Presumptuous brokers and even lower rates

That's why low rates continue to be offered because people take it. I realize it's tough sometimes but sometimes we have to bite the bullet to effect change. It may be painful to turn down a load when money may be tight, but have owners considered why money is tight?
It's not always because of poor management or lack of understanding of markets etc. It's because of collusion to drive rates into the ground, the backhaul crap paradigm that has been allowed to fester and is now a cancer in the industry.
You can do everything in your power to lower your fixed expenses but if there is a mechanism in place to limit your income arbitrarily yet your maintenance and fuel expenses keep going up. Even the most astute among us would find it difficult.

 

G/Man it appears that there are a lot of fools. The rates I've heard quoted over the last two weeks are well below $2.50 but they disappear off the board like hot bread.

 

Unfortunately, you are correct.

 

I don't think $2.50 a mile for this lane is driving the rates in the ground. I have carriers call me everyday asking me to call them when we have the loads and they will haul it at $1.75 cuz they need to get there and take care of their customer. Yes $1.75 a mile even if you have to take care of your customer is a cheap load going to Florida I don't care where your coming from going into Florida. Those locals do it everyday and the locals get the good paying freight out of Florida too, but if it works for them than great but for others it don't work.

Don't go into Florida unless you have a load out or are prepared to run back up to GA to get a load and figured that into your rate. Remember loads out of the NE don't pay that well anyways so know that to if you are running that area. I'm not telling you anything you already don't know and if I am please understand as it is what it is and it has always been like that and yes I agree rates right now are the lowest I have ever seen them and yes you can blame some of the brokers but I'm telling you it is the shippers right now and the guys that have direct freight will tell you the same thing and the bad brokers make it ever worse.. You will know who those are real fast at times like we are experiencing right now. We are all hurting right now EVERYONE in this business. Shippers, carriers and brokers. I wish everyone the best and if everyone works together at this things will get better here soon nothing happens overnight, but we all go through these times this time of year but this year is a killer, one of the worst I can remember

 

So are you saying $4/mile is an unreasonable rate to an area that is notorious for not having freight that is profitable being offered when the owner knows he will have to eat the cost of deadheading to a better area. Our customers, the shippers base the price of their product on their criteria for profitability. The cost of shipping is factored into their "rate". You can't tell them what price to sell their product for. Why then should our prices be dictated to us? We are also trying to operate profitable businesses.

 

I agree. This is the worst I've seen. I've been biting the bullet. I'm starting to taste the gunpowder now. Thankfully I have a couple other things I can do. I've never been a prostitute don't' intend to start now

 

Yes it is when that is not the rates going to that area.. It is not for someone like yourself who don't have the connections to make the numbers work. All I am saying is don't beat yourself up over it and try to get that kind of rate going there cuz it will never happen. Shippers and brokers know that lane and nobody pays those kind of rates for any kind of freight. Try a different lane to run that works better for you is all I'm saying. For you that rate don't work but it does for many others. When I send trucks into Florida I have them something back out or I tell them they will have to go to GA to reload and we come up with a fair rate for it to work for them. I hope that makes sense and I'm not trying to start anything I'm just saying and trying to educate you a little about the NE area and Florida how it works and I think others will agree with me. I know how it work for me and my carriers and I don't have any trouble getting trucks to run from the NE to Florida as long as I have something back out or they have something themselves.

 

Everyone is hurting in this country, EVERYONE we all know that we live it everyday. A lot of my shippers have laid off, closed doors or just cut back and we can tell that by the amount of freight out there, that is why we are ALL experiencing hard times.

 

I hate to just "rant". I think I may have the solution but it would only work with strength in numbers but some guys don't buy into that philosophy.
That's too bad though because if we get rates to improve you may not have to run 3600 miles per week just to get by unless you just love running your tail off. You'll get to spend more time with your family, watch your kids grow, do some things around the house etc.
Solutions anyone?