Average Loaded Mile Revenue

[Monty]

Hello everyone,
I started expediting last June 2006 with a D unit leased on with a major carrier. My average loaded mile has dropped from $1.93 in July
to $1.58 in September and now to $1.48 in November.
My question is this a normal seasonal thing or is this a trend of things to come?

 

[terryandrene]

I was out of service for 28 days during your July thru November timeframe and received 31% less revenue during November than in July as compared to your 23% reduction.

Fuel costs less so FSC is less. My van receives far less FSC, as a percentage, than in July. Another reason for the reduction is Competition requires lower carrier bidding to get the freight and discounts to customers to keep them interested in using our carrier. I think it's more of a trend than a seasonal thing.

 

[Streakn1]

I agree with Terry as we are seeing the same trend with our DR-unit. We are hauling much of the same freight in 2006 as we were in 2004 and 2005. In previous years our average per mile for all miles was a bit higher. As more expedite companies have come into play especially during this year, I believe the bidding has become more competative. To keep customers freight in their trucks rates have to be lowered sometimes to keep from loosing it all together.It may not be fair but sometimes its better to have the freight at a lower rate and wait for the less financially stable companies to dry up and blow away as many do.Afterall, they can't afford to haul cheap freight for extended periods either.}>