Low rates is there a bottom ?

Set your per mile limit at 45¢ and don't worry about what doesn't pop up because it will just infuriate you

 

It does suck that the rates are nose diving, but to be fair it is not all the broker or carriers that sub out work fault. I have worked for the last 15 years to build direct customers and even our rates are going down. I place much of the blame for dropping rates on the internet load boards like CD and third party logistics providers like Ready or Cars Arrive. It has made posting and accepting loads much to easy for shippers and carriers so there is no longer a premium to be paid to a carrier such as myself to find and maintain the relationships that lead to direct work. They have also come in and taken what used to be local or regional contracts and turned them into national agreements, cutting out small and mid-size carriers like myself, forcing us to contract with them for the work that used to be ours.

If everyone would just stop moving these low ball rate loads, justifying it by saying "it gets me home" or "it pays the fuel" then the shippers would have to pay a more reasonable rate, but we as carriers are our own worst enemy by accepting the work at near or below cost.

Bottom line as carriers, large or small, we control the "market rate" by either accepting the work or rejecting it until the rate is profitable. I will park my equipment before I contribute to the decline of the industry and move loads below my minimum threshold, which is based on my cost of operation plus a healthy profit margin. I operate a business and rightfully so expect a healthy return on my investment.

 

Delete

 

I wonder if a day will come when truckers of any type will understand this.

 

A quote I read long ago has always stuck with me:

"Trucking is an industry that even when capacity is tight, there is downward pressure on rates."

I don't remember exactly who it was, and they didn't address the cause, but I'd guess it illustrates the lack of business sense common among small business owners. The fools have a chance to be the hammer instead of the nail, and all they do is beg for a bigger hammer!

 

Why would a broker pay more than they have to moving a car or a load? I've never seen anyone pay more for diesel because they thought the oil company profit margin isn't great enough. I agree with Terry270 that if you set your minimum and stick to it, you can forget about what UR and metro do. I've always found it easier to run my one truck than to try and run everyone elses business at the same time. Don't worry about how much the other party is making off each load. Take what works and forget the rest. Be prepared to sit if nothing meets your minimum.