signs, but still quite a few headwinds. We can thank "Mr. Scandal" in the White House for starters. When the economy is good, businesses want that extra layer of service and will pay to get it. When the economy is in the tank, freight is more price driven. Just how it is.

 

[T270_Dreamin]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Stop wondering. Here is the answer:

MONEY BOTTOM LINE GREED

What a perfect business model for the carriers.

The IC has the burden of supplying the equipment and costs of transporting goods at a 1995 level of rates.

If the carrier owners are really concerned as we are led to believe, they certainly have the power to raise the per mile rate.

Who's first ??

another contributing factor is that the load can go through 4-5 different brokers before being delivered to the customer, everyone has to get a piece of the profit so when it gets to the last person which is typically the driver sometimes not as much is left over. I'm sure this is different for the larger carries but for the smaller companies it is certainly true from what I've experienced in the last couple months.... I did a load one time that was flown in from china, went to Averitt Express, then to Forward Air, then to American expedite, then to a local freight company then to me

 

[iceroadtrucker]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

another contributing factor is that the load can go through 4-5 different brokers before being delivered to the customer, everyone has to get a piece of the profit so when it gets to the last person which is typically the driver sometimes not as much is left over. I'm sure this is different for the larger carries but for the smaller companies it is certainly true from what I've experienced in the last couple months.... I did a load one time that was flown in from china, went to Averitt Express, then to Forward Air, then to American expedite, then to a local freight company then to me

Drove that spike home and you didn't realize it. Asian Per sway shone China Yup. The Air Force Builds the Housing then the towers then the landing strips. Then Buys the Planes.

 

[Tennesseahawk]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Because: tradition!
"That's the way it's always been [done]" is a tough nut to crack.

Just like 40/60.

 

[Moot]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I'm sure this is different for the larger carries but for the smaller companies it is certainly true from what I've experienced in the last couple months....

The only difference with the larger carriers is the pieces of pie (profit) stay with that carrier. A carrier's logistics division books the load and turns it over to the brokerage division where it is up for bid, often times going to that carrier's expedite division. The pie is getting parceled out but remains in-house.

 

[scottm4211]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Drove that spike home and you didn't realize it. Asian Per sway shone China Yup. The Air Force Builds the Housing then the towers then the landing strips. Then Buys the Planes.

Well said.

 

[highway star]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

That's not something easily done. For the carrier owners to be able to just raise the rates you would have to be able to get them all to agree on a raised bottom line rate and get them all to participate. There are a few reasons that won't happen. First one is, that would be called " collective bargaining " and that is not allowed.

You're right that it's not allowed, but it would be collusion, not collective bargaining.

 

[iceroadtrucker]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

COMPANIES PAY ATTENTION. PICTURE IS WORTH A THOUSAND WORDS. A salute to Military Working Dogs

 

[chefjesse]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Reading this thread with all of the input offered by everyone. But as long as there are people out here willing to do the work or pennies it will remain as one member said, (this is the new truckload) and yes if you have many hands taking their part by the time it gets to the OP there is barely enough meat on the bone.

I started in expediting in 1996 the person I started working for was signed on with Roberts Express and we made good money and then the bottom fell out when R.E. sold or started with the current company F.E. and now all these fly by night companies, people that have no concept of running a company, and those that are just wanting to keep their selves busy after retiring which I think is one of the main issues with the van rates not to mention OP's allowing companies to pay them the same rate for sprinter freight! Which for the life of me I don't get they spent anywhere from $30,000.00 to $45,000.00 for a new sprinter cause that is what the company wants then they take $0.77 per mile oh yeah plus FS wow whoop whoop! Question do they really think that that unit will last forever, never break down? I guess as long as they have a few cents in there pock and keep fuel in the tank everything is good. I really don't wish ill to anyone, but please hurry go broke so that those of us who are trying to support ourselves and our families can and have a life with them.

Sorry folks just had to get this off my chest....

With Respect to all and God bless
Chef Jesse

 

[Bruno]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

In this business I have learned you have to keep an open mind on things. The carriers have cost just like we do. They have dispatcher's, office staff, salesmen and saleswomen that they have to pay so we can move freight. Our new office cost us around $12000.00 a month in operateing costs for our building and people working in our office. I'm sure carriers costs are way more than ours. If they don't make money the company won't be around for you to even have a truck leased on with.

 

[chefjesse]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

In this business I have learned you have to keep an open mind on things. The carriers have cost just like we do. They have dispatcher's, office staff, salesmen and saleswomen that they have to pay so we can move freight. Our new office cost us around $12000.00 a month in operateing costs for our building and people working in our office. I'm sure carriers costs are way more than ours. If they don't make money the company won't be around for you to even have a truck leased on with.

Bruno I understand we all have cost there is no doubt about this, what I am saying is that there are so many hands in the till by the time it get to the OP actually moving the freight there is no profit or very little for him. We have all seen it fly by night outfits have a phone, fax, and internet access and your up and running, no authority no problem we have all seen it.

Respectfully,
Chef Jesse