saying NO to cheap freight

If guys are going broke, and can't deal with the rates, go home for a while and regroup. Try to find a better way. Often time when I say this to people though I get the classic response "well I have to work, so I have to keep running". If you are not making money, how does it do any good to keep running? I have been parked for a few weeks now, and granted I have less in my account than I did then, but, I still have fuel in my tanks, good tires on the truck and trailer, and everything is ready to go. When things pick back up next week, I'll be ready to go. I might not be able to say that if I had been out running my truck up and down the road for virtually nothing just to feel like I am working.

 

I have never put too much credence in those freight indexes. Not all brokers report their rates. Not all shippers and carrier report their rates, either. I find that I can usually do better than what is reported by calling some of my contacts. If you rely on the indexes you will probably settle for lower rates than you could get otherwise.

 

My broker pull a fast one on me. I gave them my rates I need to make, they agreed. But a job came up which was based on VOLUME. Of course the rate comes down due to volume. Between our agreement they are suppose to notify me if the rate differ's from our agreement BEFORE im dispatched. That NEVER happen. Well this morning(2 week's later) I ask the manager what the rate was, I was so *&^%# that I told him Im parking it and take your VOLUME load's and shove it, and told them I was NEVER notified. Long story short, I went home for the day(noon). By the end of the day I recieve a call by them giving me another job(load) that PAY'S MY RATE. Lesson for you NEWBIE"S owner op's, If you provide the service and get the job done and it take's year's to build up YOUR reputation, YOU will get what you deserve(rate wise).

 

To me cheap freight is anything that is less offered at less than breakeven. If it costs $1.28 per-mile to run your operation then anything less is un-pullable.

 

Why would you want to pull a load if you could only break even? I believe that unless you can make at least some profit it is better to let the freight sit on the dock. I don't want to wear my equipment out and not make a profit when everyone else associated with the load is making something. Whether the truck makes a profit or not the shipper, broker and consignee makes a profit on the back of the truck. Without the truck noone makes money.

 

I do agree with you from a moral stand point but from a buisness stand point its much smarter to break even and cover your cost than to DH out and loss money.

 

Get the heck off your soapbox. It's NOT going to sit on the dock. Your the only one that will be left playing with yourself. Someone else will haul it.

 

That attitude is the reason there is cheap freight. I understand that when you have a driver in your truck you want to cover your losses. But as long as owners take the cheap loads there is no incentive to raise the rates. I am not on my soapbox. And I won't be left playing with myself. I will be deadheading to a better freight area. Rather than wasting my time, money and wear on my equipment, I will be deadheading to an area where I can get a decent rate. There are some areas I run that I won't even waste my time waiting to see if there is freight. Unless I have something lined up after dropping, I will put it in the wind to an area where I know I can get something that is profitable. When I go to those bad freight areas, I make a point of getting enough money going in where I can deadhead out and still have a good average rate. I can't control what others do. I CAN control what I do. When it is your money and truck you can haul freight as cheap as you want. I will keep doing what I do. It has served me well for several decades.

 

If it costs $1.28 per-mile to run your operation then anything less is un-pullable. If thats your COST per mile you better not pull it for less than $1.62 / mile.