Is it the ECONOMY? Or are we to blame for the low rates?

[Dynamite 1]

a fine example to the previous post . we had a truck del. to sony in pitman, nj. upon del. they were informed that they wanted part of the load to be taken to ca. and wanted our carrier to do it since it was sat. and we were there. before i go any further be aware the load out was a partner carrier load. so anyway, when he contacted our disrach and got a rate for us to take it to ca. the load was not booked. the team took the load to nj. for the partner carrier about .07 mile cheaper that we would get to haul it. so all in all there is some truth to getting it done for cheap or less expensive which ever term you like. so just on avg. we lost the load over 175.00-200.00 depending on the mileage. we are of the addage that we know what we need to run at to be profitable and we also will not budge from our minimum. if all loads are profitable then so are we. we can afford to sit and wait on our rate and some cannot that is why everyones business model is different.

 

[x06col]

I don't feel it's a matter if you can "afford" to sit, as in my case I would choose not to sit. Particularly, in NJ this time of year. I'd much prefer to continue to run NJ-CA for $1.93, steada two buks to have something to do. Those that think $175-$200, more or less is the end of the world on a run like that, must be doing "fuzzy" math. I wouldn't want to drink any of that koolaid. Also it seems, many think their time and equipment is more valuable than the rest of us. And i'm going to suggest.......it ain't. To each their own..tho. To those of you that are way top heavy in equipment expense, driving those Taj's......I feel for you, but, jes can't quite reach ya.

Those that are still of the mindset that thw world owes you jes because you are out there, available and have a few expenses......all I can type is, keep up with that mindset for as long as you can. If'n it makes you happy.

 

[greg334]

I don't feel it's a matter if you can "afford" to sit, as in my case I would choose not to sit. Particularly, in NJ this time of year. I'd much prefer to continue to run NJ-CA for $1.93, steada two buks to have something to do. Those that think $175-$200, more or less is the end of the world on a run like that, must be doing "fuzzy" math. I wouldn't want to drink any of that koolaid. Also it seems, many think their time and equipment is more valuable than the rest of us. And i'm going to suggest.......it ain't. To each their own..tho. To those of you that are way top heavy in equipment expense, driving those Taj's......I feel for you, but, jes can't quite reach ya.

Those that are still of the mindset that thw world owes you jes because you are out there, available and have a few expenses......all I can type is, keep up with that mindset for as long as you can. If'n it makes you happy.

Now for some reason I can imagine Lum or Abner saying all of that, but either way it makes too much sense.

 

[guido4475]

Guido, I think Team C's point was that the "numbers" are different for everyone and that they should know "their own" numbers and not rely on what someone else has told them.

I can assure you, Bob and Linda know exactly what the numbers are for THEIR operation.

And I never said they don't know their numbers.Anyone can plainly see that Bob and Linda definately know thier numbers and keep track of them.Any one who can tell and see the difference of fuel mileage by removing a sun visor in my opinion, would definately know them.

I was saying that it surprised me by what they said,watching their numbers as closely as they do, that's all.

 

[bubblehead]

Team C and others have helped us by their writings. Their mistakes didn't become ours because of their willingness to share valuable information. I have never met them but hope to do so in the future. The purpose of the original post was because of the similarities between a few in this business and that of the California Gold Rush...specifically that of 'Sam Brannan' who so publicsized the discovery of the gold it deminished the profit opportunities. When this niche (expediting) was more of a word-of mouth type of thing, the number of trucks to freight was at a reasonable level. The mom and pops and small fleet owners were able to make a good living even after calculating taxes, ssn health insurance etc. But at sometime, someone(s) became the 'Sam Brannan' and the rush began. Now we have Super Fleets & lease schemes that have spread the gold (profits) so thin, the pay isn't much better then drivers working for a transport company as employees. Perhaps this is the nature of the industry and would have happened no matter what. But likely the time table would have been much later allowing us to weather this current economic storm much easier. I say to Team C, thank you for your contributions. And to the loud mouth 'Sam Brannan' types, thanks for nothing.

 

[davekc]

. And to the loud mouth 'Sam Brannan' types, thanks for nothing.

Don't have to dig too deep to find those select few in the forums.

 

[jj214]

I sure can. Anything under 90 cpm in a van, $1.40 in a straight truck and $1.80 in a T/T would be cheap freight.

.90 cpm at 60mph =54.00 per hour. I know what my cpm are and if I could not make money at .90 per mile, I would have to take a hard look at my expenses. I have never purchased a new Van, let alone a Sprinter, I get passed all day by Cargo Vans driven by guys who complain about their expenses. Taking a "cheap freight" load going to Chicago makes more sense than a load paying 1.20 going to the UP in Michigan. Sitting in a non-productive express center is not without expenses. Choose your loads based on more than cents per miles. For the most part, we are independent contractors with the emphasis on independent. You have to decide what "cheap freight" is. Is your van paid for or did you just buy a Sprinter with all the bells and whistles and pay someone to outfit it for you. CPM will not be the same!

 

[CharlesD]

Carrier A bids a van load at $1 a mile and pays the O/O .70 a mile.

Carrier B bids a van load in the same area for the same miles at .90 a mile and pays the O/O .80 a mile.

Which freight is cheaper?

 

[x06col]

Carrier A bids a van load at $1 a mile and pays the O/O .70 a mile.

Carrier B bids a van load in the same area for the same miles at .90 a mile and pays the O/O .80 a mile.

Which freight is cheaper?

Charles....that is far and away to tuff a math question for most. They jes no comprendo.

I had numerous folks tell me as drivers they would drive for me at 60% of $1.50, but wouldn't touch the truk for 50% of two buks. Go figgure the new math when you git numbers stuck in your head.

 

[davekc]

Charles....that is far and away to tuff a math question for most. They jes no comprendo.

I had numerous folks tell me as drivers they would drive for me at 60% of $1.50, but wouldn't touch the truk for 50% of two buks. Go figgure the new math when you git numbers stuck in your head.

Sad but true. It amazes me the calculators that some use. Same with people that demand 40 percent and the owner pays the fuel and they actually think they are making more.

 

[x06col]

Ohh yes, I still shake my head when memorys of some of the clowns i've incountered in this biz.

Had one fella sitting in South Dakota one day and turned down better'n 4K of freight going south or west, because he had contracted to save $50 for each service on his truck, and needed to get back to Louisville.

A dispatchers dream....

 

[Bruno]

Carrier A bids a van load at $1 a mile and pays the O/O .70 a mile.

Carrier B bids a van load in the same area for the same miles at .90 a mile and pays the O/O .80 a mile.

Which freight is cheaper?

Some would say they all are.

 

[CharlesD]

Some would say they all are.

Maybe so, but neither of those bids would have won a load out of Laredo last week.

But still nobody's answered my question. Which set of numbers do we use to determine what freight is cheap, what carriers are bidding or what drivers are being offered?

 

[jaminjim]

Maybe so, but neither of those bids would have won a load out of Laredo last week.

But still nobody's answered my question. Which set of numbers do we use to determine what freight is cheap, what carriers are bidding or what drivers are being offered?

Thats simple, since more than 95% of the people on this site are Drivers, it's what they are offered!

 

[CharlesD]

Thats simple, since more than 95% of the people on this site are Drivers, it's what they are offered!

But is it really that simple? Two carriers might be paying the same rate and most people around here won't bother to look beyond that, but what if one carrier is running those vans at a nickel a mile profit because they have a larger number of vans. For this reason, they routinely outbid everyone else. Could this carrier be having a more adverse effect on rates than the other, even though they both pay their drivers the same.