Home > Forum > Due To The High Cost Of Fuel....

Due to the high cost of fuel....

Apr 01, 2021 at 04:57 PM CST
+ 15 - 1

Good Afternoon Everybody,

Due to the upswing in fuel prices I've decided to start a go-fund-me account to offset my fuel cost (and pay my monthly chrome shop bill). If I can count on my Bulkloads brothers and sisters to support my efforts, I may even stay home next week.

Thank you in advance for your support🤠


JUST KIDDING....😂

Replied on Fri, Apr 02, 2021 at 10:10 AM CST
+ 1
You would think that with the commodity prices at a level that is higher than what the farmer has seen for several years and with the cost of fuel at least a $1 to $1.50 higher this year that the rates would start edging upward.....wishful thinking. I talked with a grain company yesterday about some loads and he shot me a rate and I told him no way...it had to be this number. It took some convincing but he gave me a nickel more than his first quote. These brokers and grain companies need to wake up......but will they?
Replied on Sat, Apr 03, 2021 at 10:23 PM CST

Ryan, You should be hauling Cobalt Boats out of your back yard. I hauled for them years ago, great poeple and good rates back then.

Replied on Sat, Apr 03, 2021 at 10:25 PM CST
+ 1
Quote: "You would think that with the commodity prices at a level that is higher than what the farmer has seen for several years and with the cost of fuel at least a $1 to $1.50 higher this year that the rates would start edging upward.....wishful thinking. I talked with a grain company yesterday about some loads and he shot me a rate and I told him no way...it had to be this number. It took some convincing but he gave me a nickel more than his first quote. These brokers and grain companies need to wake up......but will they?"

When will the trucker "wake up" and charge for his services?

Fuel is up sixty some cents over last year.

Replied on Mon, Apr 05, 2021 at 07:01 AM CST
Why are you kidding? I wanted to see if and how good it works out. Maybe we would all be collecting the big coin at home
Replied on Thu, Apr 15, 2021 at 04:28 PM CST
+ 1
Quote: "When will the trucker "wake up" and charge for his services? Fuel is up sixty some cents over last year."

you can set your rates at whatever amount you believe is fair, however you probably aren't going to get that unless you're already established with a niche company. Average fuel surcharge is around 23%, when you try to add that on you will see almost every broker start back pedeling... and you will probably lose that load. I had a steady gig and then this April when I added a 23% fuel surcharge to my flat $2.00 per running mile rate my load availabilty has drastically dropped. NO BROKER has upped what they are willing to pay, so I have to think the shipper is holding back and too many drivers are hauling CHEAP freight. Look at the load board and see what fertilizer is paying out of OK...If you can hit $1.70 per mile you're damn lucky, it hoovers around $1.40 - $1.60 per mile...why are you boneheads hauling it for that...LET IT SIT.

It's based on supply and demand...DEMAND HIGHER RATES BEFORE YOU SUPPLY THE SERVICE! If they have to sit on some loads longer and worry about when it's going to get picked up, they will start increasing the rates. You're not helping yourself or any other owner operator if you are going broke while making Gavilon, Scoular, CHS. ADM or anybody else rich. This is a tough job and it's even tougher when you get stupid.

Replied on Thu, Apr 15, 2021 at 09:35 PM CST

I also subscribe to the DAT board. It shows the current fuel surcharge of .38 per mile being figured into the rates on loads I have looked at. It seems a fuel surcharge has become standard in the general freight sector. I may be hooking up to the step deck until harvest.

Under the news tab on bulkloads there are several articles regarding freight rates. Most of them have comments attached at the end of the article. Quite a few comments from brokers who bluntly say; "if I can get the load moved for X amount, why would I think about paying more? It's pure economics from their perspective.

At one time I thought nice equipment, professionalism, relationships, and loyalty would be the formula to better rates. I don't think that way anymore. It seems that all you need is a truck, the ability to get the doors over the pit, and be willing to take whatever rates is offered, and you will have all the work you want.

