Cheap Freight of the day

[MikeJr]

I hear ya Rob. I remember booking loads with you. Our conversations literally went:
Me: Hey man, I need your truck.
You: Do you have a decent rate this time?
Me: Yes
You: Here's my rate $xxxx
Me: Comin' over

I knew not to bother you with the below market shipments because you'd rather come home empty instead!! You may have posted those words here 1000 times. LOL

Like everyone else, they had and have a mix of freight for a mix of clients.

Have a good weekend Rob, bar in my office opens at 4:00 today. We can't get in shit - HR likes Fireball and I have some for her.
Mike

Nice to hear cashflows have improved once they got my salary off the books. LOL

 

[theman]

In my opinion, it's all in the company culture. There are brokers out there that nurture and have patience to get the right freight, others force the saleperson to produce x within 90 days of hire. When a salesperson has that pressure, they end up going for the lowest hanging fruit (meaning the race to the bottom customers) and you know what ... nobody wins.

The goal should be to make longer term relationships with clients who offer sustainable business. Never felt I had to retire on a single load, but it has to make sense ... the carrier needs to be satisfied, the saleperson needs every load to push the needle a bit harder, and the employer needs to make money on it.

Of course there are the pirates out there and we know who they are.

 

[Fr8Guru]

In my opinion, it's all in the company culture. There are brokers out there that nurture and have patience to get the right freight, others force the saleperson to produce x within 90 days of hire. When a salesperson has that pressure, they end up going for the lowest hanging fruit (meaning the race to the bottom customers) and you know what ... nobody wins.

The goal should be to make longer term relationships with clients who offer sustainable business. Never felt I had to retire on a single load, but it has to make sense ... the carrier needs to be satisfied, the saleperson needs every load to push the needle a bit harder, and the employer needs to make money on it.

Of course there are the pirates out there and we know who they are.

TBF, the ones who force a salesperson to produce within 90 days are the same ones that will give said sales person whatever salary they ask for... Producing is expected.

It's a bit of a ying/yang on the sales front. I know people who have left brokers and gone to ones notorious for firing after 3 months, but they didn't ask for the world. They asked for a reasonable salary and they were given time to build up. I know people who have gone to the same broker, asked for 150k salary and were gone within 3 months.

 

[theman]

TBF, the ones who force a salesperson to produce within 90 days are the same ones that will give said sales person whatever salary they ask for... Producing is expected.

It's a bit of a ying/yang on the sales front. I know people who have left brokers and gone to ones notorious for firing after 3 months, but they didn't ask for the world. They asked for a reasonable salary and they were given time to build up. I know people who have gone to the same broker, asked for 150k salary and were gone within 3 months.

Obviously yes. But there is an expression that nothing good comes easy or quickly.

Personally even in my salaried positions I never got a salary like that. Usually it's the big players that pay a bigger salary and smaller upside. Good business is a long sale, even if one has prior relationships. I would never expect to be profitable for an employer with salary plus for the first year ... but once that comes around there is no issue. In my past experience, employers got greedy with it and saw it as we were resting on our laurels and collecting big bucks. Obviously it's not true ... if the relationship isn't maintained it doesn't last.

The commission only environments can have big upside for someone who can stand to invest their time to build the business up, but mostly these environments become something like 'Wolf of Wall Street' when they're successful. It's a hard business now and most are not equipped to weather the storms, so most are unsuccessful.

I liked the business when I was in it, but in the end couldn't stand for all the BS.

 

[BBL_Cody]

4pm on a Friday - wondering how the logistics manager of a Canadian manufacturing company decides who to book from 41 options. Where did it all go wrong ??

 

[Jim L]

4pm on a Friday - wondering how the logistics manager of a Canadian manufacturing company decides who to book from 41 options. Where did it all go wrong ??
View attachment 3109

Sort by cost descending - that is who gets the freight. Then they go and broker it out.

 

[Freight Broker]

With AI and bidding platforms many shippers are now viewing transportation as a “profit centre” instead of a cost of doing business. They look at brokers who are making 15% plus gross margins and figure they can do the same in house..and thanks to technology, it's never been easier for them to do so. More and more shippers will also flog out their loads to anyone and everyone..They have reasonably priced suppliers waiting in the wings, but cattle calling ahead of time assures that anyone out there who is stupid enough to haul their loads for well below market gets first dibs.

