If they have a third party do the lease purchase as that is indicated, it moves that liability off their books. I wouldn't be surprised that the lease cost is twice as much as a loan payment.
That maintenance fund is another joke. They anticipate most to fail. If not, they wouldn't have a need for that.
Tennesseahawk
Veteran Expediter
CharlesD, you hit the nail SQUARELY on the head! I'm sitting here boiling at the first half dozen posts that the issue is not about fuel or lack of freight; it's about getting torched by the very ppl we get our loads from. Many on here have an opinion of what freight pays based on what they are making. I'm sure these same ppls' jaws would drop when they find out the reality.
I'm going to make an educated guess here, and say that companies are paying an increased rate because of fuel prices. Load boards and brokers are not passing those increases onto us. Instead, as CharlesD has stated, brokers bid on the load and turn a profit, at the cost of the driver. And I know, being with a company that bids on other companys' loads, that these brokers can go three or more deep by the time we see it.
I'd venture to say the brokering business is making out much better than the trucking industry. Get rid of the bad ones, and we can get back to making a living. We can't do a thing about fuel prices. But we can do something about the broker industry.
I'm going to make an educated guess here, and say that companies are paying an increased rate because of fuel prices. Load boards and brokers are not passing those increases onto us. Instead, as CharlesD has stated, brokers bid on the load and turn a profit, at the cost of the driver. And I know, being with a company that bids on other companys' loads, that these brokers can go three or more deep by the time we see it.
I'd venture to say the brokering business is making out much better than the trucking industry. Get rid of the bad ones, and we can get back to making a living. We can't do a thing about fuel prices. But we can do something about the broker industry.
Falligator
Expert Expediter
Well stated, drivers are getting the shaft by their own companies. For instance; I recently had a load with company X that ran 400 and some odd miles. On that particular load I only made just over 400$. While I was at the shipper, the owner of the company-ie: (the shipper) handed me a check for 700 and some odd $. Someone is getting shafted and it's surely not the driver's companies. I explained to the guy that I do not handle money for company X, and that he would have to call customer service regarding any money. Well, I wish I could have had the money!!!! Now the other week, I had an airport p/u for company X where I had to dh 187 miles for a 56 mile load. Of course, I org asked for 200$ (which to me is a fair offer) and they said that there was no $ in the load for that. I ended up getting only 150$ for the run. Someone has to be getting paid for company X to send freight on an airplane. You cant bullcrap the bullcrapper.
Tennesseahawk
Veteran Expediter
You're right, Fall. Tho I was basing things primarily on brokers, the companies do it too. It doesn't surprise me one bit that they're paid $700+ for a 400 mile run and give you a buck a mile. They seem bent on this notion that you NEED X amount of money, and no more. Sorry... it's not your business what I NEED, it's what I DEMAND that you should be worried about. And all that jive about not having that much in the load? That what it usually is... jive to take the air out of your arguement and put the freight on your truck.
Jefferson3000
Expert Expediter
When you contracted with company X, you agreed to a certain contract rate per mile, plus fuel. Sometimes company X may have a rate of $1.05 plus fuel for a B unit load for a large busy customer. They obviously cannot survive on .28 per mile that you run. Neither can they survive on $1.85 for a D unit. They may agree to do it at the rate for another carrier even. But there are other customers who will pay much more. In reality, the check that was offered to you was not really that big. You may have received a little less that 60% plus 100% of fuel. In some cases, you may have received much more than %60 plus the fuel charge.
Tennesseahawk
Veteran Expediter
One thing I forgot to mention about the strike. Notice that it's coming at an all-time high in fuel prices? The truckers are organizing this strike not because of those prices, per se; but because they've been complacent in what they've been getting since deregulation. Now it's coming back to bite them! They need more money. It won't come from the customers who are in a crunch themselves. The only place it can come from is the group that's controlled the truckers' profits for so long... the brokers.
arkjarhead
Veteran Expediter
Well I think if something would happen and push quite a few people out of business it may make things better for those left standing. Supply and demand type deal. You know not to long ago we heard all these people saying there was a driver shortage. There really wasn't. A strike isn't going to happen, and if it does it won't be effective.
1. The majority of the drivers won't stick together to shut down to begin with.
2. There will be no clear agenda.
3. There will be no lead person to do the speaking.
4. There will be no clear time table as to how long you should shut down.
I also think if the bigger companies start hurting the government will try to bail them out. If they would stay out of things and tell everyone it's sink or swim time the true business people will figure out a way to hang on. One thing to remember about large companies is yes they have a large amount of assets, but they also have an even larger amount of liabilities. I guess we will see what happens.
