I have been in it for 10 years and all I see is declining rates, cutting throats and INCREASED costs. Is everyone's head in the sand, or is it just me being delusional? Cost of trucks, fuel, insurance, maintenance (thank you emissions) and yet don't strive on customer service...let's do it cheaper. If you were Hydro or Bell would you eat the increase costs or pass it on? Please I would like to hear some real responses on this. Am a flat bedder at heart that has lost his lust for trucking....is there a light at the end of the tunnel? Dave W Peterborough ON
Is the Industry ever going to change?
- Thread starter michdave
- Start date
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Been in this industry for 26 years and it never changes the only way you absorb those costs is to run more miles.......I'm not saying that is right but that is how it works. The only way things will change is if the big companies start it and I'm pretty sure that won't happen.
Shakey
Site Supporter
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When our dollar was at .70-.80 we had a trade surplus, yesterday the release for our trade in September deficit of 2.5billion. Americans are deflating their dollar to compete and grow theie economy, playing China's game, can't blame them! Unfortunately our industry is driving the same as most supply and demand.
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Or get your costs in line. Lots of O/O's out there that still have NO idea as to what their fixed daily or monthly costs are so how can they expect to be profitable?
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That's the WHOLE PROBLEM with the bigger companies & brokers especially. The brain dead statement about running more miles to keep costs down is the assinine reason we're in the position we're in now. Because you run more miles the truck doesn't use less fuel - the driver doesn't work for less & the maintenance must drop to nil according to your theory. I can't believe the rates people are willing to haul for I can't do it.
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Lowmiler and brain dead do not deserve to be in the same sentence, let alone refer to one of our supporters.
Rickwill, I suggest if you ever get the time, you might want to do some investigation and find out just who the "brain dead" person you are referring to is. I am sure you could model quite a succesful little operation if you followed the principles of lowmiler's little company.
As for the rates people are willing to haul for, there are always going to be lowballers in this and any other industry. It's simply a matter of matching your rates to those of clients willing to pay them. If someone gives you a load for anything less than the rate you need to haul it, then it's your fault for succumbing to the lowball rate.
I have, on numerous occasions, literally laughed at the person on the other end of the phone who has said what they are willing to pay for a load, if it is not in line with what I charge.
Then you must be like myself, when it comes to rates if they don't want to pay what I say then it stays there. If everybody did that the rares would automatically increase to a point where you could actually run. The problem is and this is where my brain dead comment came from is the people that haul for less than the costs all they're doing is setting price precedent. The problem we face now a days is there's too few good rates and too many want to run for nothing.
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Why thank you MytrucksMyRates.............I guess I had better explain that I did not mean run more miles on a truck that is already running a 100%......very dangerous to do and you will get your self into trouble eventually. What I mean by run more miles is to decide how to add more trucks without adding overhead and what I mean by that is we are currently in the position to add about 5 more trucks without adding dispatchers, clerical etc so instead of taking my overhead costs and dividing by 40 trucks I will be able to divide by 45 thus reducing my cost per mile which at this time we cannot charge anymore to the customer is the way to compensate for some of the rising costs. This only works if you have the work as you cannot cut your rates to get more business as you will not achieve any cost savings. I would also like to add that we are keeping about 12% of our fleet on a month to month lease so if things really slow down or you loose a driver or 2 you can immediately return those trucks and end the expense.
I wish you well in your endeavors and by no means meant any disrespect to you or your company. It's just I can't believe the rates these people quote when you call on a load or as I call it - the fishing expedition. They don't have the load or the rate and they fish. Or they have the freight at the required $3.00 per mile rate and post it to see how low they can move it.
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rates
A simple way to do away with the fishing expedition is to ask what they are paying. If they will not tell you and keep asking for a price , it is time to hang up.
If they do not have a price established, I simply tell them to correct their posting as looking for rates and add I would not have wasted my time calling!
I as well will laugh at a ludicrous rate.
A simple way to do away with the fishing expedition is to ask what they are paying. If they will not tell you and keep asking for a price , it is time to hang up.
If they do not have a price established, I simply tell them to correct their posting as looking for rates and add I would not have wasted my time calling!
I as well will laugh at a ludicrous rate.
All you guys have great points but I didn't mean to start a war on brokers vs carriers. I am just looking for answers on why my heart is NOT in flat bedding anymore. I always treat the customers freight like it was MINE.....and my dedication shows very well, but, the slide in rates lately has moved our pay grade close to van work which takes little skills or pride. Though I do love the driven chat I have started. Dave White Lakefield ON
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Michdave, if you think this thread was a " war on brokers vs carriers", you should read some the original postings from a year or two ago. Although the "war" will probably never be over, these days the battles are more like skirmishes compared to the knock-down drag em out stuff you used to see on Inside Transport! I for one, am pleased to see that the discussions have evolved from school yard name calling to a more enlightened debate about our industry. Without a doubt, we all benefit from a free flow of ideas.
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Michdave
I agree with Loaders, the broker/carrier dichotomy has run its course. It's time we start a feud between the flat bedders and dry box carriers!!!
My feelings have been deeply hurt by your comment about the lack of pride in our industry.
I agree with Loaders, the broker/carrier dichotomy has run its course. It's time we start a feud between the flat bedders and dry box carriers!!!
My feelings have been deeply hurt by your comment about the lack of pride in our industry.
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It's funny you mention van freight like that, it takes pride to move freight single file in the center of the trailer & show up at receiver with still sitting there. What I've noticed and can't get a grip on is it cost just as much to run a van down the road as a flat-bed but the rates of both are disgraceful. Too, all the van guys have moved to flat-bed and kept their rate schedule the same as before, then the flat deckers go to double-drops with their rates and so on and so on. It used to and still should pay quite a lot more to move freight on flat, step double drop, specialized etc. Here's some info and old boy told me in 1979 and I think it should hold true today, "What ever a gallon (4.5 Liters) of fuel costs thats how much per mile you have to make. I don't know of anybody willing to stand for that but I try.
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Well I was not aware of this site a year ago. But am glad I have found it. I love to banter but you are right. School yard stuff would have turned me off. Long time ago we stood along customer service not price.....and we got our price and they got their service. As for flat deckers wrecking double drop prices .....not in my world - I had both. AND made money on BOTH! I just wish the market would pick up and pay us what we are worth. Would anyone else leave their family as much as we do to provide for them.....NOT!!!!!
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