If it's so bad they have to cut rates, I hope they're cutting their QC fees as well. I mean if it's that slow it can't be costing these carriers as much for their QC use. If they indeed pay per txt character. If they want o/o's to sacrifice they need to lead by example. Just my opinion. Maybe we should all start doing yearly leases for a set amount per mile and if at the end of the lease the rates are gonna drop...then we can start looking to another carrier as the end of lease draws near. Just food for thought.
Rate Cuts
- Thread starter jmore1276
- Start date
BTW, You can all thank the continuous "deregulation" of the trucking industry for these barely livable wages O/O's are being forced to work for. I feel bad for the "Big Rig" guys who lost their Investments when the fuel prices soared. I wouldn't even think of investing in more than a cargo van these days. If these rates keep going down, I can always go into remodeling or something on the side with a cargo van. What would a guy do with a $90,000 Straight truck when times are tough? Moving company I guess. Well, let's all hope it gets better soon.
Don't give an under-performing carrier a year of your life. Corporations do not have a soul. Regardless of their rhetoric, they care not one bit for you or me. Find a carrier that will honor the rate you contractually accepted. Cutting rates is a shot acrooss the bow to owner-operators. Cheap freight has no business riding on an expedite truck. Accepting anymore rate cuts will be the death knell of this industry. If owner-ops aren't allowed to make a profit, what's the point? Don't participate in a race to the bottom. BTW, I am not aware of any temporary rate cuts. Once in place, they don't return to previous levels.
nightcreacher
Veteran Expediter
When I started in this business,the company was called Roberts Express,and everyone knows the rest of the story,but Roberts had a dicount program to their customers.Any customer that shipped 5 loads or more a week,could get a 15% discount on there shippments.Since all the new expedite companies have formed,and are vying for the same freight,these discounts have gotten out of hand.Some of the paying parties dont care one way or another about the service,they are just looking for a truck,and to keep the owners moving,these loads are getting booked,more so than not.If you think once a company drops the rate ,they will ever increase it,your living in a dream world.Bottom line is,if you can survive with the rate you are getting fine,if not,its time to move on.Just remember one thing in life,no matter where you work,what ever type of job,the grass isnt going to be greener some where else.what you may get from one other than the other,will always end up basically the same
But you do realize that expedite freight is pretty much a luxury item, correct? And in tough economic times luxury items are the first to be slashed from expenses. Find me one company right now that is touting higher rates and an abundance of freight and I will show you a company that isn't being honest. If anything, this economy has made the carriers (P2, 3S, Fed etc) more honest than ever.
Everyone is on a race to the bottom, that is why the auto industry is making the UAW accept wage decreases and more and more people are being laid off.
It's not corporate greed, it's survival. I trust TS completely when it comes to our pay. They have always given us a complete surcharge and kept a flat rate longer than other carriers.
"Say no to cheap freight" is a nice slogan for more prosperous times, but right now saying no to freight at all will mean the starvation and foreclosure of many a driver.
riverrat2000
Seasoned Expediter
was talking to a long time agent and he was telling me that some big companies are getting so desperate that the are reducing rates to as low as 85 cents for "D" units and fuel as low as 10 cents a mile.
Now as most owners know that is below the operating costs of a D unit And a sure way to go broke.
what this is doing is destroying the expedite business for all of us, if you are so desperate that you have to run below operating costs just to survive a few more weeks then it is time to be looking for a different line of work you are not going to make it and are just making it harder on all of us.
now more than ever people have got to say no to cheap freight!!!
Now as most owners know that is below the operating costs of a D unit And a sure way to go broke.
what this is doing is destroying the expedite business for all of us, if you are so desperate that you have to run below operating costs just to survive a few more weeks then it is time to be looking for a different line of work you are not going to make it and are just making it harder on all of us.
now more than ever people have got to say no to cheap freight!!!
You're right in your first three paragraphs, but saying no to cheap freight, when that is all there is? Yeah, might as well get out of the business. And I'm sure carriers understand this. There will undoubtedly be some of us who cannot make it through this. It's not the carriers fault, but we have to make sure we're making profit too.
Is White Castle hiring?
Roadie... I don't understand your implied support for rate cuts. How long can owner-ops sustain themselves at exceedingly cheap rates? It merely postpones the inevitable for many. I suspect many who advocate working at nonsustainable rates are desperately upside-down or in arrears with the lienholder of their expensive trucks. In their desperation, anything looks good.
Which is better, aristotle? Hauling freight at a cheaper rate and making a little revenue or hauling nothing, thus earning nothing?
If I'm hauling nothing and spending money to stay warm and eat out of my truck then I go further in the hole.
We only have two choices, deal with it or get out of the business.
It's simple as that.
Like I said, I'm not happy about it, but someone would have to be delusional or out of touch not to see the necessity.
If I'm hauling nothing and spending money to stay warm and eat out of my truck then I go further in the hole.
We only have two choices, deal with it or get out of the business.
It's simple as that.
Like I said, I'm not happy about it, but someone would have to be delusional or out of touch not to see the necessity.
riverrat2000
Seasoned Expediter
the rates will continue to degrade right up to the time that loads are not covered,once frieght is sitting on the dock because the drivers refuse to pay for the privilege of hauling it then and only then will rates rise to reasonable levels
what company would be foolish enough pay reasonable rates as long as they can get some sucker to pay to move it for them and save then 25% or more in the process, I haven't heard yet from a customer," hey I ain't paying you enough, let me pay you another 50% to make it "fair".
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Do you understand supply and demand?
How many trucks and vans are out there for the little bit of freight that's available? Do you really think that the companies that are producing are going to be wanting for trucks right now?
