Rates are crashing and fuel to the moon!

Pretty big difference in a one man show and a company with a contract. The HD contract was only negotiated every five years. He already had the contract when I started there in 2004 and when I left the final time in 2018 he still had it so he must have been ok with the rates and the payment terms. If they lowered the terms across the board and had more people bidding on it then they would also run the risk of being locked into a contract with a garbage carrier or they’d have to cut the length down to one or two years and be negotiating more frequently.

I’m sure during the summer months when we were pulling 4 loads a day out of UT back to the stores in MT that we probably racked up $150k or more in freight charges a month. But he must have seen value in that contract to keep doing it. As far as I know Lott is still doing the Idaho stores so that’s a minimum of a 20 year relationship between them and Home Depot. I’m not sure about my old boss because he downsized so I’m assuming Lott is doing the bulk of the MT loads now too.

 

The majority of contract stuff is likely 60-90 days to pay. But owner operators that are leased to carrier don’t know that because they get their money next week, or they get quick pay from the broker, or they factor their invoices.

 

JBS contract. Terms up to 90 days are not that rare. Now we’re talking about direct customers not brokerages.

 

^^^^
Well, this account is well worth the weight. And it's probably only about 5% of my business so it works out quite well. Another thing is the check Is there at 90 days.

 

Seems like 60 days has become the new 30 days. I have multiple customers all beyond 6 figures after 30 days. It’s crazy tbh but thank goodness I can afford to do such things or I wouldn’t have the customers I do. None of them care to do business unless you can carry these kinds of numbers with little regard or worry. Sometimes you have to put your foot down sure, but they also realize the value your adding and take care of business if things get excessive.
These are world wide businesses. There are some that are just trash, DHL comes to mind, but others it’s just the way things work.

I have 16 trucks running now and brokered 55 loads last week. It’s getting crazy even for me. I gotta be able to trust my customers even if it takes 2 months to pay. Same time, gotta be able to bring on new business that’s not yet proven. Cash flow seems to be the name of the game.

 

that’s always the name of the game.

 

My direct customer pays net 7 days. I wouldn't be so quick to assume net 60 and 90 terms with no interest or collateral is just how it is.

 

But my question was and is, what other business, besides trucking, is perfectly happy with a 90 day net? None that I can think of.