I'm all for higher rates, and I will continue to follow my original formula. I'm not taking anything that doesn't work for me.

I would however appreciate everyone's opinion on this question:

Who is the bad guy in this scenario?

Joe, who has a paid for truck and trailer, does much of his own maintenance, takes the discount for paying his insurance premium in full when due rather than monthly payments, doesn't factor his invoices, and lives modestly without a houseful of debt. Joe can run for $1.80 per mile and can grind out a nice little profit every month without killing himself. Joe runs three or four days a week and spends the rest of his time at home with the family.

George, who has truck and trailer payments, has his maintenance done for him, hires a dispatcher (see how I slid that in there!), pays monthly for insurance, factors his invoices, and has a house full of debt. George must get $3-4.00 a mile and stays out weeks at a time.

Is Joe the guy who is killing the rest of us for taking cheap freight, or is George the problem because rates are never what he thinks they should be?

I'd really appreciate your opinion.

Replied on Fri, Apr 16, 2021 at 07:58 AM CST
Quote: "I also subscribe to the DAT board. It shows the current fuel surcharge of .38 per mile being figured into the rates on loads I have looked at. It seems a fuel surcharge has become standard in the general freight sector. I may be hooking up to the step deck until harvest. Under the news tab on bulkloads there are several articles regarding freight rates. Most of them have comments attached at the end of the article. Quite a few comments from brokers who bluntly say; "if I can get the load moved for X amount, why would I think about paying more? It's pure economics from their perspective. At one time I thought nice equipment, professionalism, relationships, and loyalty would be the formula to better rates. I don't think that way anymore. It seems that all you need is a truck, the ability to get the doors over the pit, and be willing to take whatever rates is offered, and you will have all the work you want. I'm all for higher rates, and I will continue to follow my original formula. I'm not taking anything that doesn't work for me. I would however appreciate everyone's opinion on this question: Who is the bad guy in this scenario? Joe, who has a paid for truck and trailer, does much of his own maintenance, takes the discount for paying his insurance premium in full when due rather than monthly payments, doesn't factor his invoices, and lives modestly without a houseful of debt. Joe can run for $1.80 per mile and can grind out a nice little profit every month without killing himself. Joe runs three or four days a week and spends the rest of his time at home with the family. George, who has truck and trailer payments, has his maintenance done for him, hires a dispatcher (see how I slid that in there!), pays monthly for insurance, factors his invoices, and has a house full of debt. George must get $3-4.00 a mile and stays out weeks at a time. Is Joe the guy who is killing the rest of us for taking cheap freight, or is George the problem because rates are never what he thinks they should be? I'd really appreciate your opinion. "

I read this a couple of times. To me the key phrase is "Joe can run for..." Hopefully he's getting as much as the market will allow.

Nice equipment, professionalism, relationships, and loyalty DO matter to some. Maybe not as much as before, but it still does. And I think their are people on the other side (brokers - shippers) that are seeking it also.

