Brokers, Please explain the plummeting rates these days.

No they aren't. They instituted a fuel surcharge that is keyed to the cost of fuel and independent of the rate.... just like trucking did. Even if they were, airlines operate under a significantly different business model than trucking.

 

Wrong, but right, then spot on.

And THAT is the problem isnt it?

If wages fall or stay constant when the cost of everything goes up, the employee is getting screwed and they must leave, leaving only those willing to work for scraps, thats no better than a slave or serf.

The rates do not respond to buisness expenses... while correct, thats its own problem, either the market is telling you youre mismanaging your buisness, OR that the entire market is going to collapse. Now, wether that is for the long term, see horse farriers after the automobile, or in the short term, for which you needed to have cash reserves built up.

But guess who usually feels the pinch hardest? Wages of the employee, followed by being layed off. In a single truck operation, that translates to running till your personal expenses make you sell the truck, effectively putting you out of buisness. (And of course you also have the constant destabilization force from our "betters" in washington, but thats its own can of worms)

The solution, everyone needs to be a billionaire before starting anything, ie "just stop being poor" This sentiment wont go over very well with anyone that isnt already extremely rich or extremely poor.

Lets say

 

Wrong. My business expenses determine my rates and my rates are what determines my salary as an employee. How long have you had your authority?

 

Your rates that you set are not the same as market rates.

 

Do you not know the difference between PERSONAL expenses and BUSINESS expenses? You can "determine your rates" all you want, but if the MARKET won't bear that rate, you will need to adjust your expectations or lose business. Also, if you have your own authority, you are not the employee. You are the carrier.

 

You and I will never agree on this aspect of the business perception, respectfully speaking - I think if yours were true, than it would be much better than mine... However, based on my experience and power of observation, if there is anything that resembles a free market model, it is a trucking business, especially at the owner operator level. Therefore, for me, the only predominant paradigm can be only expressed in that

you don't get to dictate rates to the market, the market dictates the rates to you.

Of course, there is a room for your being superior from others, more skills and talents, but still within the realm of a given economical environment. It is like a number of athletes trying to jump up as high as they can... and high they can jump for sure but the gravity force will always limit their achievements to comparable levels. Perhaps, in those differences, the dead dog is buried - they decide of being a success or failure but how could they say that gravity does not matter for them and does not limit their potential?

 

There’s usually too many, and they’re altogether too willing. I run trucks out of ####ty markets empty all the time.

 

So you don't actually own a trucking business? Got it. Welcome to my ignore list. Have a good day.

 

You're right, Joe. We'll never agree. Respectfully speaking of course. Most of these other commentors don't even own trucks so I refuse to argue with them about it. I'll never understand why so many brokers think they have some kinda of magical control over carriers and their rates when in fact they are not needed in this industry at all.

They've carved a place in transportation by selling convenience to lazy people. We, the carriers are not an option. We are a NECESSITY. Without our equipment and operators nothing gets moved. Period. They're optional while we are not.

Perhaps that would explain the intense amount of aggression they throw my way when they realize they cannot set the carrier's rates. "Market Rate" is nothing more than brokerspeak.

If carriers don't pay their employees a decent wage there's nobody to drive the trucks. If the carrier doesn't set rates to cover operating expenses they aren't profitable. No profit, no business. Racing to the bottom by attempting to run below your profit margin is commercial suicide.

So many threads here talking about over capacity and that some businesses need to go under so rates will come back up. Those fly by nighters will perish and I will continue on like I've done through so many cycles over the years.

If ran my business the way these parasitic brokers demand I do I'd be out of business like so many bottom feeders have done with each cycle and will inevitably do again during this one.

Letting your customers dictate your rates is a recipe for bankruptcy. Only leeches won't ever tell you that until they officially bled you dry.

 

I have owned a trucking business in the past, with multiple trucks. It was very successful, and the only reason I don't currently have the trucks is that I sold each truck to the driver that was in it when I went overseas a few years back. The one that I was driving was sold to a livestock hauler in ND. The customers won't dictate your rates. It is all market conditions. If you decide that a certain customer is being unreasonable, you are free to let that one go. And then that customer either changes their ways or THEY go under. You are handicapping yourself by adopting this "us vs them" mentality. The very people you are #####ing about are the ones paying all of your bills. For right now brokers are necessary, unless ALL of your freight comes from direct customers, or you are leased on to a carrier. You seem to be operating as a "truck driver" and not a "business owner"... driving the truck is the easiest part of the job. Hell, truck driving is the easiest job I have ever had, even when I also owned the trucks.