Home > Forum > Freight Rates Rising...So They Say

Freight rates rising...so they say

Mar 07, 2018 at 08:14 PM CST
+ 1
All the articles and news reports say freight rates are rising so I contacted (applied at) several trucking companies that hire owner operators. Guess where the money ISN'T going. The companies all seem to be paying about the same. Around a buck a mile plus the fuel surcharge so basically $1.35 per mile. Some chip in on some extras, but as we all know they usually try and weasle out of those promises. It seems the wizards of smart that run these companies are spending the money on new trucks and on recruiting efforts but nothing for the actual work.
Glad I wasn't actually looking for a job. LOL
The shippers are turning to 3PL's to try and find trucks to lower their shipping costs. Putting more people sucking money out of the freight before it gets to the truck.
Replied on Wed, Mar 07, 2018 at 09:11 PM CST
+ 2
There is no shortage of people who will screw you in this industry. The reason most owner operators fail, is because they can't stop thinking like a company driver. They automatically assume that they will be treated fairly, just like a employee. It does not work that way, once you cross the line and buy a truck, you become a contractor and you better start thinking like one, or your not going to make it. The government expects you to know what you are doing, they are not going to help you, when it comes to negotiating a rate. If they started telling shippers what they had to pay you, it would set a precedent in the free market and it would result in KAOS. Imagine how you would feel if the government told you that you were no longer free to negotiate prices, on stuff like fuel or insurance. What if they told you that you could only buy fuel at piolet, and that you had to pay what ever price they were demanding? Even though you could get it cheaper across the street? There are a lot of people that don't make it out here, but there are also many that do. What separates them? Some really know the market, others only think they do. Most other industries operate on a 20-30 percent profit margin, ours operates on a 8% profit margin on average, so there is absolutely no room for error.
Replied on Thu, Mar 08, 2018 at 08:58 AM CST
I agree with David from Iowa. The rate on most of the load's on this load board is same or worse as last year. And I just love some of the companies on here that are running a bunch of trucks call every owner operator stupid because we can't make it on 8% profit. So $8000 on every $100000 spent? Wow I can't move that much freight.
Replied on Thu, Mar 08, 2018 at 09:29 AM CST
+ 1
Originally Posted by: MITCHELL BOLLIG
Quote: "I agree with David from Iowa. The rate on most of the load's on this load board is same or worse as last year. And I just love some of the companies on here that are running a bunch of trucks call every owner operator stupid because we can't make it on 8% profit. So $8000 on every $100000 spent? Wow I can't move that much freight. "

Nobody disputes that the rates on this board are low. But it's time to stop playing the victim card, and blame everyone else for your lack of success. You seem to only hear what you want, because nobody called anyone stupid, when referring to trucking operating on a 8% profit margin.
Replied on Thu, Mar 08, 2018 at 09:50 AM CST
There isn't a owner operator that can make it on 8% profit.
Replied on Thu, Mar 08, 2018 at 10:13 AM CST
Originally Posted by: MITCHELL BOLLIG
Quote: "There isn't a owner operator that can make it on 8% profit. "

8% is the number that keeps getting brought up time and time again, by accounts and financial analysts. ATBS, transport topics, OOIDA, and many other organizations, have been referring to it for years. It's the result of extreme competition in the market. And it's the primary reason most banks won't finance a truck.
Replied on Thu, Mar 08, 2018 at 11:03 AM CST
The original intent of this forum was to point out that there isn't any shortage of people who are hauling freight for cheap. I'm tired of reading headlines on Bulkloads saying freight prices are through the roof. Not here.
Replied on Thu, Mar 08, 2018 at 11:34 AM CST
We lost a job to a bunch of O/O that were working for $50/hr. Yup rates are rising....not in south Texas they’re not.
Replied on Thu, Mar 08, 2018 at 11:35 AM CST
+ 3
Originally Posted by: MITCHELL BOLLIG
Quote: "The original intent of this forum was to point out that there isn't any shortage of people who are hauling freight for cheap. I'm tired of reading headlines on Bulkloads saying freight prices are through the roof. Not here. "

Why would rates go up, when people keep hauling it at the current rate? 6 months back there were all these folks on here, telling us how ELD's would raise rates here in bulkworld, and telling us how we were all going to get rich, come December 18th. And I said that there would be a lot of dissapointed people, once they found out santas bag was empty. Hate to say I told you so.
Replied on Thu, Mar 08, 2018 at 02:55 PM CST
+ 2
To be fair, no one said everyone was going to be rich come Dec 19th.

Rates HAVE come up since then, I'd say an average of 20-30 cents per mile on hopper loads.

And a whole lot of places that didn't have detention policies before the change, do now. Most at $50 after the first two, which I think everyone would agree is a welcome change that has been needed for many years.
Replied on Thu, Mar 08, 2018 at 07:27 PM CST
+ 4
I have a friend that is currently hauling for a previouly mentioned freight company. He does loads for roughly $4600 on 1795 miles. aint to bad of money.
I'm runinng 18 miles for $6/ton hauling 32.8 ton, legal, do 3 to 5 loads a day depending on customer wants. so I think a person just needs to tell the broker, Way to cheep, then not haul it. If stuff sits around long enough rates will come up. Know a guy that just did a load for $5/mile because he could get it there. Customer was out and not making product. It aint all bad out there. Your good service to a customer will keep your rates where they need to be. Reputation and reliabilty is key in making a fair living.
Replied on Thu, Mar 08, 2018 at 07:40 PM CST
Originally Posted by: KURT DAVIS
Quote: "I have a friend that is currently hauling for a previouly mentioned freight company. He does loads for roughly $4600 on 1795 miles. aint to bad of money. I'm runinng 18 miles for $6/ton hauling 32.8 ton, legal, do 3 to 5 loads a day depending on customer wants. so I think a person just needs to tell the broker, Way to cheep, then not haul it. If stuff sits around long enough rates will come up. Know a guy that just did a load for $5/mile because he could get it there. Customer was out and not making product. It aint all bad out there. Your good service to a customer will keep your rates where they need to be. Reputation and reliabilty is key in making a fair living. "

