They only have to keep it up one day longer then u and me.
And they can make a good profit even if they only make 1 cent a mile per truck.
And when you factor in their discounts from purchase power there. Is no wa y we can compete on price.
We can only compete on service and in markets they don't bother with
Fetch Logistics, Inc
Discussion in 'Ask An Owner Operator' started by Beechvtail, Aug 13, 2009.
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Yea, but they have hugh overhead expenses that I don't.
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Ya but they have couple thousand trucks running. Your trying to pay for your truck pay you pay far your house, shop, kis college whatever all with one truck. You can't run for a penny a mile. They can
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When broken down toa per truck. Average they have much less overhead then we do if you didn't catch was I was trying to say
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I hear yea. I see these companies (in general) bleeding red in their quarterly reports already. Not sure about TMC but my guess they will.
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I don't know anything about tmc. It just happened to be that company I heard about from friends that got their rates cut.
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Im no fan of Borkers, but part of the reason these rates are low is because they are coming out of areas with low volumes of outbound freight and are going to more desirable areas with high volume of outbound freight. The areas with higher outbound freight volume will command higher rates. Sometimes I might do a 500 mile run from an undesirable area for a loss in order be in position to make a killing on the next load. For example, I ran a load of LTL freight out of Montana for .80/mi to Los Angeles in order to run a load of produce out of Santa Maria to Boston for $2.00/mi. On principle I will deadhead rather than haul cheap up to about 200 mi but after that point I need to at least earn fuel money and be set up for a good earning load. I will be out of business if I sit 3 days a week at a truckstop waiting for a decent load. I do what it takes to be in the right place at the right time and average about $1.40 on all miles loaded and empty.
Eskimo6804 Thanks this. -
I dont make a habit of hauling cheap shtuff, sometimes it can be hauled when it is advantageous to you. I try not to go below $1/mi and try not to exceed 1000 mi. The delivery area should should have a shortage of outbound trucks. Il, Wi,Mn,Ia are very good areas for a reefer as well as Ca,Or, and Wa. Tx and Fl are seasonal. The Northeast sucks to get out of but money is good coming in. I generally deadhead to NJ after delivering in Boston because rates are low and shipppers always want to play stupid games with drivers.
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Open letter to the Shipper
It has come to our attention that brokers are having a hard time finding carriers to move their ninth hour freight. Carriers are dropping off the grid everyday.
I ask that the shippers have a working relationship with more carriers in their local area instead of just relying on brokers with only computers to move their freight.
Brokers have been playing a dangerous game with the actual perceived rate, stating "that is all there is" and then making 30%-50% profit while the motor carrier operates at a loss.
It is time for transparency with the freight rate so the carriers are not being abused. I often find that shippers are unaware that they are paying extra for the service and the carrier is losing money on the move. This cannot continue and will not benefit any shipper in the long run when the brokers without trucks will be the only one standing.
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