RATES

Well after reading this post, rates are a "catch 22". I believe circumstances come into play, dictates whether you take the load based on the rate quoted. Now some you out there would take $1.50 per mile load, because of your circumstance. Maybe you have no truck/trailer payment or other large overhead expenses you can roll with this rate and profit.

But there are many others that have a truck/trailer payment or other large overhead expenses that would take the rate or lower to make their payments. And every month, they are in the "red" trying to run their business effectively. With no success.

Now there are many on this forum that are O/O's are running their business well. Just think of 50% of the O/O's out that did not have a truck/trailer payment or other large overhead expenses. And did not drive, because of the low rates. Would the rates "rise" because of the lack of availability of trucks? More than likely.

Also when you bring in foreigners that will work for .20 cents a mile rates will suffer. In their country that's what they were making per day, if that. So, that will be an issue. Cheap labor.

My point is this: It benefits the ones that's controls the system. O/O's suffers, the big carriers and shippers benefits. My 2.45 cents is, find what will work for you. It's a broken system that can't be fixed. Or wants to be fixed. If you have no truck/trailer payment or other large overhead expenses you are in control. You set your destiny. But if you have that large truck/trailer payment or other large overhead expenses you are a "slave", bottom line. "Run Hard". What a line. Remember, the system needs "your" support to keep going. If everybody stops supporting the "system", it will collapse. But that won't happen because of the truck drivers, it will come from a higher source. Late.

 

well from what I have seen. in my area. now this is just my observation... because I bought a inexpensive truck/ trailer to start out with & have a frugal lifestyle, I can & do pass all thee cheap loads. I can afford to do so. the ones in my area that I know who do take the .90 a mile loads are the one's with a lot of bills to pay. truck? trailer? lifestyle? maybe a little of it all. most of them have newer, a lot nicer trucks than I. they all are financed. I just do what I think is good business sense for me. I do not judge anyone for what they take or for how much. when you think it hurts YOU personally it can change your attitude. but one could look at it like this. I am healthy & have healthy habits, & if it were not for all the overweight & out of shape people, who choose unhealthy lifestyles, I would have more affordable health ins & medical rates. prescription rates would be what hey should be, affordable, e.t.c. so if some has to haul dirt cheap,what can I do except keep myself from putting myself in that same position.

 

Like i said in another post i know off more guys with junky cheap trucks that are doing alot worst than the guys i know with the nice fancy truck. In my area the guys with the crappy trucks are the ones working for dirt cheap and the guys with the nice newer or older trucks are runninmg for what the rates should be and not just takeing anything.

 

I agree with the above statement, it's all about "business". If they don't how to run their business, they will fail. Period. Knowing your area, where to go to get a backhaul/return load, fuel, insurance, etc, etc, people need to learn those principles. And who is at fault? The O/O's? Shippers? Brokers? Government regulations? It's the "system" that we live in. The system is geared for you NOT to be "successful". The system wants you to be that hamster on the wheel to nowhere. And those are the hard realities.

So if you don't step up your "game" (acquiring business knowledge). Then your at fault, refusing to see outside the box/your comfort zone. So, I personally know what my comfort zone is, but if is not working, then I/you need to make adjustments in thoughts and lifestyles.

 

Just answer my question. If you HAVE to be somewhere with your truck in 2 days to pick up a load, say 600 miles,would you be better off deadheading for nothing, or taking the buck fifty a mile ?
Not that much difference in fuel mileage, will burn a little more loaded, but still worth it for one and a half $ a mile. Wear and tear almost the same.

As I said before, I would go the 600 miles for $900, MAYBE take the load for $700, but below $600 I would deadhead.
That is my line in the sand.

 

Question, even if an operator has low overhead can they really afford to haul cheap freight consistantly and expect to pay for maintainance or future equipment replacement. I'm thinking that even if an operator has low or no truck payments they should still be seeking the highest possible rate in an area inorder to gain as much profit as possible to eventually replace or repair old worn out equipment and pay themselves a decent wage for their risks as a business owner.

Am I wrong?

 

No your right. I think the biggest problem is 90% of these guys don't know their cost of operation. You go to the truck stop and ask ten owner operators what it cost them to run their truck and you will find one that honestly knows. You will find three that wants you to repeat the question and still don't know, two that will come up with some stupid figure like .50 cents and three that says it doesn't matter I just make sure I bring home enough to pay my bills. But most that don't operate and treat it like a business go broke over time and then they blame it on Bush.

 

You're gonna spend AVG of .75 CPM just to roll down the road.
No oil changes, no tires, no truck payment, no insurance, and only fuel tax included in that cost.

At $1.50/mi you have to come up with all that out of your other .75cpm.

In 1998, we used to haul GLASS loads.
They averaged $2.85 a mile.
Now they offer fuel incentives and prices of everything you buy has gone up.
So don't tell me the rates can't be higher now.

 

Hmmm....another thing to think about...An older truck can cost as much as new truck to operate and maintain....

You trade the mortgage for parts and repairs.....Art least that's my experience....

 

Thinking like this is why my truck remains sitting in my driveway, because there are way too many people out there willing to just take a load that pays nothing just to get to some other cheap load. I will not pay somebody to haul their freight, and I have turned down better than $1.50/mi and came home empty 500+miles enough to know that it ends up costing you less in the end driving around empty