Well when I did the search and I can't find anywhere on here where a company posted the rates they are getting. Please post the link or search term you used where you were so easily able to find this information that you responded the way you did. I guess it was really easy for you.
When JackBerry replied to you, he suggested that you call the company to do your own legwork. Carriers don't normally post their expedite rates online anywhere.
I am wondering because if I am supposed to get a certain percentage of the load but I get offers instead is it because I am getting shorted or have the rates dropped so low the company knows we can't run that cheap. I was hoping one of the gentlemen that run a company or a driver that knows for sure might be able to give a range.
If you're getting calls from your carrier asking if you'll run for a rate less than you're supposed to get, it is because they know the competition is fierce on bids, and they want to know that they can count on you to run it if they bid less than you normally get.
I have not asked yet because I don't want them to take it as I think they are stealing. I am curious how they are able to make money on freight if they are paying the majority to the driver then have to pay office personnel. I am also working to make as much as I can and want to make sure I am earning as much as possible.
Have you been in the expediting business before going with the carrier you are with now? It sounds like you are trying to figure out too much information that you aren't necessarily going to be privy to, and perhaps the carrier's end of things isn't really any of your business.
A carrier that takes a percentage with the bulk (supposedly) going to the OO, is able to do so because they have many trucks from which to take that percentage, it's not like they're running their admin, staff and overhead just from one truck.
Thank you it is what I was thinking because sometimes they call and say they are bidding on a load going from A to B will I run it for X. It seemed to me they are trying to see how low they can bid and still make something. On the other side if they have a load already they tell me it is X miles I can give you X but I am able to counter the offer.
If they already have a load scheduled, they already know what the money is, and therefore they know how much, if anything, they can negotiate with you on the money part.
I am just worried I will cause problems for myself being that I have not been there very long and it is mostly curiosity so I can learn more about the business and make a more educated decision.
If I were you, and being new, I wouldn't go and potentially start causing problems for myself. Find an experienced OO signed on with your carrier, who is willing to become your mentor, explain to you how things work with your carrier, act as a sounding board, etc. Somewhere on this site there is a list of EO members who belong to certain carrier forums.. find some familiar nicks on there that you might ask for some help.
In my limited knowledge of the company's side of things I was thinking they are just seeing what they can have left over for themselves giving the driver enough to keep them happy and not have to turn a load back in.
When I started I was told X% of the load then I find out that is not true. I am new to this company so there is a lack of trust because I just don't know. I was thinking it maybe a situation where the majority of the time they are getting 1.25/mile so they offer me .90/mile so we are both profitable since we are both doing this to make money.
I am sure I am not getting the percentage because the offers that are made are dead even things like $400.00, $200.00, etc. My feeling is after the responses from people here is that the majority of the freight they are getting is to low to run at the percentage agreed upon. I also think that if there is an offer that is higher than normal that they may be paying less than the percentage. I have no proof and I am not 100% sure that is just an assumption which we know how dangerous that can be. I know they are in business to make money as I am but I am just concerned because I like upfront honesty no matter what it is good or bad and this is just kind of a red flag even if what they are doing is to benefit the driver. I would rather have them tell me they have a load that they picked up for 1.25/mile will I do it for. 90/mile since I feel I have a right to this information being that we are in business together. The rates are about what I was expecting and I am still making money since anything over about .25/mile will be profitable, not that I would ever run that cheap.
One has to be really picky and know what to pick out, when trying to decipher the wording in carrier contracts. I believe in at least some contracts with some carriers, there might be a 'normal rate' (for your type of vehicle with that particular carrier), and as well, your 'pay' might be percentage based, and if the carrier might receive more than your 'normal rate', they don't really have to pay you more than that, even though, if it was figured out on the percentage, you might get more than that. In that kind of contract, you might only get offered something different if it is less than your 'normal rate'.
Most larger carriers have been around the block a few times, and they know how to word their contracts so that it hides what they want it to hide, makes the language all convoluted so that most OOs don't even realize there are questions to be asked, and protects them so that if they're caught with their hand in the wrong cookie jar, they're still going to win a court case if something is ever questioned in a formal way. There is really no sense in trying to figure it all out, other than to know what
you need to be profitable and make sure you don't run for less than that.
Expediters often talk about how all carriers have 'warts', and how one needs to find the carrier with the least warts for his own goals. Often the larger carriers have way more going on than you will know about, and it isn't as simple and straight-forward as you might think for them to break out one load into a percentage and then produce the paperwork for you so they can prove their numbers. (eg multiple legs, multiple modes of transportation, other 'admin' type charges, etc.)
Try to find a mentor really quickly, there are probably lots of people at your carrier who would be willing to help you out. It is amazing what a difference it could make to your bottom line and what you can learn from someone who has already figured out how to work their carrier's system to their own advantage as much as possible.
