Are rates for the truck or the load?

[CharlesD]

I've been reading on here and hearing from drivers when I was on the road that they expect a certain amount for loads based on having a certain type of vehicle. These are normally people who drive cubes, Sprinters, Aerocells, and other types of non dock high vehicles with higher capacity than a cargo van.

The question I have is this: Should people in a vehicle like that always expect the higher rate, even when hauling freight that would fit in a cargo van? I've always operated on the model that the rates are for the type of load, not the type of truck that a load is going into. If a large straight truck is hauling a two skid cargo van load where a dock high truck is not retired, that driver should expect the cargo van rate for that load, unless the carrier was lucky enough to get a straight truck rate for the load. When I was leased to another carrier in my Sprinter, I got van rates for van loads and a higher rate for loads that required the Sprinter. I didn't expect to always get the Sprinter rate even when I was hauling a van load, and I also didn't expect to always be hauling Sprinter freight. I just don't think it's reasonable to expect to always get the higher rate, or to only haul the larger loads and expect to stay as busy. What do y'all think?

 

[jjoerger]

We would go broke in a hurry if we tried running our straight truck at van rates. If our carrier wants to put a van load on our truck they will still have to pay us the rate we need to operate or we will pass on that load.

 

[jaminjim]

I've been reading on here and hearing from drivers when I was on the road that they expect a certain amount for loads based on having a certain type of vehicle. These are normally people who drive cubes, Sprinters, Aerocells, and other types of non dock high vehicles with higher capacity than a cargo van.

The question I have is this: Should people in a vehicle like that always expect the higher rate, even when hauling freight that would fit in a cargo van? I've always operated on the model that the rates are for the type of load, not the type of truck that a load is going into. If a large straight truck is hauling a two skid cargo van load where a dock high truck is not retired, that driver should expect the cargo van rate for that load, unless the carrier was lucky enough to get a straight truck rate for the load. When I was leased to another carrier in my Sprinter, I got van rates for van loads and a higher rate for loads that required the Sprinter. I didn't expect to always get the Sprinter rate even when I was hauling a van load, and I also didn't expect to always be hauling Sprinter freight. I just don't think it's reasonable to expect to always get the higher rate, or to only haul the larger loads and expect to stay as busy. What do y'all think?

If you are talking about van/sprinter rates I agree If you are talking about van/straight truck, I don't agree. Costs are at least twice as much to drive a straight.

 

[fortwayne]

Unless my carrier in one heck of a pickle I expect the rate I need to make me a profit. But sometimes u r better off taking a lower rate just to cover your fixed cost. Better to cover the fixed cost than to let several days pile up...just mho.

Posted with my Droid EO Forum App

 

[CharlesD]

If you are talking about van/sprinter rates I agree If you are talking about van/straight truck, I don't agree. Costs are at least twice as much to drive a straight.

Well, I'm primarily taking about van vs. Sprinter and not as much the straights. If I bid a van load for one of my straights I normally just bid my full straight truck rate. There are times though when a straight truck driver will tell me he wants out of a certain area and he will take a van load to pay for the relocation.

What it boils down to though is that it's up to you to either accept or turn down the load and not to get mad at your carrier for offering you something you don't feel is up to your standard. Just turn down the stuff you don't want and leave it at that. What I'm really complaining about is the people in a Sprinter or cube who say that they don't want to haul van freight or if they do they expect the Sprinter rate for the van load when they're driving something that is essentially a van on steroids.

 

[x06col]

Yepper, some Contractors will drive ya nuts with their bs. It's a pain to tell the customer "wait till I check with the driver", then, the driver don't answer the phone. I feel for ya bro. Bottom line tho...ya can't pay more than ya git.

 

[Jefferson3000]

I feel for ya bro. Bottom line tho...ya can't pay more than ya git.

Ya sure can't. Ya get a guy runnin' a small straight who gets mad by the early afternoon because dispatch hasn't loaded him yet. He keeps calling, buggin' the snot out of dispatch, calling people childish names, just because their world doesn't revolve around just him. Finally dispatch decides to offer him a van load that is fairly close, just to shut him up. Then he gets mad, because he was promised $1.xx per mile (all in) and this van load would only pay him something like $0.30-0.40 less per mile. He is told that he has every right to refuse the load, but now he feels indignant that the carrier would even offer him this "reduced" load. The driver then complains that the people at the carrier are liars. Oh well.

P.S. I have never had this problem with ANY of my drivers, however I am aware that this problem exists.

 

[RonJonCMC]

Thats the beauty of free enterprise. If I as Sprinter O/O chose to hold out for a higher rate and risk losing that load that is my prerogative. Thats my choice under a no forced dispatch. Certain areas of the country cost me more to run a load into, ie: road and bridge tolls, higher fuel costs. Why should I bear all the increased costs of hauling that load? I know that there is always someone that will take the load for less, but the question is.... who will still be doing this next year and who will put themselves out of business. As for the answer.. check back with me next year. I wish all a safe and prosperous 2011.

