I am a new agent/broker for a large shipping company and a former driver for a large carrier so I have been around for awhile. I have 28 loads posted on company site as well as on Internet truck stop these are posted at a good rate at least I think they are good rates of $1.50 to $2.50 per mile to the truck and have not received a single call. These are all great clients and the trucks I have called are all asking for at least 30% more. I am located in the Pacific NW and just can not figure this one out. Any suggestions???
Question from new broker/agent
Discussion in 'Freight Broker Forum' started by safety43, Nov 17, 2012.
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First of all $1.50 is NOT a good rate. $1.50 would barely cover the cost of running the truck, unless we are talking LTL or something like that. I run a KW W900l and my cpm is $1.20. Getting paid .30 cents a mile considering a 500 mile day minus food and all makes it not worth an o/o's time to haul a load for $1.50. As a "new" broker you should communicate with the shipper and let them know that we need to make more money per mile in order to keep our trucks on the road and send money home. Another problem is that if you are new in the business do you have a credit rating showing on the boards yet? Are you bonded? People are sometimes afraid of getting screwed over and won't run for someone that does not have a proven track record of paying in full and on time.
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If it doesn't pay me in the $3/loaded mile neighborhood, I'm not interested...and that is only my portion of the freight bill. The carrier I have my truck leased on with needs their cut, too....so the actual freight bill still needs to be higher than that. The ONLY way $2.50/mile freight would find it's way onto my truck is if it was a dedicated account...loaded (and paid) both ways....with ZERO empty miles....otherwise, it is cheap freight and I wouldn't touch it with a 10 foot pole. And that $1.50 freight? It can rot on a dock for all I care...I'm out here to make money, not move people's crap around for fuel money.
Baldy40, jbatmick, VisionLogistics and 1 other person Thank this. -
Amen!Few days ago broker offered a load from detroit to philadelphia for 750$,almost 45000 lbs!!!!!!! I mean come on man,almost 600 miles and most of them are tollway,and load is going to pa,which is worst then michigan.How dare u to offer something like that??!!
rodknocker Thanks this. -
Being a broker ain't going to be that easy. It will take a little time to develop relationships, with both shippers and truckers. By the fact you say you have some 28 loads, it proves it is easier to solicit cheaper freight from shippers than to find the trucks to haul it. You will have to take a little less on your part, and hit the shipper for every available cent he can pay if you want to have a freight rate that will appeal to truckers. Buck fifty just won't attract many empty trailers.Two fifty is getting there.It will take time to build a truck base, and if you get a reputation for offering lower rates, it will stay with you.
Last edited: Nov 18, 2012
rodknocker Thanks this. -
So you've found the cheap freight no one wants to move... congrats! I bet you were pretty proud of yourself for securing that customer so easy weren't you?! We've all been there my friend, and it's a major learning process. Reduce your margins and get the freight moved. Call MORE than a FEW trucks. There are days where I called 40 trucks from 3 different boards on ONE load. If you're an LS Agent, pm me when you can and we'll talk and see if I can't help you a little bit.
Mommas_money_maker and rodknocker Thank this. -
I love this thread. Pi$$ on cheap freight. Send it to the union rail yard so it can be a couple weeks late.
gokiddogo Thanks this. -
I can't believe people even offer a buck and a half a mile. $2.50 A mile also sucks big time.
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tomkatrose and Mommas_money_maker Thank this.
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LSAgentOZR Thanks this.
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