Disclosure?

Discussion in 'Freight Broker Forum' started by tator1960, Jan 25, 2014.

  1. gearjamn

    gearjamn Bobtail Member

    In all truth there is no load paying that little from the shippers. Unless they are not in a hurry and waiting on someone stranded to move it for cheap ,like in Florida. The problem is most truckers have no idea their per mile costs, and what it takes to turn a profit. In all honesty need to make no less than $1.80 all miles to barely make it if you have to pay a driver. My per mile costs are $1.05 for every mile the wheels turn. That's based at 5.5 mpg and fuel at $4.00 a gallon. But not including maintenance costs. These are your variables fuel , mileage and maintenance costs. Yes I have hauled cheap freight when I have been stuck but decided if I am going to go broke I will just deadhead out to find freight elsewhere rather than make some unscrupulous shipper or broker rich on something they think they can get over on me with. So far I have always found freight that paid me for the move. maybe I have ben lucky but it takes due diligence to do this and search out the freight.
     
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  3. Shade_Tree

    Shade_Tree Bobtail Member

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    So what are you are saying is that no Shippers actually pay Rates as little as what the Brokers claim they do is what you are claiming right? Lets start with Florida being as you mentioned it and that is where I am based, Okeelanta Sugar put out their circulation list this morning for open/unassigned loads. There are 28 loads on the list are being offered to Brokers on the circulation list at 86 cents per mile! I do book quite a bit of Bulk Sugar through them but never bagged because of the rates! Lets go to Texas down in the Valley Welasco, Mc Allen, Pharr and all that area onion and melon Packing Houses only offerring 2100 all the way to Boston Ma! Lets do the miles 2196 miles divided by $2100 can we say .957 cpm and myself as a broker am supposed to make something off of that as well! So now we bounce to Colorado for some taters Alamosa to Miami 2066 miles at 4.75 cwt thats what 98 cpm! Same crap out of Oregon going to North Carolina 4.50 cwt 2450 miles whats that .79 cpm and you think that you have heard some good stories from Brokers listen to some of these shippers lines of bull. "Hey can you find me a truck for a backhaul help me out with this and I will get some good paying stuff next time!" There is no such thing as a backhaul as far as im concerned because it has to go regardless and every lane has a value or rate that products are moving in that particular lane for and to answer the question before it is asked no I do not mess with crap like that! So when you sit here and say that there is no shippers that offer freight at such low rates maybe you should swap the sides of the desk in which you sit and look again we see it everyday. But and there is always a but, there are bso many Carriers wether it's a one truck operation or even a small fleet that have gotten so used to just taking what is offered that they don't know how to ask for more! Ispot check all the time when looking for a truck in an area that I don not have a regular Carrier available just friday I had a load for a repeat customer that paid well out of Moline Ill to Wichita Ks round trip 1130 miles Flatbed no tarp Blow Mold Machines in shrink wrap 42000 lbs out 10,500 lbs of racks coming back! I called 2 Carriers 1 was a one truck operation he would really like to have the load he would take it for 2.05 and he could do it but not deliver until Monday the customer really needed to have it down there Saturday while the Plant was not operating! The spot rate according to ITS was at the $2.50 range but this carrier was way below why is that?

    Have carriers gotten so used to being beaten down that they are willing to just have fuel money or is it something else do they not know what it costs to actually operate their trucks let alone make a profit? Is this the new mentality or just the new age of trucking, for everyone of you that want to negotiate directly with the shippers there are 25 more that just settle for whatever they are offered. The quoted poster say's that his fuel mileage averages 5.5 mpg that is rather poor isnt it this poster acts as if myself as a broker should be more willing to give him additional money to haul the load regardless of what it actually pays because he has a truck with low fuel mileage. Dont take that as an attack on you it is not intended that way! I know that we are all in business to make a profit regardless of what position we play in the game as a Broker I want to make as much as I can but I don't feel the need to intentionally gouge anyone either! As Carriers or Owner Operators you have to make a living as well as a profit just to stay in business but the market will only bear what it can afford there have obviously been dishonest brokers in the past and they are still amongst us today! With that being said I will get off my soap box now and back into the corner! Thanks for allowing me to rant!
     
  4. 281ric

    281ric Road Train Member

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    Oct 20, 2011
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    I think you missed my point. If you get a good rate, one that youre very happy with , what does it matter what the broker got?
     
    Shade_Tree Thanks this.
  5. gearjamn

    gearjamn Bobtail Member

    I have to say you are and intelligent man. you sound like your ethical and moral. Knowledge is POWER as they say and I strive to learn all I can. I am sure I may of misspoken about some shippers trying to get someone cheap. And my comments definitely stirred a hornets nest ( I seem to have that affect on people judges really hate me ) And the sad part is they always find a truck to move it. And not all brokers are bad. I have a good alliance with several that I like both as business colleagues and as persons. For the price you said on your Boston freight with fuel tolls etc you are in the hole right off the bat. Problem is a lot of small independents do not know what it costs to make profit they run from hand to mouth and think profit after fuel is profit without taking in all their expenses. Have you seen some of the Landstar drivers trucks among others? Fenders flapping parts falling off. Though I have seen some with new nice trucks. I also have heard that (get you a good load next time help me out this time line ) But I consider as you every load is a for PROFIT load. That's what I am in business for. There are no backhauls only loads. When I go to a store and say I hauled a load for a loss please give me some food next time I will make it up to you.l You think I will be getting free food? They would just say I was an idiot and tell me to go away ? If there is not profit I just walk away. I will run empty and run my fuel out before I make someone else profit while I make none or take a loss. If I go broke it is by my own hand but not by helping someone else get rich off my loss. I am not greedy I don't expect $4.00 a mile but you need to average a minimum all miles of around a $1.80 to stay alive paying a driver. this will not make a trucking company rich but he can survive if he is careful $2.00 or there about is better. What I know is these BIG companies did not get BIG moving cheap freight. Paying the salaries, buying trucks, terminals, paying bean counters, dispatchers, load planners it just can not be done under $2.00+ a mile average it is mathematically unviable and turn huge profits ?. I also expect if I use a broker that he as well makes money. but a fair amount. as far as the guys willing to take less I have no idea ? Most drivers do not realize profit is more than just the cost of fuel, it involves all the bills associated with the truck broken down per mile. Sometimes drivers are trying to get home which it sounds like he was trying to do for the weekend, so they do not want to miss the opportunity or maybe he lined up a Golden Goose load and had to get there . Myself I never needed to get somewhere that bad. I preplan , look ahead before I go and check the rates to make sure I have not gotten myself into something not paying on the other end. Though I have at times. And most guys do not even know what their fuel mileage really is due to speedometer inaccuracies or they read off the ecm. Most trucks from the factory used to be off by as much as 4 mph on the speedos which meant that the miles were off as well. I calibrate all my speedos to be correct and accurate. I have had to help so many owners try and figure their fuel mileage out because they did not know how to. There are many things in this trucking world I just say HUH ? at. But then I am not perfect as are none of us. We all get on our soapboxes myself included. Especially when I started this thread I guess I twisted some people unintentionally. I just wish more truckers would educate themselves in their field and in every aspect of trucking , though again many have been and I try to help those that are not. And I always want to learn more on all aspects of trucking. knowledge is power
     
  6. gearjamn

    gearjamn Bobtail Member

    Well this true what you said and I am not greedy and if I am happy it does not make a difference as long as I can operate and pay drivers. I guess I did miss your point :( Sorry I guess I opened a can of worms when I replied to the thread originally
     
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