Under $2/mile loads with $6/gal diesel.

Discussion in 'Ask An Owner Operator' started by kay_ray, Oct 11, 2022.

When will another strike happen

  1. No strike

    44 vote(s)
    43.6%
  2. Is $2/mile cheap ?

    4 vote(s)
    4.0%
  3. I run at $2/mile

    2 vote(s)
    2.0%
  4. Strike in 3 months

    1 vote(s)
    1.0%
  5. Strike right now

    16 vote(s)
    15.8%
  6. I don't care

    26 vote(s)
    25.7%
  7. I am a broker idgaf

    8 vote(s)
    7.9%
  1. rch10007

    rch10007 Medium Load Member

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    I'm not taking up his argument. I merely trying to offer a different perspective of where he's trying to come from. I don't agree with his idea that we need more government intervention, in anything, ever...ever. I will never agree with anyone that feels they need to be saved by the gooberment.

    I think that's where Joe is mixed up...and you point out hypocrisy. I see that. However, that doesn't invalidate everything he is saying. I'm just trying to be patient and try to understand where folks come from instead of arguing vocabulary. That way, we can all continue moving forward and continue a conversation instead of getting hung up on perceived personal slights...

    I blame everyone for where we all are. After all, it's up to each of us to contribute to whatever they think will continue moving us forward. Some of us get hung up along the way and need a gentle nudge. Sometimes it's a swift kick in the butt.

    So, to sum it up:

    1. Broker's figure out what they can safely charge a customer and then must pay to have a load moved. What's inbetween is their profit. I don't care if that was 90%. Good for you.

    2. The rule is they have to share what they charge. They think they can get around the rules by making you sign a contract. However, there is case law that proves that you can't sign away rights assigned to you by the government...it doesn't matter what the contract that you signed says. This is the unETHICAL part.

    3. Nothing above matters IF carriers were open with one another. If you told me that you get paid $2500 from Nashville to Jacksonville, I'll make #### sure I charge $2500 too! I may have been charging $2200... OR, we can have a conversation as to why you are charging more than me...maybe you're too high in a lane. Where is this conversation taking place?

    4. If brokers had more data from carriers about what their needs are - rate for a lane - then, they can provide their shippers with a better value and possibly more consistent rates. That's win, win, win. People complain about what brokers GIVE them. You don't have to take it! We have to do better working with one another. I think some of the complaints come form ignorance, no offense.

    5. That ignorance is how to calculate your lanes and rates. If your mentality is that brokers are "giving" you a rate, that's the problem. You are in command of what rates you accept. You can offer your own rate for that load IF you know how to calculate a rate. I assume many carriers don't know how and that's why we don't have a conversation about it...nobody would be talking, just listening.
     
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  3. LoneRanger

    LoneRanger Road Train Member

    3,675
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    Jun 3, 2018
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    If mega carriers can outsource driving they will.

    Does remote driving sound familiar?

    in the end owner operators of DV and Reefer are out as this is the core of freight in the US.

    nothing against capitalism and in fact I want it. My main concern is apply the rules to all.

    owner operators have first year DOT audits and audits when a DOT officer feels like it. Brokers? Not so much a peep from the US government about running a legit operation.

    rates will improve 20-40% if double brokers are kicked out. That’s a start.
     
  4. rch10007

    rch10007 Medium Load Member

    560
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    May 26, 2007
    Madison, AL
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    Any government intervention is never the answer. That just gives them further cause to waste more of our resources.

    "We" must initiate the change we seek. Brokers could freely share their data, just like carriers could. Instead of trying to force the brokers, why not just ask other carriers what their RPM is in different lanes? Then, it doesn't matter what brokers make...the carriers would know what to expect. No O/O has the time to continuously calculate market rates for lanes. However, if I'm taking a load from Kansas City to Billings, I could figure out what other carriers are legitimately getting paid coming out of Billings to wherever.

    Imagine driving to Orlando and being able to make the case a load coming out should pay $3 per mile because there is proof that's what we are getting paid. Brokers will say, well we can call 1000 other trucks. Guess what, if 60% of those other trucks were looking at the same rate information, the broker no longer has control over that rate or lane.

    That's how you work around the problem. You don't push a mountain down, you walk around it.
     
  5. blairandgretchen

    blairandgretchen Road Train Member

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    Dec 9, 2011
    South west Missouri
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    I used to be pretty naive about this business. Fairly positive attitude - expect the best out of others. Karma doesn't always work as it should. I'm with LS, so you'd think (Ha!) there might be just a little unity . . .Not so. Also open deck freight, but I don't think that matters.

    I had a guy pretend to be my friend, while running out and buying the exact specialized trailer I had, THEN telling complete lies to the agent about me - in order to get the very small amount of freight that I had, on a lane that HE ALREADY RAN DEDICATED WITH LEGAL FREIGHT - because it paid a couple of dollars a mile more than his lane, every other week.

    There's another one that still thinks I'm getting all the freight from an agent I haven't worked for in 4 months.

    Then there's the driver/agent that attempted to get ALL the freight from a shipper after performing a sub-standard service on a super-load, there's many more.

