cheap freight vs dead head

Don't follow what you mean by "padding the rate". Like you can give them the rate you want. Your situation may be different, but here at Landstar, the rates are locked in. You can't change them. You can dicker with accessorials, that all. And that comes out of the agent or brokers pocket. The only way you can get more if there is a situation where the posted load is drastically different from what was agreed. Example I accepted a load of 11000 pounds. Signing papers after being loaded, said load was 42000. I worked it out with the agent to put more money on my fuel card before I pulled away from the dock. We are dealing with sharks here. They do this for a living and will run any kind of game they can, sometimes I think Landstar is complicit in all this. I've seen where they tolerate shady agents. Sorry...going off point there a bit.
Thanks

 

Heavy freight tends to be commodities like steel lumber and other raw materials. Finished products have always tended to pay better because they have higher value. YMMV

 

No, steel always pays good. Lumber pays crap because it's grown in bum F*** noplace where there's nothing but trees.

 

steel also cost more to make and is more of a luxury than lumber

but that is basicly what you just said

supply and demand

 

Are you saying as a BCO rates are non-negotiable? They probably love you. You're negotiating over something as insignificant as 10,000 lbs more than expected but not negotiating for more when someone wants you to pick up at 1 am and drive 500 miles non stop thru delivery? That is crazy. I have a buddy who just left after 4 years pulling a van at Landstar says the exact opposite as you. The catch was, and this is no different than loadboard freight, not everyone trying to book your truck is willing to negotiate. But lots of loads do have more money in them or customers willing to open up the checkbook.

 

Certain agents won't bite.. There's plenty of agents who will add money to fuel card or flat out add money to line haul. Especially if the agent calls you on it to get it moved.

 

I'll say Lumber pays different because so many people get their hands in it before the driver gets a cut. Here in Virginia, Lumber companies who operate their own mill pay and have some of the best equipment around.

Usually they broker out Lumber because they feel they'll make a smaller profit by sending their own truck 200 to 300 miles to an delivery.

There's an O/O I know who makes 1300 a load for Lumber going 300 miles into PA. He gets paid straight from the Lumber company...now that same load on Landstar Board goes for 900. And I'm surprised it's that high after the agent and broker get their cut

 

Walmart load from carson ca to ontario ca

$650.00 for 50 miles

$750.00 plus fsc temecula to apple valley ca maybe 80 miles

When you find a direct shipper buy some additional trls to leave them

In one day.

 

Proctor gamble loads pay excellent

Landstar has some good paying wm loads in socal

 

I have never, ever seen a thread with so many posts by people who have zero understanding about the transportation industry. That doesn't apply to all posters but, I did read the whole thread and it seems that few addressed the OP or the real business aspects of truckling.

I know you asked for a lots of input in the original post but, in my opinion most were unproductive. Each situation is different but there are still certain principals that must be considered in making business decisions. One example is that every area has well established freight rates and it won't change because Joe Blow thinks he is special and deserves more than the going rate.
I will use my own situation for demonstration purposes. The rates for hauling chickens to the DFW area is fairly well established and won't change for me just because I'm special. It may fluctuate due to truck capacity or difference in quality of service. I have customers who will pay more for a dependable carrier because they are easier for that shipper to deal with. But, competition is stiff and most do a reasonable job of getting the freight to the receiver so it's hard to be special enough to demand a higher than normal rate. So the going rate is what it is, like it or not.
Now, everyone knows that DFW outbound freight is not considered to be the best. So, there's a decision to be made, deadhead the truck all the way back to home base or get the best rate you can from that area and be happy. Well, I can guarantee you that no one is deadheading out just because they can't get their 'special' rate. They do just like me. If the rate on all miles is profitable enough to run their business they jump on it like a duck on a June bug and laugh all the way to the bank.
And then, there's the flip side. I NEVER haul any dead birds to Houston because it doesn't pay enough to be profitable due to the rates from that area back home. I can't change it, the market is what it is. I just don't take those loads. It won't do me any good to send a truck there and then make another stupid decision like deadheading it back because the rates are so low. Heck, I knew that up front so, whose fault is it?
It's up to YOU, the owner of the business to plan these things instead of running around like a chicken with his head cut off and hoping for the best. Won't happen.


I decided to edit this post because I failed to mention the most important thing that will make or break your business. COSTS. If you pay close attention to the numbers and know what it costs to do business and what percentage of profit above that number you need to be successful, you can't lose. Spend your time on that instead of the 'cheap freight or deadhead' issue.