 

[theman]

With AI and bidding platforms many shippers are now viewing transportation as a “profit centre” instead of a cost of doing business. They look at brokers who are making 15% plus gross margins and figure they can do the same in house..and thanks to technology, it's never been easier for them to do so. More and more shippers will also flog out their loads to anyone and everyone..They have reasonably priced suppliers waiting in the wings, but cattle calling ahead of time assures that anyone out there who is stupid enough to haul their loads for well below market gets first dibs.

The bidding platforms have been around for a long time but they only really work for freight that is awarded by contract and term for the most part.

I knew of one customer back in the day that tried a 'reverse auction' type of platform to move loads by spot but they deserted it because it was affecting the level of service they were providing to their own clients. Even load brokers themselves don't do good business this way.

 

[Freight Broker]

Bidding platforms have become much more sophisticated over the last couple of years, making it possible to arrive at the lowest price much faster. Used to be that they allowed time for tenders to come, and that could take a few hours or even a day or longer. Now they wait for a few bids to come in, and they extrapolate from that and other market data to arrive at the best rate..only takes a few minutes. My largest accounts operate this way…

 

[Chica]

Chica here. I don't have a low rate to talk about. I just wanted to thank all the super people out there that we have worked with over the years. Yes, I was working out of my basement in 2006 when it was considered "shady". Yes, at times we were a 1 truck operation, which was also considered shady. I can tell you I personally thanked each and every person after each and every load that was entrusted to us. We worked tirelessly, often in blizzards and in the middle of the night to resolve any problem that might have arisen, to make sure you all got your freight on time. The only people I ever lied to was customs brokers by saying my truck was waiting at the border when I knew even by saying that, it would still take them hours to process the clearance. This was to get you the freight without additional charges. We were proactive and honest. We charged fair rates when we could have charged more, and asked for fair rates when you could have paid less. We were accident free, had about a 99.9% service record and treated you all like your freight was our own. None of this matters now because the whole industry has gone down the toilet. I can't see how the industry will be sustainable at this point. After 19 years of honest trucking, we are moving on to things that might have a chance of actually making a living. I really wish you all the best and will certainly keep on this website, because trucking has become a part of my life, even if we are no longer trucking. There are a whole bunch of really super people out there that were truly honest and fair. You all know who you are, so thank you for all the work you gave us over the years.
Best of luck,
Bonnie

 

[Fr8Guru]

With AI and bidding platforms many shippers are now viewing transportation as a “profit centre” instead of a cost of doing business. They look at brokers who are making 15% plus gross margins and figure they can do the same in house..and thanks to technology, it's never been easier for them to do so. More and more shippers will also flog out their loads to anyone and everyone..They have reasonably priced suppliers waiting in the wings, but cattle calling ahead of time assures that anyone out there who is stupid enough to haul their loads for well below market gets first dibs.

Facts.

But I am firm believer we are seeing these more only because we are inn a down market.

Once the market flips, this all goes away and people go back to locking in contract rates, looking for guaranteed capacity vs saving $100.

People are already forgetting the Covid times

 

[JACKBURTON]

People are already forgetting the Covid times

Carriers aren't..

 

[Freight Broker]

Market goes up and down..carriers weren’t complaining about $4000.00US Cincinnati to Toronto during Covid..and good luck trying to move anything at all for less than 2K unless it was LTL. It couldn’t last and never does.

 

[loaders]

The funny thing about down markets is everyone remembers them and often times, think that the current one is the worst they have ever seen. The good times when rates are high and freight is plentiful, seem to disappear from our collective memories. Those of us who have weathered the ups and downs know that regardless of how bitter things may be or conversely, how sweet they may be, nothing stays the same, at least not for too long. The smart operators realize this and are always prepared or preparing for the next cycle. Improving technology, paying down debt and stashing away funds when the times are good, and cutting back on expenditures and operating lean when times are bad. As we have seen so many times, transportation is not an industry that regularly rewards those who over extend themselves.

 

[Freight Broker]

I don't know if its the same in other industries, but in freight the good times were always 30+ years ago. I remember back in 82 when I got in.. the old timers were lamenting how great it was in the 40s 50s and maybe even the early 60s.. "the whole industry has gone for a shit" I recall one owner-operator telling me in 1982. And I had to wonder what I had gotten myself into. Now everyone looks back at the 80s as some kind of golden era when everything was nicely balanced..rates were good, people cooked their logbooks or simply ran two, and running around the scales was nothing but harmless sport most the time. Maybe in 2055 people will be reminiscing about how great it was in 2025..

