mercer transportation

Biggest know secret to trucking is having a very low overhead cost because everything fluctuate and cannot be counted upon.

 

Example: Rate is $1000, agent cut is 10% = $100 for 1 load load moved. Cut rate by 20% to move more loads, same load $800, agent cut 10% = $80 moves 3 loads total = $240. So the agent didn't lose, they gained! You can apply this math for the company cut as well!

Seeing trends is part of this business as well. Now, you may look at this as me taking a shot at Mercer, but I'm not. It's actually good math on their part. You might not agree with what I see as the trend, but IMO the signs all support the trend. What are truck numbers up to? How many L/P trucks are being hired on? How much freight are you passing on that is gobbled up quickly? Are rates keeping up with the rest of the industry? If you can't grow with quality of freight grow with quantity! If I'm wrong about where I think the trend is going, I'll be man enough to come on here and admit it!

I understand defending a company you are proud to be a part of, & you may not see the same things that someone else is seeing, it doesn't mean they aren't seeing it. I've run pretty much the same lane the past year and I know what I have seen. It's quite obvious other people are seeing the same things. Not one of us has "bashed" Mercer, we are simply stating what we've seen. Not one of us has said how Mercer has done us wrong, we are just commenting on what we see. It's what this thread was intended for.

 

wrong thread

 

you should really care to know this. that way you wouldn't think the agent is screwing you. the agents her get a percentage like we do, the high the rate, the more they make. don't confuse agents with brokers. many carriers allow their agents to broker loads out before they are offered to lease trucks, universal and landstar are two that do this, their agents make more if the load is brokered to outside carriers

 

you act as if this is something new? its been this way always. some act like its a new thing and its the first time its happened. I don't see it as a grand conspiracy, its normal ebb and flow. I still get mine, sometimes it takes a bit more effort than other times. and an agent cut isn't 10 per cent, try more like 7 per cent. if all the effort of figuring out these grand schemes of agents cutting rates , etc were put into knowing where to go and where not to go, they would be bette off. what you can see vango is that I do se the things, it why I constantly adapt, I change where I may go, etc etc. its why I don't moan and groan and see doom around every corner, its why I could care less how many guys lease those trucks at 625 a week, I will still get mine, simply by working smarter. its why I don't panic and think the world is coming to an end.

I could give a rats behind what an agent makes, if I load meets my parameters , I only worry about what I get, in the end that all that matters, anything else is a waste of time

 

To think when I started reading this last year I only had to read 470 pages to catch up almost feel sorry for the guys who start at the beginning now

 

there is very little margin in any loads for years unless special conditions exist. Like skateboardman said, you have to run smart and keep your overhead competitive. Mercer doesn't own those leased trucks so if those drivers bit off more than they can chew...that's on them

 

Might also consider that the agents are contractors for Mercer, kinda like the owner operators are. with a few exceptions like LK1.
Mercer contracts with them to move freight but they are not employees. In fact they are actually brokers but have a contract to use mercer trucks first.

 

Ok to all the above. I never said anything about the money I make here, I don't feel the need to preach of my vast knowledge or wealth. I simply relayed what was told to me after I asked about such an obvious change. If I wasn't making a good piece I would not be continuing my employment. Running smart goes without saying. I have no overhead out here or at home, I run smart and sometimes just to do it and I love it here. Only started this by making an observation and not one single syllable about my income.

 

My .02 on the current rate situation. In some areas I am seeing where rates have gone down by much more than a decrease in fuel prices would dictate. It is a little slower this year for rates picking up from winter rates than it was last year. last year they came up sooner than the year before and I think we may all have gotten a little spoiled. But fuel and winter rates aren't the only factor this year. I believe the lower oil prices are having a huge impact on our rates even on freight that has noting to do with oil and gas. I will explain that. Lower oil prices means alot fewer NEW wells get drilled. That means alot less oil field work. So all those trucks that were dedicated to that industry now have to find other work. That floods all the other markets with trucks that weren't there before. More trucks in our market means a supply and demand imbalance. More trucks than freight means rates go down simple as that. Now we do have some areas that rates don't seem to have gone down or have already recovered. Unfortunately there are more that haven't yet. it will be interesting to see if this trend continues or if things jump up again in another month or so.