Rates

Exactly, don't haul cheap freight and they will raise there rate

Some companies had rather go broke slowly,rather than raise their rates.

If your tires are up 50%, your provider is r**ing you! Again if your shop is up 50% you are being r**ed. Even higher rates won't save you from yourself.

I am not disagreeing with the fact that rates should be higher and are getting higher, BUT I am saying that with 52 week per year customers, you can not price yourself out of freight. We work with the same customers week in and week out to make sure their freight gets moved in a timely fashion. While others were whining about poor rates before the boom, we were making money daily, providing the same great service day after day.

I have been in the trucking business since 1987 and in an office roll since 2008 and can tell you with all certainty that I have seen as many, if not more bust times as we have seen boom times! To want to raise your rates to the top dollar with week in and week out customers is suicide! You will price yourself out of work and leave yourself wishing you would have sharpened your pencil and made a decent amount of money while preserving your customer relationship. With all due respect, We will continue to move along, making a very good living while not going over board and trying to make every penny that is possible. BTW, most of our customers, we are 10-12 year working relationships with.

Let's just say it like this, what works for one company may not work for another. I guess just do what works for you and don't worry about what everyone else does.

I'm saying the industry as a whole. It all rolls downhill one way or another. Let's face it, at the end of the day everyone wants to be able to make a decent living and put food on the table for their loved ones...and stay in business. It's a struggle for everyone and I get it, but I also have watched forums on social media sites where some quotes for lanes, etc is insanity...or you have brokers such as myself trying to reap $300 plus profits off one load here or there. Again, I get the entire margin thing for everyone, but the way I look at it, being fair across the board for my customers, and the carriers I work with reaps more benefits at the end of the day than ripping someone's head off.... on either said of the supply chain.

Well said, I always enjoy reading your (and Dave's) opinions on these topics. Since I just sold my truck and wll be taking a little time off until the new one comes in, I look forward to more time in here.

Why is it when a broker wants to keep the rates down, they say it's a supply and demand issue. Plenty of trucks equals lower rates, but when the reverse happens, the carriers are suddenly gouging everyone? I think many brokers look at their relationships with carriers backwards. When they talk about servicing their customers, the are speaking about shippers. I believe the carrier is as as much of a customer to the broker as the shipper. I say that because I can move product for anyone, you want my service and be able to make some money off of the transaction, you need to earn it, otherwise, I'll provide my service to someone who will. Let's face it, without carriers the brokers wouldn't have a job, and the shippers wouldn't have a way to get their products to market. I also believe the entity with the least skin in the game shouldn't tell anybody what "fair" is.

Dave and Dale, if you ever find yourselves in my neighborhood, give me a call, I'd enjoy solving the world's problems over a meal!

I have alot of friends in the livestock hauling business and a couple that broker cow haulers. The normal rate is 4.25/mile on 50,000 and prorate up from that the more weight they add. I have a friend that dispatches cow trucks and he is having a hard time finding trucks even after offering 5.00/mile and prorating up from that. So my question is why isn't this happening in the grain hauling business. I know I'll hear about how the farmers are out here after harvest is done, and the brokers are taking all the profits. Don't mean to start a big deal with this, just a thought on this.

Well, we won't have to worry about you under bidding any loads you can't afford it

With costs like that, there's no way I'd be an owner operator, or have two trucks, unless you have a really good paying contract that will carry you through to cheaper costs. Even if you don't have equipment payments, shouldn't you include recouping your cost to purchase the equipment in your figures?

Dale, if you are running at a loss with a constant customer, then you need to leave that customer and find a new one! I will tell you with all honesty, our customers have asked us for updated rates! I have sat down, did my homework and came up with rates that will work for all sides. I did not look at what refers are making this week and say "I can make this much with a refer so that is the amount I want"! It is like compairing apples to oranges!

I have said in every post that you will find my name on, that we have consistantly made a profit while providing excellent service! I have also said that the service we provide is directly connected to the reason we garner our profitable rates. All I can tell you, and I have said it before, is that do what works for you and your company and you will be fine! If that equation involves a fancy new pete and new Timpte trailer every 3 years, then so be it. You do you and hopefully all the success the world has to offer will be bestowed upon you! BUT don't come back whining WHEN not if the markets change and freight gets tough again!

All the best to you and much success!

I agree with you 100%!

I keep trying to raise rates ...

