CharlesD
Expert Expediter
It's been one year since I got my authority, and I have learned quite a bit in that year. Some of it won't apply to people who are leased to a carrier, and the rest of it is probably common knowledge to so many people here, but this is what I've learned in the last year. Let me start by saying that I've made more stupid mistakes since I started in this business and I'm still not done making mistakes, just that they aren't as costly as they used to be. If I can give somebody a ray of hope that you can overcome mistakes, then I will have at least something to show for them, so here goes.
For starters, I have developed a very healthy respect for dispatchers. When I was just relying on them for all my loads, I didn't really appreciate what it was that they were doing, at least what the good ones were doing, and that company really has some good ones. They would tell me that they were bidding on loads and just not getting them and I thought that they just weren't bidding low enough because they wanted to protect the nice company profit margin. I thought that if I was on my own I'd be able to undercut all those big companies that won't bid that low and I'd be getting all the loads. I'd be in fat city. I learned when I got on my own how small the margins are on some freight and how low they were actually bidding to get me the loads that they did. That nice company profit margin didn't look so good any longer.
There's another thing I learned, and I'm almost ashamed to admit it here because looking back and can't believe I was that naive. Perhaps some of you will get a laugh out of this now. I honestly didn't know a darn thing about LTL, or the main difference between LTL and expedite. I was under the assumption that any load would pay enough to run by itself in an appropriately sized vehicle. A two pallet load would always pay a cargo van enough to run it by itself, a six pallet load goes on a 12' straight, etc. I hadn't really learned about the mentality behind LTL, so I applied for my authority after looking at a few load boards and seeing all of the two and three skid loads that would fit in my Sprinter. I was thinking that I'd be sitting good with all that freight to choose from.
The rude awakening came one year ago when I had my authority certificate in hand and a new account on getloaded. I was sitting in Houston and there were about 20 loads in there that would fit my van, so I picked up my phone and figured that I would have a load booked in pretty short order. The first one I called on was two pallets going 1200 miles, and when the broker told me it was paying $400 I nearly fell over. I think I even asked the guy how in the world someone could run that load for that rate. He asked me how much I would need and I told him $1200 and it was his turn to be flabbergasted. He said, "Do you realize that this is a partial?" I responded, "Yes, but I'm running a smaller vehicle and that load would be the perfect size for me." I wrote that guy off as a cheapskate and kept calling other brokers, only to be told essentially the same thing from each one. Later that day I eventually did some research online and learned what LTL is and why it is so cheap. My illusions were completely shattered, but I now had this authority that I had paid a certain amount of money for and I was determined to make it work. I also still had the carrier I was leased to and I was getting the occasional load from them.
That was when someone else here mentioned partner agreements and I started looking into that and eventually I had a couple partner agreements, along with the occasional decent paying LTL I was able to find, and I was getting a somewhat steady stream of loads. The truth of the matter is that if it weren't for my wife bringing in a steady predictable income, I don't think I would have survived that period.
I have learned a few other things about freight rates over that period, perhaps still not as much as I need to learn, but that's the nature of this business. And just when I felt I had a good handle on finding my own loads, I found out that adding another driver and doing the same thing for both of you is infinitely harder. How much do I need to bid so he makes enough money and I still make some as well? And you have to figure that all out in a manner of seconds sometimes, as fast as the loads disappear. I now understand what those dispatchers were going through when they were getting outbid all the time. I have an undying appreciation for the ones that are looking for loads for a larger number of drivers. It keeps me busy enough just trying to keep two of us rolling. The people that do that for more than that and put up with the complaints from drivers who don't understand what they're doing have my utmost respect.
So it's been a year of stupid mistakes, a few triumphant moments, a lot of hard work and personal growth, some good friendships made along the way, and a fair amount of frustration and joy. Would I do it again? I believe I would, but I sometimes wish I would have learned more going in. I probably would have still made some of the same mistakes, and maybe that's the whole purpose to those mistakes, that I can be that example to others of how someone can make it in spite of himself sometimes. Never stop asking questions, seeking the advice of others, praying, and trying to learn. Also, if you persevere, you can make it, and if you make enough good decisions, you might be able to overcome the bad ones. But by all means, pay attention around this place. There are some folks who know a whole lot and if you heed their advice, you might not only avoid some stupid mistakes, but you might actually make some money and have some fun.
