Accessorials endangered?

blairandgretchen · May 26, 2021

slow.rider said: ↑

Quite a few times I've stacked tolls, loading, unloading and even securement too, all one one run. And I saw a YouTube video where a reefer driver did that plus got some more for sorting and segregation.

I was doing van until recently and eventually developed the understanding that corporate generally won't look twice as long as there's no line item above $150 and total accessories aren't more than about 20% of linehaul. And on van loads within those parameters, the added accessories were typically just pulled out of the linehaul as a way to bump driver net, as opposed to tacking them on and hitting up the customer for the extra - my reason being that when trying to get more cash out of customers on a van load, the most common result was the load would get covered by someone else before you could strike a deal. So I would usually keep it between me and the agent, pillage the linehaul for accys, get the deal done in a single phone call, and once in a while they'd tack a little extra on somehow.

But now that there's only a handful of trucks doing what I do, maybe the shoe is on the other foot now. Time will tell.
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You’re on the platform side now, right?

Dave_in_AZ · May 26, 2021

blairandgretchen said: ↑

Securement is really just part of the job.

Load and unload however can and should be used.

I’ve heard different responses on FSC - some will tell you that it’s strictly national average, others will jam any old figure in there to help you out.

Regardless of what the code used is, end of the day it is $ out of the agency pocket and LS pocket.

Agents get (I think) 7% of 90% of LH. The employees of agents are usually told to minimize accesorials, unless they really need to move the freight - Agent owners themselves are usually more frivolous with 100% charges.

So, $1,000 LH nets the agent $63.
$10,000 LH gets them $630.

So it depends on their volume and agency operations. Do they have 6 employees and an office, handling $100k of freight a week?

Or is it a pajama agent at the kitchen table with a laptop just trying to pay the utility bill each week, running off 3PL load email blasts.

It took me a while to grasp the entire picture, but it helps your mindset out when you can understand what the agents business operation is - vs. just doing the “You guys are out to F### us and we do all the work and you get paid for doing almost nothing “

I sent an agent kid - employee - $250 after he made the truck $13,000 in 10 days. Young kid, good attitude, lives in an apartment and shared custody of a 6 year old daughter. Always answers the phone, almost 24/7. In my opinion he is worth more than he is paid, so I shared.

The freight that doesn’t hit the board - doesn’t hit it for a multiple of reasons.

Ok - I’m rambling now.
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There are more than a few that make more than 7%.

And the ones that claim that they only make 7%, but have 8 people in the office, all who make even $1K week plus the burden ( taxes and insurance) the employer pays, plus the office rent, the phones, paper, etc.

Well simple math says the guy needs to do $150K to $180K a week just to break even.

Dave_in_AZ · May 26, 2021

And the automotive sector, and Laredo group..........those are employees. Nothing more. Irregardless of their classification. They do what they are told.

slow.rider · May 26, 2021

blairandgretchen said: ↑

You’re on the platform side now, right?
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Nope I'm in the 75% club.

blairandgretchen · May 26, 2021

slow.rider said: ↑

Nope I'm in the 75% club.
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7 axle flat?

slow.rider · May 26, 2021

blairandgretchen said: ↑

7 axle flat?
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Nah nothing that fancy. I'm hauling temperature controlled hazardous materials, or in industry jargon, pulling a reefer.

blairandgretchen · May 26, 2021

slow.rider said: ↑

Nah nothing that fancy. I'm hauling temperature controlled hazardous materials - or in industry jargon, pulling a reefer.

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Aaah - I’d forgotten that sector. Used to grind my gears that a buddy got 75% doing that when all my tarps and chains garnered 73%.

There is Reefer fuel though.

slow.rider · May 26, 2021

blairandgretchen said: ↑

Aaah - I’d forgotten that sector. Used to grind my gears that a buddy got 75% doing that when all my tarps and chains garnered 73%.

There is Reefer fuel though.
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That, and the trailers ain't cheap neither. Plus there's an extra motor to maintain.

blairandgretchen · May 26, 2021

slow.rider said: ↑

That, and the trailers ain't cheap neither. Plus there's an extra motor to maintain.
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Absolutely. I was surprised at the cost of a new Reefer.

Your niche market would be pharma/temp controlled hazmat if I remember correctly.

slow.rider · May 26, 2021

blairandgretchen said: ↑

Absolutely. I was surprised at the cost of a new Reefer.

Your niche market would be pharma/temp controlled hazmat if I remember correctly.
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Yup, temp control hazmat is mostly a winter thing though. Pharma is new to me. Nice thing is there really isn't much of a slow season though. There's always something happening somewhere to keep the wheels turning. Like right now there''s the spring harvest. There's actually freight coming out of Florida. I'm tryna get down there and get me a taste, see what all the hubbub is about. I suppose Cali and Laredo are probably seeing something similar too.

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