Market rates: By Carriers, for Carriers

Discussion in 'Ask An Owner Operator' started by rch10007, Oct 12, 2022.

  1. Judge

    Judge Road Train Member

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    Some places are facts, some are appointments.
    Mostly what i haul is 7 pm-midnight appointments.
    Sometimes getting unloaded around 2 in the morning.

    Depends on product of how easy it unloads, for a fact I know chicken meal can/will freeze in trailer driving on snowy/icey roads and it’s a pain to unload.
    Most freight doesn’t have a fsc, you gotta include it in rate.
    after harvest freight rate drops, a bunch come from field work and cut rates, happens every year.
     
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  3. rch10007

    rch10007 Medium Load Member

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    Thanks for contributing! I have only been analyzing Van data for the last 2 years. I never thought much of figuring out the numbers with tons. Do you get local work from quarries?
     
  4. Judge

    Judge Road Train Member

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    Once a year i haul for a farmer direct, rest i use only 2-3 brokers who want dependency and on time, though some loads are as soon as you can get it there.
    There’s several ways to be paid, ton, bushel, hundred weight, of course miles, most commodity loads by by ton, but some are hundred weight(rough rice)
    Took a load couple weeks ago for 4.54/100 plus 20% FSC that’s with a lighter truck and trailer so I had 51k legally.
    So then while on phone, you gotta figure 510 x 4.54 which would be 2,315.4+ 20% of that, $463.08 fsc then know mileage to swap it over, was 510 miles.
    But now your in middle of nowhere in Indiana, so it’s bounce to Indy or mount vernon, in(lots of hopper loads in those 2 places, so it’s like Dallas for vans, freight out of there drops)
     
  5. welldigger00

    welldigger00 Light Load Member

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  6. 77fib77

    77fib77 Road Train Member

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  7. welldigger00

    welldigger00 Light Load Member

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  8. REO6205

    REO6205 Road Train Member

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    I know you've told us before but refresh our memory....Are you an O/O or a broker or maybe a combination of some kind? What's your primary role in the industry?
     
  9. rch10007

    rch10007 Medium Load Member

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  10. TallJoe

    TallJoe Road Train Member

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    Let me ask something...
    You can come up with a formula of how to calculate your rate on a specific lane but how are you going to convince a broker or a shipper to pay you that if others are willing to take it for less?

    Do you realistically believe that I could be awarded $3.75 per mile on a lane that pays $2.50 to every other truck that day?
    I think that if someone has their established minimum rate and desired profit margin, e.g. no less than $2.30 per mile, that person won't impose that rate on anyone on the spot market, instead that person will have to find lanes that pay that.
     
  11. rch10007

    rch10007 Medium Load Member

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    I’m not trying to convince anyone of anything…as in, the broker to take my rate.

    Im calculating MY rate and then using that formula to determine if a lane would be profitable.

    For example: if my formula calculated $2500 for a lane BUT loadboards show the average rate of $2000, I can stay away from that area. So, let’s say I personally buy trees in different states for my farm. Now I want to make money going to pick up my trees. I need to know where can I go that has good rates to get me to the area I want to be. Maybe I need to get to Denver…the highest paying freight into CO comes from Laredo. Ok, what pays well into Laredo? You have to run the numbers so you can determine what route to take that maximizes profit given time out on the road. These lane rates change all the time and if you don’t have a way to calculate rates from point A to B without some sort of reference, you’re just hoping you’re going to make money instead of ensuring you do.

    If you don’t have this same need as I do, none of what I say matters. We may all be in the same arena, but we’re all playing a different game.
     
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