Ridiculous rates

I agree that the $750 rate is ridiculous but what leads the broker or shipper to set a rate of $1.15/mile? Specially for a driver assisted load. Is it greed by the broker? or is the shipper being cheap? I like to test brokers when they post loads like this as follows: I already know that the weight is 43,000 (full load).

1) I like to ask the broker if this is a partial load at 8,000lbs? They tipically get upset when I ask this question ( I laugh)
2) I tell him/her that I would only consider this load at double the rate of $1,500. If the price is way off I tell them at what rate I would pull the load for. They don't appreciate your advise.
3) I ask them how many times a week do they offer this load because I'm interested at doing this on a daily basis. The broker gets really excited and I like to pull his chain for a couple of seconds. I know this stinks but its no different than the broker telling you "sorry man the load got pulled" 30 min after you received a verbal commitment and you wait for the rate confirmation.
4) I tell them exactly what I got for a similar load the prior week and make them aware that I know what the market rate is. If they say that the market is shifting, I like to ask why? What took place this week that caused the market to shift?

The bottom line is that we cannot let brokers set the market. Shippers pay good money to have their producst delivered while brokers artificially set the ceiling cap. As drivers and carriers we need to let brokers be aware that we need at least $1.20/mile to cover our expenses, or tell them that at a particular rate you only make so much $$$$/day. When I tell brokers that my profitability for the day would only be $25 if I pulled the load at least it makes them aware that we know the economics.

We all need to be aware that a large number of lanes are not seasonal and are consistent all year long. Don't let brokers get away with cutting into your profits by 30% to 40%. Don't let brokers get away with giving you a sales job. Be smart and hold firm, share with the broker your knowledge of the market. We all benefit when we say no to a bad rate.

 

They post it at that rate for various reasons. Because they are cut throat and bid it cheaper than the other brokerage? Because some ####### justify that load as fuel money? Because everyone else posts at those rates and it's moving? Because the product is low priority and it doesn't matter really when it moves? Wasting time trying to impress a broker with your economics education is futile. It goes in one ear and out the other. You are an annoyance for not taking the load off his hands,move on to the next caller. It is what it is. This is why I tend to disagree with prevailing sentiment that one should work with many different brokers instead of a select few. If you're bouncing all over everywhere calling on loads like this how can you establish yourself to the better one(s).

 

I agree with your statement above, and I keep my top 3 brokers at the top of my phone list. However, how do you explain the dozens of phone calls I receive from brokers telling me about their hot loads. Now that's an annoyance. Futile???? what, quoting Darth Vader now.... We are in the business of making money and too many O/O fail becasue they don't know how much money they clear per load. I tell my friends great you just put in 11 hrs and made $6.00/hr which is less than minimum wage.

 

The Schwartz is strong in this one lol.. And many focus so keenly on numbers that they lose sight of business. It's more than just your truck and getting an average of $x.xx per mile or hour.

 

Its CT. If you do not have direct shippers out of here expect to get around $1.25 a mile to leave. To many come here and will take anything to get back out thats what drives the rates down in this area. Brokers now this and offer low ball rates. 99% of the time the money is in the load there just keeping it because they can get ride of them and in a hurry. Consistantly get over $2 and as high as $3 a mile out of here out to NY,PA and VA for a flat.

 

There is one reason and one reason only why they post low rates (drum roll please) BECAUSE THEY KNOW SOME DUMMY WILL TAKE IT!!!

 

i would just come home empty

 

It is all about supply and demand.
If you see fuel at $3.00 on one side of the road, and $4.00 on the other,and neither place has added services, where are you going to fuel? The cheaper one, of course, all things being equal. Do you really care how much the 'CHEAPIE' station is making ? No, the station owner has his reasons for being lower in price, so you take advantage of the situation. The supply is cheaper,so you save the extra money.
Any broker who can OFFER a lower rate, and some trucker takes it, is doing nothing wrong.So long as he lives up to his end of the agreement.

There are times I have taken cheap freight, but it always involved a good reason. Doing a regular high paying customer of mine a favor is usually a good one. Dead-head more times than I have run cheap.

Now I do not agree with the middle-man taking advantage of a truck, but if both parties agree, do not blame the broker too quickly. Learn to negotiate, and how to say no, then move on.

 

if going home. always take a load. no matter how cheap.

covering the cost of fuel at least is better then paying for it yourself just to come home.