How do you determine a rate for the whole year?

I'd love to read an opinionated response to this one... Is this a troll thread?

Is your carrier running in a dedicated lane(s)? Is your carrier delivering the same type of freight, and are you connecting that carrier with loads from the same customer(s) in the lane(s) that your carrier does run? Are these back haul loads? What do you do if your customer's freight prices change? What do you do if fuel prices rise dramatically and your customer doesn't automatically adjust freight prices accordingly? Then your carrier is getting shortchanged after you take your share. Or do you plan on settling for less to make up for your carrier's loss because of crappy freight prices or high fuel costs?

Why on earth would a set rate be beneficial for either you or your carrier? --- I'd like to know. When there's less money for both the agent / brokerage and carrier to negotiate on, someone is going to get the short end of the stick. Will it be you or the carrier that wants to or is willing to take less money? If this is going to be a contractual agreement then I'm going to assume that you're setting yourself up to fail? --- Your carrier didn't give you an idea of what they expect to make per load? You're basically removing all future chances of negotiating rates with your carrier and maximizing your profits.

Break down the numbers... I say offer them $1.25 a mile. Keep the rest for yourself.

 

Order a crystal ball off Amazon.

 

Bid too high and you won't get the work. Bid too low and you get killed when the spot market spikes.

It can create a real conundrum...

I personally know guys who are leased onto a carrier I used to work for. The owner is locked into contract rates on the same lane.

Right now I am averaging $1500 (at least) more every week running the spot market on the same roundtrip they do. But they (the leasers) aren't reaping the uptick.

 

I think it is a good question, actually. Direct freight. This is when the fuel surcharge formulas come into play.

 

Surcharge Tables-Zipcodes- Freight Classes- LTL Weights and Breaks-
Competitive market on local and 1-2 day regional (200 milers)

Flasbolt- You need to be a lil more specific with your question

 

I guess time is the main factor.
What time of year it is?
Is it rush hour near pickup or delivery?
How many loads can you cover?
Is the lane a high traffic lane?
Is it expideted, overnight?
How much deadhead? Or loaded at both ends?
How much time are willing to donate for free?
That sort of stuff.

 

So starting in Fremont and ending in Fremont is what I'd think is the daily plan. So n3ar 500 miles per day. I'd say $2000 per loaded miles per day. To about $4 dollars per all miles. Which is about right for your situation.

 

Last year shipper would laugh at this quote,but this year things have changed...