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out bidding loads

Discussion in 'General Expediter Forum' started by mikeyd5002, Jul 13, 2011.

  1. mikeyd5002

    mikeyd5002 New Recruit

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    this is total bs why cant you ever get you normal rate why because every one is under bidding each other all the time wait 3 days for a discounted load to make fuel money only ha ha theres got to be a better way hey
     
  2. OntarioVanMan
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    OntarioVanMan Veteran Expediter Owner/Operator

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    Would you like to explain..."normal rate"?"
     
  3. turritrans

    turritrans New Recruit

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    The market is depressed right now, a lot of trucks and not enough expedite freight to go around. Today we lost out on a load the customer got covered for .60 a mile for a sprinter.

    These trends are expected in our industry, just like in late June expeditors were getting great rates because the market was opposite, not enough trucks for the freight being offered.

    If you are paid a flat rate per mile the O/O looses out on these rate increases, but also are somewhat protected from the decline in rates during the slow times unless the offered rate from the customer is less then your contracted rate.

    Things should start to get better in August
     
    Last edited: Jul 13, 2011
  4. AMonger

    AMonger Active Expediter

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    Punctuation. Really.
     
  5. davekc
    Amused

    davekc Senior Moderator Staff Member Fleet Owner

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    A place probably where the larger carriers have an edge.
     
  6. Monty

    Monty New Recruit

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    uh, welcome to EO ....

    I have taken to going home if less than 500 miles ... I can sit here and wait on a load .... seems to be working ok. And NOT at .60 a mile
     
  7. idtrans

    idtrans New Recruit

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    Get ready for even more undercutting now. BTW Mexican expediting companies just have to follow our rules of usa to enter so that means get ready for the high MPG fords, fiats, renaults to compete with for sprinter and cv loads.

    Hard to compete if your getting $20mpg with a sprinter and here comes the ford or fiat at 40+mpg. Isn't there another euro model van doing like 50mpg that's diesel ? Remember Mexico trucks will not need to follow our emission rules either. Other day in Detroit I saw several Fiat Ducatos and Iveco Daily running around town. At the doc I loaded at a guy was getting a large ducato loaded and wow it is nice and large inside.

    BTW: I read Dodge is coming out with a new sprinter and it is to be the Fiat Ducato. But I bet it will not be cheap at all.

    This is going to be rough I know my cube and straight may start to hurt a little but luckily the tractors won't slow down much yet at least.

    Safety Concerns Raised Over Deal To Allow Mexican Trucks On U.S. Highways
     
    Last edited: Jul 13, 2011
  8. Lawrence
    Busy

    Lawrence Founder Staff Member

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    Dave, I think this works against the large carrier. They need margins to pay for sales commissions, dispatch, safety and brick and mortar costs - you know a full service operation.

    I think what is contributing to this is the single truck carrier. He has $0 in sales commissions, dispatch, safety and brick and mortar costs - so he's the guy who can out bid the full service carrier.
     
  9. OntarioVanMan
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    OntarioVanMan Veteran Expediter Owner/Operator

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    Where do ya get this stuff...Mexican vans have been around for years already.....gee whiz...
     
  10. davekc
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    davekc Senior Moderator Staff Member Fleet Owner

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    I would agree on a open bid board. That is where you are really seeing the rate cutting. Many of the smaller outfits are reliant on the large carriers for their freight. If they slow down, so do they.
    Also, some of the larger carriers have their own accounts and primarily have them through 3PL's because they have the greatest coverage. That can be a double edge sword depending on the carrier.
    Specialty freight is another issue as well. Many of the small independants are priced out because of the insurance, qualifications, or infastructure to do them.
     
    Last edited: Jul 13, 2011
  11. CharlesD

    CharlesD Active Expediter

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    That's what a lot of people around here believe, but it's actually not the case. The larger carriers might have more overhead, but they don't have to cover all of that overhead off of one truck. The guy with one truck has to make all his profit margin off each load, while a larger carrier can make a smaller margin per truck but still clear pretty good money if that small margin is made on a large number of trucks. That is the reality out there, not the one truck "independent" undercutting everyone. The times I've had to list a load on Sylectus it was larger companies bidding the lowest.
     
  12. idtrans

    idtrans New Recruit

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    I pulled it out of a "CHICKEN BUTT" !
     
  13. OntarioVanMan
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    OntarioVanMan Veteran Expediter Owner/Operator

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    haha....got that one....LOL:D
     
  14. davekc
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    davekc Senior Moderator Staff Member Fleet Owner

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    I would say Charles is pretty close to reality. But I understand where Lawrence is getting that information.
    A few nameless carriers will say that consistently but it is by design to really be translated to the drivers.
    Why? Because it is a tool/excuse to suppress rates to their own drivers.
     
  15. Jefferson3000

    Jefferson3000 New Recruit

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    That's very true, Dave. There are evidently certain large carriers who use that propaganda consistently to brainwash their owner ops into thinking that some small business is the reason why they are unable to offer them their "normal" rate. It's a pretty tired excuse at this point. However, most people are going to continue to believe what they want about it because it serves their agenda. They can keep swinging those pompoms.
     
  16. davekc
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    davekc Senior Moderator Staff Member Fleet Owner

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    I know what you mean.
    "Ignorance is bliss":D
     
  17. x06col

    x06col Active Expediter Charter Member

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    And the amazing part is....I cannot believe how many seemingly intelligent folks are totally blissfull. What is bliss??? ****d if I know, jes must make ya kinda so's ya can't see.......or, sumpin.
     
  18. greg334

    greg334 New Recruit

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    You know for what's it worth, I would have bid on those sprinter loads at 60 or 70 cents a mile and gotten two of them to put on my truck to move it to a better location and not think twice about it. I know a few who have been doing this recently.

    Its good to have a straight truck. :)
     
  19. TeaDance

    TeaDance New Recruit

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    The Carriers with all their statistics know this, that is why they offer low rate freight...someone out there wants to move from point A to point B for some reason or another. One body wants to deliver out of freight lanes, but low and behold, some body out there live that way, and excepts the low rate.
    I hear it all the time here about excepting a low rate to get somewhere. Again They know this too and it's just a matter of time before they call the right person, and BINGO one up for them, they scored!

    Now, don't ask me how to fix this, other then seeing the load boards and that not going to happen.:confused:
     
  20. greg334

    greg334 New Recruit

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    OK someone please figure this one out.

    There is a load from Detroit to Chicago

    It weighs 1000 lbs and can fit on anything but a big wheel.

    There is no bid price on the board when the bid opens.

    Four 'carriers' bid on it and they are all equal in their ratings, truck locations and performance records.

    the lowest is at $1.65 a mile, the highest is at $1.95 a mile

    The bidder with the second to cheapest rate - $1.70 - gets the winning bid.

    Why?
     

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