The answer I get is I can cover them cheaper

And they do

I have gotten 8 phone calls and dozens of emails and text messages in the last few months from shippers, brokers, and dispatchers all looking to see if i can haul for them. I have told them all I'm not pulling any hopper freight for now. The rates that are being offered are way below what they should be. I have been driving truck since 1979 I drive for two reasons. I still love being out on the road, and I'm in it for the money, I am not looking for anymore experience I'm pretty sure I have that covered. The problem with the trucking industry it really does not matter how many years you have been behind the wheel or the fact that you have never had any accidents. There's always some new dispatcher on the other end of the phone that treats you like your the new guy and wants offer something that is way less than it's worth.

That's my .02 worth

Well Dale, you missed one 2 letter word that ties it all together. IF your customers want you to run at a loss, then you need new customers. That is all I am saying. Like I said before, we have NEVER run at a loss and will not run at a loss! Will we be out there making 4/mi consistently? No I don't think so, but we will from time to time and we will be providing service to our customers and making a comfortable living, while being able to do upkeep on our equipment and update equipment if needed.

We do things for our steady customers that most carriers would not do. I have a VERY good customer who was in a bind and needed a load moved ASAP because of a miscommunication between the customer and their customer. We bounced in and loaded a load and delivered the load next day, even though we will have to bounce 500 miles home. When you are in business, your customers are your main priority. We do these things now and then to help the customer, even though we will not make them most money at it, but one load will bring ten fold the number of loads we will make a good amount on.

I guess my point is, If you have direct customers, treat them fair! Make a good living and let them do the same and they will work with you also! This opinion that since one sector of trucking is getting this amount of money, every sector should is not a valid point. Also I have seen people jump to the other sectors because the grass is greener only to find someone sprayed that grass with round up right before they got there!

Like I said many times before, find what works for you and stick to it. What may work for you, may not work for me!

If you get the opportunity to work with Jesse Runde "logistics manager" at United cooperative, you'd be better off jumping off a f***ing cliff. They try and force dispatch you, take loads away if you try to negotiate. Their dispatcher is real genius as well 1000 deadhead miles a week.

Wow! You are not under my skin! I have said it before and I will say it again, do what's best for you!

For your hypothetical, if someone called on Friday and said they needed those loads done and they were not a constant customer, I would not give them a bid at all! Our plate is normally full a week to 10 days ahead and I have not and will not put off our regular customers to do high dollar freight for a one off customer.

I have answered your question, can someone answer my question? What is considered cheap freight in this market? If 4.50/mile should be our minimum, what would be considered cheap freight?

Just asking for a friend!

Thought I'd share an observation. I get a load list from a customer daily. Today I also get a list from a broker who apparently gets the same list from my customer. Rates on both lists. Van load about 240 miles. What the broker is offering shows he's taking about 58%.

I have to make a buck for my Broker owner...but I usually average 7% to 12% if I'm lucky. Not all Brokers are the same... We all need to pay our bills but my job is to make my Customers happy and the Carriers. Sorry you do have some greedy folks in all aspects of Transportation... Sometimes you win Sometimes you lose.

No Dale, I answered the question honestly. That is the way this company has been run for a long long time! Our core customers get first chance at our trucks. I look at what is on the schedule for the upcoming week, how many trucks I have running and if I feel there is room to add loads, I would look into it. If you are asking my opinion on a spot market, organic load for 250 miles, would be 1500 per load. Organic is expensive and specialized and so should be paid for.

Once again, all I am saying is that if you have customers that you want to preserve, you can't just hit them with a large increase because they will find someone to do it cheaper! IF your customer pays you well enough to make a decent profit and that customer brings some stability to you company, not getting top dollar is worth it.

Load boards have their place. It is to fill in when things fall apart with regular customers! If you are running a business using load boards solely, then it's trouble!

So if you were affected by covid, did you put in for PPE money? You should have! It affected us all! I have never "blasted" anyone for hooking a different trailer. I have stated that if you have customers, you don't pull out when the money is better in another sector and then when it dries up over there come back and think that the customers will welcome you back.

Yes things are good here! Have been for years! With that said, we have worked our asses off to provide good service and garner the wages we receive for the work we do. I don't feel I need to justify anything. I will say it again, do what is best for you! If what I say hurts your feelings, don't worry about it, as what I say has no bearing on your business and vise versa. The ONLY thing that is important is that you stay profitable no matter whe has what opinion! After all, this is a forum and nothing in this forum is set in stone! As far as rates, we can all wish in one and and crap in the other and see which one is fuller!

Umm sir, you're a consumer also.