Mega Carriers Killing Rates

You will probably find this happening in a number of markets, where outbound freight is weak - as opposed to inbound.

It's sad that we preach "just say no to cheap freight", and refuse to take "fuel money runs" just to get back in our lanes - then find major carriers doing JUST THAT, in order to reposition equipment.

I have a similar situation - direct ship connection, that is a close friend. Flower importer into MIA. He's loading guys that are bringing produce in from Cali, with 5 stop returns back to Cali, at something like $1.25 - and these guys are TAKING IT - just to get out of the "freight dead zone" (South Florida) and get back into their dedicate/home lanes. This is from the shipper end (not the mega carrier end).

Is the guy "taking advantage" of the carriers in order to get his freight moved cheaper? Most certainly - but this is the reality in slow outgoing freight zones. I (personally) can get another $.75 out of him, "as a friend" just to get myself "out into the lanes", but the "average joe" is going to see the $1.25, and unfortunately, will accept that - rather than sit and hope for another .25 of .50, in competition with the 200 other trucks in the same boat. Most of the O/O's I know, that will even take a load down this far, factor the D/H up to the 75/10 interchange into their rate - drop, and deadhead out immediately.

As to your example: ITS has 30 van loads posted out of Seattle area (100 mi radius) and 156 trucks posted - in the same area. In a market like that, I can understand how a mega-carrier can afford to do D&H freight out of that area - with company drivers, at that rate - just to reposition a power unit.

Unfortunately - O/O's cannot compete in that environment. So, unless you factor the d/h out of the area into your inbound rate - it's a lose/lose proposition.

From the mega-carriers standpoint - it's just a "business decision"...

Rick

 

Well said.

 

The real question is what are the rates going into a slow freight zone such as Seattle? If the rate going in is high enough then taking a cheep rate out can make sense.

 

That's why I can't understand why anyone would want to be an O/O.

You can't blame the shippers. Like anyone else they are looking for the lowest price to ship their freight.

All these O/O's that say they don't move their truck for under 2 or 3 dollars a mile must do a lot of sitting.

There are plenty of mega haulers that will take it all day for a dollar (or less!) per mile.

 

Being and independent O/O or leased to a good percentage carrier is about being specialized. You provide a different service than the larger carriers do. That freight that can be moved at a profit by a large carrier for low rates is not the market that most O/O's specialize in. It would be like someone pulling a flatbed complaining about the van rates. Why are you looking at van rates? But because it goes on the same type of trailer the some how think it is the market they want.

Like any business, know your market and service it well. And forget the other markets unless you are looking to move there.

 

I believe there are a lot of owner operators on here that would argue they have no problem finding $2+ a mile freight. I know plenty of owner operators that wont go much below $3 a mile and have no problem keeping their trucks moving.

 

Absolutely, several of my guys are well above $2.50/mile on light loads running less than 2,500 miles a week.

 

BOY'S one of these days we will learn to JUST SAY NO to cheap freight, let that moron haul it for nothing and he will be out of business next week, when his fuel bill comes due and he hauled freight for just fuel. I own the truck and trailer and the name and authority I run under and I learned quickly to negoiate!!!!!!!!!!!!!!!!!

 

but what you don't understand is all the company drivers that are use to making $.30 a mile so when they get there own truck there use to not making a lot of money all there thinking about is is bringing home $600 a week after fuel
Most brokers are starting that "looking for a rate"I stop them there and tell them so you don't have the load most say yes we have it but customer is looking to see what it's going to cost to move it that's just B/S just last week I called on one I gave the guy a price $2.50 a mile he come back at me and said we get these covered for $1.50 a mile but he could go $1.62 a mile I even have people call wanting to see if I can cover a load I gave him a price he said I have a offer for $1,000 less than 30min later someone else called about that same load paying $1,000 more than I offerd to move it with the first guy I said ya I'll do it he said he had to call me back after 2pm that day and let me know if he gets it what a joke these brokers were biding on freight.....when I need a load I need it now I'm not going to bid on freight I'll give you my price and that's it
My DOT numbers starts with 567,xxx now there in the 800,xxx now so 250,000 carriers have started after me and that number grows every day