Freight Rates

2,500 miles!!! Every week? My goodness. Forget weekly averages. If the rates are good enough to support 2,500 or 3,000 or more miles a week then by all means turn the miles. I do a few weeks like that per year but average week is about 1,500 miles. If I could always turn 2,500 miles every week at my rates i'd be more than happy to. But the rates won't support that 52 weeks a year.

What happens when you try to create 2,500 mile weeks is you get out of tune with markets and end up working cheaper than you should be. I could probably book $5,000 weeks on 2,500 miles with relative ease but I prefer to kick back and let the $7,000 or $8,000 weeks on 2,500 miles come my way as the market supports them. Which does happen but not every week. If you're so busy churning out 2,500 miles a week at $2 per mile you ain't got a clue when rates are actually significantly better.

Don't work just for the sake of working. Work smarter not harder. If you're thinking in terms of miles per week you are still thinking inside the box. If you're getting rates and keeping busy deadhead will take care of itself. Last week I had one 400 miles. Last night 250 miles. Tonight 200 miles. It is what it is. Just make sure you're chasing after some money so that all of those miles get covered.

Guys that try to bridge gaps with cheap stuff all the time (sometimes that works sometimes not - you have to learn when) will miss out. The good stuff is gone quick so it is not always a good idea to pick up that cheap one.

 

I partly agree with RC, I don't think it is advisable to shoot for 2500 miles per week starting out. You need to study rates and lanes and let some sort of plan come to you based on what you find available.

However, it is simple math that if you only run 75,000 miles a year you will need a significantly higher avg/mile to make the same money as running 125,000 miles / year. I try to take a balanced approach, I know my lanes and rates well enough that I find my share of premium loads. But when they aren't there I keep running making money. Talking to brokers on the phone all day is not my idea of kicking back. I'd rather be trucking.

 

In the original post, you mention $.90 + FSC is not a viable option. But then in the next paragraph you start quoting all kinds of spot rates. There is a huge difference between the 2

All of the spot rates assume you have your own trailer, insurances and hauling rights, includes cost of fuel no surcharges. And of course no money at all to deadhead to the load. Did I mention accounts receivables/ factoring costs when a broker is slow or doesn't pay at all. Those spot rates are gross revenue to the carrier with all the potential risks and rewards.

Companies that are quoting $.90 + FSC are paying all miles, providing the trailer, providing the most expensive insurance( liability), hauling rights, and probably take care of several other items, filing fuel taxes, and taking care of all sorts of back office items you would have to do if you had your own authority. Some might even get significant fuel/tire maintenance discounts for their lease operators. Significantly less costs, risk and revenue.

The debate about whether to have your own rights or lease to a carrier has been going on at least since deregulation in 1982. Since the overwhelming majority of owner-operators lease to a carrier, there has to be a reason. But figure out what all your costs will be either way before dreaming too much further.

 

Kick back is a relative term there. When you're that busy (2,500-3,000 miles) you're not looking at any computer and the only customer call you're taking is from the one with the good stuff begging you to haul it load after load. Not really so different from direct contacts. But I get that some people dislike haggling.

 

Rollin, can I get some advice? I'm sure this has happened to you a pluthera of times. The broker says "I don't have that much in it". How do you counter?

 

at .90 you might as well be a company driver

 

Since Jan I've had a tough time getting at least $2 mi. Had a few pay more.. but the majority of Jan till now has been between $1.85 and $2.20. I'm on a 2000 mi run now that I had to really hold out just to get $2 mi.

Hoping things get a little better soon.

Hurst

 

You have to stick to your guns. You know what your bottom line is. If he cant at least meet that number then you need to end the conversation. I usually counter with "Well I am here if you dont find someone" and politely end the conversation. Sometimes they call back.. sometimes they dont.

We are in business to make money. But in the same regard we need to be smart enough to pick and choose our battles. Sometimes certain areas just arent paying. In that case you try a short hop to a better area.

Its been up and down for me last couple months. I'm heading home now while I still have some hair left on my head. Need a break before I go completely insane.

Hurst

 

Like Hurst says don't budge. Stick to your guns. Many times they will call back later and miraculously offer more. Many times not. I have walked away from deals like that when it was only $50 away. When i'm at home I give my price and that's that. No if's, and's, or butt's. I don't come down. None of that "meet me in the middle". I tell them not negotiable that's it and it's a take it or leave it kind of deal. That's my first and only offer mister.

When i'm out there i'm admittedly a little more flexible on rate. I typically go out and back. Don't care to truck any other way. I make my money on the out bound front haul. That doesn't mean i'm a push over on the back haul though. Usually I can get $2 rate back home easy enough. Sometimes, such as today, I can get a back haul that is better than the headhaul.

Although I did dead head 250 miles to pick this and will deadhead 200 miles home when i'm done. Right place, right time - the way it is on any good rate. You just have to know your market. Now I might sit at the house for a week or 3 because no-one is willing to pay. But I can guarantee you if anyone is willing to pay $1,500 on a same day 1 pick, 1 drop 100 mile load that I know it because I am never too chicken #### to toss out quotes like that. I have as much fun with the phone slamming rejections as I do the acceptance of such a rate.

You would be amazed what people will pay when they have very few options. I tell open deck guys all the time if you could pull a week of my loads you might get rid of the flat. You'd work for it though. Lot of sleepless nights. But the point of it is to command your rate. Everybody wants to truck on bankers hours. And everybody runs cheap too don't they? And be realistic. You are not going to book a $3,000 load on 400 miles for a dry van out of Florida.

Most any place else you'll be lucky to get that. But you gotta know when you can or you can't. Shy kitty don't get no titty. If you never ask you never know how deep.pickets have the potential to be. You can't be one of these guys always wondering every load they book "was that any good"??? You have to be able to follow up with reloads quickly. If it was no good you won't be able to do that. No such thing as a dead hole either. Someone wants you to go to Florida charge them $5 a mile, take it or leave. You will get that one a couple or maybe 3 times a year. So what? Let the dummies and suckered go down there for half that then cry about cheap freight. You don't need every load out here. Just the good ones. Let the $2 hero's work 2 or 3 times harder than you for the same money. Hey somebody has to hold down the fort at home for 3 or 4 day weekends might as well be you right? I don't understand drivers who work so hard for so little, hardly ever go home, and come up with every excuse in the world how I am the crazy one. Truck drivers......