Sure, YOU say no to cheap freight and end up sitting. The next guy takes it and it's no skin off of the shippers back. They don't care what it says at the side of the truck as long as the freight is hauled.
And there are a LOT of trucks to haul the freight that is out there.
How many trucks and vans are out there for the little bit of freight that's available? Do you really think that the companies that are producing are going to be wanting for trucks right now?
Sure, YOU say no to cheap freight and end up sitting. The next guy takes it and it's no skin off of the shippers back. They don't care what it says at the side of the truck as long as the freight is hauled.
And there are a LOT of trucks to haul the freight that is out there.
Do you know what your rate per has to be to break even? Many E units 0/0 can make it on .85 that know their costs and how to run a lean business.
You need to find work on your rate per mile and also what you need per day to survive. A blanket statement that no D trucks can run for .85 a mile is just absurd. I am not saying any of want to run for this price but how low can we really go and still make money? I for one am going to go as low as I can because I do not want to go back to a 9 to 5 life style.
This is the perfect time of year to look back on the past year and figure what you have to have to survive this year. Find out what it costs to run you truck that is the bottom line.
You need to find work on your rate per mile and also what you need per day to survive. A blanket statement that no D trucks can run for .85 a mile is just absurd. I am not saying any of want to run for this price but how low can we really go and still make money? I for one am going to go as low as I can because I do not want to go back to a 9 to 5 life style.
This is the perfect time of year to look back on the past year and figure what you have to have to survive this year. Find out what it costs to run you truck that is the bottom line.
My truck was paid for in cash and my expenses are low. Also, my wife has an excellent job. I will go into "winter hibernation" and sit on the sidelines before I operate at cheap nonsustainable rates. Why wear out your equipment at rates so low you can't keep up with fuel and maintenance? Anyone working at very low rates will not be able to buy a replacement truck because their savings have been depleted. It just doesn't make sense to me that folks will knowingly participate in their own demise. I feel very badly for anyone who finds himself or herself trapped in this downward spiral. I understand some believe they have no other choice. It is regrettable.
I know a few others who are either retirees or have other forms of income that will be sitting this out. I think it's commendable because that frees up the freight for those of us who depend on this business exclusively. And it's we who have to accept the current situation for what it is. We can't change it, why get an ulcer over it.
I am 20-25 years away from retirement and working with a distant time horizon. Because I hope to give another 20+ years to this industry, I am perplexed by the submissive types who say are willing to embrace nonsustainable freight rates. There is no logic in such an operation. It is slow suicide. Or fast depending on how low these "desperado" types will bid. Good luck to these low-bidders who think there is another truck in their future. Truly, good luck.
I agree. Cutting the rates is slow suicide. But the supply side economics argument also holds weight. This will cause a thinning of the herd which will in turn lead to less trucks -vs- abailable freight. Then when freight is sitting on the shippers dock because there are no available trucks because all the retired folks bailed and those who were living on the edge bailed, freight rates will inevitably go back up. Taking a nice winter hybernation or trimming the fat and running at lower rates is a good idea while weathering this storm. For those who can last until things get better there is light at the end of the tunnel. May you all have good luck this year and god bless.
Long time vets know that this is true and real life.
mjolnir131
Veteran Expediter
nonsustainable freight rates and that is just it what may or may not actually be your nonsustainable freight rate vs what you need to make.
one persons min might be very very different then your because they have a different set up and plan.maybe they are willing to eat cold cut sandwiches and water where you will only settle for steak dinners.example not saying if and where this applies.
it's your business and if you want to go broke not hauling then that is your choice.if a load will not cover your fuel plus daily expense plus ave daily cost and leave you a few extra dollars to stash away don't take it.that's going broke running yourself to death.
For that rate that you perceive as a rate that is to low and non profitable there is somebody else who has figured how to run it with a profit.
if you don't know what your Ave daily cost and your daily expenses are, you need to find out and then evaluate if you can trim that or not. you need to do that at home as well as your business. if your a solo driver do you really need two cars at home if a team do you use a car at home enough to keep it?
for me it's going to be the next few months with Sir Save-a-lots as my knight in shinning armor.if you do spend a little extra on good condiments you hardly realize your eating the same thing everyday.
one persons min might be very very different then your because they have a different set up and plan.maybe they are willing to eat cold cut sandwiches and water where you will only settle for steak dinners.example not saying if and where this applies.
it's your business and if you want to go broke not hauling then that is your choice.if a load will not cover your fuel plus daily expense plus ave daily cost and leave you a few extra dollars to stash away don't take it.that's going broke running yourself to death.
For that rate that you perceive as a rate that is to low and non profitable there is somebody else who has figured how to run it with a profit.
if you don't know what your Ave daily cost and your daily expenses are, you need to find out and then evaluate if you can trim that or not. you need to do that at home as well as your business. if your a solo driver do you really need two cars at home if a team do you use a car at home enough to keep it?
for me it's going to be the next few months with Sir Save-a-lots as my knight in shinning armor.if you do spend a little extra on good condiments you hardly realize your eating the same thing everyday.
I understand the supply and demand thing. I understand cutting the rate a little to try to be competitive, but i don't how or why anyone can run for $.85/mile. Whether you bought a $20k or $100k truck, you can't survive on $.85-$1.00/mile. By the time you pay the truck payment, insurance, maintenance, truck washes, tags, tires, an occasional break down, and food on the road, you're left with $.00/mile. I had an o/o that had a $10k breakdown in waco a couple of months ago, and fortunately he had some money in the bank and a couple of credit cards with a little available credit left on them. But it took everything he had. If anything else breaks down, he is done! You can't survive this kind of breakdown running for $.85/mile. We don't run for this kind of money. My o/o's would get out of the bus. Before they would except a load for that kind of rate, unless it was coming home.