    I had to learn pretty quick - and it was from a lot of older drivers - that you keep under the radar and go about your business.
     
  6. MartinFromBC

    MartinFromBC Road Train Member

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    Oct 19, 2018
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    That didn't make sense, but beyond that, you're just the hauler to them. Take the load, don't take the load, someone else will if you don't. They are not going to get stressed out about you taking it or not.
    Especially if you go in demanding their numbers, or being a PITA, they will be happy your not hauling for them.

    This is Much different, and I realize that. But I give a very substantial amount of work to O/Os, and a couple small companies. Have been doing so for a long time. It's no secret that I keep a piece of the pie for myself.
    Probably 8 years or so ago, 1 O/O decided to complain about my piece of the pie being larger than he felt I should get.
    So I stopped using him altogether, and seeing that its a small town, and he was too stupid to shut up and not tell people, he earned himself a rep for being difficult to work with, because of his grumblings. Soon nobody would use him, and he went broke. I know the guy who bought his gravel truck, that fellow politely came to me, and asked if I could toss him some work when I had it.
    I said these are my terms, rules, and they are not negotiable, and whining will mean that you never haul for me again.
    He agreed, and has regularly been getting work from me for the past 7 or so years. He never ever complains, and always says thanks to me for work I give him. With no good place to park his truck at home, he has also been parking it in my yard for the past 6 years or so. I don't charge him very much, cheapest parking he will ever find, and he knows it. He is grateful, and thanks me for that to. But I can guarantee you that if he grumbled about the parking fee, or something else, he will instantly be finding a new parking space, and never hauling another load for me.
    Sometimes people who should be showing gratitude for the work they got, instead complain, and it backfires on them.
     
    Last edited: Oct 13, 2022
  7. blairandgretchen

    blairandgretchen Road Train Member

    13,377
    71,914
    Dec 9, 2011
    South west Missouri
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    To my understanding - the agent (owner) receives 7% of 90% of the linehaul. FSC is passed through.

    $1,000 load - LS takes 10% off the top. Agent breaks out $150 FSC (example) - so $750 is left. Agent (owner) gets $52.50 cents.

    Now - if agent (owner) employs 10 other sub-agents then that's an arrangement between them - hourly plus bonus? Salary? Percentage split?

    So, the sub agent on the phone in Albania (deadly serious) that sounds super eager to get you to take the load -
    1. Doesn't have it - will have to call TQL or ABF or BNSF or whoever.
    2. Has very little idea of the specifics of the load or what is required.
    3. May make enough on the load to buy lunch and keep the laptop on for the day, which - in turn - leads to . . .
    4. Will be of absolutely ZERO help if ANY issues arise.
    That's if you're a LS driver.

    If a LS agent brokers the load to an 'approved carrier' (anybody can be) - the $1,000 load is sold for $700 - the $300 is split between agent and LS - after the 10% off the top. $1,000 load - Carrier gets $700 - LS gets $100 AND THEN LS and agent split $200.

    So - why even use a LS driver? Funny that - some agents don't. Actually advertise - "We do not load BCO's".

    All this mainly applies to the van freight. The ONLY edge I have in the system is to haul platform and specialized, and be able to offer service and knowledge that a far smaller percentage of my peers can. And I can still be pounded into the dirt by someone willing to do it cheaper.

    Disclaimer - I'm neither Pro nor Con the company. I'm leased on there, and that's how it works.
     
  8. PoleCrusher

    PoleCrusher Road Train Member

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    LLMF
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    Trucker A: "The government is too big. I don't like like how our industry is so regulated compared to others."

    Trucker B: "Yes, I know. It's not fair and I think I should get more money. What you think we should do?"

    Trucker A: "Yep, the government is too powerful. I say we give the government more power, that will really show them."

    Trucker B: "Yes! We give the government more power, because we believe in freedom! Then the even bigger government will make it so I get more money. Yay government!"

    Me...
    PicardDoubleFacepalm-1.jpg
     
  9. LoneRanger

    LoneRanger Road Train Member

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    Rules for thee not for me isn’t capitalism. Free markets means free markets.

    no one has contested the fact that owner operators are regulated to the point of death yet brokers are not.

    either no regulation for all or everyone is regulated. When everyone plays by the same rules free markets can be established.
     
    RJM1953 Thanks this.
  10. KrumpledTed

    KrumpledTed Medium Load Member

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    May 6, 2022
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    Yikes.
     
  11. rollin coal

    rollin coal Road Train Member

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    TN
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    Lol... I don't think everyone is out to get me. I think you're naive believing that sharing your hard earned rates & lanes information will not allow some turd to come in and undercut you. Not everyone has their #### together out here and there's a lot of desperate people who wouldn't think twice about undercutting you.

    Here's the deal with brokers. If you want to use a regulation from the past not even relevant to the times to try and make them show you their rates go for it. You'll find yourself on DNU's at every one you try that on. The problem here isn't brokers, rates or a lack of transparency. The problem is you. There's a lot of opportunity out here but nobody's obligated to hand it over to you.
     
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