1. The majority of the drivers won't stick together to shut down to begin with.
2. There will be no clear agenda.
3. There will be no lead person to do the speaking.
4. There will be no clear time table as to how long you should shut down.
I also think if the bigger companies start hurting the government will try to bail them out. If they would stay out of things and tell everyone it's sink or swim time the true business people will figure out a way to hang on. One thing to remember about large companies is yes they have a large amount of assets, but they also have an even larger amount of liabilities. I guess we will see what happens.
R
riverrat
Guest
finally someone that agrees with what I am thinking, everyone is talking fuel when they need to be talking rates and the way brokers are skimming so much off the top,up to 50% and more for doing very little.
Tennesseahawk
Veteran Expediter
I don't think anyone is condoning a union. We're talking about getting a fair price for the freight we haul. I think you'd agree with that. You told me once 15% was more than fair. With the customer paying $3-4 a lot of the time, I don't see anything fair about it.
Hell no, chuck... er Fort Wayne wouldn't like it. He's dealing the same cards as the rest of em. Round and round. Doe-see-doe. From one broker to another, and there goes your dough-see-dough.
Ark... there is plenty of freight for everybody. Maybe not in expediting; but general freight is alive and kicking. Too many truckers just don't know what it's worth.
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jrcarroll
Expert Expediter
I've heard it for a long time. "lets strike". What needs to happen is for the drivers to shut down all at the same time for their 34 hr restart right before or after a holiday.
A strike will bring in "big brother" and a few drivers will end up in court and/ or jail. This is not just about freight prices, it also should be joined with the over priced fuel charges drivers are faced with.
A 34 hr restart is a legal way to prove a point and will not get the general public in an uproar, they will listen and so will the people in DC.
However it needs to be all drivers: IE: company, IC's, hot shot, big rigs right on down to the van drivers from all 50 states.
A strike will bring in "big brother" and a few drivers will end up in court and/ or jail. This is not just about freight prices, it also should be joined with the over priced fuel charges drivers are faced with.
A 34 hr restart is a legal way to prove a point and will not get the general public in an uproar, they will listen and so will the people in DC.
However it needs to be all drivers: IE: company, IC's, hot shot, big rigs right on down to the van drivers from all 50 states.
arkjarhead
Veteran Expediter
T-Hawk,
Like I said I felt pretty sure someone would find a different angle on the discussion. You did and I respect it. This weekend my family cooked a meal for my Grandmother's birthday. I was speaking with an Uncle of mine who works in the shipping department at a plant. He told me trucker's are getting paid a good fsc. That most of their fuel was paid for while loaded, and they were paying no more than a 1.25 a gallon for fuel. Well I respectfully disagreed. He said they are paying fsc on a sliding scale and Friday it was 46 cents per mile. .46 x 6mpg = $2.76 per gallon- $3.81= $1.05 So in theory if you are getting 6 mpg you should be only paying $1.05 for fuel while on that load. If you get better fuel milage of course you pay less. The question is does all of this fsc go to the truck or is someone keeping some for themselves? Then look at the rate. How much is it costing you when a load gets triple brokered? So I see where you are coming from.
Col,
I also see your point of view. I am assuming you are saying if you have a problem with brokers get out from under them and find your own freight. If that is the case I can respect that argument as well.
My Grandfather spent 50 years as a driver with a little over 40 of those years as an Independent O/O. He told me trucking has always been cut throat and it will always be cut throat. I believe that with all of my being. If you set up an account and someone else finds out about it they will be looking to undercut your rate and take it. I just wonder if you went in someplace and offered to haul something for what you needed to cover expenses and clear a decent profit would you be offering a bargain? Think about it you could offer someone a rate that is only needed to suppourt one household instead of three or four when you include the triple broker and finally onto the truck. I'm telling people to go out and get their own authority. I would be the wrong person to give that advice because I don't know that much about it, but they more I research it it seems like a more logical choice if you are business savvy and not scared to put yourself in front of people.
Like I said I felt pretty sure someone would find a different angle on the discussion. You did and I respect it. This weekend my family cooked a meal for my Grandmother's birthday. I was speaking with an Uncle of mine who works in the shipping department at a plant. He told me trucker's are getting paid a good fsc. That most of their fuel was paid for while loaded, and they were paying no more than a 1.25 a gallon for fuel. Well I respectfully disagreed. He said they are paying fsc on a sliding scale and Friday it was 46 cents per mile. .46 x 6mpg = $2.76 per gallon- $3.81= $1.05 So in theory if you are getting 6 mpg you should be only paying $1.05 for fuel while on that load. If you get better fuel milage of course you pay less. The question is does all of this fsc go to the truck or is someone keeping some for themselves? Then look at the rate. How much is it costing you when a load gets triple brokered? So I see where you are coming from.
