How much does it cost a shipper to run their own equipment?

You and your customer understand the value of paying for superior service. If done right the shipper and carrier can both win by having a relationship that involves good communication, competent employees or operators that understand the importance of doing the job right each and every time. I have found that shippers do not have a problem paying a higher price for our services because we do exactly what we say we are going to do with no excuses. My operators understand this going into the deal with my company, I tell them if they want to make excuses then they need to drive for the Mega-Carriers. At Powerhouse the only acceptable excuses are equipment failure, weather conditions, driver wellness (sick), traffic causing HOS issues. Our shippers know that we do not run illegal but still manage to get the loads on time when they need it.

 

Don't think you moved for that did you?

 

Here is what a carrier made before deregulation average rate per mile: .98 adjusting for inflation it would be $3.51 average rate per mile today.

The owner operator leased to him at 70% average rate per mile: .68 adjusting for inflation it would be $2.49 average rate per mile today.

So we need to question ourselves why are we continually being offered rates at $.96 - $2 per mile and being told that the price of fuel going down caused the problem, or that is all that is in the load. Somebody is not being truthful and it is not I, as I have shown you the facts with this posting.

There is a contraction amongst the shipper ranks to only work with their top 10 brokers.
There is a move for capacity contracts to rule over spot contracts.
There is a move for all the little guys to fall under subjection to the Mega's (I am pretty sure that some of you are receiving the Power Only offers hot and heavy over the past two years like I have)
Mega Brokers are cutting rates left and right in each and every segment of our industry killing off the little Mom and Pop brokers and then in return cutting each other to the point that they only make $5 per load pushing a lot of paper. Some of these Mega-Brokers are actually bankers and real estate brokers that failed in their market and then choose to enter ours. They only care about one thing themselves, just look at their track record recently in 2008. They took their bailout money ran off and entered into an easier market for them to screw up, ours.

Here is an example of that, look at this company's gross income increases since around 2008. This company had a gross increase in revenue of over 200% from 2010 - 2014. Have any of you had that increase? I am not jealous of their success, more power to them, but here is the problem. When I first started pulling for them off and on in 2010 they actually had good rates, now their rates often times are bottom of cesspool. Their agents are not on the most part knowledgeable on how a trucking operation is ran. It reminds me very much of when I was a builder and broker agents and real estate agents had to schooled by me as to whether their customer could really afford to have me build them a house. You take a look and see if you agree with my observation, and please remember that this is just my opinion, but it sure looks the same to me.

http://www.tql.com/about-us/company-overview


For those of your that want to see the inflation adjustment for yourselves here is that link.


http://www.bls.gov/data/inflation_calculator.htm

 

My Dad made $12 per hr as an Union Residential Journeyman Carpenter in 1977 before the market started to tank then. I made $32.00 per hr as a Union Commercial Carpenter (Foreman) in 2000 so I would have to agree with you for that profession. I never did say that just truckers are getting screwed, now that you brought up the point of the other working man as well. The calculator is indeed very accurate, go do some research of Teachers wages, Police Officers, Government Officials, minimum wage, you will find in most circumstances those that their wage was associated with the Government there wages adjusted along with inflation. This is not my calculator but the US Department of Labor's. Try it again for yourself: Teachers wages from 1959 one up: https://nces.ed.gov/programs/digest/d07/tables/dt07_075.asp. My wife is a teacher so I know these numbers to be accurate.