I do not and will not pull cheap freight!

I've been following this thread, since the beginning of it. If he would have presented facts, not his opinion as fact, that would have been different. He only presented the same old rhetoric that we have been hearing for decades, which has been discussed adnauseum (sp). It is a fact that there are many modes of transportation in this country and many commodities never touch a truck. We have truck, rail, air, water and pipeline.
No one can define cheap freight, for someone else. You can only define it for yourself. While I may be very happy with $2.50 per mile, the driver four spaces away would think that is cheap. But then, I run a straight flatbed and he runs a 7 axle rgn.

The discussion of cheap freight is a futile arguement, that has a long history and will go on forever without an answer that will satisfy anyone.

 

Absolutely correct. The best way I have seen to get into a higher rate is to find a segment that has less competiton.

 

While some people's cheap freight may be decent for others, I do think we can all agree that van loads paying less than $1.50/mile is cheap freight. Sure, if it's coming out of FL and you have a $3.00/mile load going in it may still be part of a profitable, workable plan but it's still cheap freight.

Some people would argue that you should be able to get your cost/mile down to where you can afford to run for $1.50 and make money. But I disagree with that, for one I do not have a team of people to negotiate the lowest prices on equipment, tires, insurance, and fuel like large carriers. And, while they may be able to negotiate those deals on volume it is also not sustainable, the truck dealers, tire shops, insurance guy, and truckstops are also competitive businesses who need a certain level of profitability to provide us any sort of quality service. Racing to the bottom is not the answer.

 

Yet, some of ur other postings could be seen more as "child-like". Which, like I said, a mockery. U might call it...Off topic I guess. I guess u can say "Just like this". Be safe out there drivers. Im out, later.

 

Duh Backhaul!!!!!!!!

 

lol...

But what about a cheap date...

"Why yes, I'd love a cheap date. We could share one meal served on one plate, we could watch one movie and stay up late, we could scan the board and call for rates, and maybe some day we'll leave this state, oh man, oh man, I hate cheap freight...."

 

UMM doing the ROFLMAO thing

 

I think some ops have the view of cheap freight because they are only looking from a very small perspective of the industry and the global economy. There have been very educational threads on here that should help to give these guys a broader perspective.

The freight industry, as with so many other industries, is highly commoditized, meaning there typically is no differentiation in the service performed so the main competitive advantage one carrier can have over the other is price. Mega carriers set the market as they have the scale to do so. Luckily, freight volume is a function of economic conditions so there is fluctuation and when the balance is tipped and freight exceeds capacity, the spot market rates increase because of it. The problem is this segment of the spot market is still a subset of the overall commoditized market.

As many have pointed out here, Bill probably more than most, and is true of any commoditized market segments, the smaller players, like O/O's need to find a specialization or niche that is not so commoditized or not taken advantage of by the mega carriers if they want to garner higher rates than the overall average commoditized rates.

You can apply this thinking to most any aspect of American life these days. Go to any other thread and look at all the people looking for the cheapest price on tires, using the internet to find most any item at the lowest price, etc. Amazon, Walmart, eBay, etc. have changed many markets. If someone opens up a corner bookstore and hopes to directly compete with Amazon without finding a niche or some sort of specialized differentiation, they are doomed from the start.

So for O/O's to come on here and complain that the rates are low because they are trying to compete with mega carriers in the same lanes for the same freight, they are like that corner bookstore who thinks just because they exist, they should command higher prices just because their cost structure is higher.

Yes, brokers take a cut. Sometimes thin, sometimes thick. No they don't have assets but it takes a lot of capital to float 30 to 45 days of business. Ask yourself how many times you've gone to buy tires and they were more expensive than you could get them elsewhere but you said, awe, your price is fair enough so I'll spend the extra with you. Tires are a commodity and whether we like it or not, freight and trucks to move it are a commodity too. That's capitalism. Buy as cheap as you can and sell as high as you can to maximize your profit. If the market will bear it, get it.

I'll be impressed the day I see more threads on here about people asking each other on ways they can differentiate their service, find a niche or meet some need in the market that is lacking. As long as threads keep popping up about how rates stink and brokers are thieves, I know there are still O/O's not educated enough to be successful small business owners.

 

Excellent post. To add to that last comment that is the central point any single or small fleet operation should really think about. But finding a niche doesn't gaurantee anything. Competitors are everywhere. What value (not talking price here) can/do you provide? How are you different from the crowd?????? When one figures that out and how to apply it they can start getting premium rates. But there are many other factors as well. One of the big ones I always point out is running a debt free operation so one has the leverage to dictate price. If you're not debt free that's the single most important goal you need to be working at in the here and now to achieve. Even then, offering solutions, standing apart from the crowd, having leverage - you're still not going to get premium rates overnight. You cannot expect anyone to just give you profitable rates because..

 

This is the crux.....

Many don't know what their BEP is......

Some will see load running from So-CAL to the East Coast for $3K and think that's a "Great Rate"....

Are the "Bottom-Feeders" ignorant or.....Are they purposely running "Cheap" to keep working?


When I ran my Dump biz....There was a Reefer-Tugger O/O who parked his rig across from mine..
He asked how I was doing and mentioned he heard that the Dump Biz is "Cut-Throat"....

Well....Freight is just as bad.....

I have had loads that were paying me $2.50/m+ suddenly drop to below $1.50/m.....

The first inclination would be to "Blame the Broker".....But in that case...The customer found a carrier who would run those loads cheaper than what the broker was charging....So the broker countered back with a cheaper rate.....

So who really was to "blame" here....The Broker....The Customer or....The Carrier who tried to "Bottom-Feed" the market?