reduced rates

[transporter]

I have been hearing o/os complaining about their rates being reduced from various companies.
Please feel free to correct me if I am wrong.
It appears to me that driver pay per mile has gone down. but company rate charged to shipper has not. Comanies are doing this to off set the reduction of loads and that they can get away with this because there is far to many trucks for loads out there.

 

[Humble2drive]

Where are you getting the information regarding how much your carrier is charging the shipper??

 

[transporter]

I am and independant. I have gotten on fedx, conway, and abf web site and worked there instant quote system the rates they were going to charge me was over $2. 00 amile sometimes agreat deal more than 2 dollars under 3000 lbs shorter than 15 feet. And those rates were LTL not expedited.

 

[layoutshooter]

We are very close to last years average per mile. Had things worked out a bit differentlly and we had been able to take a couple of loads we had to turn down we would be way over last years average. It is still early in the year. We shall see what happens over the next 6 months. Layoutshooter

 

[transporter]

layout, this year are you having any of your shippers tring to get you to reduce your rates because "everbody' else is.
i have met drivers at truckstops that have said they have seen at the shippers what their an other companies are charging, between $2.50 upto $4.00 a mile for small trucks.

 

[OntarioVanMan]

I think what transporter is trying to say is...

there has been very little reduction in the rates charged to customers....the carriers are perpetuating the economic situation in their favour....oh sure maybe some of the load boards are down in price BUT not ALL.....bidding wars maybe NLM and afew others....but the rates to their customer base hasn't really decreased.

In other word....Its a HOSE job by our beloved carriers...

 

[layoutshooter]

When we read our statements each week they loook about the same as last year. Our profits are up a tad, due to the lower fuel prices and my truck's continued increase in MPG. I don't quite understand what you are asking, what am I missing? Our rates are within pennies of what they were last year. We turn down the cheap stuff, van rates, and everything else we take on a load by load basis. So far we have never had to take a load below OUR minimum. The only big difference we see is we sit over most weekends now, but we did that last Jan and Feb. I can't make a comparison on that until later in the year. Layoutshooter

 

[transporter]

yes ovm that was my point except for nlm or other boards.
When the carrier's are dealing direct with shippers their rates per mile doesn't seem to have gone down. Now when the middle man has been added like NLM or other bid boards the rates I know have come down. Brokers and Carriers are forcing o/o to cut their rates to make up profit in lost over all freight.

 

[x06col]

transporter, are you actually shipping something, or merely checking the water acquiring online quotes?If you are trying to keep em honest by that method you'll certainly not get a very good gage of what is going on. You are only getting a quote for a "once in a blue moon" shipper who's price will certainly be different than a regular.

 

[miker]

the col. is correct here, the quotes the computer is giving out are going to be basically a retail cost, any shipper that has any prior shipping exp. is going to know that they need to speak to a live person and that live person will start at a higher rate anticipating the shipper negotiating the cost down, no different than buying a car here.

 

[transporter]

i am testing the waters.* I plan on approaching some local shippers directly but i had/have no idea what the average rate carriers are charging. no personal communication just automated. and personal communication with drivers at truckstops and some eo's who said they have seen* the bills

 

[Yesteryear]

We are with T-State, our rate recently went from 1.20 per mile (straight-truck) to 1.05 per mile or 65% of the load haul. Now, the way I am seeing this is whatever Tri-State gets paid for the load the truck receives 65% of and Tri-State receives 35%. So if Tri-State can get more for the load then truck also gets more for the load anyway it is broken down (65/35). On our last load we actually received about 1.21 per mile for even though our load rate is 1.05 per mile now. 753 miles/ load rate 915.27, plus an additional 70.00 border crossing. So, even though Tri-State charged the shipper more for the load we received our share of the 'extra' money.
As for the rate reduction, personally I think Tri-State is doing everything they can to get their drivers loaded even if it is at a lower rate. I would rather have 3000 miles a week at $1.05 then 300 miles a week at 1.20. This is a recession and freight is scarce. If we want to make a living we are going to have do whatever it takes to survive. Even if it means cheap freight.

 

[x06col]

Tis good to be proactive bout this, however, you may be going bout this a bit bass akward.

I'll agree many of the doubles you see gong down the road may very well be moving at $30 - $50 per mile. But they have sales, pickup, docking, yada, yada, expenses to accomplish that at that revenue.

If you could make it as easy as the carriers you mentioned on the customer (a quick phone call & large discounts for a sure thing), you could do the same thing. ie $30 - $50 a mile.

But, have you done the time? ie making yer sales calls, have more than one 22 footer in inventory, etc. etc.?

If not, those kinda rates prolly won't happen in your lifetime. Best you knock on some doors, rather than worry what others are gitt'in.

 

[transporter]

col i didnt get the double meaning or the $30 $40 a mile comment. I do not have near the over head as the big boys. I do not need to charge anywhere near what they charge. But a shipper receiving offers from various companies all closely priced than receives a quote from somebody they never heard of considerbly lower than everbody else, isnt likely to take them seriously and probly not reliable.