Bad paying freight

The last time went to $5/gallon it did put a lot of the cheap freight haulers out of business. Unfortunately, a new group came along to replace them. We have always had cheap freight haulers in this business. I really don't expect that to change any time soon. I think that some are so head over heals in debt that they feel that they can't afford to sit a day for a decent load or to deadhead to a better area. They will take anything at any price in order to keep the wheels turning. Their thinking is that as long as they can keep moving that they can out run the repo man or that eventually the numbers will work out. They don't give any thought as to profitability. Most probably have no idea what it costs them to run their business. Many can't seem to get past being a company driver and understanding that they are a businessman. Some of the big carriers who do this think that they can outlast the smaller carriers and when the dust settles they will be the only ones left standing.

I have heard some say that if they didn't take the cheap load that someone else would. My response is usually something like "let them." I can't control what others do. I can control what I do. There were thousands who went out of business the last time fuel went to $5/gallon. I have no doubt that the same thing will happen this time if fuel goes up to that level again.

People complain about those hauling the cheap freight. Most won't admit to hauling it, but someone has to be hauling the cheap freight.

 

5$ fuel will put many bad business people out of business. Both those hauling cheap and those not.

When diesel goes to 5$, the $1.00 mile guy will start charging $1.30, and not that much will have changed.

 

I have been doing this for only 6 years and from day 1, I hear ######## and moaning from plenty about cheap freight.

Its not a hard concept to understand. Understand what your bottom dollar is and stop analyzing what you make from each load.

If I go in for 3.00/mile, I have no problem picking up 1.10/mile freight coming back out. That would cover the fuel, me, and then some and I still average out better than those whose pride knocked out the common sense.

Please remember, you are not a driver or O/O- you are a business and you sole intent is to stay in black and maximize your profit.

 

You are correct. There seems to be more new MC#'s than old ones now.
I hauled one cheap load last year and have since bounced on empty if
I couldn't get what I needed to get home. Where cheap really is on the car haulers some are paying like 25-40 cents a mile per car.

 

I have no problem staying in the black and I won't haul anything for $1.10/mile even if I get $4/mile going in.

 

My rock bottom is $2.00 a mile....Under that and it's not going on my trailer.
When I say I'll haul a little cheaper if the freight in paid good, That's what I mean.

I'll bounce out before I'll take a rate less that $2.00....Not only did I survive the last $5.00 fuel...I did pretty well through that time because I got more freight from all of the $1.10 a mile dummies going out of business right and left.

 

It isn't just car haulers. Most segments are moving freight for lower rates this time of year. I have a friend who hauls cars and he has been getting $0.72+/mile per car on most of his runs. He refuses to haul the cheaper cars. Whether to haul cheap is a personal decision. If you get a good rate going into a bad area, you could haul a cheap load to help with expenses, but I won't. I respect my the value of the service that I provide more than to haul for fuel money.

 

I suppose that I misunderstood what you said. I did very well when fuel went up to $5/gallon. I expect to do well if that happens again. Shippers and brokers had little choice but to pay a good rate if they wanted to move their freight. The cheap freight haulers could not afford to buy fuel. Some are speculating that fuel will go up to that level this year. If that happens, it should get interesting.

 

Thinning the herd is always a good thing in my opinion....It does suck for the losers but the rest of us reap the benefits.

 

I explain that at least once a week you can buy cheap or you can buy my service. They never think about it till something goes wrong.