Insurance and Expenses

Broompilot

Veteran Expediter
Expenses are on rise, how about RATES? How much are you expected to lessen your Quality of Life or Life Style, just to support a Business?

I thought the idea of operating a business was for the business to support You and Your Family, not for your family to sacrifice to support a Truck, Carrier, and all those Expenses.

Do not get yourself cought in the WORKING for the TRUCK wheel. Make sure this is profitable and your not throwing years of your life away on the Gerbal Wheel.

Anyone out here seen any sign of an increase in rates with that insurance increase. Or are you just suppost to eat it? I think we might know that answer.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
Broom makes a good point to ponder. Like any other chosen profession, expediting and owner/operating should provide any driver with the financial freedom to fully pay for the present and help provide for the future.

Broom's comment is also something for all you carrier employees, lurking in these forums, to keep in mind. No one can raise their family on deadhead pay, detention money, layover pay or continuous acceptance of your cheapest freight. If we are expected to 'take one for the team', once-in-a-while, the team is also expected to 'take one for us', once-in-a-while

A few years back when we entered expediting, I experienced a young dispatch agent trying to convince me to take the cheapest of loads after I had a slow couple of weeks with nothing but the cheap freight. I reminded the dispatcher that the monies I received from the company, not only had to pay for all of my truck and road expenses, they had to provide me enough to pay my mortgage, utilities, insurance and all my other monthly bills. She said "you aren't being realistic". At that moment I realized that we were thought of as little more than one-run-at-a-time contractors.

We've all been on Broompilot's Gerbal Wheel at some point in life. If that point is in expediting, it's time to step off the wheel and reevaluate your fate.
 

Tennesseahawk

Veteran Expediter
"You aren't being realistic" huh? What the heck do they think we're out here for? Our amusement? Because we have nothing better to do? But the very fact that a lot of ppl in this industry, and trucking in general, have that "it's better than nothing" attitude. And that is why we're expected to take crap for crap runs, time after time. We're viewed as less than human, and that's not cutting it. A lot of ppl are in this for a different reason than the retirees who want to see the country, or the ppl who have no house and live in their truck. We need a living wage, not the scraps thrown to the hounds.

-Vampire Super Slooth Trucker!!!
 

RichM

Veteran Expediter
Charter Member
I remember one time in Minneapolis a dispatcher kept trying to get us to take a real cheap load into the middle of South Dakota,which would have resulted in a deadhead back to Minneapolis.

I kept refusing it and finally she said " You know you can't make money all of the time".. I replied ,"Why the hel- not, would you come to work for half your pay." She hung up on me.
 

louixo

Veteran Expediter
Charter Member
>A lot of ppl are in this for a different reason than the retirees who want to see the country, or the ppl who have no house and live in their truck. We need a living wage, not the scraps thrown to the hounds.<

It´s all about SUPPLY AND DEMAND. The company you´re leased to doesn´t owe you ANYTHING! They are in this business to keep the biggest piece of the pie they can get. Just like us drivers and/or O&O´s. It´s always a negotiation. Push pull. Ying yang. Up down. There is no let up. What is a living wage to one, is not a living wage to another. If a retiree wants to get out there and see the country as best they can, in an expedited truck, they have every right to do so. If you as an individual want more loads, more money, or more anything, you too have the right to pursue it in anyway you can, which means if you´re not getting what you want, CHANGE IT!! Go somewhere else. Get into another line of work. Manage better. Stay out longer. Do more volume. You name it. But don´t get into that negative that it´s somebody elses fault. It´s everybody´s fault, and it´s nobody´s fault. The shipper wants cheaper rates. The company has to compete, and they want more profit. You want more loads, and higher rates. Get your own authority. Get more trucks. Be your own company. Quote those high rates in the marketplace, and take only the loads that you want. You won´t be in business long. It´s your choice.
 

