Rate Quote advise needed for Steel loads by the CWT

Discussion in 'Freight Broker Forum' started by AIFS, Oct 28, 2015.

  1. AIFS

    AIFS Bobtail Member

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    Dec 15, 2014
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    I have been approached by a Steel customer that wants me to quote rates on lanes by the CWT. The lanes needing quoted have "pre-set" weights for each shipment. Also, many of the customer's shipments are coming from the same location, and going to the same destination- same material- just different weights (no OD).
    It is the norm with a lot of my produce customers to have CWT loads, along with bag/box rates, which of course is guided by the weight limits per each truck going in to load. So how do you "fairly" go about quoting CWT rates on "fixed" steel loads to keep the carrier happy, along with the customer.??
     
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  3. PSUMoose

    PSUMoose Medium Load Member

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    Jun 20, 2011
    Tieton, WA
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    I am sure you know CWT is pay by the 100 pounds.
    I have a goal of 15% profit.
    Your customer should be able to tell you what the average weight is.
    My customer says they usually put on 47k.
    Example load
    Scrap steel A to B $1.35 CWT
    Average weight 47k =>470
    470*1.35=634.50
    to be safe I deduct 20% profit
    634.50 *0.8=$507.80
    I like round numbers, so I will start off at 475 or 500.
    If the load is heaver I make more profit, if it is lighter, hopefully it is not too light.
     
  4. PSUMoose

    PSUMoose Medium Load Member

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    Jun 20, 2011
    Tieton, WA
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    You know what I just noticed it was the customer who wanted the rates quoted in CWT. Sorry I thought you were talking about giving a fixed rate off of a cwt request.
     
  5. AIFS

    AIFS Bobtail Member

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    Dec 15, 2014
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    You did read it correct the second time around PSUMoose, and THAT is my dilemma LOL !! Now if we were back in the days of Tariffs of course it would be a no brainer, as that is how it worked. For "todays" trucking, their quote process (unless I am missing something) really has no gain.
    Now, if they are in fact out for the "better good of the carrier", that's great in my view, however if so how would one go forward without "tariff" info when we are working in a spot market era? Along with the norm of shippers, "haul more for free" thinking!!
    I have always agreed with the ways of the old "regulated" ways with rating certain freight/class= weight, min length of haul, commodity, area, etc. Especially pointing out the weight, min length of haul, along with high value cargo area!!

    So what it's worth, thanks much for trying to help out :) , I am hoping that I can find someone that has "todays" working knowledge of this situation, they are a large customer with a great volume of daily freight that I would like to start hauling, however, I do not want to be the one that goes in uniformed with rates that become "cut rates" and ruin it for any other carrier pulling for them.
     
  6. Not_Here_Long

    Not_Here_Long Medium Load Member

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    Sep 7, 2015
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    That's how my friend the furniture hauler gets paid he takes a screwing sometimes with light loads.
    I prefer the practical mile method I go point A to B for X dollars.
     
    PSUMoose Thanks this.
  7. PSUMoose

    PSUMoose Medium Load Member

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    Jun 20, 2011
    Tieton, WA
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    I agree. Pay per mile makes the most sense to me too.
     
  8. Limes

    Limes Bobtail Member

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    Apr 5, 2013
    Warwick RI
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    I've been doing power only and take the offered rate divided by miles, point A to B, then add deadhead and run the numbers again. Depending on how far off the current national average the offer is I'll put in my offer. That might not be the best way to price a load, but I do like the back and forth bargaining.
     
    PSUMoose Thanks this.
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