Carrier cutting rates

Rocketman · Mar 11, 2013

xiggi said:
So your saying when we stand in dispatch and listen to them give quotes to customers we aren't hearing what we think we hear?

Sent from my Fisher Price - ABC 123

Your not getting his point. It is a very valid one.

westmicher · Mar 11, 2013

zorry said:
Trailer Transit is so transparent they give you a copy of every freight bill you haul.
Sometimes the add-ons were amazing.
A few years back they decided they needed a little more on their end so they introduced a 5 or 10% Office Surcharge which they decided was not part of the linehaul.
I've been gone over four years and the other day I received notice that I'm in on a class action suit. I guess some disgruntled o/o decided he wanted his share of the office surcharge.

I think this is the important point. If a rotten company decides to shave your pay by running a scam, the court would certainly hear a class action suit intent on setting things right, probably including criminal charges against those that benefited from the scam against their drivers.

xiggi · Mar 11, 2013

Rocketman said:
Your not getting his point. It is a very valid one.

I get his point it is his example I fail to agree with. There is tons of trickle down pricing in this business that's no big secret.

Sent from my Fisher Price - ABC 123

Rocketman · Mar 11, 2013

I think the only thing an o/o can do is hold out for a decent rate. If you allow yourself to run cheap and be used accordingly, almost any company will oblige you. If owner operators were to hold out for better rates, many of the problems that plague the entire trucking industry (multi-carriers, double/triple brokering, etc.) would go away....at least they would be less common.

zorry · Mar 11, 2013

westmicher said:
I think this is the important point. If a rotten company decides to shave your pay by running a scam, the court would certainly hear a class action suit intent on setting things right, probably including criminal charges against those that benefited from the scam against their drivers.

My point was missed.
Trailer Transit is a very good company.
Very open, giving the o/o a copy of every freight bill.
When they decided to be very open, instead of cutting our rate or double billing, they get sued.

westmicher · Mar 11, 2013

And my point is, when a company effectively changes the percent of gross they are paying, they should change the contract percent they are paying, not add some surcharge. Trailer Transit was a step ahead as they, apparently, told you what they were going to do. That may be enough to save them from a judgement. By "rotten" companies, I was referring to those others in this thread that were intentionally defrauding owners & drivers by double billing through their own companies, which they would profit more by deceit.

davekc · Mar 11, 2013

Some do it through third party billing as mentioned and some hold the line on the rate but skim the FSC.
It goes on so much it is almost a common day practice with some nameless carriers.

zorry · Mar 11, 2013

And some carriers with names to.

flattop40 · Mar 12, 2013

I have been looking at this situation all wrong. I had my first load today that I made more money than in the old days. It was a "cargo van" load so the line haul is the same but it had a 96 mile dead head which netted $33.60 (.35/mile). Back in the old days I would have gotten $20 - $25 for the DH so that is a net profit of $8.60-$13.60 more.

BUT we won't mention how we did on ALL of the other loads

blizzard2014 · Mar 12, 2013

Rocketman said:
I think the only thing an o/o can do is hold out for a decent rate. If you allow yourself to run cheap and be used accordingly, almost any company will oblige you. If owner operators were to hold out for better rates, many of the problems that plague the entire trucking industry (multi-carriers, double/triple brokering, etc.) would go away....at least they would be less common.

How will the problem just go away? Anyone can buy a van for 5k and just jump into this business. It takes at least 6 months to realize that you are going broke. When one group of green horns exits the industry there is another group chomping at the bit to buy a van and give it a try. I'm not sure we can save the cargo van rates, but if you run a straight truck at sub-par rates you are dumb. There is no need to cut the rates on the bigger trucks.

Rocketman · Mar 12, 2013

blizzard said:
How will the problem just go away? Anyone can buy a van for 5k and just jump into this business. It takes at least 6 months to realize that you are going broke. When one group of green horns exits the industry there is another group chomping at the bit to buy a van and give it a try. I'm not sure we can save the cargo van rates, but if you run a straight truck at sub-par rates you are dumb. There is no need to cut the rates on the bigger trucks.

