FedEx Custom Critical to start posting loads on the Sylectus

[ATeam]

I need to add one more thing about the Sylectus system, and I am sure hoping someone who knows more about it than me surfaces to explain it more. The one more thing is the price conversation.

Carriers can see each other's loads and trucks on the Sylectus network but prices are negotiated between them. Once that conversation is complete and a price is agreed to, Carrier A tells Carrier B "Send it over." That is when the single mouse click happens. Load info is instantly transmitted from one carrier to another in the Sylectus format that all networked-carriers use.

 

[ATeam]

Currently I am seeing decent freight rates when, #1 no other truck is in the area ....

That may be partly true but keep in mind that most of the time there are always Sylectus-networked trucks in the area. With a Sylectus virtual fleet of over 10,000 trucks, you have been doing business with them in the neighborhood for a long time.

 

[Murraycroexp]

Let's say there are 100 companies/brokers, 500 drivers, and 750 loads to have a rate of $1/mile. Then it changes to 150 companies/brokers, 500 drivers, and 750 loads but the rate drops to .75/mile because of the extra bidders. The actual supply and demand hasn't changed for the drivers, loads, or capacity which is the most important part of the equation.

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There wouldn't be an increase in the number of bids because there wouldn't be an increase in the number of trucks. You don't bid on a load without a driver to cover. See what I'm saying? That's why the CURRENT increased capacity is what's driving down rates. More trucks available to allow more carriers to bid on more loads for those additional trucks that are sitting.

Trucks = Supply = Capacity.
Loads = Demand = Utilized Capacity.

 

[layoutshooter]

Costs continue to rise and rates continue to fall.

I see TONS of loads, that are accepted by straights, for UNDER $1 per mile. I have turned down as many as 30 of these loads in a day. Once it is learned that there are fools who will run for these rates that will set the rate.

It's just more to think about.

ONE thing is certain, unless I see come HUGE positive changes there is just NO WAY I would buy another TVAL truck. My current truck has done well. As it stands now, a new one would have trouble paying for itself.

Lower rates will result in lower quality service and equipment. It is a circle that cannot be broken. The slope that has been started down is a VERY slippery one and few ever climb back up to the top once they have started down.

 

[Murraycroexp]

Costs continue to rise and rates continue to fall.

I see TONS of loads, that are accepted by straights, for UNDER $1 per mile. I have turned down as many as 30 of these loads in a day. Once it is learned that there are fools who will run for these rates that will set the rate.

It's just more to think about.

ONE thing is certain, unless I see come HUGE positive changes there is just NO WAY I would buy another TVAL truck. My current truck has done well. As it stands now, a new one would have trouble paying for itself.

Lower rates will result in lower quality service and equipment. It is a circle that cannot be broken. The slope that has been started down is a VERY slippery one and few ever climb back up to the top once they have started down.

Set rates would be nice, factoring zonal operating costs. High fuel & tolls certainly affect CPM for all.

 

[layoutshooter]

Set rates would be nice, factoring zonal operating costs. High fuel & tolls certainly affect CPM for all.

Rates are set by jack weeds who are willing to run for peanuts. High fuel, and more so tolls, are having their affect on things. Yet there are trucks that continue to run for the same per mile that they were 3 years ago despite the increase in costs.

It will come down around their ears, sooner or latter. FEW ever look at what these loads are REALLY paying per mile. Even fewer even bother to learn how.

 

[Murraycroexp]

Rates are set by jack weeds who are willing to run for peanuts. High fuel, and more so tolls, are having their affect on things. Yet there are trucks that continue to run for the same per mile that they were 3 years ago despite the increase in costs.

It will come down around their ears, sooner or latter. FEW ever look at what these loads are REALLY paying per mile. Even fewer even bother to learn how.

Less math = More stupid.
Know what you're running for!!!
Like it or not, KNOW IT!!!!!

 

[cheri1122]

Let's say there are 100 companies/brokers, 500 drivers, and 750 loads to have a rate of $1/mile. Then it changes to 150 companies/brokers, 500 drivers, and 750 loads but the rate drops to .75/mile because of the extra bidders. The actual supply and demand hasn't changed for the drivers, loads, or capacity which is the most important part of the equation.