Replied on Fri, Apr 16, 2021 at 08:59 AM CST
The real problem is the brokers. If you could see the percentage that a broker makes on a load you would think the broker was doing all the work. If my load was paying me $1000 the broker is lining his pocket with $750-$1000.. the broker controls the shipper and receiver on the prices. Get rid of the useless money grabbing broker and give it to the truckers. I went direct with a supplier and a receiver and no middle man broker calling him a distribution agent and I was making money and getting payed a really nice wage. It didn't take long and then the bean counters and brokers started in on my customers offerring better prices. So naturally after 1 full year I gave then a affordable service I lost it all. Broker offerred a cheaper rate and then he comes the big Trucking company that's starving for work coming in and doing it cheaper cause they have 100s of trucks sitting. Within 3 months my shippers and receivers where paying more and getting less money . Then they came crying to me. Yep the broker was raping them and it's there own greedy fault. They only want to go on a 6-12 contract with me but they offer the big companies 3-5yrs contract. Well we are coming up to the end of that contract and they want to talk. This time the ball is in my court. They want a stable reliable carrier then I will have a guaranteed contract that renewable. Shoot the money grabbing brokers. Why do you think they have a huge office building and drive fancy cars and nice big houses. Try it sometime but be careful as there are guys that work for the brokers at each end that keep brokers up to date on anyone coming in making offers or trying to take over a contract without a broker. Maybe all the brokers should get covid and stay home. We have truckers from 3rd world countries out here driving trucks that are making $50/day and they think they are getting rich cause in there country it takes more then a week to make $50. Again Trucking companies paying cheap rates to drivers and now these companies come in and do the load for way less. Are you a shipper or receiver then sign a contract with a trucker that doesn't use a broker. Lok at the money you save. Everyone is happy. The load is delivered on time. It's a win win other then the useless over charging broker is now on unemployment.
Replied on Fri, Apr 16, 2021 at 09:14 AM CST
Quote: "you can set your rates at whatever amount you believe is fair, however you probably aren't going to get that unless you're already established with a niche company. Average fuel surcharge is around 23%, when you try to add that on you will see almost every broker start back pedeling... and you will probably lose that load. I had a steady gig and then this April when I added a 23% fuel surcharge to my flat $2.00 per running mile rate my load availabilty has drastically dropped. NO BROKER has upped what they are willing to pay, so I have to think the shipper is holding back and too many drivers are hauling CHEAP freight. Look at the load board and see what fertilizer is paying out of OK...If you can hit $1.70 per mile you're damn lucky, it hoovers around $1.40 - $1.60 per mile...why are you boneheads hauling it for that...LET IT SIT. It's based on supply and demand...DEMAND HIGHER RATES BEFORE YOU SUPPLY THE SERVICE! If they have to sit on some loads longer and worry about when it's going to get picked up, they will start increasing the rates. You're not helping yourself or any other owner operator if you are going broke while making Gavilon, Scoular, CHS. ADM or anybody else rich. This is a tough job and it's even tougher when you get stupid."

Exact reason I unhooked my hopper and hooked up a stepdeck... I just charged a buddy $1700 dollars for 230 loaded miles, it was Kinze spit row planter and had to take tongue off, load a bunch of assessories, and run illegally overwidth.....I told him I aint hauling nothing for pennies....Of Course being a buddy I will pay his sons really good if they ever plant corn for me.... $7.39 cents per loaded mile...Looks real good compares to all these brokers on here with loads posted for $2.30 /mile.....

Replied on Fri, Apr 16, 2021 at 10:05 AM CST
Quote: "I also subscribe to the DAT board. It shows the current fuel surcharge of .38 per mile being figured into the rates on loads I have looked at. It seems a fuel surcharge has become standard in the general freight sector. I may be hooking up to the step deck until harvest. Under the news tab on bulkloads there are several articles regarding freight rates. Most of them have comments attached at the end of the article. Quite a few comments from brokers who bluntly say; "if I can get the load moved for X amount, why would I think about paying more? It's pure economics from their perspective. At one time I thought nice equipment, professionalism, relationships, and loyalty would be the formula to better rates. I don't think that way anymore. It seems that all you need is a truck, the ability to get the doors over the pit, and be willing to take whatever rates is offered, and you will have all the work you want. I'm all for higher rates, and I will continue to follow my original formula. I'm not taking anything that doesn't work for me. I would however appreciate everyone's opinion on this question: Who is the bad guy in this scenario? Joe, who has a paid for truck and trailer, does much of his own maintenance, takes the discount for paying his insurance premium in full when due rather than monthly payments, doesn't factor his invoices, and lives modestly without a houseful of debt. Joe can run for $1.80 per mile and can grind out a nice little profit every month without killing himself. Joe runs three or four days a week and spends the rest of his time at home with the family. George, who has truck and trailer payments, has his maintenance done for him, hires a dispatcher (see how I slid that in there!), pays monthly for insurance, factors his invoices, and has a house full of debt. George must get $3-4.00 a mile and stays out weeks at a time. Is Joe the guy who is killing the rest of us for taking cheap freight, or is George the problem because rates are never what he thinks they should be? I'd really appreciate your opinion. "

I hooked up the step deck and haul 2 and sometimes 3 days a week...Sometimes every other week...Put on 2 tractors and make 3-6 bucks per loaded mile....Shhhh dont tell!!!!!!!!!! Hopper wont be hooked back up till mid october....

