Is just us?

atmcffesuk · Apr 26, 2009

Is it just us or has FDXCC cut the rates down in a big way? The run offers are so bad they are not even acceptable.If you get a run offer for 200 miles worth of DH to P/U a 300 mile run and they are offering $501.86 Thats a buck a mile....Im talking WG freight. I cant justify running for a buck a mile and if you can you need to sit down and figure your cost per mile NOW! Also dont forget to add your .10 cent a mile truck replacement fund. It will cost any O/O a min. of .50 cent a mile with a paid for unit just to run down the road.If you have a pmt. and Ins. On a new truck ETC. you are looking at close to a dollar a mile no matter how you slice so dont even try to argue that. So next time you consider accepting one of FDX's new low rate loads carefully consider if you will come out a penny ,dime, or nickel ahead or if they will come out a thousand ahead.....its your biz dont be weak..........say no to cheap freight.Wal mart Co. drivers make 55 cent a mile.Swift O/O's make $1.33 to 2.00 amile come on now.Also a barrel went to above $55 on friday so be prepared for fuel price to jump. Just sayin.......wake up

Streakn1 · Apr 27, 2009

atmcffesuk said:
Is it just us or has FDXCC cut the rates down in a big way?

We felt we were seeing a lot of the drug loads we did paying less as time went by while with that carrier. It wasn't hard to figure out from the records of past loads done and what they paid per mile to the same load present and it paying less per mile, yet everyones cost to operate stays on a steady incline. Also we saw the customer wanting more services (DDPS,etc) yet the rate seemingly the same as before. If we were being paid for the extra services then the discounted base rate per mile wiped that out!

D Team Brothers · Apr 27, 2009

Who are you speaking to when you say "wake up"? After less than a month on the forum and posting three negative threads you're probably right; WAKE UP! JMO, I try not to give advice because I'm still learning.

charlee · Apr 27, 2009

Swift o/o are making .92 a mile + fsc. Everyone is lowering rates and fuel is steadily creeping up again. Does not look good for the trucking industry atm.

soxydun · Apr 27, 2009

It sure isn't just you. Last week, we had 3 load offers. 2 of the 3 were offered at $1.10. We are on another $1.10 load right now. The only upside is that they were mostly good miles. We have seen the trend towards lower priced loads coming and while we do not like it, seriously, what can be done to stop it?
We have alot invested in this and are getting old enough, where jobs are not as easy to come by. My husband has a Class A CDL/HZMT. I'm a Class B/HZMT and really don't want to advance to driving a TT, but will say that my husband made alot more, before we started this gig. So here we sit, not making as much $$$$ as we anticipated in Expediting, just hoping that the industry will ride out the recession and improve in freight again. We do not see the magical days of higher priced Expedited loads really returning. Sure would be nice tho!

rodeehos · Apr 28, 2009

I was told the other day by a landstar rep that fedex had come in lowered there rates far below theres and took a lot there business. Not long ago the fed was the best paying broker out there. Ever since they went to nlm, i have only been able to get a couple of loads of theres, but through the nlm system, which we all know how good that rate was.

moparnewt · Apr 28, 2009

I was driving for another carrier until two weeks ago and it is/was common knowledge that FDXX is low balling the other carriers from the pressure they're getting from their shippers to lower rates. I was taking loads that were for vans and only getting .90 cents a mile,and that was all that was available. I also drove a van for awhile and that was worse. Long waits for loads and then they don't pay worth a hoot. It would be better to be leased to one of the regular carriers and at least get that rate, but I don't think they lease straight trucks and vans. I'm wondering if there is a future in expedite freight in the near future.

layoutshooter · Apr 28, 2009

All of our rates are still higher than the same time last year. It goes up and down a bit but everything is holding above last year. At least so far. Layoutshooter

BEARTRUCKER · Apr 28, 2009

Before we made the switch we where getting some pretty sorry rates from the cat. Low miles, low rates, low pounds, sucky areas. I don't think it is just FedEx. When we called Cat dispatch to inguire, what they told us is that they where told to take any load from the boards "so the drivers would have something..."

XTeam · Apr 28, 2009

My opinion is that the shippers are going to get used to having their loads shipped for such low rates that we will never see the money that we have been paid in the past.
We were taking loads just to at least make some money but it really is shooting yourself in the foot for the future of expedite trucking. As long as the freight gets shipped cheap, why would they pay more?

