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pjjj, what TS is saying is 65% of the line haul or $1.05 per loaded mile.
Which ever of the 2 is higher. So if the load is 200 miles and total pay is $500.00 then a D unit would receive $325.00 which would be $1.63 per loaded miles. However if the same load pays $180.00, the least amount the truck would receive would be $210.00 which would be $1.05 per loaded mile.
Which ever of the 2 is higher. So if the load is 200 miles and total pay is $500.00 then a D unit would receive $325.00 which would be $1.63 per loaded miles. However if the same load pays $180.00, the least amount the truck would receive would be $210.00 which would be $1.05 per loaded mile.
Kind of like that "preferred customer theory".
I would have to think the 1.05 per mile number would be the prevalent rate.
If not, why change anything?
I agree...1.05 will more then likely be what we see most of the time. What I am hoping is this rate cut will enable TS to generate more freight. To be more competitve. Is this going to make operating tougher? Yes..however having trucks waiting, idling, burning fuel in the hopes of still getting the higher rate is not working.
Will this work? I hope so!
Will this work? I hope so!
Thanks DragonLady for clarifying. I was wondering if the 'rate' was being established for that size of vehicle at $1.05/LM, however if the carrier grabbed you a smaller load, ie a van load, or a C-Unit load, it would pay less than the $1.05 and instead be paid out at 65% of the gross revenue.
I'm thinking the carrier would just pay 65% ALL the time, if it was beneficial to them, but if they are instead making it a flat rate (which is awfully low, isn't it????? for a D unit???????) of $1.05, then to me, that says, 'this is your rate, but if *we* get less, *you* will get less.
Are you sure it's the other way around, and they're saying instead, that $1.20 will be your minimum rate, but if *we* get more, *you* will get more?
Now......... where does the fsc fit into all of this? Or doesn't it exist any longer?
I'm thinking the carrier would just pay 65% ALL the time, if it was beneficial to them, but if they are instead making it a flat rate (which is awfully low, isn't it????? for a D unit???????) of $1.05, then to me, that says, 'this is your rate, but if *we* get less, *you* will get less.
Are you sure it's the other way around, and they're saying instead, that $1.20 will be your minimum rate, but if *we* get more, *you* will get more?
Now......... where does the fsc fit into all of this? Or doesn't it exist any longer?
pjjjj...the rate will not fall below 1.05. If 65% is more than 1.05 you would get the higher rate. That is how it was explained to me!
I was told the FSC will stay as it is.. 100% passed on to the O\O. The change is only on Load Revenue..
Any day above the dirt is a good day!
I was told the FSC will stay as it is.. 100% passed on to the O\O. The change is only on Load Revenue..
Any day above the dirt is a good day!
Yes, there's always that!
Or could always hire a good ole redneck pool boy to brighten one's day
kwexpress
Veteran Expediter
I think I will start a new company and call it nexpediters.
the next generation of expediters.
if guys are willing to run for 1.05 per mile.then sign on I will give you 2000 miles per week before you even leave the house.and you could be home before noon friday.
sure I could throw in a surcharge and still make .85 per mile to the company.god dang I will get rich afterall.with my low overhead being just 1 guy I would surely be on top in a week or two.
at 1.05 all you guys will be is a company driver that pays for everything.but the downside is after you pay for everything the guy driving for JB's paycheck will be bigger than yours cause at least his profit is .30 per mile.
this company ts is looking for a way to survive and get the trucks rolling. drivers thats not a smart move they move the freight at a lower rate now but what about when freight picks up if indeed its really slow. are the customers gonna pay more hell no you moved it for 1.05 then so you can do it now.a far as the 65%
even if they did let you find your own loads they have to approve them.I know I tried to help a team generate some revenue that sat for ts for 2 weeks with no load.
after ts cut it still paid the truck 1.40 per mile for 9' ltl I told them I would also give them more along the way to get it closer to $3 on over 2000 miles with a week to get it there.
ok sounds good.but tri-state shot it down.why dont know the customer was already set-up with tri-state maybe because it wasnt an expedite.but when pay to the o/o is better than what they are paying to the truck why they choose to make a team sit is beyound me.the excuses given to the drivers was they wasnt taken freight west of the mississippi
cause it was to hard to get back in the area and they would have to bonus them back.
instead the team sat for another week with no revenue then what happend ts gives them a load to NE.one team member was so mad because in that same week they kept sending over load offers then 3 min latter disreguard load canceled.he quit on the way to NE and had his wife pick him up.yep in 3 weeks 8 load offers that canceled and the one that does make it goes west of the mississippi.