Col,
I also see your point of view. I am assuming you are saying if you have a problem with brokers get out from under them and find your own freight. If that is the case I can respect that argument as well.
My Grandfather spent 50 years as a driver with a little over 40 of those years as an Independent O/O. He told me trucking has always been cut throat and it will always be cut throat. I believe that with all of my being. If you set up an account and someone else finds out about it they will be looking to undercut your rate and take it. I just wonder if you went in someplace and offered to haul something for what you needed to cover expenses and clear a decent profit would you be offering a bargain? Think about it you could offer someone a rate that is only needed to suppourt one household instead of three or four when you include the triple broker and finally onto the truck. I'm telling people to go out and get their own authority. I would be the wrong person to give that advice because I don't know that much about it, but they more I research it it seems like a more logical choice if you are business savvy and not scared to put yourself in front of people.
CharlesD
Expert Expediter
That's one of the reasons I got my authority, that and I was tired of all the deadheading. Anyway, even with that, things have been a bit slow recently. Slow as far as number of runs, but the income hasn't been too awfully bad, but I digress. When I'm home, or when I'm on the road and have some free time, I've been going to some industrial places armed with a few business cards, trying to drum up some business. I've had mixed success. The thing that opened my eyes was when I was in one place and I told that guy what I would charge for a certain run and he almost fell over. He told me that they were paying more than twice what I was asking. I wasn't asking for a cheap rate either, at least not cheap by my standard, which is what I figure I need for a run to be nice and profitable. I figure I should get more for a run than I did as a leased on O/O becaue of the extra insurance costs, but it seems I can get that and still come in less that what some of these shippers are used to paying. Here's the funny thing. The shipping guy I was talking to told me the name of the company they had been using and it wasn't a broker per se. It happened to be a rather prominent carrier that shall remain nameless. Now if this other carrier was charging more than twice what I was quoting him, and then probably giving their driver somewhere between .80 and 1.00 a mile, how much were they making off the run?
I'm not saying they're all doing that. I started my driving career with a local courier company in Cincinnati and they paid a percentage of the load revenue. They were also pretty transparent about what they were getting for a load, so you knew what their cut was on every load you did. There were some that I knew they weren't really making a lot of money from, but they were servicing a customer and keeping that client happy. Not everyone is this business is unscrupulous, but too many are. Having your authority presents a new set of headaches, but I've made more money since I got mine. Having more than one source for your loads will increase your chances of not sitting so long, at least most of the time, and being able to work with shippers will greatly increase your chances of getting a better rate. The money's out there to be made. You just have to bypass the middle man, or middle men in many cases.
I'm not saying they're all doing that. I started my driving career with a local courier company in Cincinnati and they paid a percentage of the load revenue. They were also pretty transparent about what they were getting for a load, so you knew what their cut was on every load you did. There were some that I knew they weren't really making a lot of money from, but they were servicing a customer and keeping that client happy. Not everyone is this business is unscrupulous, but too many are. Having your authority presents a new set of headaches, but I've made more money since I got mine. Having more than one source for your loads will increase your chances of not sitting so long, at least most of the time, and being able to work with shippers will greatly increase your chances of getting a better rate. The money's out there to be made. You just have to bypass the middle man, or middle men in many cases.
Like every other recruiter you make it sound all nice & tingly you plan on taking over the freight industry and making us all happy & secure! I'm sick of hearing this type of garbage. I'm sure you are just another pretty store front until you walk in side like most of the other freight Company's. You make the big money at the owner/operator's expence.
Welcome to MexiAmerica Land of opportunity for the rich corupt Government decision makers who promis to make it all better (Yah-Right)
Garman
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Well if this is the CASE LET ME LITE THE FUSE
Anakin Skywalker/Darth Vader - It's My Life
03:44 From: TRexMaster01
Views: 92,848
Star Wars Episode 3 Alternate Ending
01:19 From: darthatton
Views: 237,092
ICEROADTRUCKER
Ridge Runner
Anakin Skywalker/Darth Vader - It's My Life
03:44 From: TRexMaster01
Views: 92,848
Star Wars Episode 3 Alternate Ending
01:19 From: darthatton
Views: 237,092
ICEROADTRUCKER
Ridge Runner
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