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extra long deadhead

aileron

aileron

Expert Expediter
Is this a programming error with the load opportunity system, or done on purpose?

Sitting in Atlanta, I got a load opportunity that picks up in Memphis, TN and delivers somewhere in MS.
380 mi deadhead
100 mi run
$160 pay

I might be off a little in those numbers since I am getting old and cannot remember most details, but not by much.

Just curious, who in their right mind would do a load like this? I checked the memphis express center and there were 2 B units there.

And this is not the only one, I had offers with 250+ miles deadhead for around 100 miles runs.

I wouldn't mind deadheading 200+ miles for a 700 mile run, oh wait, I cannot do that since it puts me over the 700 mile limit for a solo :(
 
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TeamCaffee

TeamCaffee

Administrator
Staff member
Owner/Operator
How have they changed dead head we have seen nothing different?

The fsc has gone down along with the price of fuel so our fsc on our deadhead miles has really went down. That is not a FCC thing that is driven by the national fuel price average.
 
nightcreacher

nightcreacher

Veteran Expediter
aileron said:
Is this a programming error with the load opportunity system, or done on purpose?

Sitting in Atlanta, I got a load opportunity that picks up in Memphis, TN and delivers somewhere in MS.
380 mi deadhead
100 mi run
$160 pay

I might be off a little in those numbers since I am getting old and cannot remember most details, but not by much.

Just curious, who in their right mind would do a load like this? I checked the memphis express center and there were 2 B units there.

And this is not the only one, I had offers with 250+ miles deadhead for around 100 miles runs.

I wouldn't mind deadheading 200+ miles for a 700 mile run, oh wait, I cannot do that since it puts me over the 700 mile limit for a solo :(
Click to expand...

With the new system,if dispatch feels its going to be a difficult load to cover,the load opportunity will go out to more trucks,all of which can make the pick up on time.Even though you received this opportunity,doesnt mean you would have recieved the load.This is why your now getting opportunities that have weird figures for revenue
 
B

BigRed32771

Expert Expediter
I try to remind people of the way distance from pick-up affects the price per mile (all miles) calculation, and to warn of the psychological effect of seeing what looks like a real poor paying load being taken by someone else.

In this particular case for example, because of the long dead-head, the pay per mile comes out to about $.46/mile (if I remember the example correctly as $160 run pay and total 350 miles(250 d/h & 100 run)). For someone sitting in Memphis, however, without the long deadhead, the pay would have been approx $.95/mile (based on $.10/mi fsc and 250 miles d/h). Anyone between Atlanta and Memphis would have had an all miles rate somewhere between those two amounts.

We see a run offered to us at less than a dollar, and think "who would take such a load?" In reality, though, a truck that is closer may be seeing the same run offered at a buck fifty or better. All we know is that someone took that "lousy less than a buck a mile run" and if we forget about the realities of the opportunity system we begin to think that low price loads are being accepted all the time. That begins to weigh on our minds, and makes us doubt ourselves, wondering if we are pricing ourselves too high and should we lower our threshhold price for accepting loads. While I don't think this psychological effect on pricing and load acceptance was intentional as part of the opportunity system, I do think it is an unintended consequence of the new dispatch system.

Know your operating costs and what you need to be running profitable; stick to your price unless the load satisfies some other need you have (like it's going toward home when you're ready). Allowing the corrosive effect of seeing what look like puke loads being accepted without considering the effect of distance from pickup on per mile pay will lead to panic acceptance and ultimately bankruptcy.

Remember FDCC's advice: you have to do what's best for YOUR business, not theirs. Believe me, they'll get by even if you go broke getting paid to carry their freight at less than your cost of operation. Even now the recruiting department is lining up newbies to take your place if you put yourself under.

Doug
 
I

interstategar

Veteran Expediter
I've had load opportunities picking up 425 miles in the past. I'm based in South Jersey and the pick up was in Maine. I had a <75
and ther system offered it to me. I always get outrageous load opps when I have a <75 that have alot of lead time for p/u, or when its a discounted load and nobody close to the p/u wants it. Its just how the DVA is set up even though most of the time the offers aren't profitable.
 
M

MYGIA

Expert Expediter
Owner/Operator
I understand what Doug is saying. I know every cost associated with my business to the penny. I keep detailed records and spreadsheets. The problem is I get very very few offers that even come close to what I need to make a profit. 99% of the offers coming to my truck are $.65-$1.00 per mile all miles. Top offers are $1.25-$1.30. In the past 3 1/2 months I have had less than 5 loads that are at or above my breakven cost per mile. Since December, I have been averaging 63% of my needed revenue. I am hanging on by a tread. I hate taking cheap freight and poor offers, but if I didn't and waited only for those that meet my needed cost per mile, as I said, I would have only had 5 loads in the past 3 1/2 months. As it is I am only averaging 9-10 loads a month vs. 20+ loads a month prior to 11/08. I work hard, am clean cut, represent the company well, stay in service - 90% average in the past 5 years, wear company uniform, keep my truck mechanically sound and clean. I don't know what more I can do.
 
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layoutshooter

layoutshooter

Veteran Expediter
Retired Expediter
What kind of truck? Surface or White Glove? B, C or D? Many things go into the mix on just how well things go for you. The more freight you and your truck are able and qualified to handle the better the chances that you will earn a better living.There will always be thing that are out of your control, the small business owner is always better off if they look out after those things that are in thier control. Layoutshooter
 
layoutshooter

layoutshooter

Veteran Expediter
Retired Expediter
You are in a very difficult position right now. I don't know what to say that could help. There is far more work for team White Glove trucks right now. Your type of truck is far more dependant on the general ecomony than ours is. We are all affected but there is just more freight available for team trucks with more qualifications. Layoutshooter
 
TeamCaffee

TeamCaffee

Administrator
Staff member
Owner/Operator
MYGIA

Have you talked to your CC or to the CR department? They might be able to recommend a mentor for you that would be willing to talk about how they are handling the freight crunch right now.

There are a lot of ways to cut costs on the road and at home. I am sure you have all ready done this but I would review it often and talk to other drivers on how to cut back even more.

There is not a lot of freight right now but we are finally starting to pick up a few more offers. Have you considered running team for a little while at least to get through this tough time?

What area of the country do you stay in? That might be another way a mentor could help is what area they stay in and tips on making it work.

We are sure looking at each load differently now than we ever have. It helps we have a friend who has his own authority and to hear what he is having to run his semi and refrigerated trailer for and all the sudden our load offers are looking really good.

I wish you luck and also the rest of us to get through.
 
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