Fuel drops $.80 a gal now rates are dropping $.80/mi

it'll happen, eventually.

last week, fuel was still $3.25 around these parts. this week, it's $2.90. even gas has finally fallen below $2.00. although, costco somehow, has been managing to sell gas for $.40 cheaper then the gas stations. for the past couple of months. but that spread is starting to narrow. good thing, too. them costco lines were getting ridiculous. can't even park to do some shopping.

 

jersey is below $3

 

Jersey is the Deep South to me....

 

LoadS ALWAys PAY,the BROKERS DONT!

 

If you HONESTLY,think COMPANYS PAY ANY DIFFERENT,just because FUEL is cheaper than think again,NO MATTER WHAT FUEL COST it always gets PASSED on to the PAYING RETAIL CUSTOMER,they ONLY invented FUEL SURCHARGE TO KEEP US O/O/Business Owners sort of QUIET,and keep the Crying to a MINIMUM they figured out sooner or later we would catch on and DEMAND OUR CUT for fuel,we get a CUT but its still not enough of the PIE and they know this,

I dont see any Affiliations such as OOIDA,ATA and others PUSHING REALLY REALLY HARD FOR MORE OF A PERCENTAGE FOR FUEL SURCHARGE ,BUT I DO UNDERSTAND ITS A LOBBYING GAME IN WASHINGTON, $1.20 base with todays prices @$4.00 fuel should be more like $1.50-$2.00 & thats being CONSERVATIVE but whos helping us push for that ??

and i say $4.00 even tho its a lil lower NOW,but the PRESIDENT SAID this past week,AMERICANS should ENJOY lower FUEL PRICES,BUT DONT GET USED TO IT,so what does that tell you,READ BETWEEN THE LINES,No one is REALLY PUSHING HARD ENUFF FOR TRUCKERS

NOW THIS IS TRUE -IN MOST CASES A CUSTOMER WILL WANT TO PAY the going AVERAGE Linehaul RATE,I HAVENT RAN ACROSS ANY BUSINESS THAT JUST WANTS TO PAY out MORE,its just not ECONOMICAL

BUT Shippers ALLREADY KNOW what THEY MARGINs are on a load, BEFORE iT LEAVES THE Loading DOCK!!

a customer will pay whatever it takes to get the LOAD on the SHELF,CAR LOT,FRIDGE,or GROUND and BROKERS know this,

ONCE you work your own AUTHORITY,You get to see how the WHOLE ANCHELOTTA works,well really you dont need your AUTHORITY to figure it out,YOU NEED TO HAVE A CLEAR UNDERSTANDing Of this BUSINESS and how it Works

Scenario #1 with BROKER-
CUSTOMER PAYS A PRICE TO GET PRODUCT SHIPPED,then CONTACTS BROKER who TAKES A CUT OFF THAT price JUST TO PICK UP PHONE & TRY AND LOWBALL A O/O,THEN BROKER GETS OWNER OP LEASED TO CARRIER TO TAKE LOAD FOR CHEAPER,EVEN THO OP GETS MINIMAL FUEL DISCOUNT,MORE WEEKLY FEES CHARGED BY CARRIER FOR INSURANCE,FAX,ESCROW,WORKMANS COMP,and so on and so on AFTER BROKER TAKES CUT-

Scenario #2 w AUTHORITY-
CUSTOMER PAYS A PRICE TO GET PRODUCT SHIPPED,OWNER OPERATOR HAS FULL AUTHORITY AND GOOD RELATIONSHIP OR GETS CONTACTED DIRECTLY BY SHIPPER, CUTTING OUT MIDDLE MAN (BROKER) AND GETS 100% OF LOAD PAY,OWNER OPERATOR WITH AUTHORITY ALSO PAYS MORE FOR FUEL,INSURANCE,TAGS,SO ON AND SO ON WHATS SO HARD TO UNDERSTAND ABOUT THAT?

So you see FUEL doesnt matter to CUSTOMER or BROKER it matters to you if you OWN YOUR TRUCK OR LP,Because a BIG CHUNK COMES off Yo BOTTOM LINE,or should i say P&L

Its 2 things you need to know about this INDUSTRY!

BROKERS dont PAY FOR FUEL,SHIPPERS dont pay for FUEL they do upfront,but they dont,because the PRICE gets Passed on to the CONSUMER

 

Im not trying to argue or anything but a load of bricks and a load of steel traveling the same distance going to the same city will never pay the same.product value will always influence the rate.

 

Wow... to get 15 gallons, waiting in line for a half an hour to save 6 bux, isn't my idea of smart.

 

No its not arguing,just a healthy debate about our INDUSTRY,and i would push back a bit kn your statement,whether its BRICKS,PAPER,or STEEL whoever needs it bad enuff will pay for it bad enuff,

 

Many of these loads are at a contracted rate for a set period of time. Shipper puts 'lanes' up for bid, brokers and carriers bid on the lane for the year. Low bidder wins the lane. Winning bidder has to cover the loads for the year. Shipper pays the same rate all year. Broker / carrier absorbs fluctuations in rates due to capacity variations (they take this into account when they bid the lanes). FSC varies according to what's written into the contract.

If you're hauling at spot market rates, then the rate is all-inclusive from your perspective. Some brokers (CHRobinson, for example) will list the line haul and FSC separately on their rate confirmations, others don't. If you want to know what the FSC and line haul rates are, then ask the broker.

Bottom line is, YOU decide what you'll accept to move any particular load. Move for fuel money, move for a profit, or deadhead home and park the truck, paying your bills out of your reserve fund (you DID put some cash away when rates were good, right?) until rates improve - it's all within YOUR control.

 

(Averaging $1.95-2.10/gal with mega kick backs, and it feels all soooo good. Then I see my truck payment and cry.)