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How much goes to the O/O

Jun 20, 2018 at 10:58 AM CST
- 1
I am really hearing some mixed messages on the rate side of things. I hear some of my O/O talk about barely getting $2 a mile on a flatbed load but on the other end, seems noone wants to move for less than $3 a mile. I try to stay in the fair range being in the lumber industry. I can't always give the best rates but those that pull for me know I will try to get them better paying load the next time. As a traffic manager, it is sometimes hard to explain that my hands are tied in most cases since the rates are st by the salesman who sold the load cheap to get the sale and figures they can make it up in shipping. So I am just stuck being a woman that is starting to not handle rejection well. lol
Replied on Thu, Jun 21, 2018 at 08:38 AM CST
All costs added up and decent pay for an owner op it will take over 2 bucks a mile I run local and don't get the miles so I like to see over 3 per mile different people try to have cheaper rates on long distance stuff but till I figure being away from family and the more fuel I burn on a 3000+ mile trip those loads should actually pay more due to extra effort needed and calories.
Replied on Thu, Jun 21, 2018 at 10:09 AM CST
+ 1
Sounds like you might need to sit down and have a chat with the salesman. Explain to them that I found they continue to try and make up the difference on the truckers back things will eventually fall apart for them. Doesn’t matter how good the price is if they can’t deliver the goods when they’re ordered/needed their customer will go elsewhere.
Replied on Sat, Jun 23, 2018 at 07:28 AM CST
+ 1
This all depends on the cost and profit margin that the company is utiliizing. We have set up our equipment to be the same as the Mega Carriers and remain competitive with them. They wanted to level the playing field with the ELD mandate and get the prices jacked up so why not play the game the same as them. We are seeing increases in our profit margins from 25% to as high as 75% in this current market. It is only going to get higher each quarter until it hits the peak and then it will stablize before heading the other way.

Your salesforce needs to adapt and overcome if your firm is going to make it. If you were foolish enough to bid contract bids in this current market then you will have a hard time finding trucks to pull at those low ball rates. Your concern should be whether your customer base is willing to adapt to the market and roll with the lie that has now become the truth in trucking. Supply and demand really is now going to truly kick in. We truckers have heard this BS for so long and been basically starved out, so when it is our time to make the coin do not expect us to have any sympathy for the broker or shipper.

I told all the shippers over the past two years that I was not interested in signing any contracts. I felt that this was coming again and knew that it would be better to be able to flex our muscles in the upcoming market. It is funny that I kept saying that we needed to work together willingly or we would work together by force.

Now is the time for the force to kick in. If you are a trucker and you are not making a profti right now then you need to think about getting out of the business and find something else to do.
Replied on Sat, Jun 23, 2018 at 07:10 PM CST
Many of us independent's warned you shippers that this would happen. We begged you to get involved, contact your lawmakers and push back against the ELD mandate, but you chose not to listen to us truckers, and now your complaining about rates, as you get "corn holed"........ It appears that you will now suffer the wrath of the mighty cornhulio. If you think it's bad now, just wait until next year when all of the cargo ships stop burning bunker fuel, and switch over to #2 diesel, driving the price of diesel through the roof, as demand exceeds refining capacity.