Being an O/O under a Carrier's Authority

Old post but it's an important point so i gotta bring it up. Many people lose their trucks with payments of 1200 a month. And many people have no problem making a 3000k a month truck payment and a 850 a month trailer payment.

The rate at which you are pulling freight for is a much bigger factor than your truck payment.

 

Bill i love you brother, but you gotta put that crack pipe down. 1.09 solid? Even in todays depressed market that's horrible. The guy is new to the game so I'm cutting him a lot of slack, but let's not confuse him into thinking that's an acceptable rate.

 

This was intentional on his part. It would of taken 30 seconds to send that email. This type of behavior would have me getting my exit strategy ready. Lot of good carriers to take your truck to and make more money on less work.

 

I'm gonna need to find a company similar to that, in a couple years...

 

I disagree. Based on the rates you have posted, their selling point to their customers is a dirt cheap front haul.

 

Is it really that cheap???? I don't do van or refer but he is paying 28% to the carrier. So his AR to Toledo run at 1.566 PM ttt has a gross rate of 2.17 PM sold by his carrier. Quick look on IT shows posted rates mostly lower than that out of AR. Hey 400 loads to call on without rates, but guessing you won't find but a few really good paying loads. Assuming broker taking 20% a Load paying 2.00 is about where his Carrier is. Most loads I saw looked like 1..25 to maybe 1.80.

I know this is the spot market, but with cheap fuel I am sure shippers are expecting reduced rates . Even a direct customer might be pretty hard to sell on a higher rate. A big shipper with lots of out going freight is going to have lots of different choices on who gets their business. So is his carrier really dirt cheap?????

Are there better gigs out there? Sure, but it is not always super easy to find them. Also it is much easier to find a small niche market ( for few trucks) rather than a market for a mid to large trucking company. Even a small shipper has access to many brokers and a few local truckers to create competition for their freight and push down the PM rate.

Maybe you could complain about the 72/28% split, but he is using their trailer.

I would not be in a hurry to condemn this Carrier.

 

If his carrier can only muster 2.17 on that lane then I'd agree his carrier has the rep of being cheap. I'm willing to bet most of the Megas are getting closer to 3.00 per mile out of their direct shippers with a short hop like AR to OH. I'd be trying to figure out who negotiated that lane. Especially when your providing capacity.

 

is the spot market that much lower than the negotiated rates of the Mega's and Good mid size carriers?

 

I'm going to fall on the other side here. $1.56 TTT seems about the going rate out of AR (we were talking van right?). The back hauls are killing the OP but rates stink and are not recovering as fast as we all would like.

To add: Remember this is the OP story. It's easy for many of us to criticize but he is doing what he can for now. If you really have a better way from him to reach his goal then give him some ideas. Otherwise who are we to judge? He already stated that he is getting what he needs out of the deal. Isn't that what counts?