Did you read the first sentence?

blizzard2014 · Mar 12, 2013

Who is going to hold out for a better rate? The yellow penske trucks. All of the hobby (retired folk) expediters? Who is going to hold out for a better rate in Laredo? lol.

Rocketman · Mar 13, 2013

blizzard said:
Who is going to hold out for a better rate? The yellow penske trucks. All of the hobby (retired folk) expediters? Who is going to hold out for a better rate in Laredo? lol.

Those who want to make a profit.

OntarioVanMan · Mar 13, 2013

blizzard said:
Who is going to hold out for a better rate? The yellow penske trucks. All of the hobby (retired folk) expediters? Who is going to hold out for a better rate in Laredo? lol.

ME!! I have and I did and I will continue to wait...For what I think is MY rate that I need to get out....some won't like it, but that is MY business...

ATeam · Mar 13, 2013

blizzard said:
Who is going to hold out for a better rate? The yellow penske trucks. All of the hobby (retired folk) expediters? Who is going to hold out for a better rate in Laredo? lol.

We avoid Laredo for that reason. What is the best way to get out of Laredo? Don't go in. If you are already out of Laredo, the problem is already solved.

jay1966 · Mar 13, 2013

I stopped going to Laredo last year after a boring 7 day sit then having to DH up to Dallas to begin even thinking of getting a load.
Only bright spot was I got to put my Rosetta Stone Spanish II learning to some use.

xiggi · Mar 13, 2013

I will always take a load to Laredo and honestly the rates coming out for me haven't been that bad. I do prefer elpaso though.

Sent from my Fisher Price - ABC 123

Steady Eddie · Mar 14, 2013

flattop40 said:
I have been looking at this situation all wrong. I had my first load today that I made more money than in the old days. It was a "cargo van" load so the line haul is the same but it had a 96 mile dead head which netted $33.60 (.35/mile). Back in the old days I would have gotten $20 - $25 for the DH so that is a net profit of $8.60-$13.60 more.

BUT we won't mention how we did on ALL of the other loads

A buddy of mine called me after the call. "What you think, I like it".

He called yesterday after running a few loads, said he hated it. One run paid 375 less than what it use to be. I asked about the others, he said it's not working out.

As for me, I've been caught in a under 300 mile rut. Today was the first load over 500 miles this month. In 2012 I did maybe 3 Auto runs. This month have all been Auto.

Remember, it's all about load counts per day. It may work for some and they're be happy as pigs in slop. Until the famer stops coming around with the slop bucket.

But, hey, My under 300 milers paid .5 more or .15 less, however you look at it. lol

blizzard2014 · Mar 14, 2013

ATeam said:
We avoid Laredo for that reason. What is the best way to get out of Laredo? Don't go in. If you are already out of Laredo, the problem is already solved.

Laredo is like the Bermuda Triangle of expedite. Once drivers move past exit 13 on I-35 South all of their calculators stop working!

flattop40 · Mar 14, 2013

Steady Eddie said:
A buddy of mine called me after the call. "What you think, I like it".

He called yesterday after running a few loads, said he hated it. One run paid 375 less than what it use to be. I asked about the others, he said it's not working out.

As for me, I've been caught in a under 300 mile rut. Today was the first load over 500 miles this month. In 2012 I did maybe 3 Auto runs. This month have all been Auto.

Remember, it's all about load counts per day. It may work for some and they're be happy as pigs in slop. Until the famer stops coming around with the slop bucket.

But, hey, My under 300 milers paid .5 more or .15 less, however you look at it. lol

Exactly, it may not be so bad for the solo guys as the short loads there is the bump. However, it is killing the sprinter teams. Especially the ones that the are either driving for a fleet owner or the ones as in my case not all of the money goes into 1 pot like a husband and wife team.