I do think expediters can survive but I dont think rate cuts to the o/o is the right answer
when the economy bounces back and it will you will be stuck running cheap freight cause once the cut is in its there for good aint no getting it back.
instead they should open a new division of the existing company and call it tri-state next
and just tell there customers they cant change the rate on exclusive use but as long as the customer dont mind they have a sister company that will send in the next avaiilable truck at the reduced rate but it may or may not be exclusive use but their freight will be last on first off.same great service,same tracking just a chance to survive in this tuff time.
when the economy picks up give the o/o a choice to go back to exclusive use or stay a nexpediter.its like adding a service level if you dont want to pay this rate then we have an option.
if you ask me the nexpediter will come out on top.by finding his first load to put in the nose
that has a week to get there and then given ts a couple days to find something going in that direction and during this day or 2 sitting be looking for another ltl to put with the one you already have getting 1.00 for an ltl is not that hard. listen to what the broker is telling you when they say it an ltl but its a machine or something they dont want moved around alot or cross docked then bid just below truckload rate for that kinda service.
I think a nextpediter is a very marketable tool.it worked well for me and the ones I help.
I am very serious the rate change goes into effect on monday dont take it in the but.
send them a msg tell them you read this post and agree with this concept and if they cant protect your rate now then just go out of service monday get what you got comin and go into biz for yourself.the driver I know has been in the freight lanes for a month now and has not profited $400 the whole month and has never been more than #3 out.owners would come closer being able to pay the payments working at Mc donalds.
the next generation of expediters.
if guys are willing to run for 1.05 per mile.then sign on I will give you 2000 miles per week before you even leave the house.and you could be home before noon friday.
sure I could throw in a surcharge and still make .85 per mile to the company.god dang I will get rich afterall.with my low overhead being just 1 guy I would surely be on top in a week or two.
at 1.05 all you guys will be is a company driver that pays for everything.but the downside is after you pay for everything the guy driving for JB's paycheck will be bigger than yours cause at least his profit is .30 per mile.
this company ts is looking for a way to survive and get the trucks rolling. drivers thats not a smart move they move the freight at a lower rate now but what about when freight picks up if indeed its really slow. are the customers gonna pay more hell no you moved it for 1.05 then so you can do it now.a far as the 65%
even if they did let you find your own loads they have to approve them.I know I tried to help a team generate some revenue that sat for ts for 2 weeks with no load.
after ts cut it still paid the truck 1.40 per mile for 9' ltl I told them I would also give them more along the way to get it closer to $3 on over 2000 miles with a week to get it there.
ok sounds good.but tri-state shot it down.why dont know the customer was already set-up with tri-state maybe because it wasnt an expedite.but when pay to the o/o is better than what they are paying to the truck why they choose to make a team sit is beyound me.the excuses given to the drivers was they wasnt taken freight west of the mississippi
cause it was to hard to get back in the area and they would have to bonus them back.
instead the team sat for another week with no revenue then what happend ts gives them a load to NE.one team member was so mad because in that same week they kept sending over load offers then 3 min latter disreguard load canceled.he quit on the way to NE and had his wife pick him up.yep in 3 weeks 8 load offers that canceled and the one that does make it goes west of the mississippi.
