I have 3 Sprinters and 2 straight trucks on with Tri-State. Am I happy with the new system? No, but it's not a surprise. Given the fact that brokers and other carriers are undercutting rates and driving the rates down, T/S had to do something to keep themselves competitive and us moving. I would rather take a cut than have T/S go down and end up with no revenue.
I see no need to jump ship to another carrier since most will be in the same situation or worse and as SWTexas1 says, I know what I have and I know who they are. T/S has done right by me, and I'll be staying.
That said, I agree with you Wingnut. The pencil needs to be pushed but until a couple of weeks, or even a month, goes by, we won't have the numbers to get an accurate picture. If I'm understanding the new rate, T/S no longer will be paying by mileage. We will receive 65% of the load revenue plus 100% of the FSC. The mileage rates they list are the minimum revenue you would receive on a load. You could receive more than the minimum on some loads, the minimum on others. I never considered the bonus miles to be a factor on any level since it was always low.
As I see it, the make or break factor will be in what loads to accept and what ones to refuse. That's always been important but now, even more so. I know what each of my trucks CPM is, and I will be providing my drivers with a chart guideline so they will know at a glance whether to accept a load offer or not. The exceptions would be accepting a low paying load to get to a better freight lane, or refusing said low paying load that takes you out of a busy freight lane. Up to this point, they would accept the low paying load to stay off 8 hour refusal. T/S needs to eliminate this penalty. In my mind, T/S is asking us to accept lower rates so they can compete and stay in business. Why should we be penalized for making the same decision?
In this economy, anything can happen and nothing can be predicted since we haven't been here before. If fuel prices top $4. again, we'll all be in trouble. As T/S's CEO, and others, have said, "We all have to work together to get through this." I agree, but I would like to hear a couple of things from T/S:
Suspend the 8 hour refusal penalty.
Are these new rates temporary until the economy recovers?
At what point in that recovery would the rates revert back to the rates of today?
Hopefully, we will have a two way information highway so everyone can make the right decisions.