what is cheap freight

I have been averaging over all miles per week for my 3 trucks an effective rate of 1.46 per mile for the past 2 weeks. 2 of my trucks have been running 2100 miles a week while the third is running 1800. Now, this does not mean all loads are pulling that rate, I have some that are pulling 2.20 while a short one here and there only pulls 1.06. You have to work on an entire week, not just by the load. If you do, you will be stuck when you pull better paying freight into a cheap area and then get frustrated why you can only find loads for $1 a mile. You have to know a game plan before you go into the bad areas, and as a rule, if it pays extremely well, there usually is a reason why. By the way, my trucks are also averaging about 350 miles a week DH on top of the paid miles. I do not pay my drivers for DH (nor myself), it is just a part of survival at this time.

 

Working Class Patriot answers this perfectly. Sure they can still sue you directly but it's A LOT harder with a dummy company. We've got 3 companies, one owns the equipment and leases it to the other company. The actual trucking company is responsible for maintenance, which means if something fails and causes an accident, or anything could be blamed on maintenance the trucking company is liable and is completely disposable. You might get some cash but your not getting my house or equipment.

Am I the only one that doesn't take a load from point "A" to point "B" unless I can get back to "A" for a good rate? Or the first load has to pay enough to average a good rate while driving back empty? I mean sorry but I can sit on my couch and make nothing, all while not burning fuel or racking up miles. Sure we've all made bad choices and took a load to somewhere and had to drive hrs to find anything back, but some people do it weekly. The only good thing about those people is they don't last long in business. Some peoples only purpose in life is to serve as an example to others.

 

You also need to consider averaging......

One day you can get a load for $2.50/M and the next day it will be $1.30/m......

Where $2.50/m is "good" and $1.30 is "cheap".....

That "cheap" load is your way home....it averages out to $1.90/m...although some would try to hold out for another $2.50/m load......

 

That's the key to making a profit in this climate is keeping DH to the absolute minimum...Our problem is our runs average only 1150wk at 1.50cpm.

 

I used to figure I could DH a maximum of 150 miles for a load based on getting paid for my empty miles. I quit doing that when I went on my own and decided if I couldn't get out and back I wasn't going. I do not believe in "backhauls" For me there is no such thing. I insisted on a rate from point A to point B and a rate equal to or better back to my area. Caught a lot of flack over it but stuck to my guns and usually got the rate I wanted. Had to do some hard nosed negotiating but that's the nature of the beast. I also always figured what the load averaged out and back. The key to it though, in my opinion is to know your cost-per-mile and stick to your rate. If somebody esle hauls it cheaper-let'em. I found the brokers I dealt with respected my position and would 1. Give me the best rate initiatially 2. Offer me a rate and than I could accept it or counter. Truthfully, I countered and usually got the rate I requested. If you are hauling loads for less than your costs that's your fault. Brokers always have some room to deal. Get the best deal you can. JMO

 

You are spot-on stepnfechit, I called on a load this week that was 900 miles, posted rate of $1000 dollars. I simply told her I could not move it for that, she says what you gotta have, told her $1400. She took it and faxed the paperwork over.

Point being these brokers are always looking for a sucker.(there are lots of suckers out there) Brokers ALWAYS have room to neg.

It is just a Game, and if you survive, you better learn to play it Fast.

 

the usda has a web site (www.ams.usda.gov) which breaks down in great detaile the voulume of commodaties shipped in a reefer trailer and what the average price (c.p.m.) that was received by the operator .
in the 2nd quater of 2009 the national average shown was $1.98 a mile .
if this is true it seems it would not be to hard to turn a profit.
it also showed the great lake region comanding a higher rate for the month of jan. then in june.
and the price was more for a load of lettuce from c.a. to chicago then from c.a. to n.y.c. could someone please explain why that would be

 

Well here's a thought. Obviously everybody would love to be hauling for $2-$3/pm, but, it obviously ain't happening. So here my thought. If I have been smart and kept down my overhead to a minimum, equipment paid for and I can haul loads from time to time for $1.15 or $1,30/pm and still be profitable why would I not if thats all I could get at the time to get me to a better load? Yeah I would want that $3.00 pm rate all the time, but if I have to take a "cheap" $1.25/pm load to get back to my better load should I not take that just because others can't make a profit at that rate even though I can? I think not. It's not my problem they need $1.75/pm to show a profit and I can make one at $1.25. Anyway just a hypothetical thought. Anyone care to chime in? I'd like to hear your responses.