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

Headed out of the house with a load and was looking at next weeks outbound where I will be, one load was going into a black hole with at least 200 miles dead head for anything. With a good reputation I call the broker up since this could get me closer to where I know it is sweet.

Broker would not go another 200.00 more, why? Because he gets it moved for the going rate from someone.

 

Crazy D

You are 100% correct, the shipper does pretty much set the rate and it is up to the Broker to try and move their loads and make money off those rates they give you and in order to do that now days and keep everyone happy the honest brokers are getting anywhere from 5 to 9% if that on some loads. Sometimes we can go to the shipper and ask for more money and usually get more but that usually always all goes to the truck to get the load moved and it is usually never what the truck asks for but we get close to it..

Some shippers the rates are what they are and never change and we can never get more money out of them, those are usually fair rates and could be better but I stay away from all lumber loads myself just because I know the truck needs to make money and so do I and I have never figured out with lumber loads how we can all make money and everyone happy. Even if I give it all to the truck the truck still is not happy as those rates are terrible and always have been and than I have a truck that is upset with me and will probably never call me again over a cheap load of lumber or think all my loads are cheap and still don't call me back and it's the trucks that make me a living and without the truck I am nobody, simple as that..

 

Aiwiron,

If that is the case and he gets it moved for the going rate than why does he have them posted? Most loads move for the going rate.. Of course everyone operating expenses are different and some carriers seem to need more to operate than others do and when your in areas where the rates are all at the going rate and as a carrier can't seem to make the numbers work those are the carriers having a harder time than others in these tough times we are all experiencing right now. If the rates are at the going rate and the customer knows that and gets his loads moved for that he is not going to pay a couple hundred more $$ to a truck that ask for it when he gets them moved for what he is paying just because one truck thinks he needs more profit in the load than the other truck does. I hope that makes sense?

 

It has as much to do with the information age as anything else. It is easy for them to post on ITS. It is also easy for trucking company to locate the customer and work direct. Lumber companies tend to accept anyone that will haul their load that has active authority and insurance. All of this helps them keep the rates (costs) low. Truckers are more likely to haul the load if they can keep the 10% brokers cut for themselves.

 

We get an email from a lumber place that specifically states "No Brokers" and do not post on ITS or any other load boards. Believe it or not, there rates aren't bad and its no tarp.

 

Understand what you are saying but this came off a non public load board, a carrier has to be qualified to even log in let alone reserve a load. Here is the road scholastic economics, no matter what a carrier can do to keep over head low the fuel cost are the same for pump price since they do not farm out to mega fleets, well not supposed to.

When he said it was going to get moved at the posted rate it was true, owner operators sometime shock me even today that they suck up a load and do not think it over to the end. Some one will have a good deal of dead heading to even get to a fuel pump let alone the next load where it was going.

Just saying is all, not degrading or bashing.

 

cpape,

Still at 10% on a $1.25 CPM rate with 48,000lbs and full tarp will not help much, as to myself that is not worth my time and still not good enough rate for most of my carriers that pull for me regularly even without my 10% and with lumber it's more like 3% to 5% and we all know that is not worth messing with as if it gets that cheap nobody can make any money and we are all out here to make a honest living..

The thing that kills me and I see everyday is lumber loads are all the same even in good freight lanes that pay way better than $1.25 a mile. Most lumber loads I dealt with years ago the shipper is in no hurry to move them so they leave the rate where it is and eventually someone will come along and take it, we see that anyways and not with just lumber, it's sad....

 

Don't get me wrong, we don't often haul lumber. I won't allow my drivers to tarp (too much work comp exposure) and we can only scale 48K 50% of the time depending on truck/trailer combo. My point is that from a bad area to a better area I would be more likely to accept that load of lumber directly from the customer for $1100 than through a broker for $1000.

 

If I am understanding you, UTI, you have discretion on which loads you take and try to move? I kind of figured this was the case, but haven't asked a broker straight up before. I have wanted to ask them what they were thinking when offering 48,000 pound loads (lumber, sod) for $1.30 per mile or less. Seems the heavier the load, the less pay that is offered.

I do have this one question to ask of you: To whom is your loyalty? Is it strictly to the shipper to move the load or are most brokers trying to strike a balance between shipper and carrier? It seems you have some good shipper that keep you busy and some good drivers that move your freight efficiently and reasonably.

 

Gentlemanfarmer,

It all starts with the customer/shipper, truck and myself as it takes a good relationship with everyone in order to make it all work like it is supposed to. The good shippers and carriers all come with in time and over the years you build a good relationship with shippers and carriers and if you do you job right and honestly all that will come to you within time.

Everyone is different in this business and everyone does business different as we all know that, just like carriers and shippers. Certain carriers will haul certain things and there is a shipper to meat everyone needs in most cases. I'm ONLY speaking for MYSELF and nobody else as I can't say how others do it but I think if you been in this business long enough you all know this and I'm not telling you anything you don't already know.

I have had many shippers over the years and same with carriers and I have seen a lot come and go on both sides of the fence, even brokers too. It took me many years to build a good relationship with carrier and shippers and that comes within time and if you take care of the shippers and meat their needs and in order to do that you also need to do the same with carriers as it takes the carriers to get the job done. I can have a million loads to move but if I don't have the carriers to move them I am nobody and in order to have good carriers you have to treat them right and pay them well too. I know my customers and I know them very well and same goes with most of my carriers that haul for me regularly and I know what it takes to get my customers loads moved and after so many years working with the same carriers and shippers it all comes together.

I have been at this long enough to know all the areas and I have found out over the years I usually just work the areas where I have regular freight and where I know I have trucks to haul my loads, that makes my job a lot easier. That all comes within time. I have my slow times just like you guys do too.

Again I can not speak for everyone out there but let me tell you this much, all my rates are from the shipper and whatever he or she is paying than I need to make my money from there and yes even my regular shippers that I have worked with for 10 years and more are all wanting to get their loads moved as cheap as possible but that is nothing new they have always been like that we are just experiencing difficult times for everyone in this economy.

I do have seasonal shippers too and I think this year was one of the worse I have seen with rates being cheaper this year and season than any other, not much but they are and I think all you guys have experienced the same thing and know what I'm talking about, specially with fuel prices like they have been all year and rates haven't changed any with fuel either if anything some got worse but I never had any rates go up this last year either in 2012.

Guys I hope that helps and again I'm only speaking for myself here and AGAIN EVERYONE is different and do different things and do business different ways. Some good and some bad, we are all in it together. Hang in there as things have got to get better, I just wish I knew that answer that everyone is looking for and that is WHEN?