I do think expediters can survive but I dont think rate cuts to the o/o is the right answer
when the economy bounces back and it will you will be stuck running cheap freight cause once the cut is in its there for good aint no getting it back.
instead they should open a new division of the existing company and call it tri-state next
and just tell there customers they cant change the rate on exclusive use but as long as the customer dont mind they have a sister company that will send in the next avaiilable truck at the reduced rate but it may or may not be exclusive use but their freight will be last on first off.same great service,same tracking just a chance to survive in this tuff time.
when the economy picks up give the o/o a choice to go back to exclusive use or stay a nexpediter.its like adding a service level if you dont want to pay this rate then we have an option.
if you ask me the nexpediter will come out on top.by finding his first load to put in the nose
that has a week to get there and then given ts a couple days to find something going in that direction and during this day or 2 sitting be looking for another ltl to put with the one you already have getting 1.00 for an ltl is not that hard. listen to what the broker is telling you when they say it an ltl but its a machine or something they dont want moved around alot or cross docked then bid just below truckload rate for that kinda service.
I think a nextpediter is a very marketable tool.it worked well for me and the ones I help.
I am very serious the rate change goes into effect on monday dont take it in the but.
send them a msg tell them you read this post and agree with this concept and if they cant protect your rate now then just go out of service monday get what you got comin and go into biz for yourself.the driver I know has been in the freight lanes for a month now and has not profited $400 the whole month and has never been more than #3 out.owners would come closer being able to pay the payments working at Mc donalds.
Wow. You just told everyone to abandon their job. Genius.
Do you people understand that this is the entire economy? Are your heads that far buried in the sand? TS isn't doing this because they want to. They are doing this because they HAVE to! Just like EVERY carrier out there.
FACT: This country is not making as much as it used to and if this country isn't making as much that means there isn't as much to haul.
Truck drivers are a dime a dozen right now because of that. Do all of us need to be so conspiratorial?
You're telling people to not haul freight when we need it most.
jaminjim
Veteran Expediter
instead they should open a new division of the existing company and call it tri-state next
and just tell there customers they cant change the rate on exclusive use but as long as the customer dont mind they have a sister company that will send in the next avaiilable truck at the reduced rate but it may or may not be exclusive use but their freight will be last on first off.same great service,same tracking just a chance to survive in this tuff time.
Heck thats nothing new, one of the largest does it now.
and just tell there customers they cant change the rate on exclusive use but as long as the customer dont mind they have a sister company that will send in the next avaiilable truck at the reduced rate but it may or may not be exclusive use but their freight will be last on first off.same great service,same tracking just a chance to survive in this tuff time.
Heck thats nothing new, one of the largest does it now.
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kwexpress
Veteran Expediter
I am not telling people to abandon their jobs.
they dont have jobs or they would have to be paid min wage.
they are disposable rag dolls (independant contractor)
I am saying do away with the thought that you have to take it in the but.
and you cant tell me that your gonna make anymore money running at $1.05 per mile and sitting for days burning fuel than you would at Mcdonalds.
I am saying that people need to be responcible for themself open their eyes of course there is to much competition in expediting.We need to scrap the old way and embrace change.
do away with expediter and become nexpediters.the hos would no longer be a concern single drivers could book loads going 2000 miles and have time to pick up what used to be expedites along the way.
if they want exclusive use make them pay for it or sit on it dont cut your rates.if you do you might move more freight now but your rag dolls are the ones that pay.you the rag doll
would be better off with your own authority.
I bet with the money half of you spend on fuel idealing and deadheading you could be your own carrier and just watch out for yourself.everyone would be better off once a nexpediter finds his own ltl for the nose he will be obligated to travel that route and will not be able to service an expedite load going along a different route this would do away with being #15 out of a city and you would move up the list faster as the truck still available for the expedite as long as the next load booked didnt deliver along the route of the nexpediter.
and the nexpediter may or may not come up with an ltl him or herself before that expedite is called in.
then lets say you got a nexpedite and an expedite is called in you as the company could say well if you need it there direct we could offer another service that delivers your expedite within the time frame you need at a reduced rate if you dont mind sharing the ride
your freight will be last on first off and can still pick up right now.
if companies expect you to cut your own throat make them work harder for you.demand it or get your own customers with your own authority.you think shippers use ts or panther exclusive heck no
they dont have jobs or they would have to be paid min wage.
they are disposable rag dolls (independant contractor)
I am saying do away with the thought that you have to take it in the but.
and you cant tell me that your gonna make anymore money running at $1.05 per mile and sitting for days burning fuel than you would at Mcdonalds.
