Why does "backhaul" refer to cheap freight?

Discussion in 'Ask An Owner Operator' started by TX_Proud, Mar 4, 2008.

  1. 2hellandback

    2hellandback Heavy Load Member

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    AMEN Thats what i do and most brokers think im NUTS:biggrin_2556:
     
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  2. CHITOWNLOU

    CHITOWNLOU Bobtail Member

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    Its because you don't understand the freight forwarding industry. Most otr carriers have dedicated routes and offer pricing based on one way transportation. They usually have loads going back as well. Most people only understand this quoting method and base all their quotes on mileage ONE WAY. If you are a owner operator and only have a load going one way and would be coming back empty, yes they would want to pay less because that is what they call a BACK HAUL. If you did have a load coming back, then you would not be considered a backhaul. Most real backhauls are owner operators that have freight going one way only and are coming back empty. So yes, it would be doing the driver a favor if they were coming back empty anyways.


     
  3. HDFatboy

    HDFatboy Light Load Member

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    The only one they are doing a favor for is themselves by driving prices down. You are a business and charge X amount of dollars for your work, why let someone else tell you what you will take? Why drive yourself out of business by running for just fuel money and giving someone else a great rate? Do you walk in McDonalds and tell them what you will pay for a hamburger?
     
  4. CHITOWNLOU

    CHITOWNLOU Bobtail Member

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    You are not getting the picture. The problem is your comparing apples to oranges. If I can ship freight from Chicago to LA with a carrier that already has a regular route there with cargo going both ways, they offer me pricing based on that one way. Thats what the forwarders/brokers are basing our pricing on. When you have smaller owner operators that dont have the regular routes going both ways, thats where you get people running back empty or partial loads. Brokers and forwarders are looking to help those guys out that have partial or no load to come back with and offer them a load if they can give a discounted price on moving it. Most of those guys that took the original cargo to their destination, should have already put in their cost to them for BOTH ways or they are just plain stupid. How would they afford to get home with no load going back?? So anything they are offered going back should be extra money in their pockets.

    If your not including getting home on your original load pricing going out somewhere, then your shooting yourself in the foot and deserve to come home on your own dime.
     
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  5. carwreck

    carwreck Light Load Member

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    first off, it's obvious you're a broker. second, no, this is a term brokers came up with to try to explain why they should pay less for a load to a carrier, while keeping a higher margin for themselves than they would on an average "headhaul". This is business, you want my services, it will cost you an x amount. If you can't afford it, too bad, find someone else to sell your theory to. Don't try to tell us how to run our businesses, we're doing just fine..
     
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  6. BigBadBill

    BigBadBill Bullishly Optimistic

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    Was pitched a product for my brokerage business that will pull-up a map showing where the number is based on so you can easily see if the load they are calling on is taking them home. The pitch was something like "The most profitable brokers know a driver will take a cheaper rate going home. Make sure you know where "home" is before you give a rate."
     
  7. Oscar the KW

    Oscar the KW Going Tarpless

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    That wouldn't work for me. If I can't find the number I want when it comes time to go home I will go empty.
     
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  8. mbarseghyan

    mbarseghyan Bobtail Member

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    Hi Everyone, sorry for interfering in your conversation with another question. I was wondering if you know approximately what percent of truckers are backhauling and what percent is deadheading? I need average numbers for the industry in general, as I am doing a small research on that topic. Would appreciate your help. Thanks!!!
     
  9. BoyWander

    BoyWander Road Train Member

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    50%? 100%?

    everyone lives somewhere....




    I would never tell a broker where I lived, and I would never let a broker know where I want/need to go.

    If you want to win the game, you have to out negotiate the brokers, who I'm sure do 5x as much negotiation as the average driver/owner/dispatcher.

    I haven't ever booked a load before in my life, but after reading a crapload of info off of this website and others, I think I would know better than to tip my hand to ANYthing.

    Anyone play poker? I've played a lot of hold'em, both live and online, before the online was forbidden.
    ever give your opponent a read, keep your cards close, know when to bet big and know when to slow roll, know when to hold em and know when to fold em.
     
  10. Clasix1055

    Clasix1055 Even when I'm wrong I'm right

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    All I will say is you have tons to learn....smh...

    I am too close to being "retired" from this fourm or I would actually tell you what I think of some of your statements .... So to put it gently step into the arena before you start making assumptions on how to handle relationships with people whom you have a business relationship with...and FYI when they pull your MC number they know exactly where you live...smh

    P.S. I play tons of WINNING poker all over the State of Michigan in chairty rooms and the D .... Dont be fooled by false reads