Tennesseahawk

Veteran Expediter
You're not getting what I'm saying, Louixo. I'm not blaming anyone here. But the companies and dispatchers have this "here's something that's better than nothing" attitude. I'm just stating that I can see where they get this view from. A lot of ppl are happy getting any load handed to them. What the companies don't realise is that not all of us can survive on "take one for the team" loads all the time. We're not out there to take one for the team, just as the companies aren't out there to supply us with a living wage. We have to do that for ourselves, and thus, don't take all they have to throw at us. Now it's just getting them to understand this. I think they do, just that they don't care.

And you're absolutely right about being your own company. The fact that a lot of ppl drool everytime their qc beeps tells me there isn't enough business in this business.

-Vampire Super Slooth Trucker!!!
 

fastrod

Expert Expediter
What you are saying is right louixo, but remember if you get your own authority you cut out the carriers share of the rate. This should raise the rate you get by about 40 percent. This assumes that you find your own customers and do not use brokers. I do think that the carriers will turn more toward retirees in the future. One more thing, there is not much difference between a carrier and a broker.
 

ATeam

Senior Member
Retired Expediter
>You're not getting what I'm saying, Louixo. I'm not blaming
>anyone here. But the companies and dispatchers have this
>"here's something that's better than nothing" attitude.

I don't get that from our dispatchers at FedEx. Perhaps that is because we do not accept low-paying loads, and when we turn them down. We do not argue about it. We simply say no and that is the end of it.

Or, we may say we'll take the load but the money has to be at least $X.XX per mile. If they say no, that is the end of it.

Or we may say no and they may call us back after finding no other trucks. In such cases, we say yes or no, depending on what they offer.

In every case, if a low-paying load is offered, we refuse it before offering to take it for more money. We want them to know we are serious about not hauling low-paying freight.

We don't get into what the load should pay. We only get into what the load does or does not pay. If they ask why we are turning down the load, we say we are not required to provide a reason (which is the truth).

It seems fruitless to get into a conversation with a dispatcher about how much money you should be making. They do not care about that any more than you care about how often they mow their lawn at home.
 

ATeam

Senior Member
Retired Expediter
>"You aren't being realistic" huh? What the heck do they
>think we're out here for?

I don't think they care what we are out here for. The reasons people are out here are as varied as the drivers themselves.

>Our amusement?

Speaking for ourselves, Diane and I absolutely are out here for our amusement. In our entire lives, we have never kept a job we did not like. When work stops being fun, we find other work to do.

>Because we have
>nothing better to do?

If we had something better to do, we would do that. At this point in our lives, expediting is the very best thing we could be doing.

>But the very fact that a lot of ppl in
>this industry, and trucking in general, have that "it's
>better than nothing" attitude.

Successful expediters do not have that attitude. If all you want to achieve is something better than nothing, you don't have to achieve much at all. As demonstrated by the results such people generate, the expediting industry does not treat these people any better than they treat the industry.

>And that is why we're
>expected to take crap for crap runs, time after time.

I have never once heard from a dispatcher or FedEx representative that we are expected to take crap for runs. We have been offered runs that could be considered crap, but it surprises no one at FedEx when we turn them down. And looking at it from the shipper's point of view, he or she is not paying a crap rate. Almost always, the run is paying low because the deadhead is high (which brings the all-miles rate down), not because the shipper is low-balling the freight.

>We're
>viewed as less than human, and that's not cutting it.

That is simply not true, at least not at FedEx. No one there views drivers as less than human. They may not treat you like family like some carriers advertise. They may know you more as a truck number than as a name or face. But they do not regard you as less than human.

>A lot
>of ppl are in this for a different reason than the retirees
>who want to see the country,

That is correct. As I said above, the reasons people are in expediting are as varied as the drivers themselves. And about retirees who are using the expediting opportunity to see the country, I say more power to them!

>or the ppl who have no house
>and live in their truck.

That would be us (and a few others I presume). Though, it is not entirely accurate to say we have no house. We are not homeless. We have a residence, but we do not own it. Our residence is rental space. When we go home, we sleep in the house where our goods are also kept.

