STOP RUNNING CHEAP FREIGHT!!

Ok. I thought you had a solution for how out of whack the load to truck ratio is on the spot market resulting in low rates, but I see now instead of answering what I’ve asked you’ve chosen to move the goalposts.

Let’s go this way then, since you’d like for the government to tell people what they’re allowed to charge, how would that help in your current situation? If your boss has been in business as long as you claim then why didn’t he have the reserves to weather a few bad years? 50+ years in business should’ve given him some decent reserves to rely on for more than a couple years. I think about my old boss in Montana. He started in 1978. He’s weathered a lot, including no more lumber mills in Missoula County as of a couple months ago. He’s still plugging away and has a couple brand new trucks and a couple brand new trailers sitting in his yard that he’s never licensed because he doesn’t need them.

I guess the point I’m making is that even if you got your wish and rates were regulated it doesn’t mean people will manage their money well.

And you’ve still not addressed who stays and who goes at the start of your plan to get the numbers in line. You are also foolish thinking people won’t compete on price. I’ve already shared my personal experience in Hawaii where the government tells you if you can buy a truck or not, and hourly rates rates are regulated, and companies still compete on price. It’s only paperwork.

 

I’m sure that was every flight and definitely not just a photo op

 

Not sure what year this is from, but it’s an old rate sheet from the South Dakota PUC. I don’t think going back to this way is the answer. There is still money to be made in trucking and I feel asking the regulating agencies to step in to fix the spot market will only hurt everything else that isn’t the spot market. I’m sorry your current boss is struggling, maybe it’s time to hitch your wagon to a better horse.

 

I’ve never bought into the theory that some have really just made up. I say made up because I don’t think anyone here has any real knowledge of the mega carriers rates they charge and I don’t think they could just be running cheap because of the amount of trucks that seem to sit at there terminals that seem to be empty I see constantly when I pass them,the staff they employ that doesn’t drive they have to be making money as well to be able to set aside at least a million dollars in some kind of escrow to be able to be self insured. I do believe even self insured companies have a secondary insurance company in case of a cost of more than they are self insured for.As well companies that are running there freight through brokers i think in some cases are doing so because they believe they can get a cheaper rate than the larger carriers are charging.But me personally I started my authority in 2009 and I bought a step deck trailer on the information from a broker I personally knew for years and I didn’t want to run a van just because of so much competition. I did great until about 2011 when Landstar and Mercer flooded the market with there own steps and it was a lot harder to get a good rate so I started looking for a direct customer I found a customer to run freight to Home Depot stores in the charlotte area and the Greensbo NC region and I quit running all broker freight.

 

Well, I didn't bring in the theoretical part of the free market but a reality, we have a free market with the internet, it sucks but there is money to be made.

A majority of those who are shipping loads like this are pinching pennies and there is a lot more to it for the serious shippers out there. most of the time the costs are passed on their customer and they have to keep their metrics up to hold to their shipping policies and transportation standards.

This means that most don't use load boards or hand it to brokers who are going to just throw it out there to see it gets moved.

They also don't have the man-hours to invest in trying to find the lowest shipping rate.

Not all the time.

IF he reposts it, this is where the problems start.

Again this is where the problems are in this industry, there is no transparency involved to show the true owner of the load, speaking on who the initiating broker is.

If anyone really wants to have the FMCSA involved, then it is to force brokers to either have a full disclosure of where the load was initiated from or not allow loads to be brokered out by a broker OR BOTH.

Pizza is not a good example, it is highly competitive with better margins and no learning curve.

There is a point that the costs are not reduced, megas are not managed as a small/medium fleet is and the economics are different.

See the thing is, before deregulation, each company had their own rate schedule and it was within a percentage of the market rates. Some charged more, others charged less but it was competitive by not just the price or the service but by the capacity of the company.

Many don't understand the other side of the coin - the shipper. They were sold the carrier by people who went into a company and presented them with facts and promises of performance. This goes right to the performance metrics many companies have today, they have specific standards and specific policies that need to be abided by, posting loads on a load board would violate that, and contrasting that with the old timey ways, the company doing the sales pitch would makes sure that they fit into the company needs and abide by the policies and standards.

They do, and they have to maintain a specific amount of money in the bank to cover claims for every truck and every driver on the road.

What many do not understand is self-insured carriers are not doing this to save money as we would but it is to hedge against large increases in rates due to high risk drivers.

 

Lol.. I always buy the pizza I think tastes the best regardless of the price. Luckily for me the pizza business is very competitive. If Bret makes a good pie he don't have to worry about the pies his competitors make.