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Carrier cutting rates

davekc

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A "race to the bottom" is pretty much what that represents. As for Panther and 1.10 trucks, the only ones I have heard of at that rate were the 1.10 plus FSC for all miles. I am surprised anyone is on that plan any more but apparently a few still are? That is why it wasn't mentioned.
 

davekc

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I think working on a percentage must be much better. Seriously, if a load pays less, then the carrier shares the pain. If a load pays more, everyone shares the gain as well. Why should the owners & drivers take the full hit of lower rates while the carrier just takes advantage of (supposedly) having more competitive rates? If the carrier has skin in the game as well, the owners & drivers can know much better that the carrier is working for everyone to get the best rate for every run. I think percentage based carriers are clearly working for owners & drivers MUCH more earnestly!

That is kinda of a maybe. Many times it comes down to a percentage of what? We have done both and there are two sides to that coin. Many nameless carriers run loads through a dummy company they own just to drop the bill so the percentage is less. Some will show you the customer bills and some will refuse. Have to keep a open mind with either one.

As for a team losing 2500 a year at 40 percent, that is a good hit on the fleet owner at 60. If one has say 10 trucks, that could translate in to a 30k to 50k loss per year all things equal. That is a tough one. Hard to tell if running more will offset it enough to cover the additional maintenance. I have my doubts.
 

bernieh48

Veteran Expediter
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Nope he's not on an all miles plan. He gets a base rate of $1.10 plus FSC. Then the standard dead head to the pick up like normal whatever it is for the week. He's been on this plan for a few years now and can't get them to bump him up.
 

davekc

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That is a shocker to me. I wasn't aware of any one at that rate other than the "all miles" folks.
I stand corrected. Not sure why they can't get that changed? They don't even advertise at that rate.
 

paullud

Veteran Expediter
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That is a shocker to me. I wasn't aware of any one at that rate other than the "all miles" folks.
I stand corrected. Not sure why they can't get that changed? They don't even advertise at that rate.

Where's Paul Harvey when you need him?
 

Swamp30

Active Expediter
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That is kinda of a maybe. Many times it comes down to a percentage of what? We have done both and there are two sides to that coin. Many nameless carriers run loads through a dummy company they own just to drop the bill so the percentage is less. Some will show you the customer bills and some will refuse. Have to keep a open mind with either one.

As for a team losing 2500 a year at 40 percent, that is a good hit on the fleet owner at 60. If one has say 10 trucks, that could translate in to a 30k to 50k loss per year all things equal. That is a tough one. Hard to tell if running more will offset it enough to cover the additional maintenance. I have my doubts.
By law they must show you invoice..but all most all trucking companies that run trucks off a percentage have "sister"/dummy companies that they can run the revenue for to trim off the pay..i know i did that for 18 months for a company. Fedx, panther, e1, all them companies have the ability to shave revenue through various networks of sister companies..as most companies do.
 

davekc

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By law they have to show the customer invoice. That is much different than whether they do or will. Doesn't matter on the mileage companies but it is a factor on a percentage paying one.
 

westmicher

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By law they have to show the customer invoice. That is much different than whether they do or will. Doesn't matter on the mileage companies but it is a factor on a percentage paying one.

It would seem very obvious, after looking at a dozen or so invoices, if they were pulling a sham on you or not. I was talking about a real honest company/owner like Load-1.
 

davekc

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For someone doing it awhile I would agree. For someone new they might not recognize it if it was being done from the beginning. They wouldn't have anything to compare it to. I am not refering to any one company in particular.
 

Swamp30

Active Expediter
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Thats the point..if company A "sells" load to company a-1, then company a-1 gives driver the load, the invoice they are required by law to show you is their customer and thats company A..completely legal but i feel morally wrong..i have yet to see any company show a owner/op a true customer invoice..
 

Swamp30

Active Expediter
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Even a reputable company as you said in load-1..which i have all the RESPECT in the world for..i dont see john showing you invoices he has billed his customers for..true customers not parnter carriers..if was case rates would be no secert..you know how guarded sales reps keep their tariffs?
 

westmicher

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Even a reputable company as you said in load-1..which i have all the RESPECT in the world for..i dont see john showing you invoices he has billed his customers for..true customers not parnter carriers..if was case rates would be no secert..you know how guarded sales reps keep their tariffs?