I am saying that people need to be responcible for themself open their eyes of course there is to much competition in expediting.We need to scrap the old way and embrace change.
do away with expediter and become nexpediters.the hos would no longer be a concern single drivers could book loads going 2000 miles and have time to pick up what used to be expedites along the way.
if they want exclusive use make them pay for it or sit on it dont cut your rates.if you do you might move more freight now but your rag dolls are the ones that pay.you the rag doll
would be better off with your own authority.
I bet with the money half of you spend on fuel idealing and deadheading you could be your own carrier and just watch out for yourself.everyone would be better off once a nexpediter finds his own ltl for the nose he will be obligated to travel that route and will not be able to service an expedite load going along a different route this would do away with being #15 out of a city and you would move up the list faster as the truck still available for the expedite as long as the next load booked didnt deliver along the route of the nexpediter.
and the nexpediter may or may not come up with an ltl him or herself before that expedite is called in.
then lets say you got a nexpedite and an expedite is called in you as the company could say well if you need it there direct we could offer another service that delivers your expedite within the time frame you need at a reduced rate if you dont mind sharing the ride
your freight will be last on first off and can still pick up right now.
if companies expect you to cut your own throat make them work harder for you.demand it or get your own customers with your own authority.you think shippers use ts or panther exclusive heck no
kwexpress
Veteran Expediter
lets just try this out
lets say I have a tractor since I do and my driver is sitting in chicago since he is.
lets say I am independant since I am and since I am not a customer of ts I will use a quote from pII since I am a customer of them
ok I have a load offer from a broker since I do.
ltl pick up today in chicago go to waverly,IA deliver monday pay offer is 600 and I still have over half my truck empty and I will put something with it to get it over $1200 thats reasonable I make money the driver makes money the shipper saves how much by using my nexpediter
ok logged on got quote from panther total qoute 3,041.19
with $178 fsc included
ok panther pays o/o what maybe $800 panther makes +2,200 no where close to 65%
an invoice can be made to show what ever they want.a rate confirmation shows what I pay them.
it isnt that there is not freight available to move you its that shippers cant afford to expedite.
now I am sure if I shipped 30 loads a month with panther I would get a discount but I was honest when I set up with them and told them I would only be shipping 5 loads a year.
now I will dispatch driver and move my truck.
anyone could be doing the same thing
lets say I have a tractor since I do and my driver is sitting in chicago since he is.
lets say I am independant since I am and since I am not a customer of ts I will use a quote from pII since I am a customer of them
ok I have a load offer from a broker since I do.
ltl pick up today in chicago go to waverly,IA deliver monday pay offer is 600 and I still have over half my truck empty and I will put something with it to get it over $1200 thats reasonable I make money the driver makes money the shipper saves how much by using my nexpediter
ok logged on got quote from panther total qoute 3,041.19
with $178 fsc included
ok panther pays o/o what maybe $800 panther makes +2,200 no where close to 65%
an invoice can be made to show what ever they want.a rate confirmation shows what I pay them.
it isnt that there is not freight available to move you its that shippers cant afford to expedite.
now I am sure if I shipped 30 loads a month with panther I would get a discount but I was honest when I set up with them and told them I would only be shipping 5 loads a year.
now I will dispatch driver and move my truck.
anyone could be doing the same thing
I'm curious how 3S at $1.20 a mile makes the list and P2 at $1.20 a mile doesn't make the list.
dhalltoyo
Veteran Expediter
Tri State has always operated at a 35% margin; hence 65% to the truck. As a former sales manager I am familiar with the software they utilize and an administrator allowed me to review the "Back Screen" feature to see their profit margin so as to eliminate any concerns regarding greedy, capitalistic thoughts that may have been implanted by Al Gore or John Kerry. I have always been blessed by finding open and honest folks within any organization with which I have had a business agreement.
