Have rates Fallen?

My rates have gone up a little. If the broker doesn't like the quote then I don't haul their freight. Just as a customer doesn't tell a taxi driver what the fare will be, I don't typically allow a broker to tell me what a rate will be. A matter of perspective I suppose.

 

I dont think so I believe they have gone up some I just moved two loads from Lansing, MI to Burlington, NC for $1900 each I moved the same loads in October for $1700.

I will say that in December they seemed to go down but have rebounded.

 

They did go down for the most part thru last quarter of 2012, so far this year looks they have rebounded some, but there is still more cheap freight than is normal.

 

Problem is some of our own don't know what rates are ,and some just take whatever a broker quotes, that is the problem. If you need to get home and a broker quotes a weak price I would rather dead head. But that's me. If everyone did it across the board though you would watch within one week the rates go up. We're our own enemy by taking cheap freight. Since when can you go to the market and tell the cash register person what your going to pay. Same logic. How many companies have gone broke working on a thin margin? That's what you have to look at.

 

Freight looks real slow on the boards but the regular stuff is still there and still paying the same good rates as always - none of that play the market crapola. Goes back to what we always believed - build relationships and get steady rates year round - pick random off loadboards and feels like hitting the lottery one month and starve to death the next... While there isn't much to pick from, and the same usual cheap stuff, there is surprisngly some really good rates posting up here and there. Buddy of mine did a $1600 run last week that was 250 loaded miles. Actually asked Bill about that this morning, is capacity down or something?? I don't know, I don't even look at truck densities on ITS. I don't trust the accuracy of the information. Call on unknown loads of interest and see where they're at is what I go by, and what I hear about our other trucks. Load I'm doing now is one I've never hauled but seen many times and called on as well, rate is the same now as then. My to the truck my rate is rising and has been since November. Jan 13 on a solid pace to beating Nov and Dec 12 with a dry van, who would have ever thought? That's just one truck though.

 

Had a broker try to sell me on $1.10/mile from Baltimore to KY. "If you haul this one today, we'll get you one back home to NC so you can be home by Friday". Mmmmkay. NC is a 6 hour drive end to end. I may have a NC area code, but you haven't even asked where I live in NC.

Besides all that, I typically don't answer the phone for $1.10 freight. Thanks, but no.

Lots of brokers "Oh, we can't pay that coming out of that area" Me: "Well, if you want me to haul it then you need to educate your shippers about what constitutes an appropriate freight rate"

Drivers and brokers have the power to dictate rates, but it seems that everyone's letting the shippers control it.

 

We've gone to the load boards twice on the last 10 loads, about 2 weeks worth. Both were reloads back home for $1.88/mi, one from DFW and another from DE. The average rate on the other 8 loads was $3.38. 18% DH in there, but still in at $1.97 on all miles with 1/5 MT. The TX load was just 10k lbs. so practically MT on that one too.

Not sure if the ones off the load board are low or not. I don't look often enough any more.

I got curious and pulled stats from 10 loads in the same time period last year. Different approach to choosing loads and a year less experience. Average rate was $2.16 with 14% DH, leaving $1.77 on all miles. DH was pumped a little due to some out of route on New Years, and a return trip to the dealer for service on one truck. Looking at the loads, I'm guessing about 8 of the 10 were off the load boards.

The real interesting statistic year over year is the sample period last year produced about 50% more revenue, but included 80% more miles. Last year's invoices looked hotter, but we were barely breaking even in that sample. This year there was profit.

More from less. I guess some of those Hard Knocks left a dent.

 

i'm surprised how many o fyou would rather DH home then haul a cheap load.

if i have to do that. i'll minimize my loss rather then take the full brunt.