KYoung · Apr 28, 2009

I think it is everyone, Landstar rates are way down, 1.09 for aa&e no way. Tried to get aloadout of El Paso not even for 1.10 was under bid at 1.05 gross. I think Expeditors are a dying breed, at least we are on the endangered species list. Ready to get out of the biz and plan to as soon as I can get other employment.

layoutshooter · Apr 28, 2009

I remember when I bought my first house I paid 15 1/2% interest. I was told then that I would NEVER see rates lower than 8% in my life time. I did. They will go up again too. Nothing is static, all rates go up and then down and then up again. Nothing is forever. It may take a LONG time or might start up again in the morning. Layoutshooter

ebsprintin · Apr 28, 2009

I'm trying to figure out what would cause the rates to go back up. Under capitalized will only be replaced by more of the same. The rates have gone down, and we continue to provide the same level of service. So why should the rates go up? The service we provide is going to have to "break" before there is any kind of shock to the system in the opposite direction. It probably depends on the companies coming to terms with having to restrict/manage their fleet size instead of signing on any truck that moves and any driver that can hold a wheel. Dunno.

eb

layoutshooter · Apr 28, 2009

Well if it is that bad, the world will soon end and none of us will have to make our next payment. Don't act like a polition, everything is NOT a crisis. I promise you, if EVERY carrier and truck goes bad SOMEONE will come up with a even better plan. Life goes on. Some will make it, some won't. A good attitude can help, in can never hurt. Layoutshooter

davekc · Apr 28, 2009

It is the old supply and demand issue. This same think was going on about 9 years ago. Lot of pressure on rates right now.
Still some good paying freight out there, just less of it.

layoutshooter · Apr 28, 2009

There is also likey to be more, not less, "special needs" freight. High value etc. Our industry will change to meet those needs. Carriers that can't, or won't will fail. Those who go after that freight will will. It is that simple and that hard. Layoutshooter

wellarmed · Apr 28, 2009

ebsprintin said:
I'm trying to figure out what would cause the rates to go back up. Under capitalized will only be replaced by more of the same. The rates have gone down, and we continue to provide the same level of service. So why should the rates go up? The service we provide is going to have to "break" before there is any kind of shock to the system in the opposite direction. It probably depends on the companies coming to terms with having to restrict/manage their fleet size instead of signing on any truck that moves and any driver that can hold a wheel. Dunno.

eb

Everyone please take their hat of to this member. You have to reduce the supply to create the demand. The carriers will not do this but maybe the creditors will. Hopefully as we come out of this recession with less trucks you old timers will feel 10yrs younger or at least see numbers you haven't seen in ten years.

layoutshooter · Apr 28, 2009

It is not right to be happy over others mis-fortune. It will not only be those who were just screw up. Many good O/O will drop for any number of reasons. Yes, some will do better and it will cause rates to increase. A little compassion is in order. Layoutshooter

wellarmed · Apr 28, 2009

It's like the cycle of life,for some things to live others must die. It has nothing to do with compassion,the strong shall survive large fleet owners may down size single truck owners may go under,I do feel for them but I can not help them. Maybe some will recover and return with a lesson learned because this cycle will return again.look at it like duck hunting,if you had to much compassion for ducks and didn't shoot them than they would become over populated and die of starvation and I guess thats where compassion does come in because we are not shooting other expediters we are watching them starve...Did that make sense.

ebsprintin · Apr 29, 2009

I am one of the first to get on those who try to talk down the economy, because attitude does effect the markets. As for the rate we receive that is a whole other animal. All the attitude in the world will not make rates go up. Why would I pay more for something when it is proven that I can get the same service at a lower price? And there are people waiting in line to replace us at these lower rates. Something else has to give for rates to go up. So if it is a new model that is going to emerge that is what I'm curious about. Maybe this new model involves companies deciding they can provide a better service with a finely polished, experienced fleet instead of an anything-goes, revolving-door fleet (and convince the customer this is better)? I could care less about crisis and attitude when I'm talking about business. Business is about survival. I will save my positive attitude for how I conduct myself while I try to find my place in the middle of this mess we call business.

eb