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Rates fall because there are more bidders/brokers in the process, adding extra layers to claim a slice of the pie. So how does that explain your comment in post 11, about having the free market taken from the industry by all the garbage from DC?
It seems to me that it's precisely how the free market works: more layers [middlemen] means profit for more people, though less for each one individually. The trick is to have several individuals combining profits for one entity, which is why companies create new layers, yes?
I can't see where DC has anything to do with it - what am I missing?

 

[Johnp3337]

Sylectus will let any Tom, Dick or Harry into their network. I solely used the system to "Backhaul" our Straights, Sprinters and CV's. Key Word "back haul". The system allows ALL subscribers to share their truck availability making Sylectus an effective way for "carriers" to broker loads when they are out of equipment. Sylectus initially said "No Brokers or direct shippers allowed" however that all changed.
Every blue moon you'll get a call or email from a subscriber needing help with a load that pays real bucks but its normally either a re-power or a carrier dropped the ball on an accepted load making it a true expedite.
Furthermore fed ex has been sourcing loads to partner carriers for a long time. If you like dirt cheap rates for running expedite and all the risk that comes with it then dive on in. Sylectus is the CH Robinson of expedite.

 

[Murraycroexp]

We're both getting the same result but "blaming" different reasons it seems.
I'll drop it and just agree to disagree.

 

[paullud]

There wouldn't be an increase in the number of bids because there wouldn't be an increase in the number of trucks. You don't bid on a load without a driver to cover. See what I'm saying? That's why the CURRENT increased capacity is what's driving down rates. More trucks available to allow more carriers to bid on more loads for those additional trucks that are sitting.

Trucks = Supply = Capacity.
Loads = Demand = Utilized Capacity.

Companies and brokers get/bid loads all the time without a truck to cover them, that is what you see on load boards.

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[paullud]

I can't see where DC has anything to do with it - what am I missing?

The last 50+ years of deregulation, regulations, lobbyists like the ATA or Qualcomm, and the rest of the list that impedes the free market.

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[Murraycroexp]

Companies and brokers get/bid loads all the time without a truck to cover them, that is what you see on load boards.

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I get that. But who bids on those loads without trucks. That's what I'm saying.

 

[Murraycroexp]

I thought deregulation made it virtually free to go into transportation. At least for the authority. I think Steve told me that back in 1981 it cost almost $100K to get his authority. But we were about 5 beers in when he said that so who knows?

 

[Murraycroexp]

I think we can agree that wh0res drive rates down. Whether they are bidding 75 CPM or choosing the 75 CPM bid.

 

[paullud]

I get that. But who bids on those loads without trucks. That's what I'm saying.

Any one of the extreme surplus of brokers will be happy just to win the bid and worry about a truck later.

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[Murraycroexp]

10-4.........

 

[Tennesseahawk]

Touché. I get it now. These aren't new loads to Sylectus. These are just loads that will be blasted out at bid/market rates instead of contracted or carrier rates. Am I less muddy-visioned now? Don't forget the small carrier disqualifier in that email. "At least 10 trucks". That knocks some of the bid wh0res out.
Also the $1M Gen Liab and the BWC will too.

I used to be one of those one truck outfits, and I was hardly a bid wh0re. I loved bidding 2.15/mi or more. Loved it more when I got it.

You're forgetting that up until recently, Bolt was one of those "Get out of dodge for .57" companies. They qualify for this. I'm sure FXCC will embrace those "less than buckers" a whole lot. I hear they smoke after sex too.

 

[Murraycroexp]

No, but one truck operators don't have quite the same margin requirement as the bigger "brick & mortar" carrier.

 

[Tennesseahawk]

No, but one truck operators don't have quite the same margin requirement as the bigger "brick & mortar" carrier.

It doesn't take brick and mortar to sign on 10 trucks. That's a misnomer. I've driven for 10+ truck companies that should have their brick and mortar leveled. They were, and are, garbage.