Common Sense

Cheap Freight

By Jerome Atrick
Posted May 2nd 2020 8:10AM

Everyone talks about cheap freight. Do you haul cheap freight? Of course you don’t. Neither do I. How do you define cheap freight? Every owner operator should know what they need to cover their expenses. They should also know how much profit they need to stay afloat. Your definition of cheap freight will most likely differ from mine. I don’t have high truck payments, a home I can barely afford or expensive toys at home like boats or motorcycles or cars. If you live beyond your means then you must have premium rates to survive. Just because you overspend, does not mean your customers will pay you more than market price. Control your expenses and you will have better control of your business. When you have low overhead costs, then what you consider cheap freight can be a profitable load for someone like me. Your high cost to operate does not dictate market rates. The market is based on supply and demand. If you do not understand the market which you have based your business in, then it is either time to learn or time to leave. So you keep crying about cheap freight and I will keep making the profits.