A while back, we competed against 40 other carriers on steady volumes to Chicago from Southern Ontario. Van trailers
The average rate, for the first 10 (TEN) van carriers was 580.00 Cdn all inclusive. If anyone on this site can tell us how to run Chicago for 580.00 Cdn and make money, please advise. We must be missing something here !
we just posted a truck from chicago, back into Ontario, and ttech called on it, and they're paying $2400.00 to ottawa. and they did it with ease, i couldn't believe it, i've also noticed a huge, huge increase in inbound freight, which means #1, that we're importing far too much into Ontario, but at the same token, we should be playing the open market, all these guys are stuck with freight that they can't move, time to crank up the rates!
Well, I read the earlier posts about holes in the floor, Freightliners vx Internationals etc etc and there is just no way a number like 580.00 Cdn to Chicago makes any sense at all. Never mind that 10 big carriers all averaged these numbers. How do they justify offering a rate like that?
Just cant figure out why some carriers think they have to subsidize their customers by offering rates that are below cost.
Been in this business a long time and the last few months have been a real demonstration in how dumb some of the players in this game are
I completely agree with ya, on the nasty rates. I've never understood how or why the big boys do that to themselves, other than maybe the salesmen are a little too hungry, and will do anything for a paycheque.
In the old days, when I worked for someone else, I recall being called before top management and asked to explain why I wanted and certain rate etc etc The bottom line of all this was that I had to explain how the company would make money with the proposed rate.
All of that seems to be forgotten now.
Only question seems to be: How low do we have to go in order to move the freight.
These are rates my prospect is getting directly from carriers. And they're not the small fly by nights either!
I'm trying to quote $1.88 per mile so I don't have to abuse my carriers too badly, and at that I thought that was cheap!
Why on Earth are you guys doing this????? To make your 2.20 a mile round trip to break even, you're going to have to be almost $3.00 per mile coming home and you're not going to get it.
At a 1.15 per mile to get to a load in Chicago, you're better off turning off the truck, taking out the keys and dropping them down the nearest sewer grate! Then broker out the rest of your business. It'll take equipment off the road and get the prices back up.
Speaking of the Rate du Jour, not sure if others are wise to it but I am:
1. Do yourself a favour and the next time you go to a Fifth Wheel (or Filthy Wheel as others call it), get one of those trucker freebie magazines with the job ads in it. You will find that a lot of the U.S. based trucking companies advertise owner-operator rates of like $1.25 US or better. Someone seems to have it in their head that Canadians pay their owner-ops the same way and that we will run for the same as what CFI will do it, etc. However, when an US-based company calls me for freight, I seem to have luck using those $/mile numbers based on what's in those magazines.
2. For a good laugh every day, there's always A&M and the reason why they pay so little is because they never have the freight to begin with because they're in a bidding war with someone else on Link, trying to cheap-down the other guy. Wherever you see A&M's freight, you will almost always see someone else with the exact same freight and they are paying more. Uncanny, but true. Everyone should just stop taking A&M's freight. Same for Tri-Star. It's the same game with those cats. Discover the power of "NO." It's the easiest word in the English language!