I DON'T KNOW HOW MANY OF YOU LISTEN TO THE TRUCKIN BOZO ON THE RADIO. BUT ANYWAY I OFTEN HEAR HIM COMMENT ON FREIGHT RATES NOT GOING UP OVER THE YEARS W/ THE RISING COSTS OF LIVING. BASICALLY BECAUSE DRIVERS CAN'T JOIN TOGETHER AND STAND UP TO THE INADEQUATE RATES. WHAT HE IS SAYING IS AS LONG AS A COMPANY CAN GET SOME O/O TO HAUL THE FREIGHT FOR A LOW RATE THE RATES WILL NEVER CHANGE. JUST CURIOUS WHAT EVERYONE ELSES THOUGHTS ARE ON THIS? AND ALSO WHY IS IT THAT US TRUCK DRIVERS THE BACKBONE OF THIS COUNTRY. CAN NOT UNITE & STAND-UP FOR THE THINGS WE ALL COMPLAIN ABOUT THAT AFFECT OUR POCKETBOOKS. I PERSONALLY WILL NOT RUN A LOAD THAT IS NOT PROFITABLE TO ME. BUT YET ANOTHER DRIVER WILL TAKE THAT SAME LOAD, KNOWING HE IS GOING TO MAKE VERY LITTLE PROFIT OR IN SOME CASES NONE AT ALL.
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FREIGHT RATES
- Thread starter NEVERHOME247
- Start date
paperback1
Expert Expediter
You said you would not take a load that is not profitable to you and some other driver will take it even if it means he will make a very small profit. The key word here is PROFIT! That driver might know that by taking that load he can get a better load in the new location, or, maybe he don't need to make as big a profit as you do. For example, I don't need to make that much to turn a profit, beacuse my trucks are paid for. I think drivers need to do some homework to see how much it costs to run the truck. If they can't get by on what the freight pays, look into taking some business clases and learn how to budget, and if you still can't make it, then that person is not ready to own his/her own business.
homeless andy
Expert Expediter
Neverhome247,
I've been sitting here going through the archives and having a lot of the same thoughts. I am still a wannabe in this industry, but the causes are fairly easy to see, even for someone with no experience.
The cure is the bigger problem. The 8 or 10 large expediting companies, over half of which are subsidiaries of very large trucking companies, have created the majority of the problem. They continue to lease vehicles knowing there is not enough freight to keep everyone profitable. I understand the business side of this, they are trying to remain profitable also, and this may be the only way some are still in business. Similar to trucking companies that run their own CDL schools.
The people entering this business and leasing vehicles are adding to the problem. Sorry, I'm not trying to step on any toes, here, just stating my opinion. If a person considering getting into this business would take the time to read these forums and really learn the business beforehand, they would not go out and buy or lease a brand new vehicle. They would start as a driver for an o/o or fleet owner. This would, in turn, make for less competition, and higher rates. Some people, just want to be in business for themselves and jump in headfirst without knowing what they are getting into. They just want a shiny new truck with their name on it. More interested in pride than planning.
Another major problem I see with the industry is the utter lack of business in the west. I would think the major players in expediting would aggresively pursue contracts out west. Sure, it's not as heavy an industrial area as the midwest and southeast, but I am convinced that there are other industries besides car manufacturers that could utilize these services. Even 3 or 4 small contracts in 3 or 4 states out west would enable a driver to get paid for at least part of the trip back, as opposed to dead-heading 1000 miles to get to a busier area. And that's the reason people are taking these low rates. Just to keep rolling and get into a more productive area. Low rates are better than no rates.
We need a non-profit, yes, I said non-profit, organization that promotes this business all over North America. Spread the word any way possible. Not for a select few businesses, but for the industry as a whole. I'm sure the government would kick in a large portion of money through grants. People have to know that expediting is available and what it actually is. When they think of small-LTL deliveries, they think of UPS, Fed-Ex, and USPS. Give them more options. We must create more business. It seems, by looking through the archives here, that this industry has become stagnant, without any of the major players taking any action other than the complete destruction of some hard-working soul's dreams. We need to educate newcomers to the perils of starting their own business without testing the waters. Only with a dedicated, concentrated, effort can we slow down the "lease machine" that some of these companies have become. Education, aggresive sales, and more education, are the only ways to turn the tide, and make this industry a serious player in the transportation market.
I've been sitting here going through the archives and having a lot of the same thoughts. I am still a wannabe in this industry, but the causes are fairly easy to see, even for someone with no experience.
The cure is the bigger problem. The 8 or 10 large expediting companies, over half of which are subsidiaries of very large trucking companies, have created the majority of the problem. They continue to lease vehicles knowing there is not enough freight to keep everyone profitable. I understand the business side of this, they are trying to remain profitable also, and this may be the only way some are still in business. Similar to trucking companies that run their own CDL schools.
