R
10
Roca, there are many factors we use to rate our service. I think it would be very difficult to give you an average rate per mile that would be of any use. There are just too many variables such as below.
1. Mileage
2. Fuel cost for the region
3. Tolls / taxes
4. Team or Single drivers
5. Commodity/weight
6. Load value/insurance requirement
7. Customer Payment Terms/History
8. Return Loads
9. Shipper/Consignee hours of operation
10. Loading/Unloading time
11. Stat holidays
12. Security
13. Staging/handling
14. Appointments
We are fortunate enough to keep the bulk of our fleet moving with dedicated clients. This has limited our availability for 3rd party freight but we have not forgotten our roots. If not for the better Brokers we would not be here today. Thank you all and yes we are always looking for outbound.
1. Mileage
2. Fuel cost for the region
3. Tolls / taxes
4. Team or Single drivers
5. Commodity/weight
6. Load value/insurance requirement
7. Customer Payment Terms/History
8. Return Loads
9. Shipper/Consignee hours of operation
10. Loading/Unloading time
11. Stat holidays
12. Security
13. Staging/handling
14. Appointments
We are fortunate enough to keep the bulk of our fleet moving with dedicated clients. This has limited our availability for 3rd party freight but we have not forgotten our roots. If not for the better Brokers we would not be here today. Thank you all and yes we are always looking for outbound.
30
Well stated "Truck it".
The answer to the question what's the rule for determining a carriers rate per mile is... there are no rules. There are just too many variables.
Knowing what a carriers 'cost per mile' certainly can give a freight broker a better understanding on how they can add a margin. However, if a carrier has a 4.00 per mile load sitting someplace and all they can find to get close is some 1.00 a mile broker freight would they take it? Probably (I know not you "Rob" lol) but a lot or most will.
Answer... there is no concrete answer.
And this carriers is why brokers call for rates continually.
The answer to the question what's the rule for determining a carriers rate per mile is... there are no rules. There are just too many variables.
Knowing what a carriers 'cost per mile' certainly can give a freight broker a better understanding on how they can add a margin. However, if a carrier has a 4.00 per mile load sitting someplace and all they can find to get close is some 1.00 a mile broker freight would they take it? Probably (I know not you "Rob" lol) but a lot or most will.
Answer... there is no concrete answer.
And this carriers is why brokers call for rates continually.
30
There is so many variables.
Can you imagine the produce carriers? They make the bulk of their profits for about 3 months a year and are so-so for another 6-7 months, and absolute crap for the other 2. Dry freight can be the same because the produce trade has a trickle down effect through transportation.
I would suggest we are paying more now to get round trips done than what should be -- just because the market is hyper-active.
And a carrier can't set the same rate per mile for all round trips just like a broker can't charge the same margin for every move -- depends on overhead and time involved (generally longer trips are less $/mile) ... the driver pay, fuel etc are steady per mile but everything else floats.
By the same token, as a broker I don't mark up a shipment that can be covered in one call the same as one that is a real pain in the butt and needs babysitting.
Can you imagine the produce carriers? They make the bulk of their profits for about 3 months a year and are so-so for another 6-7 months, and absolute crap for the other 2. Dry freight can be the same because the produce trade has a trickle down effect through transportation.
I would suggest we are paying more now to get round trips done than what should be -- just because the market is hyper-active.
And a carrier can't set the same rate per mile for all round trips just like a broker can't charge the same margin for every move -- depends on overhead and time involved (generally longer trips are less $/mile) ... the driver pay, fuel etc are steady per mile but everything else floats.
By the same token, as a broker I don't mark up a shipment that can be covered in one call the same as one that is a real pain in the butt and needs babysitting.
R
Roca
Guest
for sure, unless the customer has set rates on the easy load and you make a nice buck every time!
5
1.80
i guess these rates are why thers no money in trucking .i burn 1ltr a mile thats $1.20 a mile if the rate was 1.80 a mile the .60 cents left over is for retierment. some people arnt helping the industy. 4.00 a mile to the truck
i guess these rates are why thers no money in trucking .i burn 1ltr a mile thats $1.20 a mile if the rate was 1.80 a mile the .60 cents left over is for retierment. some people arnt helping the industy. 4.00 a mile to the truck
Last edited:
P
phantom 309
Guest
i would guess that poor roca is another mileage based trucker trying to figure out why hard work is not paying off, and is curious to find out what shippers are paying.
you only have to read the ads on kijiji, to see what is going on,.
Shame that so many truckers are not business men.
nick
5
Wrong.
There are many variables to consider in determining why a carriers would take a load to NC for $1000 and not to CT / MA.
Examples
There is a toll highway which is the only was to access CT / MA from the western side. Those tolls can cost $150 - $250 on a round trip.