Why change?
Well...a few years ago TS did increase the rate for straight trucks. Obviously, they are not greedy. Everybody seems to have selectively forgotten that increase. Their willingness to pay the truck more should indicate when the economy improves, and it always does, TS will increase the rate once again.
This change will basically discourage the "homers" in this industry. Those who want to stick around the house, or the driver's lounge, and take short runs so they can deadhead back to momma. The mini run always exceeds the typical loaded mile rate; hence, it is not cost effective. The 65% change will push those runs over to small local independents. If you are willing to work, stay out, and watch your expenses...the 65% rate should not change your bottom line.
Remember too, that TS pays 100% of the FSC based upon each individual load. Other carriers, including FedEx, pay "flat rate" FSC's. Additionally, the "Empty Move" change is on par with other major carriers, so that is a mute point.
Personally, I find brokers to be very cost effective.
Why?
They do not have the overhead of a major carrier. Many operate their business from their homes.
I always get a higher cpm rate from them as opposed to what a major carrier is offering. If I do not get that rate, I simply pass on the offer. Recently, a carrier would have paid their unit 95 cpm (including FSC) had there been a truck available. I got the same load through a broker for $1.59 per mile. It happens all the time. Just like any aspect of any business, you just need to learn where to run when using brokers.
Gloom and doom. Ah, you read too many newspapers, listen to too much talk radio and watch too many NBC, CBS and ABC news broadcasts.
We need to think outside the box if we want to be an Owner/Operator. I'll be the first to admit that it takes considerable effort, and time, to work with brokers, so it is not for everyone. It was a struggle to get everything in place. In fact, it was like working two jobs at the same time for a few months.
If you love the road...as I do...and you do not like excessive amounts of paperwork, bookkeeping, faxing, taxes or having to make daily business decisions...then you might want to consider other driving opportunities within this industry.
I am looking forward to better times!
Keep the faith!
Why change?
Well...a few years ago TS did increase the rate for straight trucks. Obviously, they are not greedy. Everybody seems to have selectively forgotten that increase. Their willingness to pay the truck more should indicate when the economy improves, and it always does, TS will increase the rate once again.
This change will basically discourage the "homers" in this industry. Those who want to stick around the house, or the driver's lounge, and take short runs so they can deadhead back to momma. The mini run always exceeds the typical loaded mile rate; hence, it is not cost effective. The 65% change will push those runs over to small local independents. If you are willing to work, stay out, and watch your expenses...the 65% rate should not change your bottom line.
Remember too, that TS pays 100% of the FSC based upon each individual load. Other carriers, including FedEx, pay "flat rate" FSC's. Additionally, the "Empty Move" change is on par with other major carriers, so that is a mute point.
Personally, I find brokers to be very cost effective.
Why?
They do not have the overhead of a major carrier. Many operate their business from their homes.
I always get a higher cpm rate from them as opposed to what a major carrier is offering. If I do not get that rate, I simply pass on the offer. Recently, a carrier would have paid their unit 95 cpm (including FSC) had there been a truck available. I got the same load through a broker for $1.59 per mile. It happens all the time. Just like any aspect of any business, you just need to learn where to run when using brokers.
Gloom and doom. Ah, you read too many newspapers, listen to too much talk radio and watch too many NBC, CBS and ABC news broadcasts.
We need to think outside the box if we want to be an Owner/Operator. I'll be the first to admit that it takes considerable effort, and time, to work with brokers, so it is not for everyone. It was a struggle to get everything in place. In fact, it was like working two jobs at the same time for a few months.
If you love the road...as I do...and you do not like excessive amounts of paperwork, bookkeeping, faxing, taxes or having to make daily business decisions...then you might want to consider other driving opportunities within this industry.
I am looking forward to better times!
Keep the faith!
moose
Veteran Expediter
How much does Tri-State take when you run a brokered load?
jaminjim
Veteran Expediter
Your Mileage May Very
They told me 15%, but that's not every load. I was told they will take less especially if it means they don't have to pay out bonus miles to get you off a dead board.