>We need a living wage, not the
>scraps thrown to the hounds.

Diane and I are in this business for our amusement, yes. We are also in it for the money. Big time, we are in it for the money. If the money had not been at least as good as the jobs we left when we jumped in, we would not have stayed in for long.

I suggest that any expediter that is not in it for the money will not do well for long. In business, money is what it is all about. Sure, there the other reasons like providing a service, seeing the country, making a positive difference in the world, and even serving the Lord. But if you are not making money, you will not be in business for long.

Finding the life and work to our liking and our financial goals achievable, we are in for the long haul. Having some very specific and ambitious financial and retirement lifestyle goals, we have oritented our lives to achieve them.

That includes getting rid of a house that we no longer had the need to own, reducing our housing costs by renting cheap residential space, selling our cars and all other property that might require us to go home to take care of it, spending most of our time in the truck, seldom going home, and being laser-focused on maximizing our income and opportunities as a one-truck expediting team.

No one is throwing us scraps or considering us hounds. Without taking it personal or worrying about what others may think of us, we turn down the loads that are not profitable to run and accept the ones that are. At the moment, our year-to-date acceptance rate is a hair below 70%, which is slightly below our usual 70% to 80%.

There is plenty of good freight to haul. We are preserving our dignity and making good money hauling it. If your company expects you to haul crap, it is time to find another company, or another career, where you can find the respect and revenue you seek. But be careful here. It may well be that you are are already at that company and it is you that needs to change more than them.

Finally, no expediter (ourselves included) has the right to anything in this industry, except what is contactually agreed to. That is especially true for those who seek the American dream. Sure, there are lots of people out there that would love to be able to own a house, support a family, buy lots of toys, take vacations, and retire secure by working as expediters. To that, the industry says, "So what?"

We are self-employed independent contractors with all the freedom and risks that entails. Diane and I know that the economy, our carrier, the industry or the bad fortune of a disabling accident could turn against us in an instant. Such is the way of the expediter's life. And for such we are prepared.

But until a negative event takes us out, we are being richly rewarded by an industry and a carrier that are as good to us as we are to them.
 

RichM

Veteran Expediter
Charter Member
I hear from ppl constantly who say I am going to get my own authority and rake in the bucks, but they don't realize that a major drawback of having your own authority is when will you get paid. You read about how when I have my own authority I will get it all. You will get it all but when will you get it. You won't get an advance up front or when you are done with the load. It might take 60-90 days to get paid and you will spend an inordinate amount of your time chasing money. Thre are rules that state you must be paid within 15 business days but if you are not paid what recourse do you have.

Unless you have a dedicated customer base and a contractual agreement with that customer you could easily go bankrupt with thousands of dollars in receiveables. There are factoring companys that may take on your receivables but now you are giving up a percentage of you bills just to get paid.
 

Tennesseahawk

Veteran Expediter
So... does anyone have a hunch who will win the World Series of Poker's main event this year?

-Vampire Super Slooth Trucker!!!
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Thawk, it appears to me, that you really, really should consider getting off the Gerbel wheel, or something. Or, maybe get in cahoots with fort wayne, and get this crap organized. I remember the time when you had the opportunity to change the world, and, it didn't work out well for you.
 

Broompilot

Veteran Expediter
Well Phil than you better re READ what happened to RICH. I am so so very happy for you that your DISPATCHERS know better than to ever hand you a lousey load. Must be quite a veiw from that high top your positioned in.

Luxo, your comment RANTS on and on. On one side your critize ALL for complaining, than the complainers are to GO BUY A FLEET to improve ones finacial footing. Or just LEAVE. Economics just do not work out that way. Expenses are going up (You can read others Posts here for Proof Positive) but to those like yourself hey maybee your so rich that your really spending your childrens inhearitence. Many of us on here are trying improve our lot in life, and are dealing with the cards on the table the most honest and honorable way we know how to. Big business has its way, we would be buying our loads also.