OK, I don't know if it is true in every state, but in Michigan anyone can look up a company on the secretary of state's web site to determine ownership. So if the Fly By Night Expediting Company owns the Guess Who Is Scamming You Now Transportation Group, you could see that with a minimum of effort. I happen to be a bit more determined and resourceful than average so I wouldn't think they could hide for long. The web is FULL of info if you just look.
 

Swamp30

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Yes you can in most states..there is nothing illegal about what they do in most states..also another thing i seen done is a very close business friend setups up a legitimate freight brokerage and the company runs it through there first then to the carrier then to owner/op..all i am saying is you will be very hard up period to find ANY company thats gonna show you what they charge an actual customer..
 

Tennesseahawk

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Even a reputable company as you said in load-1..which i have all the RESPECT in the world for..i dont see john showing you invoices he has billed his customers for..true customers not parnter carriers..if was case rates would be no secert..you know how guarded sales reps keep their tariffs?

If a company is paying you percentage, it is federal law that you can see the invoices, to make sure they are paying you as agreed upon.
 

guido4475

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Yup. The quallcom shows all of the numbers when we get our load info. But even if if didnt, i firmly beleive he would have no problem showing them to us. He's a transparent kind of guy.
 

Swamp30

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Seriously? What part of this havent you got yet? I not saying all do it but a great part of them do..they can put what ever they want on that qc..there is very little chance anyone will show you customer tariffs and rates..i know john is a stand up guy i just saying i find it hard to beleive any transport company will show you there tariffs for customers..thats why a good portion feed them like they do through other companies..its done rather easy and legal..i worked on both sides of this and seen it first hand..customers paying expedite freigt are paying a premium price. If you are on a 70% plan and not getting 1.20 a mile + then you are more and likely getting screwed(cargo vans)..i have done sales for SEVERAL expedite companies..NONE Of them had CV Rates for customers less than 2 dollars a mile plus fuel..ST WAS always 2.65 a mile and up plus fsc and tractors expedites were in the 3.50 range and up..i done all the sylectus conferences for carriers and all that teana stuff..now when you do a partner load its different because you are suppose to help one another..
 

zorry

Veteran Expediter
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Trailer Transit is so transparent they give you a copy of every freight bill you haul.
Sometimes the add-ons were amazing.
A few years back they decided they needed a little more on their end so they introduced a 5 or 10% Office Surcharge which they decided was not part of the linehaul.
I've been gone over four years and the other day I received notice that I'm in on a class action suit. I guess some disgruntled o/o decided he wanted his share of the office surcharge.
 

highway star

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Seriously? What part of this havent you got yet? I not saying all do it but a great part of them do..they can put what ever they want on that qc..there is very little chance anyone will show you customer tariffs and rates..i know john is a stand up guy i just saying i find it hard to beleive any transport company will show you there tariffs for customers..

They have no obligation to show a rate sheet, just the billing of individual loads that you haul.
 

xiggi

Veteran Expediter
Owner/Operator
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Seriously? What part of this havent you got yet? I not saying all do it but a great part of them do..they can put what ever they want on that qc..there is very little chance anyone will show you customer tariffs and rates..i know john is a stand up guy i just saying i find it hard to beleive any transport company will show you there tariffs for customers..thats why a good portion feed them like they do through other companies..its done rather easy and legal..i worked on both sides of this and seen it first hand..customers paying expedite freigt are paying a premium price. If you are on a 70% plan and not getting 1.20 a mile + then you are more and likely getting screwed(cargo vans)..i have done sales for SEVERAL expedite companies..NONE Of them had CV Rates for customers less than 2 dollars a mile plus fuel..ST WAS always 2.65 a mile and up plus fsc and tractors expedites were in the 3.50 range and up..i done all the sylectus conferences for carriers and all that teana stuff..now when you do a partner load its different because you are suppose to help one another..

So your saying when we stand in dispatch and listen to them give quotes to customers we aren't hearing what we think we hear?

Sent from my Fisher Price - ABC 123
 
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