The broker is sweating

I sometimes wonder about the so called "Rate Index" on the boards. I wonder how often the values are derived from skewed data. If the side of the industry supplying the average rates stands to benefit by cooking the numbers, why wouldn't they? The rate indices are a joke, IMO.

I saw $0.91/mi from Twin Falls, ID. to Knoxville, TN. 41k lbs FTL, 1 pick-3 drops today. Or $0.81/mi to run Idaho Falls, ID. to Madison, WI. What?

Also am seeing some of the short hauls into dead zones that normally warrant round trip rates ($4+) being posted for shameful rates today. Like Blackfoot, ID. to Billings, MT. FTL 44k lbs for $300. $300!! WTH is going on with these folks. Are they just pushing the limits to set new lows? I used to be getting $750-$1000 to run those loads to Montana. The short runs have always paid me well, but now I'm seeing all kinds of cheap crud. $300 to go into Billings??? That's like 83 cents per mile.

I bid $2850 on an FTL of spuds from Idaho Falls, ID. to St. Louis, MO. The broker said that was too much. I came down to $2665, and he still passed. Said "I'll let you know if I can make that work or not". Ya know dude, just be honest and say "I'm going to shop for cheap carriers, but if I don't find anyone, we've got a deal.".

Hey, I don't have to run the cheap loads, but it's troubling for this time of year that I have trucks sitting for 3-4 days trying to find something decent on the spot market. There was a desperation load this afternoon posted by an unknown broker... turns out it was a repower going from Twin Falls, ID. to Hutchinson, KS. 2 drops, final on Sunday. Expedited, and needed picked up NOW. He offered it at $2200. After awhile, he raised the rate to $2800, and then $3000, which was probably all he had in it. I called him when it got to $3000, but the "broker" answered "hello" in a barely distinguishable dialect; combined with no substantial reputation, I passed on it and wished him luck. Yawn. So my truck will sit at the truckstop for the weekend, and hopefully find something on Monday.

Very disheartening.

 

It's the brokers issue if he can move it or not, not mine. I know what I need to operate and make it work for me. The rest of it doesn't matter to me or my business so long as I am taking things that pay me what I want.

 

True indeed. I don't fault them for price shopping. We all do it... fuel, tires, repairs, etc. They'll pay what the market can bear- such is capitalism. It's frustrating though to be seeing 1980's rates and be under 2013 expenses. I've always sat for longer durations than most since I rarely run for under $2, and sometimes the spot market just doesn't have that in it. But this is somewhat new, sitting for 4+ days without a load, and seeing the short runs go down so cheap. Usually I can make a decent living from those regional and intrastate loads. I hope this isn't a new trend!

 

regional and short runs have been hard to find lately. You have to almost be working with someone on a regular basis to get them.

 

I'm still seeing a lot of them, but under different brokers now. Like "Suntek". They had some really disappointing rates posted on those 200-400 mile runs today. They must have been hollered at because they stopped posting the rate with the load comments. Maybe they ended up having to come up on them to get them moved, who knows.

 

mega's operating cost is not $1.95/mile, but .025% per day is 9.125% per year ROI, which isn't terrible.

 

I was told by SEVERAL brokers that the rate index is controled by them and mega trucking companies when they post loads with rates they are gathered and stored in the data system . hence the going rate for that particular lane . to help with that so called rate index you should post the lane and rate you did it for that way it will store that data also . but a lot of smaller trucking companies won't or don't and that is the reason the rates are so low one way data if you catch my drift

 

Aye, I suspected this is the case.

 

I put some of my rates in there that I charge to my shippers ..to try to up rates in certain lanes I run ..BUT I can't do this alone ..if other small companies would do the same .. WE might have a chance ....

 

We've been using the DAT based OOIDA loadboard "Members Edge" which doesn't appear to have any facility for the carrier to input the freight-bill information. You're right though, maybe more carriers who use the boards which offer this capability will start taking that additional step. It can only help... unless the bottom feeders start doing it.