Rates to and from BC

tasuinam

Active Member
15
Received an email from a broker today:

".....However, to those carriers asking for 200, 300 and even 400% increases to market rates in and out of BC. You will be placed on the DO NOT USE list and our relationship will be terminated...."

I was wondering when this would happen - as a carrier yes I have seen an increase in cost - some drivers will not go to BC and some cannot go thru the US - we already pay extra to a driver doing miles in BC. So yes I have raised the rate a bit - for example to cover my cost to pay the driver extra - I must agree that $12,000 for 850 odd miles is not acceptable... any thoughts...
 

shayne

Well-Known Member
20
Supply and demand, now is your time to get the Kenworth fund fully stocked up.

1$ a mile from West can is gone for the near future or ever

At first I was angry but then business ***carries on. I have customers who will be able to afford these rates and have others that will have to wait months to ship to and from bc or source other suppliers
 
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BPOVFB

Active Member
15
Yeah, real bummer that 3 guys in a truck TFWP inter-canada companies are rendered obsolete in the BC lane and now the customer is used to (x) price and can't comprehend why its now (y) price. Broker should definitely black list the carriers the understand the current opportunity and are striking on it...
 

MikeJr

Moderator
Staff member
30
This is not the first instance of broker(s) complaining about a price increase (that is a market rate and out of their control. When things change in the future and the price comes back down, the carriers that were running to BC at a loss will complain that the rates aren't what they were in order to makes the westbound price make sense... What goes up always comes down and vice versa.

As long as everyone doesn't forget to make a fair profit along the way life is good.

Keep well,
Mike
 

ed1

Member
10
So should I turn down 12 to take yours for 5000 and then take the 2000 I'm being offered out of Calgary because that market has gone sideways the other way.
Trust me i wont be working here long if i do that.
 

loaders

Site Supporter
30
No one likes price increases, especially dramatic and sometimes obscene ones. However in this case, any shipper who gasps and faints at the new rates to and from BC obviously doesn’t read the news or watch TV. As a broker or a carrier, all you can do is present the current rates and let the shipper decide whether to accept them or not. Extra miles, and/or extra time means that the rate goes up.
 

shayne

Well-Known Member
20
i think 1 $ or 1.50 a mile out of western canada is dead been on the way out the door for a few month already since the wild fires
 

tasuinam

Active Member
15
No one likes price increases, especially dramatic and sometimes obscene ones. However in this case, any shipper who gasps and faints at the new rates to and from BC obviously doesn’t read the news or watch TV. As a broker or a carrier, all you can do is present the current rates and let the shipper decide whether to accept them or not. Extra miles, and/or extra time means that the rate goes up.
Absolutely - extra time is money.... but how do you equate that with emergency supplies getting to where they need to be?
 

loaders

Site Supporter
30
That is an entirely different thing. The delivery of emergency, life saving supplies should not be subject to inflated, opportunistic rates. That should be something the government should mandate and control. Forcing people who have suffered catastrophic losses to pay exorbitant freight rates for basic supplies is disgusting. If a shipper of widgets wants them delivered from Mississauga ON to Surrey BC then he should pay whatever the current rate is.
 

MikeJr

Moderator
Staff member
30
@MikeJr ... my guess would be, and I am probably awfully damned close to being correct on this, that the same broker will forget all about those guys that stuck with him/her and decided to haul at the standard rate instead of the inflated rate when rates finally do settle back to quasi normal.

Correct, finding the carriers that are fair with their pricing is one thing. Taking advantage of good will (and the hopes that you won't drop them the second there is a better deal) is another. It's all about having larger conversations than this one lane, this one load, etc... Talk to your suppliers just like you talk to your customers about the long term. Ya never know when you can come up with great solutions together.

Hope you are well Mike,
Mike
 
My two cents ... this time of year rates go up due to seasonal capacity and with fuel, probably a little more than most years. But I was quoted 18000.00 to BC from GTA and most are over 12. I have some carriers that have been fair at 7 to 9000 per load and our relationship will continue and I will make sure they get the loads in the 10 " dead months" of the year at fair and reasonable rates. This was their way of repaying me for giving them loads when it was slow and it's appreciated.

There are a select few that have doubled their rates and some tripled.... That's ok. I can ride out 6 weeks with the carriers that want to have a relationship. It's going to be a long 10 months for the others when they don't have my 10-15 loads a week for 40+ weeks to get home and the loads I have left will be offered at 25 per cent less than market when I know they don't have much choice.

This is truly in my opinion going to make and break so many relationships and unfortunately, as well all know - the person with the freight usually wins this game in the long run. It's the people that build on this to establish partnerships that will benefit months down the road.
 

Michael Ludwig

Well-Known Member
20
... On the other hand, there is a particular brokerage out there that is offering up stupid sums of money to get their loads moved. Why would I (as a carrier) not point my excess capacity in their direction, even if you and I have a stand up relationship for the rest of the year?
I get it that carriers that move all their capacity in that direction at this time of year are just going to be short timers in the industry.
 
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lowmiler88

Site Supporter
30
So I have held back from this discussion because this may offend numerous people or not who knows. My question would be who is doing all the complaining about price gouging? Does their calculator go above $1.20 per mile when things are normal in BC? Maybe instead of complaining about trucking companies gouging maybe it's time to educate customers on how good they have had over the years and it's time for a substantial increase when things go back to normal. Just so everyone knows our customers get the same rates year round but if we do not have a customer load and one person is offering 8K and everyone else is offering 12K how is me taking the 12K load price gouging?
 

loaders

Site Supporter
30
All that report does is capture what the average going rates and the availability of trucks are from different US produce growing areas to major US cities. If a shipper wants to pay less or a carrier wants to charge more, they are entirely free to do so. An interesting read to see what the market is doing, but that's about all. If there was such a thing here it would currently show rates into and out of BC as off the charts.
 
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