CARRIERS

Cause it's not monkey business

 

Sorry, could not resist ))

 

Sam sold 5 apples , for 5$ each
Bob 12 sold for 2$ each.
HOW MADE MOST PROFIT?And to whom customers will return most likely?

 

It doesn't always come down to rates.Truck availability is also very important to a lot of shippers.for example Shneider has a terminal in Charlotte one of the reasons is amount of business.And say western express doesn't.So if a shipper called Schneider at 9 am and wanted a truck there at noon they could do that where western could only work with what if any driver they had in that area.So Schneider truck availability in Charlotte area allows them to charge more.Even a small company that dedicates it self to a company will get better rates.So that is what makes hard for one truck O/Os to get a good rate the only thing they have to offer is service for one load and can't serve a customer every time they call.So when you see low rates not all truckin companies are running where rates go up and down as much as a single truck O/O

 

Sam sold 5 apples , for 5$ each. Bob 12 sold for 2$ each. who made the mos profit?
If it costs $3/apple to harvest and bring to the roadside fruit stand, Sam made the most profit. If you think there are no costs (ha ha), Bob made the most profit. But I think Bob's in for a surprise.

 

Freight rates are not always available. If you look at DAT board for example that is not the freight rates the shippers are paying. That is the rate the brokers are paying.

Lets say Swift has a contract to carry freight for a company from Claremont, NH to Kansas City, MO. Distance is 1401 miles. Swift goes in and bids for the job. They bid @ 2520 plus fuel surcharge. That works out to 1.80 plus .23 or 2.03 at today's rate. However, The rate that brokers have been putting out over the last 90 days by DAT is 1.24. The reason that rate is low is because there are more people wanting to get out of the east cost back to KC then there are loads. So someone will agree to take that rate. But it won't be Swift. Swift has a contract for that load. So, Swift pays the broker a certain rate. Maybe as high as the 2.03 and the broker puts it out as cheap as possible and keeps the difference. Say you are in Claremont, NH and it is snowing heavily. No other trucks can get into Claremont and the load has to move. You call the broker and tell him you can do the load for $4203 or $3 a mile. As the clock ticks, the price goes up. The shipper has a contract with Swift. Swift can't preform. The shipper is going to pay swift 2844.03. Swift will take a loss on this as they are on the line for making sure it gets out. Now the Broker could have a contract that guarantees the delivery at a certain rate and it could be the broker that takes a loss also.

The point is, unless you know what the rate is the shipper is actually paying, you do not have any idea what the trucking companies are making.

You could look at their 10k and 10Q filings.