pay rate ALL Miles

[ATeam]

ATeam, I was once cheated out of cancellation pay and the same excuse was given, load was double booked.

I thought it was bs at the time, but havent thought about it again till i read your post.

It happened just three times in eight years where we were one of two trucks that were double booked on the same load. At least it was three times that we know about. Lots of loads were canceled without explanation. It may have happened without our knowledge that we were double dispatched on a load and the other truck got the short end of the stick.

Dry run pay was paid on two of the three times we knew about. The time mentioned above was the most recent, happening in our last year with the company.

 

[zorry]

59.5 percent? It was 60 percent when we were there and 61 percent for a reefer truck. When did the 59.5 come to be?

I may be missing the obvious. In our present system where does this really matter ? Their offer,at any percentage,is just a starting point.
As an independent contractor the load doesn't go onto my vehicle until we agree on a price suitable to me.

 

[zorry]

I may be missing the obvious. In our present system where does this really matter ? Their offer,at any percentage,is just a starting point.
As an independent contractor the load doesn't go onto my vehicle until we agree on a price suitable to me.

I used to say the same about the fuel surcharge. Who cares if I get a dollar per mile and .25 fsc or .90 and .35 fsc ? It's all $1.25 per mile.
Then I realize it matters to those running 40/60 or 60/40.


Disclaimer: numbers for illustrative purposes only.

 

[Turtle]

I may be missing the obvious. In our present system where does this really matter ? Their offer,at any percentage,is just a starting point.
As an independent contractor the load doesn't go onto my vehicle until we agree on a price suitable to me.

The obvious point you're missing is the fact that you signed a contract to run loads for a specified percentage. So their offer, if it's at your contracted rate, is far more than just a starting point. If their offer is lower than your contracted rate, or if they have manipulated the line haul so that your contracted percentage results in an artificially low rate, then there's a bad faith element that has come into play. If the rate is low but, but it is an honest rate, then the load can be and should be refused, of course, because they were foolish to book a load at such a low rate to begin with. But if you view your contracted percentage as just a starting point and need to negotiate a higher percentage to offset artificially low rates, then such "in our present system" games between carrier and contractor indicate a clear breach of Trust and Confidence. It's a relationship that bears closer scrutiny, one would think.

 

[zorry]

There is trust. When we accept a load they trust me to get it done.
I trust them to pay me on time.
I turned down a crosscountry load because it was 20 cpm below what I thought it should pay.
A fleet owner friend was foaming at the mouth to get the details because he thought he could get a truck in position to get it.
As long as they have people fighting over running cheaply they'll have low offers.
The people I see putting quality teams in quality equipment seem to be getting their rate.
The company knows what it costs to put and keep good equipment out here.
That's why we can get our rate most of the time.
If I want my rate and there's a guy willing to run it $600 cheaper can you blame the company for letting him run until he can no longer maintain service standards ?
I don't try to gouge them. At least not too often. I have my rate. I run it when I can get it and stay as busy as I want to be.
I give them 100% every day. Most are too busy to notice. That's ok. They are busy.
I was thanked twice yesterday for delivering two loads yesterday, both early when they had expected to have to bump out the second one.
It was nice to be thanked. It'll be nicer to get the check. The best part is the customer was happy that they got what they paid for.

 

[Turtle]

There is trust. When we accept a load they trust me to get it done.
I trust them to pay me on time.

Trust and Confidence in one small area doesn't necessarily translate to Trust and Confidence in others.

If I want my rate and there's a guy willing to run it $600 cheaper can you blame the company for letting him run until he can no longer maintain service standards ?

Yes, I can. That's practically the definition of a breach of the Duty of Trust and Confidence. The Duty of Trust and Confidence (sometimes referred to as the Good Faith Clause) is usually talked about in employment contracts, but it is implied in every contract, especially in lease contracts where a partnership is created. It states that neither party will, without reasonable and proper cause, conduct itself in a manner likely to destroy or seriously damage the relationship of confidence and trust between the contractor and carrier, their reputations, or the ability to perform their work. One party taking unfair advantage of a situation to the detriment of the other is a serious breach of the Trust and Confidence clause. You said it yourself, that the company knows what it costs to operate out here, and if they let someone run until they can longer maintain service standards, then the company has dismissed the whole idea of the Duty of Trust and Confidence as being irrelevant.

Many of the larger carriers take that stance, of ignoring the implied clause, using the tried and true, "Well, it's your decision" as their Get out of Jail Free card, taking unfair advantage of the contractor who doesn't fully understand the implications of the clause. Most carriers have a "my way or the highway" attitude, anyway, with it often being in the contract itself, albeit in more subtle terms and conditions, but the end result is the same. Granted, there's not much you can do about it, other than taking a close look at it and giving it the scrutiny it deserves. And then decide for yourself. But pretending it doesn't exist only bolsters the unfair advantage of the carrier, and allows them to more fully exploit it.

 

[zorry]

I need to clarify.
I am not aware of being offered loads below my contracted rate.
Except for the once per year obvious mistake. I was offered a B load at 29cpm. That was total miles into dh pay. The loaded pay had not been entered. I'm sure that had I called the rate would have improved.
I recently did a 700 mile plus dh to cover a 40 mile load. The original offer was low. When I did the run,Fedex was happy,I was happy,but more importantly the customer was happy.
I used to get pizzed at the low offers.
Then I realized that its an opportunity. Occasionally it can be turned into a positive.
When you get a low offer look at the third line. It may be a good load. Just not a good load because of dh or time involved.
Also,anytime I've called in and explained why I can't run it for the offer, I've had a decent discussion about what our options are. Sometimes we negotiate a rate. Sometimes the rate will raise,not enough for me but enough to be a good load for someone closer to pu.

