Cheap Freight Doesn't Exist

Seems a lot of blame going to the mega carriers. I think this is primarily a talking point that somebody put out. When i ran my own I would pull from them sonetimes, the rates i would get were excellent. Even now, Im pulled a load for a carrier that pays theyre guys a low wage, I pulled for considerably more. Point here is that the mega carriers dont negotiate bottom dollar rates, period. They bid the same kind of rates that any independent would. The only time they go cheap is on a brokered backhaul if they need to get one. Do you. think they could have the multiple terminals, office staff, maintenence, thousands of trucks and trailers by hauling at low rates?

I have a lot to learn, but I know clearing pre-conceived notions out of my head is where I have to start.

 

Do you. think they could have the multiple terminals, office staff, maintenence, thousands of trucks and trailers by hauling at low rates No but you need to realize they can generate more PER MILE PROFIT at a lower value of profit so can cut rates if needed than the smaller out fits do to the fact they cover more miles.EXAMPLE NUMBERS ONLY 250 trucks @ 120,000 miles a year with $0.10 / mile profit = $3,000,000.00 but a mega with 1200 trucks and only $0.05 / mile profit = $7,200,000.00

 

THAT. That right there is why some people are employees and some people are employers.

There are many details and stories that we all could tell you GITRDUN, but in the end it all comes down to that right there. Your most important ability is availability

Yesterday (Thursday afternoon before good Friday) was crazy. All week had been slow with no worthwhile freight for next week. I was in no hurry to cover trucks because I figured I might get an Easter weekend off. Right after lunch the phone starts to ring like crazy and now the trucks are all covered......at my asking rates...why? Because I kept my equipment available instead of lowering my rate earlier in the week.

Of course there are other factors also...53 ft double drop, wide load, DH Easter Sunday to load and roll Monday, crane appointment, history with this broker of never missing a crane appointments, no history of damaged freight, able to get permits on short notice.

AWESOME story Flatbed.

 

I *think* if the small carrier is willing to specialize, there can be a good profit in staying regional and available. There will always be trucks that fall off loads. If you can be the guy they call when the excrement hits the air circulation device, that can be a good deal. Kinda like "The Wolf" in Pulp Fiction. Nobody haggled with The Wolf.

 

Bill - I keep reading about not taking cheap freight out of an area and just DH out of there. Are you saying it could be wise taking the cheap freight into a better paying lane? IDK, but it seems to me that getting, say, a buck a mile out of a bad area into a good area could be better than nothing. My logic is: DH=$<0 and a cheap load=$>0. Maybe it would at least cover the fuel you would have used in DHing.

I understand the concept of not hauling cheap freight. But if the area is just not paying and you DH out of there, then you are the one paying to move the truck.

If my brain is not working right here, please by all means set me straight.

 

Another thing that helps me get brokers out of jams (and therefore gets me loads) is the ability to store and/or cross dock. It seems there is always delays in the construction business and these job sites don't have storage. Problem is the shipper doesn't have room either. We will pickup the freight and store it for few days or weeks. You need a secure place to park a few trailers though. When you think about it...trailers are cheap.

There was a thread one time on another message board by a guy names Lowboy Larry. He said that years ago he was moving steel for a broker but the steel plant wanted to load trailers on the off shift and park them for pickup later. If you've ever been to a steel plant you know it takes forever to get loaded. Broker says "Larry I want you to buy more flatbeds". Larry say OK. The way he figured it:

1. Trailers do not depreciate
2. Once the load is on your trailer that is guaranteed money.
3. He is more efficient because he is not waiting on a live load..he is now drop and hook.
4. People are lazy and shippers/brokers are no different. They would really rather pay more to just pick up the phone than to find the cheapest rate.

 

bill, a contract isn't a silly reason . you had a contract to fulfill. and I bet the only way you could do anything was to get your own authority and work for yourself.

I know it isn't always the case, but methinks it may very well be in this case.

not trying to rake the guy over the coals, but seeing as how he has no idea what stellar service is, he may very well did something he calls a silly reason.

its there , its just between the lines and hard to see. I learned to read between the lines after dealing with drivers. only one besides me who I could depend on happened to be born on the same day I was, something was in the water that day, I guess.

 

gear, heres an example. flatbed freight out of Laredo pays lower coming out than in, I get usually (leased to a carrier and at 75 per cent) 2.40 to 2.50 a mile into Laredo , and the rate out will be 1.50 to 1.60 to the truck. in and out I will then average 1.90 to 2.00 for the round.

if I sit in Laredo waiting for 2 bucks a mile to the truck coming out, I may well sit for a great while.


I don't operate on a load by load basis, I have a per mile goal for all miles ran loaded and empty over each quarter and a yearly goal.

and I have never hauled a backhaul, I always haul the next load