It takes $ to make $ bottom line first rule in Economics, beat a dog long enough and he is scared of everything and everyone. Keep a person from making a living and one has no back up to have options.

Now the person squanders and cannot manage $ or is lazy, is not what this is in refrence to. Glad your retired or so it sounds and could care less about making a true living.

I hought this site was about helping others succeed in this business. Sorry I have helped to contribute to success, your post blamed ALL of those wanting to make a living at this at fault. Or have I read something incorrect? Nothing positive I read in your comments, at least Phils had positives to it, obvious in that post he has become over happy and is no longer hungry either. But heck if I were getting $3.00 a load and pre dispatched till Christmas I guess I would be fat and happy to.

I think I will stick to the advice of those who have acutally postioned themselves with respect, admiration, and most of all success. Those who tell it like it is and are honest about it without pumping themselves up. People like Terry and Rich. They have nothing personal to gain by giving the best advice they can, all for free.
 

arkjarhead

Veteran Expediter
all i'm going to say is if you start accepting cheap rates then you can just about bet on a cheap rate every time. i made the mistake once of runinng a load that paid the truck 1.05 to get out of a bad area. for 3 or 4 months after that every load was offered at 1.05 and i would tell them no only to have them call me back 15 mins later with a better rate. you can't blame the company that's how they make their money.
 

ATeam

Senior Member
Retired Expediter
Broom,

Being popular on an internet open forum may be a worthy goal, but it will do nothing to make you a more successful expediter. If I wanted to be popular, I would stay home, run for public office (so the media would put my picture in the paper and quote me throughout the state, and people would invite me to speak to large groups) tell people what they want to hear and cater to their egos by telling them how smart they are and how they are part of the "in" crowd. Behind the scenes, I would identify someone that others do not like and gossip with others about that person or group about how "we" are not like "them."

It is easy to be popular. Just follow the formula. But that's for me. Our goals produce results that are more meaningful and rewarding to us. When you retire, popularity won't fill the fuel tank in your RV or pay for the home health care that will keep you from having to sell your house and move into a nursing home.

While I enjoy sharing my information and know it helps some people (not all), I'm not here to win a popularity contest. If I were, you would be reading words from me that are quite different than the facts and opinions I present.

My insurance rates went up too. Fuel has more than doubled since we started. Truck prices have skyrocketed. Vendors have failed me. Products have failed me. Dispatch has offered crap loads (as I said, please re-read my post), and just this week, I'm watching our retirement savings shrink as the stock market moves against us.

Still, we are happy and successful in the business, in part because we have followed advice that you yourself have given, Broompilot; expect the unexpected.
 

ATeam

Senior Member
Retired Expediter
Just one more thought, about the business and not forum members.

For years, people have talked here about being prepared for the bad times. If something like an insurance rate hike rattles you now, fasten your seat belts and grab your prayer book. We all may be in for a real rough ride.

While the underlying economic indicators remain stable and there are a couple bright spots, the mortgage crisis, housing bubble burst, credit crunch, liquidity demise (or whatever you want to call it) that is now driving stock markets down worldwide may signal some coming bad times for real.

Very similar to the dot-com bubble burst, and other bubble bursts that have occured in markets for centuries, the mortgage crisis (as some call it) is a process of wringing certain excesses out of the markets.

In this case, too many people bought homes they could not afford and too many people made it easy for them to do so. Since housing drives so many other segments of the economy, a ripple effect is now in progress.

Unlike bubble bursts of the past, this one is unique in that it affects not just the investors that own the declining assets, it potentially affects everyone who may want to borrow money.

When people can't borrow money, or must do so at unfavorable rates, they cannot buy stuff. When people cannot buy stuff, manufacturers cannot sell stuff. When manufacturers cannot sell stuff, they cut expenses and jobs. When all that happens together, we have a decline in the economy, otherwise known as a recession.