The people entering this business and leasing vehicles are adding to the problem. Sorry, I'm not trying to step on any toes, here, just stating my opinion. If a person considering getting into this business would take the time to read these forums and really learn the business beforehand, they would not go out and buy or lease a brand new vehicle. They would start as a driver for an o/o or fleet owner. This would, in turn, make for less competition, and higher rates. Some people, just want to be in business for themselves and jump in headfirst without knowing what they are getting into. They just want a shiny new truck with their name on it. More interested in pride than planning.
Another major problem I see with the industry is the utter lack of business in the west. I would think the major players in expediting would aggresively pursue contracts out west. Sure, it's not as heavy an industrial area as the midwest and southeast, but I am convinced that there are other industries besides car manufacturers that could utilize these services. Even 3 or 4 small contracts in 3 or 4 states out west would enable a driver to get paid for at least part of the trip back, as opposed to dead-heading 1000 miles to get to a busier area. And that's the reason people are taking these low rates. Just to keep rolling and get into a more productive area. Low rates are better than no rates.
We need a non-profit, yes, I said non-profit, organization that promotes this business all over North America. Spread the word any way possible. Not for a select few businesses, but for the industry as a whole. I'm sure the government would kick in a large portion of money through grants. People have to know that expediting is available and what it actually is. When they think of small-LTL deliveries, they think of UPS, Fed-Ex, and USPS. Give them more options. We must create more business. It seems, by looking through the archives here, that this industry has become stagnant, without any of the major players taking any action other than the complete destruction of some hard-working soul's dreams. We need to educate newcomers to the perils of starting their own business without testing the waters. Only with a dedicated, concentrated, effort can we slow down the "lease machine" that some of these companies have become. Education, aggresive sales, and more education, are the only ways to turn the tide, and make this industry a serious player in the transportation market.
Paperback I hear what your saying. I agree w/on making a profit. But I hate to bust your bubble. Maybe you want to haul freight at todays rate for the next 10 years. Yeah you'll make a small profit. And a smaller one each and every year. As your operating costs increase and your paycheck decreases. And your trucks that are payed for. Well I hope they last forever. Because I promise you when its time to replace them. You won't be paying the same price that you paid for the trucks you have now. The point I'm trying to make is as long as guys like you will haul freight for next to nothing. Well the industry will always pay next to nothing. I bet if you could get ten cents more a mile. You would you would tell the company just to keep it. Because your content with never seeing a pay increase. What a business concept. Higher overhead/Less profit. I don't know what school you went to. But I don't sign me up for any classes.
paperback1
Expert Expediter
I did not say that I'm happy with the rates of today, but keep in mind I have always made a profit in each and every yr I have owned trucks. I have my drivers turn down loads a lot, and if you can get your own authority you are better off. I have a couple of strught trucks that deal with one customer only, that is beacuse I went out and got that contract on my own, I didn't sit and look for a company to lease on with first. I went to a local company and told them I can do a better job then anyone else, and that my drivers are ready when the freight is. That my freind was in 1997 and I was getting $2.25 a mile then, and now its up to $2.95 mile. Take some time and try this, go to a local company and see what there needs are. And by the way, I went to Northwestern University in Illinois on a scholarship and got my B.S. in Business Management. I went and right after I turned 21 went and got my CDL and started driving a truck. I know pay is low, but as long as people sighn on without their own authority the company's got you.
Lostmarbles
Expert Expediter
It's all a matter of supply and demand is it not? There are so many trucks and O/Os needing loads that the Brokers and shippers can wait for their price it seems to me. Also "flow through" and or Cash flow are sometimes more important than profit,re... when that payment is getting close to the date the water pump dies.
I saw that Yellow Freight raised THEIR rates 30% this year. Maybe they have a more captive market? I'm sure they won't go bust if they lose a load or two.
I wonder what impact the shortage of drivers SHOULD have on the rates? Even though the company drivers aren't seeing any real pay increases? They say 85,000 drivers for the next 7 years to fill the void!
Check out the rates for LTL. They seem to be a sector that can't be ignored even though it takes more effort to corodinate looks like a $500 load to a $4100.00 load aint a bad option.
But I don't know anything I dropped out of High School to raise Heck!
Life is what happens to you while your busy makeing other plans.
I saw that Yellow Freight raised THEIR rates 30% this year. Maybe they have a more captive market? I'm sure they won't go bust if they lose a load or two.
I wonder what impact the shortage of drivers SHOULD have on the rates? Even though the company drivers aren't seeing any real pay increases? They say 85,000 drivers for the next 7 years to fill the void!
Check out the rates for LTL. They seem to be a sector that can't be ignored even though it takes more effort to corodinate looks like a $500 load to a $4100.00 load aint a bad option.
But I don't know anything I dropped out of High School to raise Heck!
Life is what happens to you while your busy makeing other plans.