Reefer Rates

Discussion in 'Ask An Owner Operator' started by BigBadBill, Mar 2, 2013.

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  1. Mar 2, 2013 #1
    BigBadBill

    BigBadBill Bullishly Optimistic

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    This is so out of my knowledge base so thought I would throw it out to those that know about it.

    Old customer that I haven't heard from in over a year called about a couple reefer loads of cheese that he has had a couple independent O/O's running. The load is 42.5k of cheese out and 38K of supplies back. R/T is just under 1,000 miles that he pays practical on. Not frozen just keep at what normal temp for cheese (can't remember what that is but not running reefer non-stop). With fuel right now he is paying $3.12/mile and paying weekly.

    He thought that was pretty good considering some of his bigger carrier accounts have offered him much less for the same run but he has a bunch of these that he likes to keep for small carriers. I believe his father or uncle was a driver.

    But one of the O/O's came back last week saying he would have to raise his rates and moved it to around $3.40/mile.

    He feels that $3.12 is fair considering all the extras he provides (on site parking, allows the drivers to use showers, pays weekly, will protect load if driver has break down or goes on vacation) and WILL not pay the higher rate.

    But then he was concerned that maybe he was out of touch with the rates. Seemed like a pretty good gig to me.

    Thoughts?
     
    BigBadBill, Mar 2, 2013
    BigBadBill, Mar 2, 2013
    #1
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  3. Mar 2, 2013 #2
    wichris

    wichris Road Train Member

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    640 Cheese and 640 parts? Not carefull and they will tear up the inside of the trailer. Your talking 2.50+fsc,way too low. Should be well into the 3.00 range +fsc. 1400 mile RT with the same is in the 3.00's +fsc range.
     
    wichris, Mar 2, 2013
    wichris, Mar 2, 2013
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  4. Mar 2, 2013 #3
    25(2)+2

    25(2)+2 Trucker Forum STAFF Staff Member

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    Everyone I talk to is running out of money, not just O/O, so I am just guessing that is what is driving this. Very little love is being expressed for the politicians, it has actually gone from complaisance to resentment, some of it very bitter resentent.

    I think the rate should be fair, depending on what other costs of operation have changed. I can ask my boss and he might tell me, after Passover ,when he finally has the time,or one of the O/O what they are making.

    I got a raise and nobody bothered to tell me, now that is a scary thought. An even scarier thought is that it isn't enough.
     
    25(2)+2, Mar 2, 2013
    25(2)+2, Mar 2, 2013
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  5. Mar 2, 2013 #4
    BigBadBill

    BigBadBill Bullishly Optimistic

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    Not parts, sounds like ingredients for cheese making.
     
    BigBadBill, Mar 2, 2013
    BigBadBill, Mar 2, 2013
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  7. Mar 2, 2013 #5
    wichris

    wichris Road Train Member

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    640 parts or whey powder,it's still low. 38K would be low for whey. When we pull it out of the philly or nj port it's around 44K,thats 1 out of 10 extra.
     
    wichris, Mar 2, 2013
    wichris, Mar 2, 2013
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  8. Mar 2, 2013 #6
    RedForeman

    RedForeman Momentum Conservationist

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    Does the lane include California? Special equipment requirements? Lots of tollway?

    If that run was in my region, passing thru or especially ending in north GA, I'd be on it like stink on poop.

    BTW: Cheese is usually run 34-38ºF. Continuous run to avoid frosting the outside product on cycle. Also note the heavy cheese load reduces reefer failure risk. That much product won't suddenly warm up, giving you a little more time to work a breakdown. About the only real risk with cheese/dairy loads is the shippers are extra picky about stinky and/or dirty trailers.
     
    RedForeman, Mar 2, 2013
    RedForeman, Mar 2, 2013
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  9. Mar 2, 2013 #7
    BigBadBill

    BigBadBill Bullishly Optimistic

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    Comes out of WI/MN area (didn't tell me what facility) and goes South through IL. I know this because he thought of me because he remembered the town I lived in and thought this would be a good regular load for me if I want to switch to reefers. Did think of you and your little fella. Though maybe you guys could switch between running this each week. I will get more details and email you next week.
     
    BigBadBill, Mar 2, 2013
    BigBadBill, Mar 2, 2013
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  10. Mar 2, 2013 #8
    wichris

    wichris Road Train Member

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    If it's out of MN/WI i'm sure i know the shipper. Those rates are way low for here(unless that is the brokers rate)
     
    wichris, Mar 2, 2013
    wichris, Mar 2, 2013
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  11. Mar 2, 2013 #9
    Big Jay

    Big Jay Light Load Member

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    Bill,

    For cheese loads those rates are right in the ball park. I live in Minnesota and thusly haul a whole lot of cheese. If one can get 3.00 outbound for a load you are doing well, an inbound right back is killer. I kindly disagree with wichris, however I'm not all that experienced yet. I'm sure there are still some places but I'd swear I've been to every cheese plant in Minnesota and Wisconsin.


    I'd also bet that if that owner operator continues to try to raise his rates he will be out on his ear on that deal and there won't be anymore 3.00 loads out of there.


    Jay
     
    Big Jay, Mar 2, 2013
    Big Jay, Mar 2, 2013
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  12. Mar 2, 2013 #10
    wichris

    wichris Road Train Member

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    First district right there in Litchfield is higher than that. Have been for years. Of course they don't mind the ones that come in and do it cheap.
     
    wichris, Mar 2, 2013
    wichris, Mar 2, 2013
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