The REAL Reason Freight Rates SUCK

The real reason for inflation of the goods we buy is that the brokers keep taking more money from the service and expect to pass it off to the owner operator. Example, just looking at Landstar i can see that yes i will make a meager living with more freedoms than a company driver. However, i will need to work an average of 5.5 days for it while the broker takes 35% of the bill. Landstar has posted a 2.6millon profit in 2012 and will do anything to please their shareholders. Now, does that make Landstar a bad company? Of course not. However, it is a form of price gougeing and causes inflation in the goods and services every American uses. Retailers are under govenment control aganist price gougeing so should the brokers/brokage companys be.
Same gal, different dress...

 

Nothing new.....The O/O has always made less in comparison with the rest of the supply chain....


We pay the bulk of insurance....Permits....Fuel...Workman's Comp and so on........
That's how it is.....Either deal with it and know your BEP or, get out and flip burgers or dig ditches......

Anyone who owns less than a mid-size fleet (More than 50 trucks) and expects to get rich is sadly misinformed.......

 

I don't think any lies were told. I mean. Did you think you were gonna buy a truck and get rich with one truck? Not really a headline news story here. Its a business that if your smart pays the bills. thats all. No glory, nothing. Just a business.

 

I find it interesting that when we have the rehashed threads on rates and the "market" that it is presented as a review of the whole market and that is all there is. It would be like giving a retail segment review and only including Walmart and Target as if those are the only places you can shop. Macy's, Saks and Nordstroms are ignored.

Our industry is no different. We are talking about the discount segment. You can do well in this segment if you know how to work it but there is more than the discount market and direct freight.

Don't kid yourself thinking the broker is taking a bigger and bigger chunk. It is the customer saying they are not willing to pay Nordstoms rates for Walmart product. Once the rates start coming up they move the freight to a premium market.

 

You can't blame the brokers when a large percetange of the loads are contacted directly with the shipper by the carrier .

 

Empty space is wasted space!

 

Too bad we don't get paid to "Carry" Sailboat Fuel.....

 

I have my rates down to a T.

I need a minimal of $2 a mile to make a profit. $2.30 and I would never have to worry.

Those figures are on 450+ miles a day.
Shorter than that and I charge $480 flat fee for the truck plus $0.75 a mile for fuel and that is if the load can be done in 1 day. For two day short hauls I charge $480 X 2 plus the $0.75 a mile for fuel. And that at the $3.95 a current gallon fuel price.

 

A big problem is too is that drivers divide cost to operate by 365 days a year. You need to be realistic and cut that down to about 250 days a year.

Your cost to operate will be about $250 a day before fuel. Add $150-$200 for you, and .75cpm for fuel and that is what you need to charge for short loads under $450 miles. $2 a miles for anything longer.

Sit on the road at a truck stop for 2 days and that cost to operate goes up or you loose time you could be home. Stop giving time away...value yourself and time and your equipment,