In my experience a customer will pay a fair rate for good service, but they will not pay top dollar for half ass service. There is enough demand in the market right now, that it is possible to pick up direct customers, and avoid brokers. The problem at this point is finding good drivers, who you can trust to deliver excellent service. I can see where the strong demand will work against the brokers, and large fleets as it creates a opening for the independent to exploit.
Replied on Thu, Mar 08, 2018 at 09:13 PM CST
Pick a company that pays percent.
Replied on Thu, Mar 08, 2018 at 10:25 PM CST
+ 1
This whole rate discussion has been interesting. We have a broker in the bulk world saying that rates have went up on bulk, becuase of the ELD, and we have multiple people saying the opposite. What I find funny is Now that trump is implementing a tariff tax on imported steel, everyone is screaming how the consumer is going to have to pay more for stuff. 107 republicans sent trump a letter, begging him not to do it, because they are so concerned that it may hurt the consumer? Yet when you read all of these news articles about how the ELD is affecting the consumer, nobody cares? WTF..........Where is the consistency in the Logic? Did The Godfather of the ELD really give a better blowjob, that the WTO?
Replied on Thu, Mar 08, 2018 at 11:15 PM CST
David, I had an interesting conversation with a freight/refer broker the other day at my local coffee shop. When we started talking about all the years I was an owner operator we talked about rates. After I spoke of what the rates were back then compared to today, and the fact that everything involved with the industry has tripled in cost, whether it's the equipment, tires, tolls, and fuel, she asked what I thought a fair rate should be. I stated that for processed perishable freight I would like to see $3.20 per mile; for dry freight $3.00 per mile; and for exempt freight, produce, $2.80 per mile, which always ran about 40 cents less than perishable products. And, a 55 cent a mile fuel surcharge.
She said, '55 cents is too much for a fuel surcharge.
I replied, "No it isn't." It's not just for the fuel. You have to figure in the cost of the DEF, which is going for $2.75 a gallen at the Petro up the road.
Her response? "What is DEF???
DUH
Replied on Fri, Mar 09, 2018 at 08:13 AM CST
Originally Posted by: JERRY ASHLEY
Quote: "David, I had an interesting conversation with a freight/refer broker the other day at my local coffee shop. When we started talking about all the years I was an owner operator we talked about rates. After I spoke of what the rates were back then compared to today, and the fact that everything involved with the industry has tripled in cost, whether it's the equipment, tires, tolls, and fuel, she asked what I thought a fair rate should be. I stated that for processed perishable freight I would like to see $3.20 per mile; for dry freight $3.00 per mile; and for exempt freight, produce, $2.80 per mile, which always ran about 40 cents less than perishable products. And, a 55 cent a mile fuel surcharge. She said, '55 cents is too much for a fuel surcharge. I replied, "No it isn't." It's not just for the fuel. You have to figure in the cost of the DEF, which is going for $2.75 a gallen at the Petro up the road. Her response? "What is DEF??? DUH"

I would agree with you, given the expenses involved [email protected] is more than fair. What's funny is I Can haul dirt, on a prevailing wage job, and I will make twice what I make in most other markets, and dirt is exempt. The best part about prevailing wage, is they keep all parties involved honest, by mandating a open book policy. If a broker or company get caught for skimming off the top, they get thrown in prison, and are banned from any future bidding. What would happen if they applied that standard to all segments of trucking?
Replied on Fri, Mar 09, 2018 at 07:25 PM CST
Originally Posted by: JERRY ASHLEY
Quote: "David, I had an interesting conversation with a freight/refer broker the other day at my local coffee shop. When we started talking about all the years I was an owner operator we talked about rates. After I spoke of what the rates were back then compared to today, and the fact that everything involved with the industry has tripled in cost, whether it's the equipment, tires, tolls, and fuel, she asked what I thought a fair rate should be. I stated that for processed perishable freight I would like to see $3.20 per mile; for dry freight $3.00 per mile; and for exempt freight, produce, $2.80 per mile, which always ran about 40 cents less than perishable products. And, a 55 cent a mile fuel surcharge. She said, '55 cents is too much for a fuel surcharge. I replied, "No it isn't." It's not just for the fuel. You have to figure in the cost of the DEF, which is going for $2.75 a gallen at the Petro up the road. Her response? "What is DEF??? DUH"

Where do you get $.55 per mile for a fuel surcharge? That's about $.13 per mile above my total cost of fuel.
Replied on Sat, Mar 10, 2018 at 09:42 AM CST
That's per loaded mile. 55 cents is more then a fair price and below the national avg.
Replied on Sat, Mar 10, 2018 at 02:29 PM CST
Some say rates are going up, some say that they are not. So who is telling the truth? There is a easy way to find out. Most of these brokers bid within pennies of each other. It's the amount that they keep for themselves, that sets them apart. I'm not here to bash brokers, but some are more honest than others. Now the shipper is looking for the best deal possible, so if the brokers are raising the rates, and you are not, then the shipper should be offering you more work, at a better price, since you are cheaper than the broker. Of course you will have to have your own direct customers Find out.