and the vans back then were not as fuel efficient either.....
Saying "no" to cheap freight!!
- Thread starter mdpettrey
- Start date
I've posted this before. These are rates that were in effect January 1, 1997. The truck got 58.5% of these rates. If we are hauling for less than the rate was 18 years ago then we are all hauling cheap freight!
I like how rate went down with more miles... Like my cost to run got
Cheaper!
Re: Saying "no" to cheap freight!!
The problem is most CEO's make their decisions based on what will help them the most, they have no long term thinking beyond the next bonus cycle. And why should they, the typical CEO has a golden parachute to walk away with, while the people who work hard for a living are lucky if they get 26 weeks of unemployment.
Let's not forget private equity groups either, they are a disease, and I know there are a few carriers that are owned by these parasites.
If there were more executives like you and mike in this industry we wouldn't be having this discussion.
The problem is most CEO's make their decisions based on what will help them the most, they have no long term thinking beyond the next bonus cycle. And why should they, the typical CEO has a golden parachute to walk away with, while the people who work hard for a living are lucky if they get 26 weeks of unemployment.
Let's not forget private equity groups either, they are a disease, and I know there are a few carriers that are owned by these parasites.
If there were more executives like you and mike in this industry we wouldn't be having this discussion.
Tennesseahawk
Veteran Expediter
It did. At the first and last mile, you have loading and unloading to deal with. The more miles involved, the less time at the docks, comparatively. Anything under 200, IMO, should be a higher rate.
I hear that when we lose a bid on a long load the selling party will say.."but its long miles"? Like a mile #5 is any cheaper then mile # 900....gee whiz...
Re: Saying "no" to cheap freight!!
I think we would still.....
this industry is so much more then we see here just at EO, we are but a speck.....
I think we would still.....
this industry is so much more then we see here just at EO, we are but a speck.....
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I've posted this before. These are rates that were in effect January 1, 1997. The truck got 58.5% of these rates. If we are hauling for less than the rate was 18 years ago then we are all hauling cheap freight!
And your chart explains why the industry has the issues it does. No one should be surprised.
No need to complicate the simple.
And your chart explains why the industry has the issues it does. No one should be surprised.
No need to complicate the simple.
there IS another line of thought...apparently what some CEO's seen.....we were paid too much back then and they have seen to actually put the rates into line.....
No one can predict this economy or this industry 20-30 years out. Does anyone know what fuel prices will be in 12 or 24 months? Technology changes. Regulatory changes. Government mandates. Expediting might not exist in its present form.
Rates haven't changed too much. What many companies keep certainly has. I was in the dark for some time until I started looking for my own freight. An eye opener it was.
Tennesseahawk
Veteran Expediter
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mdpettrey
Seasoned Expediter
Coalminer,
I believe there are people that think that way!!. If they would think further than 2 feet into the future, they would realize making $200.00 less and giving it to their own vehicle they would make much more money in the long run keeping their own vehicle busy! That is why we NEVER use carriers that quote us like that, we have a very specific circle of carriers we use and never even talk price and just send the load over for our set rates.
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15 yrs ago we didn't seem to have all the layers...it was broker and then Me....now with 3pls and 4pls....there are more layers placing me further away from the money....the only good money is when it seems to be a direct customer and/or partner carrier.
Well I think CEO's or upper management at companies that are owned by venture capital or are publically traded are under a different set of pressure. They are often forced to look at things on a much shorter time frame. Quarterly earnings and other items are part of their survival and satisfying ownership or shareholders. Thus I think privately held companies are able to take a longer view picture.
Now do I think carriers wanted to drive the rates down from the table posted? No, that is just silly. It is simple supply and demand. Back in the days of when that rate chart was posted, how many expedite carriers or vehicles were in the market? The industry grew and with that supply grew. Does anyone think the carriers are making the same margins as they were back then? From a carrier side we can't charge those same rates today, and we are paying the owner operator 10% or more of the split more. So to say the carriers wanted to drive down the rates???? Now some may have a little to try and gain market share a little, but I think it is just the nature of supply and demand.
For instance we have a division that has all 53ft air ride curtainside trailers. 8 years ago 53ft air ride versions of these we not common place. Today you see them all the time. Has the rates and market moved as supply increased? Of course it has.
It is frustrating. But it is frustrating for both sides, the owner operator and the carrier. Technology, lack of regulation, factoring, and a number of other factors have allowed for a low barrier of entry into the business for many. Sadly, we have all seen the low barrier to exit as well.
Again, just my opinion.
Now do I think carriers wanted to drive the rates down from the table posted? No, that is just silly. It is simple supply and demand. Back in the days of when that rate chart was posted, how many expedite carriers or vehicles were in the market? The industry grew and with that supply grew. Does anyone think the carriers are making the same margins as they were back then? From a carrier side we can't charge those same rates today, and we are paying the owner operator 10% or more of the split more. So to say the carriers wanted to drive down the rates???? Now some may have a little to try and gain market share a little, but I think it is just the nature of supply and demand.
For instance we have a division that has all 53ft air ride curtainside trailers. 8 years ago 53ft air ride versions of these we not common place. Today you see them all the time. Has the rates and market moved as supply increased? Of course it has.
It is frustrating. But it is frustrating for both sides, the owner operator and the carrier. Technology, lack of regulation, factoring, and a number of other factors have allowed for a low barrier of entry into the business for many. Sadly, we have all seen the low barrier to exit as well.
Again, just my opinion.
Mike...It sure is great to work with your staff on any and all loads you might award us here at Crossroads Express! Our Owner Operators all are certifiably insured , and are some of the most responsible and experienced in the industry.....Ken aka OVM
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Certifiable for sure.
Tennesseahawk
Veteran Expediter
No kidding...whacky world of expedite...LOL
Well, Elliott stole my thunder...unfortunately, it's a simply case of supply and demand. Brokers and Shippers know this all to well. In the mid to late 90's, there weren't too many OTR Expeditors and most trucking companies would laugh at a shipper for asking for that service, TODAY...almost EVERY trucking company in the nation offers some sort of expedited service.
We can sit on EO and ***** (sorry Mueller) about it...like someone mentioned earlier, it's been "talked" about for 5 years now. OR we can do something about it, like a few of us have been trying to do for a while now. Mike started this all by simply saying no to cheap freight! Anything under .80 a mile to the van is cheap freight, anything under 1.40 a mile to the truck is cheap freight. (I'm not talking about the crappy area freight, or the I need to get home freight). Not because it's bad for a specific driver, but because it's bad for the industry...the long term industry.