Home > Forum > $2.00 A MILE HYPE (BROKERS)

$2.00 A MILE HYPE (BROKERS)

Feb 05, 2018 at 08:15 AM CST
+ 19 - 2
This is not really a complaint... but more of an attempt to bring awareness... BROKERS/SHIPPERS.... Stop the generalized thought process that ALL we want as owner operators is $2.00 a mile.. That may have been the case yester year but alot of variables have changed... I know that alot of you feel that as long as you offer $2.00 a mile that some are just jumping for joy... when the truth of the matter is.. that's just the starting point... over the last few months, I've seen quite a few brokers post '$$$$$' under their load comments.. only to call and they are offering $2.00 a mile or close ot it.. .. As an owner operator of 14 years, I'm here to say that $2.00 was the norm back then but it's not really anything to jump for joy for now... So, PLEASE... Negotiate higher rates on the freight that you offer and if you are witholding on your rate because you feel $2.00 a mile is all WE need, then i'm here to tell you... THAT'S NOT TRUE!!!..

BTW: Hauling BONE MEAL, FISH MEAL, FEATHER MEAL, Etc. doesn't constitute a rate of $2.00 a mile... We've got to get atrailer washout BEFORE we load and AFTER we unload... and then most of the time we are limited what we can haul after these loads because of the product.... So do the math... a $50 washout BEFORE and a $50 washout AFTER doesn't constitute a rate of only $2.00 a mile...

I have a great relationship with alot of you guys.. and just asking that you think about US as though it's YOUR truck when your offering rates to haul your products... Honestly, the new norm, in my opinion, is Somewhere close to $2.50 a mile or better...

HAVE A GREAT DAY!!!!
Replied on Mon, Feb 05, 2018 at 11:34 AM CST
+ 1 - 2
That's a great point!!!
Replied on Mon, Feb 05, 2018 at 02:21 PM CST
+ 7 - 3
I agree with your thoughts that $2.00 is fairly chincy when it comes to rates, especially M&B, blood meal and other like commodities. The cleanout procedures and hassles related to get your trailer back in shape again after such a load is ridiculous at best. That being said, I must question why CARRIERS will continually book freight anywhere from $1.08/mi to $1.65/mi. I have offered loads out at over $3.00/mi and scarcely got any interest, but if I put the rate at $1.45/mi. I get flooded with calls. Can anyone explain that. Cheap freight continually moves easier than better higher paying loads. Can someone explain that to me? If the CARRIERS don't stop accepting these lo ball rates as normal, there is no incentive for a broker or a shipper to increase rates as the profit looks as good in their pocket as it does yours. The shipper/broker mentality is to get the load moved as inexpensively as they can, thereby increasing their profits. The carrier wants to get a higher rate so they can increase their profits. The simplest thing to do is know your operational costs and don't haul anything that does cover your costs and leave you a reasonable profit. Get it out of your head that it is all the broker's and shipper's fault. CARRIERS are the ones with the power right now. Say no and stick to it. I have told many many shippers that they will not sell product for a loss, so don't expect me to haul it at a loss. Having been on different sides of this issue as a merchant, a shipper, and as a broker, I can tell you that Carriers need to sharpen their negotiating skills. If it doesn't pencil out, let it sit. The quicker CARRIERS get this through their heads that THEY have to be responsible to THEMSELVES, the sooner this issue gets put to rest. What I see is that all too many CARRIERS don't know their business side of their business well enough to be in this business. It takes more that running down the road with weight onboard to be profitable.
Replied on Mon, Feb 05, 2018 at 02:53 PM CST
- 2
I agree with your thoughts that $2.00 is fairly chincy when it comes to rates, especially M&B, blood meal and other like commodities. The cleanout procedures and hassles related to get your trailer back in shape again after such a load is ridiculous at best. That being said, I must question why CARRIERS will continually book freight anywhere from $1.08/mi to $1.65/mi. I have offered loads out at over $3.00/mi and scarcely got any interest, but if I put the rate at $1.45/mi. I get flooded with calls. Can anyone explain that. Cheap freight continually moves easier than better higher paying loads. Can someone explain that to me? If the CARRIERS don't stop accepting these lo ball rates as normal, there is no incentive for a broker or a shipper to increase rates as the profit looks as good in their pocket as it does yours. The shipper/broker mentality is to get the load moved as inexpensively as they can, thereby increasing their profits. The carrier wants to get a higher rate so they can increase their profits. The simplest thing to do is know your operational costs and don't haul anything that does cover your costs and leave you a reasonable profit. Get it out of your head that it is all the broker's and shipper's fault. CARRIERS are the ones with the power right now. Say no and stick to it. I have told many many shippers that they will not sell product for a loss, so don't expect me to haul it at a loss. Having been on different sides of this issue as a merchant, a shipper, and as a broker, I can tell you that Carriers need to sharpen their negotiating skills. If it doesn't pencil out, let it sit. The quicker CARRIERS get this through their heads that THEY have to be responsible to THEMSELVES, the sooner this issue gets put to rest. What I see is that all too many CARRIERS don't know their business side of their business well enough to be in this business. It takes more that running down the road with weight onboard to be profitable.
Replied on Tue, Feb 06, 2018 at 11:08 AM CST
+ 6
the truck that accepts a load sets the rate
Replied on Tue, Feb 06, 2018 at 09:17 PM CST
+ 3 - 1
I Don't understand why any O/O would accept a load that dosen't meet their profit goals. You're operating a business!! Run it like a business. Many of you determine your cost per mile and your personal debts in determining how much you need. That's stupid. Business owners work from the bottom up. First, what is fair compensation for a company owner. Next, what are my operating cost (both fixed and variable), then, use that determines the price for your service. Whether a coffe shop, cabinet maker, or driver, no one starts a business just to get by, hell welfare pays better. We have to think more like CEO's and less like "drivers". Who opens a deli just to borrow money to buy the bread because the supplier controls what price you can sell your sandwhices for?
If O/O carry 90% of all freight in the coutry, why are we so fragmented and not in control of this? We need to control the rates by uniting together and demanding the rates necessary to operate a business, a successful business. Defferentiate your business with quailty and customer service, much like your neighborhood deli.
Replied on Wed, Feb 07, 2018 at 12:08 PM CST
+ 1 - 1
WHEN WE GET 2.00 MILE FOR NEW TRAILER TRANSPORT, EMPTY. THEN THEY WANT YOU TO PULL 50,OOO POUNDS FOR 1.50 MILE AFTER YOU HAVE CHAINED IT DOWN. WHAT ARE THEY THINKING?
Replied on Thu, Feb 08, 2018 at 10:08 AM CST
- 1
we need $3 plus per mile.any other type of freight other then bulk is paying better than $3 a loaded mile
Replied on Thu, Feb 08, 2018 at 01:22 PM CST
Watch the SPOT market on DAT for dry freight and try to charge the same rate, or close to it. Of course, the skabs will still undercut you.
Replied on Thu, Feb 08, 2018 at 01:23 PM CST
SKABS!!!! Sorry
Replied on Fri, Feb 09, 2018 at 08:28 AM CST
Yes we need to stick together , operators who take rock bottom rates hurt all of us , I got stuck in El Paso and was seeing .90 cents per mile that is not even fuel , we need to just say no to those brokers , it sets a bad norm

Replied on Fri, Feb 09, 2018 at 12:55 PM CST
Where is the $3.00 miles freight that you can't get hauled? There are more variables that come into play. How many miles one has to bounce to get that 3 dollars plus the distance of the loaded miles play into the decisions while booking loads. Short loads always tend to pay more per mile than long distance loads. Many times the bounce is longer for some of the short mile loads.