Dealing with the brokers - what's the best way?

Most people here care. It's nice you can sit back and not work. But, you are still getting your rate cut by the brokers. You get your rate, but it could be more. I have about 25 carriers I work with every week and they do not complain about my rates. They are REAL truck drivers who have a true understanding of the industry and what it takes to run their business. I prefer the smaller operations. The drivers are honest and hard working. They don't take a flippant attitude towards their jobs. These are the guys that I allow to carry my product.

 

You don't know me from a man in the moon. If you think I take a flippant attitude or don't work as hard as any operator out here you are sadly mistaken. I take this business very serious. Do you understand psychologically what it does to someone when they need a truck, they understand you are available, and you make it crystal clear you can take the load or walk away from it? That's some education for you and oddly for a businessman you seem to lack any insight on value. The clear cut, black and white "they take a cut and it could be mine" is short sighted at best.

 

I'm curious DS. Now what range would that be that you think is fair for your product to be shipped for on average? (That your describing to RC)

 

I am getting a very good idea of who you are by your comments. "I could care less..." That is a very flippant attitude. I can tell you it does nothing psychologically to anyone, lol, because the very next phone call is the rate I want and your truck sits. Bottom line... Brokers charge outrageous fees to drivers for nothing.

 

I pay from $1.50 to $3 per mile on average, depending on the load. I have gone below and above this range. The lane, weight, distance and whether I need reefer or van are all considerations. I also ask the driver where they see the rate. Then we come to an agreed rate. I don't try to get over on the drivers, but I also expect to not get rate-raped. I have been in the trucking industry for nearly 20 years and like working with drivers. I only ship my product so there are no surprises for the carriers.

 

I agree with you according to all other O/O's Ive talked to. I'm curious what rate range he's talking about so i can understand his side more.

 

Sure, I get passed over all the time. No big deal because someone will eventually give me what I want. The great thing is I can run half the miles your regular trucking companies do and keep more money. Losing out on loads is part of the game. Clearly you are very good at what you do from your side of the table. I admire brokers and shippers who manage to get freight moved for nothing. That's sales!! Selling Eskimo's freezers...You're cut from the same cloth as the brokers who do that every day. I always found it funny how other drivers would criticize and blast someone who had success playing the game with brokers and here you accuse me of being one. Really that's the pot calling the kettle black. I could call up a number of different CHR agents right now and get a $1.75 on loads going clear across the country if I wanted without even trying. So just what kind of value do you offer with your low rates? Do you give away free coffee, soda, and hotdogs too?

 

I understand and appreciate your info. But I know for a fact my cost (fixed/varible) total is 1.10 mile. So you find 1.50pm fair to me? That's .40 pm to me and I can make that where i left for company. Now most research and information i gathered so far has been an average of over 2pm. Over 3 for say 600 miles or less distance. So am I in a reasonable rate area to survive? I already figured my worst scenario at 5 MPG on fuel just to be safe.

 

Maybe it was a bait and switch game. Broker rate was around 2.30pm. Shipper rate was around 1.75pm. Same product from what I remember. Shipper didn't want to budge on the rate. Guess which load got moved?lol. This was back around Jan. of 2009 when fuel was around 2.00 a gallon.

 

Keep in mind it is the overall AVERAGE rate that counts with deadhead miles included. Your volume of miles per year will also affect that average and your cost per mile can fluctuate.However 1.10 is fairly ideal and right now you would be nearly correct the majority of smart carriers should be averaging between 1.85 to 2.00pm. Note I said average. 1.50 a mile is not a bad rate coming out of a dead zone going back into a busy zone if it is consistent.Most loads out of bad or dead areas fly out for a 1.00 give or take because carriers are hoping to get 3.00 or more coming back on the other end. I have been both a broker and a carrier so I have an idea of how both sides of the fence work. As a carrier I have had brokers offer more than a shipper. Mainly for two possible reasons. 1. The broker got in a bind and wanted to keep the customer happy so they paid the extra out of their own pocket and took a loss. 2. The shipper upped their rate at the last minute and worked with an asset based broker( a broker with their own trucks)and trusted the broker enough to up their rate when they got caught in a bind. Or it could be a complete mystery,lol. Some things are simply unexplainable and it all involves risk.