Question about freight pay

I am not sure of the thinking. From my experience, the low ball rates do not get posted. But yeah, people take it. Most reasons I have heard are that it covers my fuel going back. Some places just consume freight with nothing going out. I have seen plenty of $.80/mile loads. Got offered a load at $.47 - thought one of my friends was punking me. But the kid was for real. Unless a rate is above $2.00 or $650 for the day, I am waiting to the afternoon before or morning of getting MT before I accept something.
One trick I have learned is on the morning that I am getting MT is to repost my truck with a different city. So all those calls from the past couple days with low rates that aren't covered start calling again. If it needs to move I usually get my rate.

 

Almost everyone is going to jump on me for this response. Get more than you need going in and when coming out, get what you can and get to the other side as quick as possible.

 

That is EXACTLY why loads are posted that cheap.(not jumping on you spankingGT) Several brokers have refused to go up on rates for this very reason. All rates should be the same as the truck cost the same to operate both ways. Just figure your low paying going back rate into your round trip and see how much you really made off the whole trip, all of a sudden your good paying going in rate goes down the tubes quick. There should be NO such a thing as backhaul pay, all front haul.

 

There is a balance in what you are saying. Yes, areas consume trucks with little going out. Rates are low in these areas. But if people are taking sub-$1 rates then that is what is going to be offered. My feeling is that what happens more often than not is drivers do not understand the market they are going into before accepting a rate. So rather than build enough to deadhead extra miles to get a better rate they have to take what they can get and hope to make a buck on the RT.

We live in a free market and with that comes allowing people who have no business skills to operate a business. More miles, more miles, more miles is what you have to do if you are a L/P, leased driver or company driver to make more money. And far to many move to independent O/O with that same mentality.

Isn't it amazing the guys that talk about the miles and revenue to the truck then talk about fuel eating up most of it. Clearing less than a grand on the week with 4,000 miles. That is less than $.25 per mile. New drivers make better than that.

Here is an idea. Rather than TA and Petro leasing space for someone to sell us ticket defense get someone to offer business courses to O/O's and people wanting to become O/O's. Educate an extra 10% on what it takes to run their business and we will see more people not taking these cheap loads.

 

The key is in your post. Not everyone is going to think the same way. Supply and demand is the key and sooner everyone understands that the less ######## will take place.

Would any of you personally pay more for the same product with the same build quality just so the manufacturer can make few extra bucks? NO. Same goes for the broker, shipper, trucker and every one in between.

This industry is vicious and sooner one can learn to adapt and learn the tricks to increase their bottom line, the sooner they will flourish. I run cross country CA-NJ. I get my pick when leaving CA but when Im in NJ, Its slim pickins out here. I will not take .80/mile freight but Im also not going to hold my breath for anything paying better than 1.00/mile either. I rather take a freight that pays 100.00 less over all than sit for another day and add that to my loss.

Too many O/O, small trucking companies, and big trucking companies are out there and competition is at its all time high. Treat it like any other business, some days your gonna be in black and some in red. Just remember what you need to make a profit and just run with that.

 

The key in what you are talking about is that you know your market. So you understand the difference between waiting on that $100. But how many guys are you going up against that don't know that and just take the $.85 because they "hear" the market is bad.

 

I hope they take that .85/mile freight because it will just be a matter of time before the truck will be repo'ed and freight opens up again. Oh wait- for every trucker that leaves, there are 10 more ready to take their place.

Like I said, stop looking around to educate fools, know your business and your bottom line. If you really believe that educating drivers on rates will help everyone out, then you simply dont understand the concept of supply and demand . I'm also sure you are missing the days where the trucking was regulated.

Its an open market, run with it or get left behind.

 

Every post here makes a very valid point. I learned a long time there are areas of the country where there are just too many trucks. The thing seems to move in cycles from area to area. Southwest Missouri is a good example. The other day Getloaded. had 17 loads and 81 trucks. Yesterday, there was 103 loads and 54 trucks. I still think today that you need to decide where you want to run, ie coast to coast, southeast to northwest, central states, southeast etc. and stick with it. Develope good brokers in that area and good relationships and even when fuel goes up you will get your rate. A friend of mine has been doing this since 1989. Deals with four brokers, two out, two back. He isn't griping about rates, fuel etc. Why? He worked with these brokers and plain and simple, he gets the best rate they have, but it's taken several years to do that and now it's paying off. The same plan will work today and that's the key. Work!