Freight Rates

well you just screwed yourself, I'm guessing RC will get you for $2500 now.

 

Yeah they would be disappointed. As you know that one was like taking candy from a baby basically was told "driver this is an open check book whatever you need" in pretty much those exact words. Which was why later on after reflection I could have kicked myself because $5,000 or more would have been paid. But we were running similar loads several times a week 2 years ago, as many as we could haul, for $2,150 and fuel was more expensive back then. I based my price off that and it was also real quick hurry up run off the front porch, fire the truck, and gone in 15 minutes.

 

I did about $6,000 that week but what difference does it make if you do $10,000 in a week or zero? That week to week think is for company drivers. In a years time if you hit you goal in as few miles as possible all is well. Last year I didn't do so well it was a down year. 2013 paid for my new van. If I gross $144,000 in a year that is way over the top awesome. Consider the fact I do it in about 7 months or less actual work time. And net more than a lot of guys working year round and grossing a lot more.

 

Depends on miles, I can't see that being awesome for me. Maybe acceptable if 25,000 miles or less. But you have some advantages with less fixed costs than me. I can see how that works out okay for you.

 

Being available in certain situations helps a lot, I'm not like RC when im away from home it's time to work with that said I still did 2.95/mi on 82,000/mi last year not every load pays high $$$ but I make up for it in other places😉

 

Breaking news Danny and Rollin, Im going to ask a Question. Would you agree that operators depend on retail, heavy industy and construction markets. If a contractor bids a project thats not slated to start in a year or more, hence the importance of a long term highway bill, (bridges, roads, power and industrial plants, schools, houses up to 9 mos) how do you think the pricing for the job is locked in for the contractor. If a retailer is pricing product NOW for xmas 2015, 2016, how do you think the supplier for yet unmanufactored product can lock in pricing for delivery in Oct, Nov.. Think of the long reaching aspect of melting scrap to steel, timber to lumber, to buying corn for cereal and the trasportation of all goods and products for completion of above examples. Trasportation is a market driven commodity that is part of the circle for completion of above examples. FSC is is always a contigency for producers because they to use copious amounts of energy too. A spot market rate lives inside the market rate. It all evolves around and is traded in the futures market. The contract, corn, oil, steel, et al, is purchased and then delivered on a future contract date. Excercising the option (delivery) of an WTI oil contract in Cushing OK for example. Cushing OK where WTI trades, CBOT, KCBot, NYBOT. Market rates are the very essence of rail, waterway, air and yes, ground transportation and yes are purchased as a commodity in the futures market. If you ever get the chance to go to bid letting, and bid reading, try to go. Also study the commodties markets to see whats trending and why.

 

Also the class of the frieght is very important, class 70 up to 400 miles from VA to KY, WV, OH, PA direct to the shipper is 4.00, where class 50 hovers around 3.00 direct to the same locations. As an example.

 

All of that has nothing to do with me. Let's take your example of a contractor bidding a bridge job. Of course he is going to itemize trucking. But when a truck falls off and the guy has a crane sitting there at $1000.00/hr and 50 union workers on site. When that happens do you think he is gonna turn my offer down because he only put $575.86 in the bid ? Of course not, if he's losing $5,000/hr until the truck get's there he's gonna be pretty open to paying well above market rate.

Even if I were to bid contract work, I am going to try to find a way to add value to my bid and demand extra money. I can be the eyes and ears on site for a shipper, I can offer 24/7 availability, one call/one guy service. additional tooling or equipment is easy to arrange with me, same experienced driver every time instead of a different newb in training every time, etc.... Have you seen the drivers that big flatbed companies send ? It's a crapshoot box of chocolates, why would I haul for the same rate or less than them ?

futures markets are neat, I've done some put's and call's on corn and soybeans, but I don't think anyone ever actually takes delivery, do they ? It's mostly used as a hedge in the ag market anyway.

 

After Katrinsa, Skansa Int won the bid to raise the leeves, Nucor won the bid from Skansa and or the sub contractor for Skansa, for the steel and Nucor moved it, based on bids from deck carriers and brokers when it submitted its bid to Skansa or its sub contractor. We moved some from the Petersburg VA plant. We could not offer the capacity requirements needed for direct shipments, so........ Guess what the beat goes on for the little guy. When we ran 10 - 12 units 80 per cent was direct. Whith one unit maybe 20.

 

Check yhe Dodge reports in your markets, and attend the bid letting and readings to get some insight on the contractors or subs you may be able to serve. THE LOAD BOARDS, live and breed inside the market rates. Getting all you can when you can is not always a sustainable business plan. One of my costumers was held hostage buy a semi regular hauler who lived 7 miles away, for 400.00 on a 2200.00 load and they. Never used him again. By not charging an unsustainable rate and selling service over a time period may be more prudent for a long term business plan.