Flatbed rates i was quoted today

Actually, Iv been doing this for a long time! Long enough to sense when someone gullible enough to ask such a silly question is usually the very one to talk ##### about how bad rates are but would snatch that $1 PM load and run with it quicker than lightning!

 

I have to back up rbht on this one. I actually receive the load list from the customer you are talking about. They are not paying the large companies more money. In addition, I compete with large carriers at several customers. I know what my rate is and I know that they get the majority of the loads and it is not because of service. I assure you they are not hauling all their loads for $3+ per mile.

 

Years ago when I started in this business with one truck I had a cousin about 20 year older then me that had a number of business interests.
He had a trucking company that would buy in excess of 100 trucks a year then trade them when they were 4 years old.
He had 2 freight lanes and just did general type loads.
The one area he serviced was cement in and timber out.
I knew his rates and they were way below my cost.
I asked him how and why he did this.
He explained that he would negotiate a 5 year contract with a truck supplier to take a minimum of 2 new trucks per week.
This would result in him getting a large discount.
The same sort of deal with regard to fuel,tires etc.
He would then tie up contracts with the cement producers and timber mills at his cost price which would be attractive to them.
This way he would be able to undercut most anyone and keep his trucks turning.
He would then write down the value of the trucks at the maximum allowed regarding tax laws.
At 4 years old he would sell the trucks from his company where they reflected at the written down value to himself in his personal capacity.
This value was typically 40% below the market value of the trucks.
He personally would then sell the trucks as close the market value as possible through and auction house he had shares in.
Back then capital gain was tax exempt for personal people.
He in essence made a personal profit of about the equivalent of 30 new trucks per year tax free in his personal capacity.
If the trucking company needed money he would lend it money as a secured creditor just to keep it going.
The day the union walked in and stated that the company was to be unionized he shut the whole thing down with him being the biggest secured creditor and went on to retire.
Now you just try to compete as a O/O with an operation like that.
You cant do what they do and try to beat them , you have to do what they cant or wont.
Where ever there is volume of easy cargo the rates will be bottom of the barrel.

 

Ever notice the most costly loads to do pay the least amount of money!
Take Oregon for instance, so much lumber comes out of there.
They want 48k on the trailer after waiting in line for hours and tarp it, then haul it for $1 PM over the passes through the mountains, I just don't get why trucks come in droves to service the state!
There isn't much in the way of commodity coming into that state, in comparison to California that is a huge commodity consumer, but every 80 loads that arrive into CA only 20 leave, I'd hardly think it would pay to deadhead 500 miles from CA to pick up a load of lumber from OR!
I have yet to haul a load of lumber and I'm based in northern CA.

 

*cough*Western Express*cough*

 

Anyone whose business plan was focused on hauling building materials will definitely do damage to specialized (step & RGN) rates. I am thinking I may have to move to some 7 axle rigs to get away from them.

 

I see Keen is haul the JD. feller units this week.

 

If so go straight to the 9 axle, skip the 7 altogether as there isn't anything you can do with a 7 that you can't do with a 9. But the 9 can do everything a 7 can do and then some! I don't think permitting will be any more expensive!