Reality Check # ?

davekc

Senior Moderator
Staff member
Fleet Owner
After reading several threads, I am witnessing many only seeing this business through THEIR carrier"s eyes. The idea that a carrier can't compete unless they lower their rates to drivers may be true. If that carrier fails to provide adequate national coverage, then they must compete at the price point.
Just a basic supply and demand issue.

Are some running exclusive loads at .85 cents per mile? Some are, and unless they are on a dedicated run or have a substantial FSC, they will fail. Numbers through a calculator at 20 percent DH and a paid for truck show a sinking ship. One can turn it up side down sideways, and it doesn't matter. You are a sinking ship hauling that freight exclusively.
Some are running that same freight at .85 CPM or less. The difference that many don't see is that many have that shipment on with one or two other loads.
We can dance around and call it LTL or whatever, but it is the rate the truck is REALLY running at that makes the difference.
Some are in a state of denial thinking that .85 CPM load might sit there. Some (maybe me) will come along and grab it (double dipping) to throw with something else.
Never assume something.

As mentioned in another post (KW I believe), 1.05 freight is essentially LTL freight. Finding a buck a mile load even on Getloaded isn't exactly a task. Or at least since last week.
And again,
Never want to assume something:eek:

As for the carriers QC? They are a profit center for the carrier.
Unless of course, you only pay 50 a month. Any other justification for a higher cost is a "dog and pony show"
Several sites provide cost of the units and ACTUAL monthly fees.

As I was saying now 100 times over, you have to win on price, service, or coverage. If one can't accomplish two of the three, better go to the LTL market as some already have or are headed there.

If you are in a predicament in which you aren't profitable, you either cut costs and adapt, find a different way of operating, change carriers, or become independent and the carriers competition.
And of course remember, being under capitalized, using a employee mentality, and too much personal agenda, are usually
the first signs of a incoming crash.

Thought it might be worth clearing a few things up.
Maybe a little too long

"Businessman first, driver second".
 
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mjolnir131

Veteran Expediter
assuming it's a T/T and the run is 600 miles that is still 240 bucks before the FSC if Ave daily cost is 100 or below that is a doable number slim but doale sorry your math is off
 

davekc

Senior Moderator
Staff member
Fleet Owner
Sorry, I don't see a world were $100 dollars a day is sufficient to operate a tractor or a straight truck.
 

mjolnir131

Veteran Expediter
because they're people who own no cars that only have 50$ for rent(a store room) who think that the 25k at the end of the year will do is worth the bologna sandwiches
 

ericmoss37

Seasoned Expediter
Sorry, I don't see a world were $100 dollars a day is sufficient to operate a tractor or a straight truck.


Maybe not long-term but for the month of January or Febuary it might be ok. If my trucks don't move within 24 hours I find them a backhaul and the lowest I will take is a dollar per mile. I might only make $100 to $200 bucks above fuel and driver pay, but that is better then nothing. My truck sat for the week of Christmas and the week after Christmas because it was really slow around new years day. The two pro's that did pay out covered all Panther fees plus $75 dollars left over. I have to do some cheap freight to make some cash I am going to do it. I also do it for drivers because earning a $100 bucks to go a $1000 miles is better then sitting five days or more to make nothing.
 

davekc

Senior Moderator
Staff member
Fleet Owner
May be true. I was looking out farther than a span of a couple of months. In fact, I don't even look at anything by the week.
I look at just information by the quarter.
I am lucky. The wife looks at the weekly stuff for payroll.

BTW....thanks LM. It had to be said:D
 

OntarioVanMan

Retired Expediter
Owner/Operator
100 bucks a day is nuts....theres the creep factor as your puttin on these miles the truck is wearing, PM needs to be done, rubber is wearing down...things are breaking....how long can you afford to go with 100 bucks a day??
 

Zoli

Veteran Expediter
Maybe it's because English is my second language, but I swear to God I didn't understand anything that you're trying to say. And I did read it twice.
Could you please explain what was the idea?
 

davekc

Senior Moderator
Staff member
Fleet Owner
OVM,

That was my point. I look at ALL of the costs to operate, rather than the cost to operate a short period of time. That only has a value if you are soon to exit or trying to plug a hole in the dike.
 

CharlesD

Expert Expediter
Sometimes when you figure out all of your costs to operate and then compare that to some of the rates out there, it's enough to make you cry. I've been seeing quite a few loads going for what are essentially LTL rates. I can get junk off getloaded that pays as well as some of the expedites I've been seeing lately. Sad.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
yes, it's a very good thread Dave. I wuz chided by THE terry a while back for being a bit of an ltl guy, But, if'n yer "title as expediter" ain't gitt'n er done, ya may "wanna" look elsewhere. Put one or seven on the machine (don't hafta kill yusef) an float fer awhile. Y'all better git it figgured, ya can't eat the title "EXPEDITER". So if'n ya wanna hang onto that- - - good luck.

Cause, i'll assure ya, there are better git r doners out there than you are.
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Right now is the perfect time to figure out what it really costs you to run the truck and what your rate per mile needs to be. While you are getting your taxes ready to be done look at your expenses and how many miles you drove.

You can cut your costs and still make money. I agree with DaveKC you cannot look at this by the week shortest time for us is by the month. Each month I use Quicken to run a P & L statement to see where we are and how we did. This year we will go even more on a cash bases for our personal expenses as we tend to spend less. We are not going to be using our debit card anymore.

There are many people on here who lead a frugal lifestyle and do not have the new car or any unpaid for car sitting at their house not being drove, the house is paid for or else they share expenses with someone who maintains the house. Being frugal is not a sin and not having any bills is a pretty darn good goal.

Look around at the job situation if you are not driving your truck what will you be doing? Look at the OTR trucks and what they are paying O/O and company drivers and many of them are not hiring.
Do not just say I will not run for an amount of money you pull out of the sky do some research and see what you can really run for. Not one of us has the same expenses so no one can tell me what cheap freight is because my cheap freight and your cheap freight are not the same thing.
An O/O has different expenses then a fleet owner and as a O/O you can control your expense a lot easier and one way is to keep your foot light on the throttle and the door shut.
 

kg

Veteran Expediter
Charter Member
Owner/Operator
The babble about LTL vs Expedite loads has existed in this forum for years. It took this severe downturn, and subsequent price lowering for someone to articulate the difference.

Dave was honest about the nature of this business, you must keep your unit loaded with freight ,by any method available. The line between LTL and expedite is more blurred than ever.

Excellant post Dave!
 

nightcreacher

Veteran Expediter
assuming it's a T/T and the run is 600 miles that is still 240 bucks before the FSC if Ave daily cost is 100 or below that is a doable number slim but doale sorry your math is off

with your mathematics,know wander you think you can make it on 100 bucks a day,600 miles is going to cost at least 250 bucks just for fuel.what about the other expenses.
 
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CharlesD

Expert Expediter
The babble about LTL vs Expedite loads has existed in this forum for years. It took this severe downturn, and subsequent price lowering for someone to articulate the difference.

Dave was honest about the nature of this business, you must keep your unit loaded with freight ,by any method available. The line between LTL and expedite is more blurred than ever.

Excellant post Dave!

I don't have a problem running LTL, but if it's paying an LTL rate, I'm treating it like an LTL. If the shipper or the broker wants it run exclusive, it had better be paying an expedite rate. If you want me to run it for .60 a mile, then you have to figure that I'm going to pick it up and hang around and wait for something to put with it.
 
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