 

[davekc]

Tough call when looking at van/Sprinter rates because you are booking a load with a one pallet variable.
With straights it is much different. I would throw a van load on, but if it is at a van rate, you can bet I would throw another load with it. Double dip if you will. Exclusivity has a price, and it certainly isn't on a typical carrier rate. If they pay a straight rate for a van load, then by all means throw it on.

 

[LDB]

Truck rate $1.20cpm

Van rate $0.77cpm

Reposition rate $0.35cpm

A truck turning down a van load from where you are to where you need to be paying $0.77cpm to get repositioned there for $0.35cpm or go empty for $0.00cpm PRICELESS

 

[Turtle]

I hate to break it to Sprinter, cube van and Aerocell owners, but you're driving a cargo van. It's a cargo van that in many cases also has additional length or height capacity that can be rented out, but it's still a cargo van. Unless you are hauling something which requires the renting of the additional capacity, you are not entitled to receive payment for that additional capacity. You can certainly turn down loads that do not utilize and pay for the extra capacity. Good luck with that.

 

[Desperado]

The only problem i see is with a straight truck is when you take that van load even if its getting you in a better area then look out here comes one taking you out into the middle of no were and the next word out of dispatch mouth is you've been taking loads at that rate and your oncer is sorry but 1.35 plus .29 fsh or let it sit

 

[Bruno]

It all depends on where the load is taking them. The lowest we will go is $1.00 a mile plus FSC. Like coming out of Miami Florida as we did today.

 

[Desperado]

last time i was in Miami we left for 1.72 1800 miles

 

[Dynamite 1]

i generally like to see the rate for the unit size, but then again i have a truck so go figure. i am sure most of us do. i dont mind taking a load to reposition especially when it pays better than dh pay or not having to do it out of pocket. however, i will wait a little before doing so. i also prefer these lower paying reposition loads not to be to far or take up to much time. i mean it is just smart business to do so, especially if you are considering moving on your own. after that then be stern and go back to your original plan. as far as dispatch saying you have been running for these rates, explain why you did so and that it is only a have to situation. i dont think the lower rate offers after accepting a lower repositioning load is as much of a
problem with smaller carriers as it is the larger ones.

 

[nightcreacher]

when I was with FDCC rates were for the load,that went in a certain size truck.If an E unit did a D load,he got D rate.If I did a C load,I would get a C rate,unless they would bump it to a D,and that didn't happen very much.Bottom line,if the rate didn't loose money,I could do it.Here at Tri State,it's the same way.As tractor I get $1.53/loaded mile,but if I do a straight truck load,I get straight truck rate.Difference between FDCC and Tri State,the fsc at fdcc was for a tractor,and Tri State fsc will be for a straight truck.In either case,if it makes money,and goes where I want to go,then you will find me doing the load.I don't drive my truck to be a tourist

 

[purgoose10]

when I was with FDCC rates were for the load,that went in a certain size truck.If an E unit did a D load,he got D rate.If I did a C load,I would get a C rate,unless they would bump it to a D,and that didn't happen very much.Bottom line,if the rate didn't loose money,I could do it.Here at Tri State,it's the same way.As tractor I get $1.53/loaded mile,but if I do a straight truck load,I get straight truck rate.Difference between FDCC and Tri State,the fsc at fdcc was for a tractor,and Tri State fsc will be for a straight truck.In either case,if it makes money,and goes where I want to go,then you will find me doing the load.I don't drive my truck to be a tourist

Tri-state has a different FSC for each size truck? If that's the case then they set their own FSC rate instead of using the national average. Is that correct?

 

[Dynamite 1]

national averages for fsc are usually set for the different types of units cause of the differences in the fuel mileages the units get. on a flat rate fsc or national avg. if you will, there is generally no one size fits all. i dont know if tstate has a flat fsc or is still what they can get from the customer or both. in any case fsc is figured on fuel mileage as far as the govt eia is concerned. eia/ energy information association. there formula for fsc is as follows { natl. avg. fuel price - 1.25 cost govt says we should pay divided by the avg. mpg for unit size }. tractors usually figured on 6 mpg straights on 9/10, vans on 15 i believe, not sure.

 

[Turtle]

Currently the Structured Fuel Surcharge for the Week of 1/18- 1/25 at my carrier is 6 MPG for a TT (.35) , 9 for a Straight (.23) and 11 for a van (.19).

$3.33 - $1.25 = $2.08
$2.08 / 6 = $0.3466
$2.08 / 9 = $0.2311
$2.08 / 11 = $0.1891

Some carriers subtract as much as $1.45 instead of $1.25. Some carriers use higher MPG numbers for each vehicle class. Some carriers use the often cheaper "regional" average rather than the "national" average for the price of fuel. Some carriers charge an additional flat percentage of the line haul as a FSC (tho, most of those are LTL and TL carriers).

 

[LDB]

I'd love it if our van rate was calculated at 11mpg.