Dead head

Tennesseahawk

Veteran Expediter
Flat rate to me, IMO, is conceding to the screw job....not having to dicker for every penny...

When you agree to the $1.12 rate that E-1 give its straights, you have a point, but that's on you. When I've gotten a good flat rate, I've always known what was coming to me. As good as the company itself may be, a % rate leaves things partially hidden, which can lead to trust issues... especially when you trust said company, as a favor, and you end up paid $90 for a more than 90 mile run in a straight. Just saying, you have to be more on your toes with a % rate.
 

tenntrucker

Expert Expediter
Just the way I roll.....:cool:

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OntarioVanMan

Retired Expediter
Owner/Operator
When you agree to the $1.12 rate that E-1 give its straights, you have a point, but that's on you. When I've gotten a good flat rate, I've always known what was coming to me. As good as the company itself may be, a % rate leaves things partially hidden, which can lead to trust issues... especially when you trust said company, as a favor, and you end up paid $90 for a more than 90 mile run in a straight. Just saying, you have to be more on your toes with a % rate.

I can understand your concerns.....one thing about flat rate it takes the guess work out of a load....
 

LDB

Veteran Expediter
Retired Expediter
How much deadhead is too much deadhead
I don't mind doing 100 for a 500 mile job provided there is enough time to do it but 100 for a 300 mile run seems stupid to me or am I just too anal!

I maybe completely wrong on this (wouldn't be the first time) but I don't consider deadhead. Since I'm on percentage, the way I look at all loads is simple. What's it pay divided by all mile. If I like it, I take the load.

Asked and answered. Many other good answers too. This is just the first one. I don't care if it's 1 mile DH and 399 loaded for $680 total or if it's 399 DH for 1 mile loaded for $680 total.

I also don't care if it's paying $1.69mi plus .01fsc or a penny a mile plus $1.69fsc. All that matters are the total number of miles and total number of dollars.
 

jamom123

Expert Expediter
And why's that? In my experience, flat rate takes away a huge part of the unknown, and makes it harder to be screwed.

Maybe i'm wrong but looking at my numbers under flat rate i will be screwed even more.

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davekc

Senior Moderator
Staff member
Fleet Owner
I do both as a fleet owner and it is the ending numbers that matters. In numerous cases I can tell you a flat rate out performs a percentage. It just depends.
 

letsdrive

Seasoned Expediter
How do I find out more about FedEx new flat rate was curious how its gonna affect me as a driver will it change rates for cv and what will be different about dh and tolls

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davekc

Senior Moderator
Staff member
Fleet Owner
How do I find out more about FedEx new flat rate was curious how its gonna affect me as a driver will it change rates for cv and what will be different about dh and tolls

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I would ask the Fed directly. Also, there are posts in the "FedEx carrier forum" relating to the flat rate subject.
 

Tennesseahawk

Veteran Expediter
Maybe i'm wrong but looking at my numbers under flat rate i will be screwed even more.

You'll be screwed because they're going to lower your rate, not just make it flat. By going flat, at least you'll know how much you'll be screwed. But also, by going flat, you won't know how much they make, which makes it a more bitter pill to swallow. If they wanted to be honest, they should just tell you they need more money, so they're going to give you a smaller percentage. Instead, you get a certain amount of E-1 butthurt.
 

davekc

Senior Moderator
Staff member
Fleet Owner
You'll be screwed because they're going to lower your rate, not just make it flat. By going flat, at least you'll know how much you'll be screwed. But also, by going flat, you won't know how much they make, which makes it a more bitter pill to swallow. If they wanted to be honest, they should just tell you they need more money, so they're going to give you a smaller percentage. Instead, you get a certain amount of E-1 butthurt.


Then again, they could cut the rate, followed by a ten cent a mile increase, then pat themselves on the back for a month because half their fleet left, only to finally take it back and then blame their competitors because, well because they just don't know how to sell freight.
Wait a minute, where has this played out before? :rolleyes:
 

Dynamite 1

Moderator
Staff member
Fleet Owner
If you get screwed on a percentage pay it's your own fault for not asking what it pays before you accept it !!!!!!!!!
 

zorry

Veteran Expediter
I'll be laughed at for saying this, but I believe increased productivity , miles per truck per week, has a lot to do with this.
Too many people running premium runs only and not helping with the less desirable runs.