In calculating what you would need to send a truck to CT / MA you would have to base that rate in conjunction with the inbound market rate for that lane and obtaining your round trip per mile rate.
Traditionally speaking the majority of loads coming from CT / MA to ON are loads of paper. When paper production goes up, (as an example) more loads will be available to move and this could raise the inbound rate or vise versa.
10
Most of today's carriers don't operate for profit, I think they do it to get out of the house and keep the cob-webs off the truck. The best information I was ever told was by an old truck company owner back in the late 70's and it was quote " What ever fuel cost per gallon is how much you have to be paid per mile other-wise leave it parked" end quote. This is a very good base for figuring your mileage rates. Remember the truck cost just as much out-bound as it does in-bound.
30
Good theroy Rick but fuel was 70 cpg and even BJ and the Bear wanted a buck a mile!!
2
I'm relieved that not one person has said "Way of the road" yet.
I think a lot of carriers forget that when you quote competitively, profit becomes less of a factor and it becomes more about getting business (or keeping it as the case may be.) You may find yourself bidding on something and getting it, and then someone else thinks "that's cheap." One person's cheap is another person's competitive. It depends on where you think your competition is at, or what rates they are really pitching. This is why automotive carriers will not survive the next downturn because they expect everyone to pay what GM and Ford pays, but finds out that the open market (brokers on Link Logistics) do not pay those kinds of rates. They should make their profit while they can because they're going to need it. Profit can exist while being competitive. The trouble is some carriers that try to increase profit by reducing cost (read: laying off drivers and staff) end up shortchanging themselves in the end by capacity issues and overworking staff, rather than making money by doing things smarter.
Here's what I see is the problem, summarized:
Drivers work for someone and say, "I'm not making any money. I'm going to buy my own truck and be an owner-operator. Then I'll make money."
Owner-operators work for someone and say, "I'm not making any money. I'm going to buy a few trucks, put drivers in them and then I'll make money."
Those guys become trucking company owners and say, "I'm not making any money. I'm going to buy another trucking company and then I'll make money."
The trouble is that they all say they don't make money and part of it is not realizing they ARE making money, just not Donald Trump money. The other part is what expectations are. Some drivers want more than 42 cents a mile and some owners don't think 25% gross profit on a truckload is enough. So do these people know what is realistic? You'd think not.
30
Carriers like to see as much per mile as possible...just as we brokers do. At the end of the day the market is what determines the price we get. In some cases that's 1.50/mi...in others it's $8.00/mi.
When there are 20 trucks for every available load then the rate is usually LOW...this is the situation for Northeast US outbound. Where loads outnumber trucks available..rates are HIGH...that's the case for loads INTO western Canada.
Bigger van or reefer carriers flood the market by getting into the open freight & pricing it in accordance to their van rates thus making specialized hauling rates drop considerably. Rates will drop overnite but take years to come back up. I still shake my head at the majority of rates I'm quoted on a daily basis. I noticed when the fuel jumped the rates dropped WTF with that & it still seems to be the norm.
30
It's just the market. Regardless of what the price of fuel does, other factors may be pushing rates down, most often it is when there are more trucks available then loads available, or if its a popular destination. I have no trouble getting flats for WI loads for 1.40 a mile plus fuel...but loads into the Northeast require upwards of 3.00 per mile plus fuel. As a broker I have a "bird's eye" view of what works and what doesn't. In general carriers who stick to a few key lanes tend to do better than the ones who run open board because they are able to beat down their costs..i.e. minimize empty miles, driver turnover (regular lanes means less stress for drivers).. It also helps to pick lanes that aren't beat to death...ON - NJ or ON - IL is better than ON - QC for sure. Also...LTL or partials in one direction helps alot... whe you've got a couple of partials in one direction that bring in 5 bucks a mile then you can deal with the odd poor paying return load without giving away the store.
30
Not every trip needs the same $/mile to run for a number of reasons:
- certain types of runs do a better job of utilizing equipment than others
- the shorter the lane, the greater the overhead cost is when translated per mile
- toll roads in some lanes can be a real doozy
- trucks get better mileage when they can run cruise control in high gear than running through hills -- no different than a car
In general there is a magic number than one needs to figure on gross dollars per unit per month (divided by a reasonable average miles per month traveled) ... and it differs according to specific equipment too.
Running short haul (200 miles or less) dictates a rate based on hours, not per mile.
- certain types of runs do a better job of utilizing equipment than others
- the shorter the lane, the greater the overhead cost is when translated per mile
- toll roads in some lanes can be a real doozy
- trucks get better mileage when they can run cruise control in high gear than running through hills -- no different than a car
In general there is a magic number than one needs to figure on gross dollars per unit per month (divided by a reasonable average miles per month traveled) ... and it differs according to specific equipment too.
Running short haul (200 miles or less) dictates a rate based on hours, not per mile.