Replied on Fri, Apr 16, 2021 at 10:05 AM CST
Quote: "I also subscribe to the DAT board. It shows the current fuel surcharge of .38 per mile being figured into the rates on loads I have looked at. It seems a fuel surcharge has become standard in the general freight sector. I may be hooking up to the step deck until harvest. Under the news tab on bulkloads there are several articles regarding freight rates. Most of them have comments attached at the end of the article. Quite a few comments from brokers who bluntly say; "if I can get the load moved for X amount, why would I think about paying more? It's pure economics from their perspective. At one time I thought nice equipment, professionalism, relationships, and loyalty would be the formula to better rates. I don't think that way anymore. It seems that all you need is a truck, the ability to get the doors over the pit, and be willing to take whatever rates is offered, and you will have all the work you want. I'm all for higher rates, and I will continue to follow my original formula. I'm not taking anything that doesn't work for me. I would however appreciate everyone's opinion on this question: Who is the bad guy in this scenario? Joe, who has a paid for truck and trailer, does much of his own maintenance, takes the discount for paying his insurance premium in full when due rather than monthly payments, doesn't factor his invoices, and lives modestly without a houseful of debt. Joe can run for $1.80 per mile and can grind out a nice little profit every month without killing himself. Joe runs three or four days a week and spends the rest of his time at home with the family. George, who has truck and trailer payments, has his maintenance done for him, hires a dispatcher (see how I slid that in there!), pays monthly for insurance, factors his invoices, and has a house full of debt. George must get $3-4.00 a mile and stays out weeks at a time. Is Joe the guy who is killing the rest of us for taking cheap freight, or is George the problem because rates are never what he thinks they should be? I'd really appreciate your opinion. "

Barry, I agree with you. I think it's your business what you make it are comfortable with earning. But my question is, are you paying yourself to do your own repairs? If a diesel tech makes 29 per hour and has a retirement to work on your rig, why shouldn't you? And what do you value your tools at? I have a value of 23k on my tool set. Anyway, good luck to everyone. Stay sane.
Replied on Sat, Apr 17, 2021 at 05:29 PM CST
Quote: "I read this a couple of times. To me the key phrase is "Joe can run for..." Hopefully he's getting as much as the market will allow. Nice equipment, professionalism, relationships, and loyalty DO matter to some. Maybe not as much as before, but it still does. And I think their are people on the other side (brokers - shippers) that are seeking it also."

It was not meant to be a trick question. The "can run" maybe should have been "Joe runs for". I was merely attempting to show "cheap rates" are relevnt to the specific operation.

Replied on Sat, Apr 17, 2021 at 05:29 PM CST

I'm not Joe or Geroge in my original question. However, regarding my particular situation, my operation is an LLC. I don't seperate out a wage for driving, and a wage for working on the equipment. Everything the business generates or saves, minus the expenses is my income on the tax return, so I guess I do pay myself to work on it in a round about way when I do the work, because the money I don't give to the mechanic stays in the bank as profit. Additionally, the company paid for all of the tools, but I don't have anywhere near your investment in them.

I wasn't saying either scenario in my original question was right or wrong. I think rates are a matter of perspective when compared to the specific operation, and I'm curious to see where people are on the issue. As I stated previously, I'd like to see higher rates as much as the next person, but I think the reason some (not all) people move freight for what they do is because they can make a profit doing it.