I can't question that business model.
I can see how it's frustrating to a carrier.
I remember a regular poster that tried flat rate before mentioning getting 8000 miles in a seven or eight day period.

I doubt if he runs those kind of miles back on %.

If you increase your miles, your fixed cost per mile decreases.

I'd prefer to increase my miles IF I want to, not because I HAVE to.

Point is, I believe this is productivity driven as much as profit driven.
 

zorry

Veteran Expediter
I worked on a contract where we got paid $45 or $50 per hour. Chicago to Milw paid 10 hours.
Chgo to Memphis maybe 20 hrs. All out and back TT Chemicals.

One week we came in and w/o notice the time per run was cut 10% but the hourly rate stayed the same.
The carrier insisted it wasn't a pay cut..

I took a 100% pay cut and moved to a better carrier.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I'll be laughed at for saying this, but I believe increased productivity , miles per truck per week, has a lot to do with this.
Too many people running premium runs only and not helping with the less desirable runs.

I can't question that business model.
I can see how it's frustrating to a carrier.
I remember a regular poster that tried flat rate before mentioning getting 8000 miles in a seven or eight day period.

I doubt if he runs those kind of miles back on %.

If you increase your miles, your fixed cost per mile decreases.

I'd prefer to increase my miles IF I want to, not because I HAVE to.

Point is, I believe this is productivity driven as much as profit driven.

Maybe, maybe not. It depends on if one knows their costs to operate and how that relates to the marketplace. As those "less desired runs" become more frequent (and they will), then things of a undesirable nature start to happen. Just watch. Every time I have seen this happen, it is never a good long term outcome. Never.
 
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OntarioVanMan

Retired Expediter
Owner/Operator
I'll be laughed at for saying this, but I believe increased productivity , miles per truck per week, has a lot to do with this.
Too many people running premium runs only and not helping with the less desirable runs.

I can't question that business model.
I can see how it's frustrating to a carrier.
I remember a regular poster that tried flat rate before mentioning getting 8000 miles in a seven or eight day period.

I doubt if he runs those kind of miles back on %.

If you increase your miles, your fixed cost per mile decreases.

I'd prefer to increase my miles IF I want to, not because I HAVE to.

Point is, I believe this is productivity driven as much as profit driven.

You could be unto something.....one carrier actually once said in here it is all about volume...miles...and so if you look at the ads that is what is prevalent MILES...they have lots of miles....Volume...
as I have said a few times IF I were a young buck in this business I just might follow that route....get a 5k CV and don't spend any or very few $$$'s on it and run like the wind...grab every mile out there and make it on volume....
 

rollincoal

Veteran Expediter
Owner/Operator
There's no guesswork on percentage if you have a calculator. Seems like carriers moving to pay flat rates and trying to cover all of their freight (the "undesirable" and desirable) are re-arranging deck chairs on the Titanic to hopefully offer their customers a solution to a capacity crunch? It ain't going to create trucks and service will suffer. Maybe there will be someone willing to pick up the slack for a price. Thank goodness they can always broker it.

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beachbum

Veteran Expediter
Owner/Operator
I one time ran from LA to Seattle for a load going to NC. even after deadhead I still averaged 1.15 a mile for all miles.. Now loads like that don't happen all the time but I do get long distance loads that pay upwards of 2.45 a mile TTT I'll deadhead a long ways for those loads as long as I have time to deliver. Heck, I've ran from Orange County Ca to Melbourne Fl for 2.02 a mile for 30 pound piece with 5 days to get it there.. You just never know.

That said freight for vans or sprinters at LS are far between right now. most days we only have 7 to 12 loads for the whole country for 85 vans, not a good number this year for us... It's hard for me to make a change since I've been at Landstar since 1996 and in the expedite side for 3 years now... I did leave for just over a year and a half before coming to the expedite side of thing.
 

beachbum

Veteran Expediter
Owner/Operator
I guess Landstar will be one of the only percent companies after June 1st from what I just read on the FedEx forum here... Then again, that might not last long if they can't get the freight to load on their expedite trucks.. We slowed down right after they sold the brokerage house last year.
 

runrunner

Veteran Expediter
How do I find out more about FedEx new flat rate was curious how its gonna affect me as a driver will it change rates for cv and what will be different about dh and tolls

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I think FedEx vans have been flat rate for sometime now .85 per mile plus FSC.
The new rate for vans will be .80 plus FSC.
 
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