What do you think mandatory detention pay would do to owner operators

Discussion in 'Ask An Owner Operator' started by BAYOU, May 30, 2014.

  1. TLeaHeart

    TLeaHeart Road Train Member

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    the carrier set the rate, and the shipper accepts that rate, cost to the shipper goes up, they will find another carrier willing to do it for less... that is business... the government mandating detention pay will not increase rates, but will decrease pay to the drivers, as the government always puts in unexpected regulations. Mega shippers set the rates, and the carriers accept those rates, or loose the loads...

    and as someone else has stated, the government forces shippers and recievers to pay detention, you will see the late appointment charges at many more shippers and receivers.
     
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  3. TLeaHeart

    TLeaHeart Road Train Member

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    You do understand that companies like walmart, set the rate they are willing to pay, and the carrier either accepts it or looses the loads.

    Smart owner operators who understand business, get those direct customers, and come to an agreement that benefits both parties. They also know what there costs are, and what they will accept or refuse...

    Yea the carrier sets the rate, in LIMITED cases. The carrier accepts the rate offered, or does NOT haul the load.
     
  4. Foxcover

    Foxcover Medium Load Member

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    I think you have it backwards!
    The only curveball in this equation are carriers that haul cheap for the reasons you say, (to get the work). This is the problem, as long as there are foolish carriers that will haul for the price they are told they must haul for by the shipper irrespective of size, then the perception that the shipper sets the rate becomes the train of thought to a lot of carriers, large scale brainwashing if you like, just as you seem to think the shipper sets the rate, when in fact the carrier that accepted the low rate actually set that rate by accepting it. If that carrier or other carriers didn't accept the particular rate the shipper wanted then the shipper would increase the rate till a carrier started moving their product. That's why the carrier sets the rate, not the shipper!
    Unfortunitly there are a lot less savvy carriers than shippers.
    As you say, "smart o/o's or carriers who understand business", may not truly understand this business and sometimes don't do the smartest thing when it comes to rates regardless of how well in touch they are with their operating costs.
    The ones who base rates on their operating costs will usually be working too cheap, there are a lot more variables and considerations to take into account than operating cost alone when calculating rates. The spot market freight is a good example of how rates and markets can be volatile, there are reasons for this and I would say 75% of carriers don't even realize why.

    Oh, and just because a shipper such as Walmart are mega shippers shouldn't have any baring on the rate, the rate should be the rate regardless if it's for walmart or Joe Schmo down the street.
    Sure, Walmart can buy more trucks than what they already have and do all their own trucking but their costs and risk will be a lot higher than yours or mine, hence the hourly detention time that needs to be paid to the driver, the whole premis of this thread. That's why I believe it would be a good thing.
    The higher a mega carrier or shipper with their own trucks cost is then the more profit the rest of us can make and still be competitive doing that same work!

     
    Last edited: Jun 10, 2014
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  5. trees

    trees Road Train Member

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    I know my costs, and that is something of a basis for my rates, but not really......

    You see, I'm interested in what the market will bear.

    Think of me as equally opposite to the broker.....

    Kind of an anti-broker.

    The broker wants to move it for as cheap as possible, and I'm trying to make it as expensive as possible, both the broker, and myself, are trying to make money...

    At one time I'd ask, "what have you got for a rate on that?", until I realized how weak a negotiation tactic that was.

    Asking that is like having a gun without any bullets in it.

    Take the time to load the gun.

    In other words, make sure you're prepared. Know what you want, what you'll settle for, and at what point you walk away.

    But, and this is my point here, but under no circumstances do you let the broker dictate the rate.

    Detention is always IN ADDITION TO the rate.

    It's an accessory charge.

    Like unloading charges.
     
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