Rates have dropped..

This is the one thing thats bothering me with buying another truck, ive been watching rates slide backwards and fuel going up. I was going over my paperwork for the last year and this year and im seeing a decline in rates. Van And Platform. I'm seeing agents posting load (SD) that should be paying 3.50 pm @ 3.00 and less. Same loads ive pulled. Im seeing OD loads on the board at 3-3.5pm (take permits, pilots and the extra time it takes= not worth the load). Ive been watching the Van side and the same thing is going on and i Dont understand why? The other side I see is the agents getting ticked because you dont want there frieght because its cheap, or the i dont give a dam agent heres my frieght take it or leave it. when you ask about more money they get ticked?

 

I'm going to guess that the agents have gotten themselves locked into a contract rate, and would have to come out of pocket to pay the carrier any more? I would hope that there's FSC involved to offset fuel, but maybe it's not full compensation?

Maybe the agents that underbid are in danger of not being able to get their freight moved, and that's why they're ticked?

 

I wish I had the awnser! Its not good for any of us, both agents and Bco's. They have to stay competive with the big box trucking companies who haul for next to nothing and pay there employees next to nothing in turn. I started out this year with a good Jan and Feb and I'm still not doing bad but the rates are in the toilet

 

Cheap rates + van trailers = the norm

 

Well, I thought that the whole appeal of Landstar was that signing on with them would insulate you from the cheap rates. Have they diluted their brand so much that they can't command rates that are better than the spot market?

 

Ditch the van and pull a platform, problem solved.

 

They do not know what the heck they are doing then. I have plenty of work, and my rates are just fine. I just put together a 3 piece LTL from New Orleans to Denver and Casper, WY for $12,600. Got a reload 125 miles away going back east for $2.15 (good rate from Wyoming) The load I took from Chicago to New Orleans paid $3.78 mile and was legal dims as well. I can run just the midwest and make $7k a week and be home on the weekends if wanted. The 2 guys you are parked next to need to look a little harder and not just run coast to coast. The main problem i have found here at LS is the drivers only have certin areas they want to run (south in winter, TX, OK, FL) and things along those lines. As you know, LS is what you make of it, and if you can't run your operation well, you will not do well.

Location plays the biggest factor in making money. Being from NYC, a van might be the best thing for you as platform rates out of that area are horrible most days.

My load form WY is going to Linden, NJ so I will most likely just deadhead from NJ over to Pittsburgh area to get something paying just as well going to Chicago as I would have foud in the tri-state area. I would rather pull a load from Pitts paying $5 mile than to grab a NJ/NY load paying $2 mile. In the end, the amount of revenue will be the same, with more empty miles, saving me about $50-$100 in fuel as well.