 

[aimeejos]

Just a thought that no one else pointed out....
This is a historically slow freight time of year. With so many empty trucks the rates are very low... We see this in our E-unit. We are a surface truck (not white glove or reefer). Some trucks may not see this because White Glove and Temp Control can be like a whole other world. We are also on % rate and have been offered loads paying as low as $1.10 ALL miles (that includes the fuel surcharge) of course we politely decline and try to negotiate.

One practice that I don't agree with (and I'm sorry if I am not clear in trying to explain) is that the price of fuel is rising - the posted FSC is rising - but the average rate per mile offered on the loads is staying the same. If the FSC is rising shouldnt the final rate per mile show this? My husband often asks dispatchers "On Friday instead of getting a paycheck you receive a bill stating you owe the company for working for the week. would you like that? That is what you are asking me to do..."

Another thing that bothers me--- Loyalty to the brand is not considered by dispatch... Most of our Customers call our company for the name and service we provide. It really upsets me that our dispatch would rather broker the loads to "outside carriers" rather than pay the "company" trucks. I don't know that this happens with smaller units but i know it happens with E units...

 

[Turtle]

When the FSC rises but the overall rate does not, one of two things is happening. Either the carrier is pocketing more than their fair share of the line haul or the FSC, or they are giving the customer a price break in order to get the load, and the price break is at your expense.

 

[davekc]

Turtle would be correct. I will also add, especially with larger carriers, they enter into agreements with customers for a certain period of time. That will drive some of those loads were the rate doesn't change.
As for outside carriers hauling freight, happens all day long. Hey wait a minute, I do that.
If they pay their own contractors that higher rate, then they might expect it all the time. They will go to the well if they can't broker something but most broker loads will pay more than what a contracted rate would be. As for vehicle size, they do it on any size freight.

 

[LDB]

What I didn't see, although I didn't read everything and may have missed it, are the details on the loads. What I saw was talk about all miles and rates of 80-1.00 all miles. That may be a whole bunch of really good load offers, if you happened to be sitting two cities over where they originated and wouldn't have 3x-5x-6x percent deadhead to the pickup. I've had many many many offers I've turned down because the all miles was too low even though the loaded miles was very good or better.

 

[OHWC2012]

Trying to figure out who would O/O for even what you say you are clearing. .75cpm post costs sounds fine. But lets look at that off of 100k miles a year. That is 75k pre tax and assuming a boat load of risk. Also Fedex CC has a five year limit on a truck that is going to run around 100-125k so take another 15k a year off of that 75k factoring trade in value etc. You are running your own business and assuming all risk with no benefits for 60 K pre tax. You do not even have a company picking up the other half of the self employment taxes.

So if it is this bad why would anyone do this? From a common sense standpoint you would be better off getting employment locally making 50-70k with benefits.

 

[jjoerger]

Where can you get 50 to 70k with benefits? No experience or education required.

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[OntarioVanMan]

Trying to figure out who would O/O for even what you say you are clearing. .75cpm post costs sounds fine. But lets look at that off of 100k miles a year. That is 75k pre tax and assuming a boat load of risk. Also Fedex CC has a five year limit on a truck that is going to run around 100-125k so take another 15k a year off of that 75k factoring trade in value etc. You are running your own business and assuming all risk with no benefits for 60 K pre tax. You do not even have a company picking up the other half of the self employment taxes.

So if it is this bad why would anyone do this? From a common sense standpoint you would be better off getting employment locally making 50-70k with benefits.

Just let us know how many $25-$30 an hour jobs with benefits are out there right now?.....

 

[Moot]

Where can you get 50 to 70k with benefits? No experience or education required.

Driving for a large LTL carrier.

 

[OntarioVanMan]

Driving for a large LTL carrier.

What?......you reading them bumper stickers again?

 

[Moot]

My last year in LTL was 1996 and I grossed 50k doing city P&D. That included overtime and profit sharing.

 

[OntarioVanMan]

My last year in LTL was 1996 and I grossed 50k doing city P&D. That included overtime and profit sharing.

you are right....my P&D days weren't too bad either come to think of it....thought you Americans worked cheap....??.....LOL

 

[jjoerger]

My bad. I should have said in Florida.

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[ATeam]

Where can you get 50 to 70k with benefits? No experience or education required.

According to the route supervisor I shared a meal with not long ago (social visit), his Upstate New York route drivers who deliver snack foods to grocery stores and convenience stores earn over $50,000 a year and get full company benefits. These people are employees of a national company. They drive company trucks, have zero equipment expenses, work 10 hours a day, five days a week, are home every night and are paid on commission.

$50,000 a year is advertised as possible for company drivers of several big OTR trucking companies. I have never verified that with any such drivers because I know none and have had little occasion to visit with any. These companies will take someone on who has no experience or education.

I once meet a FedEx Freight straight truck driver on the street in Seattle and we visited about our jobs. He said he was a company employee making over $20 an hour.

When Diane and I trained for a truck driving contest with a group of FedEx express drivers, I did not ask them how much money these company employees made but from they way they talked about their vacations, houses and RV's, it was clear that they were doing better than many expediters I know.

Fast food companies will hire you with no experience or education and you start at the entry level. But they also have career paths to management and provide company training that you can avail yourself to and work yourself up to higher paying jobs over time.

Those are a few that come to mind at first thought. I am sure there are more.

Experience and education may not be required to get these $50,000 with benefits jobs but a willingness to work and learn are. Expediting has no requirement to work and learn and there are a whole lot of expediters who take full advantage of that fact, sitting in their trucks watching TV many hours a day, enjoying the freedom.