When economic activity slows, so does freight. And when freight slows, so does expediting. I do not know if this market tumble portends a recession. I do know that recessions are part of the economic cycle and they always follow periods of economic growth. Sooner or later, one is coming. Given today's business news, it might be sooner.

If a single event like an insurance rate hike or an unanticipated truck breakdown is enough to make you worry about your expediting career, it is a safe bet that you will not have an expediting career when true bad times come.

What does a recession look like for expediters? I do not know for sure since I have never lived through one. There are some here who have. This would be a good time to share. A friend of mine who did live through a recession as an expediter, and continues in the business today, told me he was out on the road (not at home), in service 100%, and hauled three loads in 30 days.

A big storm may be brewing right now. If you do not have a life vest and are not prepared to swim, you might think about sailing safely back to shore, while you still can. When the storm hits, it will not care about how you feel, what is fair, or your views about how things should be. You cannot argue with a coming storm. You can only respect and prepare for it.
 

fastrod

Expert Expediter
Rich I give up 5 percent. I use a local factoring service. There are many services with as low as 3 or as high as 7 percent depending on the amount of freight bills you factor. Giving up 5 percent is better than the 35 to 40 percent the carriers take. My deal pays me in 7 days, but some will pay within 24 hours of recieving the freight bills. As far as an advance up front, if you need that you have problems. Having your own authority is not for everyone,some people need a carrier to hold there hand and be a safety net for them, but for some it is a great way to go.
 

Tennesseahawk

Veteran Expediter
Col... my experiences with what I posted were years ago. I don't now, nor would I ever go there again. You know Cal doesn't pull that crap. However, I hear of it happening from drivers. Everything from constant all-day minis to 8 hours off the board for turn downs to company presidents telling o/os "FU! You take that F'in run!!!"

Maybe I am on a gerbil wheel. But it's one I can survive on, and prosper. And as far as wanting to change the world... when I do it, it'll be on my terms.

-Vampire Super Slooth Trucker!!!
 

blacktiger

Expert Expediter
I dont know Team. Your stories are like a funny cartoon. You say you dont want to be popular but you answer too much and way to long. Plus you keep mentioneing your site on everything you write plus you shpw it at the bottom with your name.
Soundin like someone starvin for some limelight

George
 

louixo

Veteran Expediter
Charter Member
>I hought this site was about helping others succeed in this business. Sorry I have helped to contribute to success, your post blamed ALL of those wanting to make a living at this at fault. Or have I read something incorrect?<

Yea Broom, you read it wrong. It´s all relative to the expenses you have. The larger they are the more money you need to get to profit. The less your nut is, the less you need. I don´t know how you can think that what I wrote wasn´t positive. You seem to want us to all gather at the truck stop and sing a couple of stanzas of "We Shall Overcome". We´d maybe all leave with a nice warm glow, but if I need the money I think I´d have a better chance of getting it, by skipping the warm and fuzzie´s, and run a few more miles, or get on the phone and hustle me a load. This forum, in my interpretation IS about helping your fellow trucker by disseminating information. Reality IS, is that it IS NOT the carriers responsibility to get you a better bottom line. It´s yours! So again, if you don´t like where you are, then CHANGE IT, to make it better for yourself. How is up to you , and only you). Dispatchers, load planners, companies don´t give a whit about your personal success, and they never will. Do you sit there and worry about that poor little dispatcher that loses her job because she isn´t able to talk someone like you into taking that load for the team? Do you worry about the company when they lose the account, because they can´t service it by getting someone to take the low freight along with the high paying freight?. When you´re sitting at a truckstop, and you get a load and are gone down the road, do you worry about the driver who is going to spend the weekend there? I doubt it.
And yes everyone is at fault if they don´t look out for themselves. When you get a good fit, stay with it as long as it works for YOU. ATeam basically said the same thing, though he does get a mite windy in the saying sometimes.
 
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