Truckload Rates

Discussion in 'Freight Broker Forum' started by JimmyTwoTimes, Jun 30, 2020.

  1. PPDCT

    PPDCT Road Train Member

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    Fair enough. I'm not individually dealing with the kind of volumes you are, and we as an office are probably in the 400ish loads/week range, if I had to guesstimate. I've not really looked at overall volume for the team. That said, I hadn't considered the freightwaves trend-line for that purpose. I'm usually able to articulate it in a call, but that's more the nature of personal relationships I've developed with most of the folks I deal with.

    I also have no contract freight, so I can see how that'd skew things for you. I have a lot more flexibility in terms of pricing, so some apples to oranges here. Interesting to get a different perspective. How big is your team/company?
     
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  3. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    Wholeheartedly agree that explaining over the phone (and developing a meaningful relationship) is the way to go with customers and should proceed the use of data (FW graphs or otherwise) when discussing rate changes.

    Often times I will reinforce the phone conversation with the data from FW/DAT or articles about particularly challenging lanes to make sure the customer understands it isn't just my team that is struggling. Sometimes shipping managers will straight up ask for the data so they can share with their boss to educate and help explain why cost is increasing.

    My group is 30ish people right now, all focusing on domestic truckload with an emphasis on smaller or newer truckload customers. Our logistics group as a whole is around 100 people (including back office/support personal), and we are a small part of a much bigger company that decided to dip into 3PL 10ish years ago.

    You mentioned 400ish loads a week, is that all awarded every week on the spot market?
     
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  4. PPDCT

    PPDCT Road Train Member

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    About 80% I'd say goes out to the spot market. There's a few of us who have standbys that we can call up on demand to account for the other 20%. I've mentioned before that I have a few carriers that I can finagle for just about anything I need in their area. I know a few others who have similar arrangements with other carriers. Most of the time, I've been pretty fortunate that I deal primarily with freight decision makers.

    So, yeah, I stay pretty heavily tied to the spot market and how the numbers shake out as a result.

    And yeah, you guys are substantially bigger than we are. There's 17 of us, including office staff at this point, and about half of those are fairly new, with five or six having only been here for six months or less. Lots of learning and coaching going on for those folks.
     
  5. AshtonAllen

    AshtonAllen Bobtail Member

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    Everyone kept inventory levels very low when the 19 hysteria started. Suddenly, inventory levels dropped too low so everyone needed inventory at the same time. This caused a huge spike in demand which drove up rates. Once inventory levels recover, rates will go back down. Customers are angry about the rates the trucks are charging, so expect them to scalp the trucks when the market shifts.
     
  6. PSM379

    PSM379 Heavy Load Member

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    They are angry? Maybe they should buy there own trucks then
     
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  7. REO6205

    REO6205 Trucker Forum STAFF Staff Member

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    The customers are angry? Too bad. They have little or no interest in whether the truck makes a profit. If truck A goes broke hauling for starvation rates they just yawn and call Truck B.
    If they want to "scalp" the trucks it only shows their true nature.
    Thanks for letting us know, though.
     
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  8. DUNE-T

    DUNE-T Road Train Member

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    Ok good, makes me feel less bad about scalping them when market is in my favor
     
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  9. JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    It's hilarious to me when EITHER side (shipper or carrier) gripes about the other side taking advantage of market swings, like the they aren't just as guilty of doing it.

    Shippers were happy to pay dirt cheap spot rates in April when the market was dead, and are suddenly flabbergasted when the market flips and they have to pay an arm and a leg to find a truck now.

    Carriers were up in arms in April when the rates were in the dirt and were marching on Washington wanting "transparency" and "just a fair rate", but are just as happy to rake shippers over the coals and charge $5+ per mile right now; I promise you Rick Santiago isn't heading over to Washington right now to make sure "fair" rates are paid to the truck.

    It would be great if there was a standard universal pricing that everyone (carriers, brokers, shippers) would abide by that would allow every organization to be consistently profitable and focus on working with partners based on relationships and service, but unfortunately I don't ever see that happening. Instead we have the dirty truckload cycle where each group is waiting for their turn to take advantage of one of the other players.

    And to stay on topic, it feels like the market hasn't gotten even a bit softer this week. Maybe it will start to cool off a little as we move through the rest of the week.
     
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  10. 86scotty

    86scotty Road Train Member

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    I couldn't agree more @JimmyTwoTimes. I don't really want standard pricing unless it means bare minimums for everyone. Standard pricing would be way too boring and would make everyone lazy. As a carrier NO WAY I would want some of the crap carriers I compete with getting a standard. Like everything else we buy let the market decide. He who doesn't do his homework loses.
     
  11. Gdog66223

    Gdog66223 Road Train Member

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    @REO6205 please make a thread called, "The Horrors of becoming an O/O", and merge this thread with it so other people won't get burned because of a flare up in rates.
     
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