For starters, I have developed a very healthy respect for dispatchers. When I was just relying on them for all my loads, I didn't really appreciate what it was that they were doing, at least what the good ones were doing, and that company really has some good ones. They would tell me that they were bidding on loads and just not getting them and I thought that they just weren't bidding low enough because they wanted to protect the nice company profit margin. I thought that if I was on my own I'd be able to undercut all those big companies that won't bid that low and I'd be getting all the loads. I'd be in fat city. I learned when I got on my own how small the margins are on some freight and how low they were actually bidding to get me the loads that they did. That nice company profit margin didn't look so good any longer.
There's another thing I learned, and I'm almost ashamed to admit it here because looking back and can't believe I was that naive. Perhaps some of you will get a laugh out of this now. I honestly didn't know a darn thing about LTL, or the main difference between LTL and expedite. I was under the assumption that any load would pay enough to run by itself in an appropriately sized vehicle. A two pallet load would always pay a cargo van enough to run it by itself, a six pallet load goes on a 12' straight, etc. I hadn't really learned about the mentality behind LTL, so I applied for my authority after looking at a few load boards and seeing all of the two and three skid loads that would fit in my Sprinter. I was thinking that I'd be sitting good with all that freight to choose from.
The rude awakening came one year ago when I had my authority certificate in hand and a new account on getloaded. I was sitting in Houston and there were about 20 loads in there that would fit my van, so I picked up my phone and figured that I would have a load booked in pretty short order. The first one I called on was two pallets going 1200 miles, and when the broker told me it was paying $400 I nearly fell over. I think I even asked the guy how in the world someone could run that load for that rate. He asked me how much I would need and I told him $1200 and it was his turn to be flabbergasted. He said, "Do you realize that this is a partial?" I responded, "Yes, but I'm running a smaller vehicle and that load would be the perfect size for me." I wrote that guy off as a cheapskate and kept calling other brokers, only to be told essentially the same thing from each one. Later that day I eventually did some research online and learned what LTL is and why it is so cheap. My illusions were completely shattered, but I now had this authority that I had paid a certain amount of money for and I was determined to make it work. I also still had the carrier I was leased to and I was getting the occasional load from them.
That was when someone else here mentioned partner agreements and I started looking into that and eventually I had a couple partner agreements, along with the occasional decent paying LTL I was able to find, and I was getting a somewhat steady stream of loads. The truth of the matter is that if it weren't for my wife bringing in a steady predictable income, I don't think I would have survived that period.
I have learned a few other things about freight rates over that period, perhaps still not as much as I need to learn, but that's the nature of this business. And just when I felt I had a good handle on finding my own loads, I found out that adding another driver and doing the same thing for both of you is infinitely harder. How much do I need to bid so he makes enough money and I still make some as well? And you have to figure that all out in a manner of seconds sometimes, as fast as the loads disappear. I now understand what those dispatchers were going through when they were getting outbid all the time. I have an undying appreciation for the ones that are looking for loads for a larger number of drivers. It keeps me busy enough just trying to keep two of us rolling. The people that do that for more than that and put up with the complaints from drivers who don't understand what they're doing have my utmost respect.
So it's been a year of stupid mistakes, a few triumphant moments, a lot of hard work and personal growth, some good friendships made along the way, and a fair amount of frustration and joy. Would I do it again? I believe I would, but I sometimes wish I would have learned more going in. I probably would have still made some of the same mistakes, and maybe that's the whole purpose to those mistakes, that I can be that example to others of how someone can make it in spite of himself sometimes. Never stop asking questions, seeking the advice of others, praying, and trying to learn. Also, if you persevere, you can make it, and if you make enough good decisions, you might be able to overcome the bad ones. But by all means, pay attention around this place. There are some folks who know a whole lot and if you heed their advice, you might not only avoid some stupid mistakes, but you might actually make some money and have some fun.
