Load Boards

I will say, I will book a load that pays well from anyone who pays in a timely manner. I have run great loads at high rates from TQL and CHR. You just have to be very clear that the rate confirmation reflects the agreement you made. With TQL, I have to verify the delivery time with the receiver. I have had a couple of times where the broker .....exaggerated.

 

Nooooo, you sir are exaggerating

 

Pardon my ignorance, but how do you know what the tarrif is on a particular load? Is there a commodity list somewhere that depicts this?

 

Bill would have to answer that one. Drivers do not have direct access to these loads. I need to get by the office and let them show me what they see. My vague understanding is that these load offers are constantly streaming out to approved carriers. They don't stay there long. When you see one you have to be ready to click and commit your truck/bid quickly. In other words you need people sitting at a computer 7 days a week 24 hours daily watching these and knowing where the trucks are at all times. They see the tariff on it. It doesn't stay there long. And tariff varies. A load at 01:00 pays better than one scheduled to pick at 13:00.

I've got tariff memorized on a bunch of loads that I have them look for. I also know that if a load is parts going out and empties going back (round trip) tariff will be at 75% (of the 100% tariff on the trip out with parts) on the return trip with empties. So if it pays $1,000 from the shipper to the manufacturer, the manufacturer offloads parts then reloads empty dunnage going back, that trip right back will be $750 so the round trip tariff bid would be $1,750 on the load to win it. I'll let them know when to watch and to grab it for tariff that way time is not lost and our bid gets locked in quickly. Sometimes I will give them bids over tariff on certain loads if they have been popping up a lot. That usually means a place is behind and you can get the loads for more than tariff because they are having a difficult time getting trucks. But for a situation like that to last more than a couple of weeks is unusual though I have seen it go on for a month or longer at times. Have to understand there are a lot of carriers and eyeballs watching these things and loooking for the same patterns. Eventually that results in rates stabilizing back to tariff, sometimes even below tariff.

For someone like directshipper who is complaining about shyster brokers (I believe it's more because she wants no middle man and cheap trucks - having cake and eating it too) a good 3PL would provide dependable trucks to cover her freight, the carriers would get decent rates, loads get covered and not be subject to wild swings of the market. But that's another discussion. You asked me how I know what tariff is. I know they see it and know what it is on the loads, and they pass that info on to me so I can make a quick decision. I don't know if it is published. I would like to have that info for sure if it is. Would make creating steady solid weeks relatively easy.

Companies who really exploit this most effectively have small fleets with employee drivers. They sit there knowing what to watch for and grab everything they can and force dispatch without having to check with wishy washy o/o. O/O have a tendency to be indecisive in the moment when one must think and act quickly.

 

The carrier submits the tariff. Typically it is a big grid with per mile rates from states and regions to states and regions with a minimum rate per load.

Example - My rate from Detroit region to Laredo is going to be different from my Laredo to Detroit region.

This is over simplifying but basically how it works. And in most cases you are working with the customer on setting these.

A general term we use for the 3PL's boards are Bid Boards. When they have a load it is placed on the Bid Board. It gives us all the details of the load and tells us what our tariff rate is. All the other customers are seeing these same loads but with their tariff rates. In many cases these rates are the same because the customer will tell you what they are looking for and few people don't accept what the customer is providing.

Typically this isn't a big deal because the rates are better than good plus you have the option of over and under bidding tariff. This is where the art comes in. Knowing the market and what is happening plays into strategy on bidding loads.

Now the other factor that is much bigger is that as a carrier you are ranked. Everyone has different terms but one of the better ones has 3 Tiers with 1 being the best.

When the bids come in they are ranked with the lowest to highest for Tier 1, then same for Tier 2 and then Tier 3. So as a Tier 1 carrier I can actually be higher than a Tier 2 and get the load. But if I am way over tariff they will go down tier to get a better rate if they trust the carrier.

Added wrinkle is Preferred status. On certain lanes we are Preferred. So as long as we bid tariff we are auto awarded the load.

A couple of these we can broker but we would rather turn them back than go out to ITS. We have carrier that we basically run because they can't get anything near the rates we get and it helps us keep status. Part of getting a good status is volume. The more we do the more we get.

At present I am using my status to build my trusted carrier base and dedicated fleet. Since our partnership I have grown the volume 4x what they did last year at this time. By next year we will be one of the top 5 carriers in all of these programs.

 

Lol...I know exactly what it costs me to run, I don't bid loads on my "costs", I bid loads on what I think will fly....that's how you make the real money...Lol...

Lol....business is about making money, "fairness" is a purely subjective term. What you think is fair and what I think is fair are two entirely different things...Lol....

Cost of operation is a consideration when calculating the cheapest possible rate that I can haul something for, while still making something. I don't encumber myself with your idea of fairness when I'm trying to determine how much I can bleed you for. Like I've said, your idea of fairness and my idea of fairness are two completely different things.....

Don't get upset when free market forces cause your shipping costs to increase.

 

Bringing on a new lane next week from TN to PA. As we are looking for reloads in a very tight market I have brokers "explaining" to me that while they can't find trucks for freight right now that these rates are still higher than what they have been. And we are talking under $1.50/mile.

Then he tells me that carriers aren't being realistic about the new rates. As I am talking to him I am checking capacity history in a 100-mile radius. Over the past 3-weeks it has been between 10-to-1 and as high as 18-to-1.

Now who do you think isn't being realistic about the new rates. What is sadder is the guys that have been running this market for years that don't know they have a hot commodity and are still running at the old rates.

 

They don't know wth they're doing and ought to leave the dispatching to someone who does.

 

that makes economic sence to me also

 

OK PEOPLE here is the big secret!!!!!! You fi d out what the lane is paying. To do this you get your subscription to Internet Truck Stop. THEN you get the rate mate tool for an xtra 35 a month. It will pay for it self in one load I promise. It doesnt matter if your dealing with a broker or direct with a shipper. The lane is gonna pay what the lane is gonna pay.....NOW lets get back to rate mate. Lets say you see a load posted Atlanta to Memphis. Go to the mate and type this info in and will tell you what the lane is paying. Then you call the broker and tell him or her what YOU! Will take the load for. Negotiating is the trick here its a game for them so play with em. I dont ever book a load without using it. I avg 3 bucks a mile because of it. Its a life saver.