Rates by carriers

mcclainlogis · May 25, 2008

Just got off the phone with a good buddy of mine in the business.

We got talking about the subjects of my last two threads, cost per mile and straight trucks vs cargo vans.

He is a carrier with his own authority and he told me (and gave me the OK to share to others) that he charges:

2.50 per mile for his straight trucks
and
2.00 per mile for his cargo vans

That sure gave me a clearer prospective and where this expedite market has went since I left just back in September of 2007.

WOW - maybe there really is some hope here.

Jefferson3000 · May 25, 2008

....including current fsc or not? That will tell us much more about this fellow.

Jefferson3000 · May 25, 2008

Also, knowing where he is based and where their customers want them to run plays into it.

I talked to an old friend who manages an expedited carrier in Costa Mesa, CA the other day. He's charging 1200 bucks to send a straight truck from his location to Vegas @ 275 miles.

mcclainlogis · May 25, 2008

He told me that was his flat rate, so I guess no FSC. So give me your thoughts. He runs out of Detoit and stays in OH, MI. IN, IL and KY.

jaminjim · May 25, 2008

Greg, just have to ask. Why are you asking the rates that are being paid? Most brokers I have dealt with know quite well what the going rates are.

davekc · May 25, 2008

mcclainlogis said:
He told me that was his flat rate, so I guess no FSC. So give me your thoughts. He runs out of Detoit and stays in OH, MI. IN, IL and KY.

If it meets our criteria for an acceptable rate, doesn't really matter. It either pays enough or it doesn't.
With regards to the Ca to Vegas run, many west coast brokers calculate on milage there and back. They are assuming the truck is returning empty. If it does, that is ok, if it can grab a quick return load, then that is an added bonus.
I should kinda restate that. Many carriers charge for roundtrip milage when billing a load.

mcclainlogis · May 25, 2008

jaminjim - because information when used wisely is knowledge.

Turtle · May 25, 2008

Maybe I'm missing something, but, to me, I'd think that, as a fleet owner, one would already know the rates before buying all those trucks and getting their own authority.

jaminjim · May 25, 2008

And just coming off a stint as a broker.

mcclainlogis · May 26, 2008

Yes, yes indeed.

But, using what I know, see and calculate and add in what others see, know and calculate combines two, three or four different sides to a formula.

Such information could and I repeat could be more useful than just one view.

But, that is just my thought and my reasoning for asking.

Jefferson3000 · May 26, 2008

davekc said:
If it meets our criteria for an acceptable rate, doesn't really matter. It either pays enough or it doesn't.
With regards to the Ca to Vegas run, many west coast brokers calculate on milage there and back. They are assuming the truck is returning empty. If it does, that is ok, if it can grab a quick return load, then that is an added bonus.
I should kinda restate that. Many carriers charge for roundtrip milage when billing a load.

You're absolutely correct. And I might add that a lot of short haul carriers that occasionally go a distance do that as well.

Grag, your friend's rate is not that bad, although not necessarily outlandish either. Remember that diesel has gone up about $1,40 per gallon since you were last driving.

mcclainlogis · May 26, 2008

Jeff-

Thanks for the comment. Yea, everyone needs to set their own rates, keep their own profit margins, and all that.

But, you should always know the competition or you can put yourself out of the market. By either pricing yourself to high OR by pricing yourself to low and forcing yourself into a finanicial crisis.

Jefferson3000 · May 26, 2008

I certainly believe in setting your own rates and knowing the competition. All I was saying is that the rates your friend set are largely the result of higher fuel charges, not so much the raising of the rates.

csands007 · May 26, 2008

Wonder if you have an MC # what would be the best boards to go to? Then would the bids be posted. So far the sites I seen had little LTL loads for cargo vans. I would assume $2.00 plus fuel surcharge might be fairly close to what lots are bidding except several major ones like E-one, The Cat and Tri ST

Jefferson3000 · May 26, 2008

csands007 said:
Wonder if you have an MC # what would be the best boards to go to? Then would the bids be posted. So far the sites I seen had little LTL loads for cargo vans. I would assume $2.00 plus fuel surcharge might be fairly close to what lots are bidding except several major ones like E-one, The Cat and Tri ST

Third Party TL and LTL boards usually require only that you fill in a form supplying them with your company data and a subscription fee. Many carrier boards, whether TL, LTL or expedite, require a contract to have access.

mcclainlogis · May 26, 2008

csands007, I think you are right. I think must of the smaller carreirs are going for that $2.00 per mile rate plus the FSC.

Now, like you said, TS, P2 and some of the others will be able to grab 2.50-3.00 with ease because of their customer base, history and service records - and hell you can't complain about that.