Are rates reflecting the higher fuel costs?

[CharlesD]

I'm wondering how many of you are seeing higher rates with the higher fuel costs. It's becoming pretty hard to get a higher rate on any bid freight right now because it seems that the bidding hasn't increased enough to keep up with the fuel increases. Even on NLM where the surcharge is separated, what people are doing is cutting the line haul bid down lower so that when the surcharge is added the total rate is still what it was before. Basically, anywhere freight is subject to bidding, a carrier is hard pressed to even get $1.10 a mile on cargo van freight, more than that from 3PLs and other sources. If that was the going rate a month or two ago when fuel was cheaper, and it's still hard to get that now with the higher fuel, just what good is the fuel surcharge if people are just going to bid a lower linehaul to make the total rate the same? Drivers are saying they need more money because of higher fuel costs but if we bid higher we won't get the loads.

So I guess the question is are you getting a higher rate now with fuel prices higher, or is the linehaul getting cut as the surcharge goes up to keep your total rate the same? Or are the carriers just taking the hit right now on the profit margin by going lower on the linehaul and passing on the surcharge?

 

[greg334]

I just got my first increase on my dedicated work, I didn't ask for it and didn't expect it but it does help.

 

[chefdennis]

No complaints here....

 

[davekc]

Rates are the same but fuel surcharges have been steadily rising. Average FSC has been in the 30's except for government loads. They are still in the twenties but the base rate is at least 30 CPM higher. These numbers are for a straight truck.

 

[Bruno]

The FSC needs to be higher and the rates do too. Everything else is going up but rates. The higher cost in fuel makes everything go up in price. This is what put the USA in a tail spin with people losing jobs. Mark my words, fuel keeps going up things are going to get bad again. People are not going to buy extra things because they have to pay more for gas. Oil companies just keep taking and taking. Where is all the Hydro cars and trucks?

 

[fortwayne]

Bottom line is if u don't get the price u need don't take it. I had two runs all last week at my rate and made more than I did in any other previous week of this year running 4, 5 or six loads.
I look over each load, calculate the rate before I accept or decline it. If it isn't my rate I dog it down to the next guy. Its all about doing business at a profit. I ain't out here to sightsee.

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[TheRebel]

Basically, anywhere freight is subject to bidding, a carrier is hard pressed to even get $1.10 a mile on cargo van freight,

Gee, I'd say I'm lucky if I get that price, but sometimes I don't get the load not even for $1.00/mi

 

[CharlesD]

Gee, I'd say I'm lucky if I get that price, but sometimes I don't get the load not even for $1.00/mi

I hear you. We've lost bids at $1 all included and I simply won't go lower than that.

From what I'm hearing, it seems that drivers aren't getting any less than before because carriers are just taking a hit on the profit margin at the moment, with the exception of carriers paying percentage. We're paying percentage and with some of the ridiculously low bidding out there, it makes me wonder if people are even taking into account fuel prices when they're bidding.

 

[OntarioVanMan]

I think John E mentioned that in another thread...there is some ridiculous bidding going on.. .50 in some areas...and the volume of loads does not support them low prices...

 

[CharlesD]

My suspicion is that some people are treating van loads like LTL and combining them.

 

[Ragman]

Where is all the Hydro cars and trucks?

What a great idea! However, it's been tried. Can we all say Stanley Steamer.

 

[CharlesD]

I watched a show the other night on the Science Channel called Futurecar. There were some interesting things people are working on. One was a race car that ran a 24 hour race, averaged 140 mph, and got over 100 mpg. Another guy was working on an engine that ran on hydrogen but had some sort of setup in the trunk to extract the hydrogen out of a tank of water. Then there was the engine some Italian made that runs on compressed air. There was a compressor that would keep the tank full that the engine runs off of, and the compressor runs on compressed air as well. When it's compressing air, it fills a tank that runs the engine and another tank that runs the compressor. You start that engine up and it just runs perpetually, as long as you can keep all the parts lubricated.

 

[LisaLouHoo]

My boyfriend has seen cpm with one carrier GO DOWN 2 cents, others not change, and one that will pay more if asked each time.

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[cheri1122]

Rates have been the same for me, with the FS increasing each week. Like Dave M said, I believe the rate should go up, because the higher fuel cost increases the cost of nearly everything else - and it isn't likely to be a temporary increase, looks like.

 

[TheRebel]

I think John E mentioned that in another thread...there is some ridiculous bidding going on.. .50 in some areas...and the volume of loads does not support them low prices...

Yes, it is... and it's been confirmed, unfortunately... there are companies that put 4-5 or more cv's loads in one single truck... of course they go as low as .50 for each load...

 

[davekc]

Yes, it is... and it's been confirmed, unfortunately... there are companies that put 4-5 or more cv's loads in one single truck... of course they go as low as .50 for each load...

You would be surprised how often that goes on. Especially in places like Detroit and Texas border towns.