I can tell you why rates are so low. Its not fuel.

ATeam

Senior Member
Retired Expediter
Do we hang it up, do we tuck tail & accept failure, do we remain on that corporate leash they have us on ....?

A good number of expediters do hang it up, each in their own way, though I don't think most would consider themselves failures.

Diane and I knew one long-time FedEx Custom Critical team that got out to become resident managers of an assisted living facility. Concerns about their retirement drove this decision. They did not see their White Glove work providing the way to the retirement lifestyle they sought.

It was not our primary reason for leaving expediting for something else, but when it became obvious that we could not replace our full-featured, big-sleeper truck with the money expediting would provide in the future (and higher truck prices), we looked for and found another option. Before, expediting empowered us to pay off our truck in less than two years. Looking ahead, that would not happen. Not willing to accept less of a truck to stay on the road, out we went.

Expediters vote with their feet every day, and in that sense they make their desires known. The industry adapts to the supply of trucks and drivers at the time and somehow the freight keeps moving.
 

Moot

Veteran Expediter
Owner/Operator
The truckers had it rite once when they closed down the country basically, but it seems the heart, soul & determination of what we & the truckers once stood for has taken a side seat, question is, why?
Strikes, shutdowns and blockades by independent truckers during the 1970's help usher in the Motor Carrier Act of 1980. That act opened the door for just about anybody to start a trucking company. Independents got what they wanted (aside from lower fuel costs) freedom to compete with the big boys and with each other.

How are you heard w/out a voice loud enough to reach the final destination...???
If you want to lose some of your freedom and independence join a union.

This industry needs to be "regulated" more as much as I do not like to say that. However, when foreigners can come here so easily and expedite and leave at their leisure doing this, along with former class a drivers that cant pass the new physical standards, they jump in a van, and we get lower rates. In the end, drivers dictate the rates.
Be careful what you wish for as to regulation. If you want to work toward eliminating drivers that can't pass a DOT Physical then lease on to a reputable carrier that requires a CDL for van drivers. Hey its a start.
 

la90043

Expert Expediter
Brokers, carriers and shippers have discovered that they can drive down the cpm for the driver by simply saying, "would you do it for .70 cpm? Or would you do it for .60 cpm? The brokers are largely maintaining their rate while increasing the amount they keep from the driver. Lets say a brokers bids the load at 1.00 per mile. They used to then give the driver .80 per mile. Now they are saying to the driver, "Hey, can you do it for .70 or less? So instead of keeping .20 per mile, they are keeping .30, or more. As drivers, we tend to trust our carriers or brokers and count on them. All of them are not doing this, but a high enough proportion of them are to have a large negative impact. Many brokers and carriers know that rates that are too low will drive the driver out of business and so avoid the "short changing" the driver. If you put drivers out of business, who is going to keep brokers and carriers in business? Many, however, just don't think about that. Its about getting that extra for the moment. Idiots. Driving a van for less than .75 cpm as an owner operator, at current fuel prices, will not keep you in business in the long term, even if your van is paid for. Vans don't have eternal life. Savings have to be built. Insurance, maintenance, etc. Lets say a broker has a load and they have 2 vans in the area, they will call one driver and ask how much they will do it for. If that driver says .80 cpm and has been sitting for 3 days, they will call the other driver that has been there for 1 day and ask them if they would do it for .70 cpm. Guess who gets the load? This did not use to happen at the scale it is happening now. If drivers simply stopped running at these rates it would stop. You will not be running for long anyway. Wake up.
It's all about supply and demand.
 
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Marty

Veteran Expediter
Just like fuel prices. Supply is up due to fracking and lack of agreement among oil producing nations to keep production es b doiwn. Since supply is up demand for corporate profit is up.
If supply of expediting vehicles is up causing rates to go down shouldn't we be discouraging newbies from entering the industry at this time?
 

RoadTime

Veteran Expediter
Owner/Operator
If supply of expediting vehicles is up causing rates to go down shouldn't we be discouraging newbies from entering the industry at this time?

Many do including myself, but then we get called, old farts, unfriendly, unhelpful, discouraging, then they enter anyways since we don't know what we're talking about. After all, expediting is a gold mine and anyone can do it
 

OntarioVanMan

Retired Expediter
Owner/Operator
anyone really want to spend 168 hours a week out here?....and live in a tuna can...after a broker has fooled around looking for the cheapest..YOUR dispatcher now tells you that YOU must rush over there NOW...ASAP....they can go screw themselves..they get the service they pay for...minimum pay you get minimum effort and I'll swamp you with every accessory charge that pops up.....Ahole.......LOL
 

Murraycroexp

Veteran Expediter
anyone really want to spend 168 hours a week out here?....and live in a tuna can...after a broker has fooled around looking for the cheapest..YOUR dispatcher now tells you that YOU must rush over there NOW...ASAP....they can go screw themselves..they get the service they pay for...minimum pay you get minimum effort and I'll swamp you with every accessory charge that pops up.....Ahole.......LOL

At least you get paid for them now. LOL!
 

Ragman

Veteran Expediter
Retired Expediter
anyone really want to spend 168 hours a week out here?....and live in a tuna can...after a broker has fooled around looking for the cheapest..YOUR dispatcher now tells you that YOU must rush over there NOW...ASAP....they can go screw themselves..they get the service they pay for...minimum pay you get minimum effort and I'll swamp you with every accessory charge that pops up.....Ahole.......LOL
A little grumpy this morning, were we?
 

davekc

Senior Moderator
Staff member
Fleet Owner
anyone really want to spend 168 hours a week out here?....and live in a tuna can...after a broker has fooled around looking for the cheapest..YOUR dispatcher now tells you that YOU must rush over there NOW...ASAP....they can go screw themselves..they get the service they pay for...minimum pay you get minimum effort and I'll swamp you with every accessory charge that pops up.....Ahole.......LOL

Is this what happens when a stroll through the Walmart lot nets no change? :p
 

brokcanadian

Veteran Expediter
Owner/Operator
On that note (bull crap) I've just calculated my gross income from Jan 1 to now this year. Works out to 1126 a month gross. Before insurance and repairs ( after fuel ). Hmmm

Maybe someone should post that in the newbie section
 
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Windsor

Veteran Expediter
On that note (bull crap) I've just calculated my gross income from Jan 1 to now this year. Works out to 1126 a month gross. Before insurance and repairs ( after fuel ). Hmmm

Maybe someone should post that in the newbie section
Now I see, your the one hogging up all the freight.
 

brokcanadian

Veteran Expediter
Owner/Operator
Now I see, your the one hogging up all the freight
Up until this year I was guaranteed 2500 a week. Now I've had a lot of time off between vans and family medical issues but it looks like I have to revisit my business plan...
 
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