So you want to "own " your own company

Hey, we hit some kinda milestone or something. We have someone admit to accepting cheap freight.

 

Lol if you mean me I really don't have a choice in the matter. I'm a company driver sooooo..... Don't worry though if I ever do decide to get my own rig there is no way I would put that crap on my truck. I have seen the kind of money freight pays going into the NE and it pays enough to deadhead out a few hundred miles and still be able to give yourself a pay check after all is said and done.

 

Depends on your definition of cheap freight. I'll take what I CONSIDER a good paying load to a bad area and will take a load for $1.35 which I consider cheap up to 600 miles away to a better paying area. When all is said and done, I've averaged well over $2.00 per mile which is decent for a long good paying load and a short crap one.

Yes, I'll take cheap freight when I need to. If I don't take it the 100 trucks the next day will.

And you all can get off your soap box preaching cause your not going to change a single thing. These online forums only represent a fraction of a fraction of the drivers.

I actually know someone on here personally that preaches non stop about cheap freight. Well, he DOES take cheap freight when he has to. I also have known his employees PERSONALLY and they have taken many a cheap load dispatched by him to move his truck.

Appearances are not as they always seem.

 

Things will never change if people don't stop taking cheap freight. Change can start with just one person and goes from there. Of course I understand your point Meathead, but it's important that us as Owner Operators stand up for ourselves and get the decent rates we need and deserve. If somebody wants to take a dollar per mile or less, let 'em. They won't be in business long. Sadly, somebody will take their place and the low rates will perpetuate. That is what needs to change!

 

You will never get rid of the cheap freight haulers. They have always been around. When you get rid of one group, others will come along and take their place.

 

Sad but true I'm afraid

 

As I am moving into leasing on O/O's and have had a chance to talk to dozens of drivers, I can see that this issue of freight rates will not change. Sure, they all want the best rate but when presented with running 2000 miles/week and averaging $1.85 or 2700 and averaging less, most will say they want the miles. I have even sat down with a few and did the math showing a better net on less miles but they don't get it. Even had one say that it looks good on paper but at the end of the day, an experienced O/O knows you have to run the miles to make money.
So I will likely be faced with having to take rates below $1.50/mile to move a truck rather than DH to a better area. People want to put this on the broker but there are two parties to this contract. And I am sadly coming to the conclusion that in order to grow my business I may have to dip my toes into the depths of the pond scum bottoms dewlers.

 

$1.50 is low, but not "cheap". My bottom is $1.35, but all of my equipment is paid for and my overhead is VERY low.

 

When you go to practicle miles and MT miles, a $1.50 rate goes down pretty quick.

 

So many drivers don't seem to understand the difference between cash flow and profit. They think that the more miles and revenue the more money he will make. We all need cash flow, but unless you have some profit built in you won't survive.

I have had to deal with the same thing, BigBadBill. So many drivers would rather take anything as long as they can keep moving. I have seen it with drivers for years. There are some who do understand that sometimes it can mean a bigger paycheck if they sit for a day or deadhead out of an area.

I met a guy a few years ago who owned over 100 trucks. He told me that the more trucks you buy the more you will need to haul for cheaper rates just to keep the trucks moving and drivers happy. I have since come to understand his way of thinking. The problem is that once you get into that mindset it is difficult to change. It also sends a message to those whom you do business that you are willing to haul for cheaper rates. If you had enough volume, you might make it up in the long run. There have been times when I have had to run for rates lower than I would have preferred. If the economy does falter again, then we could all be in a situation where we either haul for cheaper rates or sit. Rates got very low during the fourth quarter of 2008 and most of 2009. I hope we don't get to that point again. My trucks did a lot more sitting. So, if the economy does go into a tailspin we may have a choice to make. Run cheap or sit.