 

[loaders]

I don't know if its the same in other industries, but in freight the good times were always 30+ years ago. I remember back in 82 when I got in.. the old timers were lamenting how great it was in the 40s 50s and maybe even the early 60s.. "the whole industry has gone for a shit" I recall one owner-operator telling me in 1982. And I had to wonder what I had gotten myself into. Now everyone looks back at the 80s as some kind of golden era when everything was nicely balanced..rates were good, people cooked their logbooks or simply ran two, and running around the scales was nothing but harmless sport most the time. Maybe in 2055 people will be reminiscing about how great it was in 2025..

Ahhhhh, the “good old days”. The beer tasted better and the kids were all well behaved. Sounds like the same story we have heard since Roman times!

 

[Jim L]

Chica here. I don't have a low rate to talk about. I just wanted to thank all the super people out there that we have worked with over the years. Yes, I was working out of my basement in 2006 when it was considered "shady". Yes, at times we were a 1 truck operation, which was also considered shady. I can tell you I personally thanked each and every person after each and every load that was entrusted to us. We worked tirelessly, often in blizzards and in the middle of the night to resolve any problem that might have arisen, to make sure you all got your freight on time. The only people I ever lied to was customs brokers by saying my truck was waiting at the border when I knew even by saying that, it would still take them hours to process the clearance. This was to get you the freight without additional charges. We were proactive and honest. We charged fair rates when we could have charged more, and asked for fair rates when you could have paid less. We were accident free, had about a 99.9% service record and treated you all like your freight was our own. None of this matters now because the whole industry has gone down the toilet. I can't see how the industry will be sustainable at this point. After 19 years of honest trucking, we are moving on to things that might have a chance of actually making a living. I really wish you all the best and will certainly keep on this website, because trucking has become a part of my life, even if we are no longer trucking. There are a whole bunch of really super people out there that were truly honest and fair. You all know who you are, so thank you for all the work you gave us over the years.
Best of luck,
Bonnie

Chica, all your hard work and over-the-top service didn't go unnoticed. There are many who noticed. Unfortunately, we are dealing in an industry right now where so many people expect the service you provide but want to pay bare bones rates (and blame it on the customer). The industry somehow has evolved to put so much trust in all the wrong individuals. When you started, you never got two loads from the same broker in the same month- you had to prove your worth. Now anyone with a cell phone who can take a picture of the truck VIN gets the load regardless of where they're from, what their references are etc. So long as they agree to the lowest price.

Like @Freight Broker said, it will come around again and hopefully you're not too far out of the loop to take advantage of it.

 

[TRC604]

The amount of activity on this particular thread should be indicative of the times we're facing.

I am haggling with dollars to get freight. I quote a number, already rock bottom rates, broker comes back and says someone came 10 bucks cheaper, can you match?

Seriously? You wanna haggle me over ten friggin bucks?!

 

[Chica]

I am not so sure it will come around, to be honest. Yes there are always ups and downs. But look at rates compared to 20 years ago. Now look at the hoops you have to jump through to get an annual inspection for a well maintained truck. The cost doubled. Insurance had doubled even though we are accident and ticket free. US Customs transponders doubled overnight. Tolls at the border have increased. I don't see a bright future here, even if rates go up slightly. I know we did not go unnoticed. We had some super, super contacts that paid good rates. But it is not enough to justify it anymore. That is just my view of the larger picture. We had a good run! For now it is time to move on. All the best to everyone!

 

[Fr8Guru]

The amount of activity on this particular thread should be indicative of the times we're facing.

I am haggling with dollars to get freight. I quote a number, already rock bottom rates, broker comes back and says someone came 10 bucks cheaper, can you match?

Seriously? You wanna haggle me over ten friggin bucks?!

This is big broker style of thought process and frankly, as much as I hate it, grand scheme of things... It has merit.

Broker is doing 1000 loads a month - he saves $10 bucks a load on every load by doing this.

$120000 over the course the year.

Now you multiple that over an entire team, say 5 people. The profits are real and tangible.