Should you run for Multiple Carriers? Read this first!
- Thread starter Lawrence
- Start date
<Hands Guido a spelling ticket>
I don't know who runs that cheap but I don't. My rates are higher now running multiple as they were 5 years ago running for one big carrier, not to mention I have no tracking costs, i.e. QC, etc. I also make enough to cover health insurance. I know of many "big carrier" drivers who cannot say that. Should those individuals get out of the business?
guido4475
Not a Member
If you say they are than they are. Hat's off to you! But I don't see it that way. Say you're leased to 4 carriers at once. Strong chance is that they all see the same load on the load boards,and are bidding on it all at the same time. You, my friend, are being pimped out by you're own 4 carriers you are leased to, guaranteed to get the lowest rate per mile. Then there is the insurance thing....how many thousands are you paying yearly???? .....ouch....
I appreciate your attempt to discredit my way of doing business but the fact is I don't run for four carriers, I run for two, both of which get freight in very different ways. There is no cross bidding of freight as one of my carriers does no bidding, they exist only to book freight for a handful of customers. The other carrier does a lot of biding but at no lower than a prearranged contracted rate. The insurance is not that much more to run for both sources. The biggest advantage to this mode of operation is the reduction in deadhead. There is very little. I cannot for the life of me understand why so many will not accept that there is more than one way to skin a cat.
It's not always that way. Some carriers might have more relations than the others with certain shippers in some places. For one thing, I was in LV and outta three carriers that I was working with, only one was calling me. What's more, let's say you're waiting in Xtown for a load. But you're #1 with only one outta four carriers. So, it's not always the way you're saying, not always all these four carriers are fighting for the same load to put it in the same truck.
If your number one with one company and other drivers are with the other three if they are bidding your still competing with your own companies. I feel like if someone is happy with the multi route I can't judge them at the same time one cannot deny it creates false capacity in the industry.
Mike99
Veteran Expediter
First, they not always bidding on the same load. Second , not always the lower bid win the bid. Third , even if the lower bid win , you still get the initial promise rate. When they call you and tell you about the load, they tell you the rate to. Some carriers make more on the load , some less.
If o/o "x" signs on with 3 or 4 carriers who all get their freight from the same place, it's their fault if the load gets bid down. There is much more to this way of life. It isn't simply "bait and wait". You are trying to compare apples and oranges. Two dispatchers bidding on the same load is counterproductive. There are plenty of freight procurers out there who find different freight. It is the o/o's job to find out who they are.
Mike99
Veteran Expediter
Have you ever been in a dispatch office? What do you mean' biding on the same load'?Dispatch A does not know what dispatch B bidding . Bid for a load and win it or not. It is not like Ebay or Uship. You bid one time.Did you get it? Or let you tell you this way. The dispatch knows for how much the unit go ,so he/she bid according to that amount.
Huh? I'm saying every dispatcher isn't looking at the same board. What are you talking about?
Til recently I was with two carriers, but since one of them was getting me loads now and then, I've put them in hold and I work with only one. But it confirmed me that wasn't a good options. The solely co. that I work with now has favorite drivers. And this week was the third time when the favored one got load in front of me. I don't like to run for more carriers, and I do not intend to reconsider the other carrier, but rather signing with a larger carrier, like Allstate express... for now it's just a thought.
It wasn't posted here on the forum responses, but it was posted as a response directly onto the article. It was noted that some might cut corners to reduce costs to help make their business profitable (such as by not having appropriate insurance), and the question was raised as to what is an O/O to do when they can't make ends meet when they DO play by the rules.
To me, this is the same as any other business. There are those that play by the rules (probably most), and those that might *appear* to be doing well, but perhaps only doing well because they're NOT playing by the rules. Every type of business has its own set of regulations or operating procedures standard to its industry... some require specific permits, or adherence to specific labor laws, or requirements to collect and remit taxes on behalf of the government.
Some business owners might have some kind of advantage over another for legitimate reasons, while some just simply don't play by the book, say... such as collecting taxes and then not remitting them.. or not paying for appropriate insurance..
The thing is.... one can't force others to hold the same standards (unless you're an insurance company or something), one can only decide how it'll operate its own business.. and if one's own business isn't able to make a worthwhile profit running the way it is, perhaps by the book, then a decision has to be made whether to keep that business the way it is and hope for improvement, or move into something else, or some other form of the same business.
It's an issue that most businesses probably face at some point along the way.
To me, this is the same as any other business. There are those that play by the rules (probably most), and those that might *appear* to be doing well, but perhaps only doing well because they're NOT playing by the rules. Every type of business has its own set of regulations or operating procedures standard to its industry... some require specific permits, or adherence to specific labor laws, or requirements to collect and remit taxes on behalf of the government.
Some business owners might have some kind of advantage over another for legitimate reasons, while some just simply don't play by the book, say... such as collecting taxes and then not remitting them.. or not paying for appropriate insurance..
The thing is.... one can't force others to hold the same standards (unless you're an insurance company or something), one can only decide how it'll operate its own business.. and if one's own business isn't able to make a worthwhile profit running the way it is, perhaps by the book, then a decision has to be made whether to keep that business the way it is and hope for improvement, or move into something else, or some other form of the same business.
It's an issue that most businesses probably face at some point along the way.
That's when the o/o needs to seriously consider whether this business is right for them. If the profit is so low, that cutting corners on insurance...or not...is the deciding factor, then they are not making any money. Period.
Choosing to cut corners on things like insurance and taxes are short sighted decisions that will have a far greater negative impact on your financial goals than not cutting those corners. It will happen sooner or later. The time will come when you need that insurance...or the tax man comes calling or...or..or? If you choose to cut corners, you'll find yourself in deep doo doo sooner or later. If you can't make it in this business ...or any business....without cutting corners, you really need to look for better opportunities or look for a different business. My opinion.
How could you turn your back on the milti-carrier model? lol. Even the multi-carrier model had it's problems. I think All-State is an excellent choice, Bolt would be a good choice for you as well. Good luck with the change.
danthewolf00
Veteran Expediter
Being one of those muti guys who does PAY his full insurance and still run for muti carriers. I do wonder whos running for .73 from detroit to laredo and make a profit I know my cpm and thats just to low!