Freight Lane Density

What if that "stupid" person got paid RT miles and that $1/mile is just gravy? There are more ways to make money in this business than just the load-by-load pricing model.

 

Does not change anything, he is taking freight for less than it is worth. The point is that he getting paid less than what it costs to carry out the delivery. If he abstained the price would go up. He simply has to make a decision not to haul for less than his operating costs.
If this was the standard , the load would not move for $1.00/mile.

I do not think that this practice would be is prevalent in other industries, company owners would be unlikely to give gifts to other businesses for the sake of doing business.
There are just to many players in trucking that do not think long term.

 

I can think of many service businesses that operate a portion at cost or below to get the high dollars on the rest. In a sales business it's even more prevalent.

 

I can think of quite a few as well , mainly in retail sales to draw you into stores. Although I do not think that they offer a discount that is as sizable as the one given carriers running for $1.00/mile while their cost is closer to $1.50/mile.
In manufacturing I believe there is actually a law that does not allow dumping, which is really what this represents.

 

I believe that refers to exports,not domestic. What does the"size"of the discounted price have to do with anything? If it's below cost,then it's below cost. In the end it's all on the average,not the singular.

 

If truckers quit taking freight out of Florida completely, and nothing in Florida moved at all for a week or two, and you see rates go up to $2/mi, freight going INTO Florida will now be cheaper, knowing that you're getting more now coming out. And then people will start bidding down in Florida again, rates will go down again, rates into there would go up again, etc etc etc so it won't do a darn bit of good.

I'm pretty sure that the rates are set by the market, and brokers also take into account what you're likely to have gotten paid to get to where you are now, and factor that into what kind of rate they'd give you. They know that if you are in Florida, you'd likely have gotten a good rate coming in.

The fact is, Florida doesn't have any manufacturing. There is less a supply of freight and surplus of trucks, therefore the cost of shipping goes down, and that is the way it is in a free market. And the same goes for every other region of the country.

The problem is that brokers seem to be much more savvy and up to date on market trends than the smaller carriers are. They are in a better position to educate themselves on the market than the average driver/carrier. At least that's what it would seem to me. Information is key.

 

This right here is the problem! I don't care if you made 5 bucks a mile going out don't haul a $1.00 a mile freight just to put a few pennies in your pocket! Keep in mind if everyone thought this way, your freight might end up being the $1.00 a mile junk!

This is classic "a load on my trailer money in my pocket" BS a lot of idiots out here go by! Thankfully they don't last long, or we hope they don't.