Why oh why are you drivers taking this cheap freight????

So in general what is the price point for O/O to haul for? Yes I know it will vary from truck to truck but to make any type of profit what is a general ball park figure for CPM? I have read some drivers won't take anything under 2.00-2.25 a mile while some will haul for 1.80 a mile.

 

For me it just agitates me that most van freight pays $1.30-$1.70/mile and so Flatbed shouldn't be under $2/mile at all. Then add the fuel surcharge on top of that rate. There shouldn't be any loads being offered without a fuel surcharge on top with fuel prices.

 

Bill, I read alot of your posts and I think you are a very smart person (more so than myself anyways). I agree with 99% of everything your brain converts to words. I have even visited your website. However I have an element of guilt, taking cheap loads, I feel like I'm hurting my brothers out there taking cheap freight. I figure that I would rather be part of the solution instead of being part of the problem.

 

Your loaded miles only rates should always be above $3 a mile regardless what kind of wagon you pull. Now somebody hammer me and tell me it can;t be done..... Those numbers you posted those are, or at least SHOULD be, goals set by guys (everyone's number on that is different) that include ALL DEADHEAD miles into the figure. Deadhead miles do not just go away. They cost the same to roll as loaded miles and must always be figured in price. That said, there may come a time when you deadhead 200 miles to get a CHEAP $3 a mile load on 150 miles loaded, because all of the REALLY cheap stuff closer than 200 miles is embarassingkly cheap as in $1 a mile - a total waste of time... Put it in the wind.... The key here is you need to build your numbers over longer periods... forget looking at things on a weekly basis a week is nothing and unimportant... The smallest you need to keep track of is monthly then quarterly, then annually.... then you see the BIG picture and you realize that 200 miles to pickup a load is nothing. If you stress over week to week numbers you'll always be frustrated. You'll look at how that 200 mile deadhead just ruined a decent week and you'll think to yourself I already have 300 miles deadhead I just cabt do another 200 hundred... ....whereas if you keep track of the trend and know what your numbers are for the preveious weeks then you might see that it only brings you're running 30 day tally average down form $2.35 a mile to (example) $2.32 a mile if you deadhead that 200 miles.... Then you realize what many here will tell you,. it's always better to put it in the wind... That said, I set my goal this year of $2.25 a mile to the truck all miles in. Still a few weeks to go in the year but I've fallen short by 12 cents a mile year to date. Do not read that as "I believe $2.25 a mile is a good rate". $2.25 a mile is a bargain, low end rate. Better than most spot to be sure, but really only a start point to negotiate UP. My deadhead is right at 25% and my loaded miles only rate to the truck is around $2.90 a mile. That is a very cheap loaded miles only rate to the truck. I had a rough Jan and Feb this year and was still learning. Without those two months I'm at $3.40 a mile loaded. So in short $3 a mile is what one ought to shoot for... ....and try to keep deadhead low enough so that it does not drag the overall rate down below $2 a mile... When guys say "I want to average $2 a mile, or $1.80 a mile" that means they are hauling freight, or OUGHT to be, that pays sigtnificantly better than $2 a mile... I hope that makes sense... It's not so simple as "$2 a mile is good".... ...$2 a mile is fast speak from a broker that will have you rolling cheap........ There is no simple answer, or at least I couldn;t come up with one, you have to come up with your own minimum then fight for every scrap well above and beyond that so the deadhead doesn't kill ya.....

 

Rates to the west coast are just unbelivable to me. $1.00 to $1.30 per mile. I was in shock at the rates comeing out of Denver today heading west. I'am out of my normal lane right now, hope i never get back here for awhile. I played the game from 0600 this morning to 1500 today to find a load to Oregon. Best i got was $1.85 per mile for a dry load in my reefer, and thats because the broker had to get it moved. I'll stick to the direct frieght on the west coast before i come back here. This morning frozen loads were flying of the board for $1.00 a mile, crazy if you ask me. Brokers moveing frieght west must scrape $1200-$1600 of the top out here......come to think of it, i should be a broker......

 

You got $1.85 out of Denver ??! do cartwheels dude !

 

I guess rates are going down because there are too many trucks out there, and companies are willing to run at a loss rather than not run at all - remember, you have to keep your driver happy or they will quit and go find someone else. It's a mad dash to keep tires rolling - and they know they're taking a loss, but they keep hoping that if they can hang on one more week, one more month, taking a loss here, making a little profit there, that they will make it in the long run - that they can scrape by.

Independents are a worse position - because they can't just quit and go work for another company, unless they'd want to try selling their truck and trailer, cut ties with insurance, etc etc etc.

Truck capacity has been way up, and freight has fallen over the cliff since the election. No surprise there.

http://www.dat.com/Resources/Trends-and-Reports/Trendlines.aspx


http://www.dat.com/Resources/Trends-and-Reports/Trendlines/Freight-Capacity-and-Loads.aspx


I have been seriously thinking about buying a truck, but now I think I will wait until late February to see what the economy will do.

If freight shipments goes down, I'm hoping capacity goes down even further, and that a bunch of companies will say screw it, then I will come in and scoop up freight where it's not being booked.

 

Rates are low too often. I pull flat & do well. I have a business attitude, not a truck driver attitude, which can be the same or different. I don't see why anyone would run for less than what it cost to operate, but some do. I do see why rates vary. some may need $800 a week take home others may need a lot more. there is a minimun that every truck needs to justify even being in business. I don't think I haul cheap freight, but others may think I do for what my loads pay. there is a lot to consider when I take a load, not just the pay per mile. my run is dedicated. here it is. from home drive 12 miles to pick up load. wait time to load afterr I get there 15 min drive 180 miles 3 hour max pay's truck $450-500 drive 1 mile to reload right back to 12 miles from home & unload. 2 times a week I may deadhead 50 miles to get reload, but it pays more. loads coming back pay 2.54 per mile gross. or $450.00 for 177 miles. and $3.15 a mile gross or $350.00 gross for 111 miles. I get 77% of the gross. now I do not know if anyone here would call that cheap freight? I drive 6 hours maybe & home every day. only work mon thru thurs. have worked maybe 2 friday's in 3 years. do not sleep in truck, always within 200 miles from home, can almost always get work done at my local shop if anything happens, that saves money too. I dont compare what I make to anyone else. but are my loads considered cheap? I am never short on money to pay all expensis on equip & make enough to pay all bills & put some away too.

 

You do have the choice to run empty to your destination rather than take the cheap load. Just saying.

 

bill does make an excellent point, a point that most of us already know, even though it kills us to admit it

bottom line, we are out here to make money, and just because things dont go our way, we should not bite our noses to spite our faces

if we look at our loads on a monthly basis instead of daily, or weekly instead of per trip, it makes sense to aim for a weekly gross revenue of $5k, without killing ourselves

i am sure there are those here who have doubled that in a week, sometimes

so if a load is paying you 90 cents per mile, but it gets you to better paying $2.90, you have averaged, $1.80 (all miles equal of course)

they say a truck needs to average about $1.71 to be profitable, i find that on my side to be an accurate assessment (some of us may need more) that averages out to a bit less than 3,000mi/wk @ 6mpg is 487gal, x $4/gal is a net $3,000 after fuel. Minus your insurance and stuff. its not bad money (for me)