Why are your rates so expensive!

D

Derek's Diva

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Jul 4, 2008
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So I got a phone call from a broker yesterday that has used out services a few times in the past, asking me why are rates are so high! I explained it's a dedicated service, all our trucks are 2007 and newer they all have GPS for easy tracking and our rates have not increased for over 2 years! Our rates should be totally competive and our service is at least 90% probably better. It's very rare that we have a trailer moving that is not fully loaded, I know there is carriers out there running for cheaper but they are not reliable at all. We do have a few customers that can't pay our rate so we are flexible and work with them to ensure they make their customer happy and we still get the freight but this guy could not understand my explanation. We realise it is tough times but it's give and take right?
Anyone else having to deal with this?
 
Rates

We are finding carriers and I mean MAJOR CARRIERS who in public say there are not cutting rates are just as bad as the no name carriers. We lost a route to one of these carriers who cut the rate by 20 %. Guess we need some major carriers to go bankrupt just to stop this.
 
Rates

The worst is yet to come. A slow economy and a high dollar. Get ready to see more back solicitation and rate cutting in the near future.
 
If it doesn't turn around soon you will see 1 or 2 of the big fellas go down. Unfortunately we were just getting rates to a good place and of course this is trucking off the tracks we go.
 
Just yesterday I saw a dry van load posted on the Link - somewhere in GTA to Texas. $1 per mile and it disappeared in under a minute!!
Ridiculous - thank-you to whoever took that load. :mad:
(and I don't want to see any replies about "reefer season" either...)
 
$1 / mi, I would like to know who the tool is doing that. I wouldn't be surprised if it's reposted and double brokered for more $$$ than what they're getting and jamming the real carrier, either that or you were lied to about the rate that broker paid...
 
Well, surprise, surprise that post was from CH Robinson on the Link. I forget now which office though.
Anyway, it doesn't surprise me that they are offering $1/mile. I have encountered this before with them. Last week, in fact. Minneapolis area to Toronto for $1200 CDN (900 miles or so). Full load. It is more than $1/mile but still a laughable rate.
They called ME because I had my truck posted in Minneapolis. I of course refused. That load stayed listed on their site for a couple of days but it eventually disappeared. Wonder how much they ended up paying?


godfather said:
$1 / mi, I would like to know who the tool is doing that. I wouldn't be surprised if it's reposted and double brokered for more $$$ than what they're getting and jamming the real carrier, either that or you were lied to about the rate that broker paid...
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We are hauling a load out of CA to AB for CH now, they wanted a deal and the dispatcher passed the phone to me, I told the girl on the other end that CH does not get one single break because of their CEO she laughed and gave us the load at the rate we wanted. Don't give them any breaks and mention the CEO as much as possible maybe they eventually will get the message.
 
You know we all talk about boycotting ch.and we all talk about banning together against them,but lets face the facts sometines we gotta feed the devil.attention all carriers ....follow low milers lead....if you have to taker a ch load....and yes you may very well have to at some point..at least make them pay...
 
lowmiler88 said:
We are hauling a load out of CA to AB for CH now, they wanted a deal and the dispatcher passed the phone to me, I told the girl on the other end that CH does not get one single break because of their CEO she laughed and gave us the load at the rate we wanted. Don't give them any breaks and mention the CEO as much as possible maybe they eventually will get the message.
Click to expand...

Now that is how to let CH Robinson know you don't like what they are doing. More carriers should follow suit.
 
I find it the brokers are all trying to under bid each other for the customer.....

Think about it from a customer point: If they have 3 brokers bidding they will always get a low rate and as us being the carrier we are the one getting moving it with little $$ for our eqpt and drivers.....

The rates are getting lower and lower....I had a broker who wanted us to move 1 sk from ID to Ottawa for 225.00 and told me that he got it done last week for that much....I told him to call them and let him know you have another one for him, at the end of the day we are moving it for 475.00.....call there bluff...
 
Rates are just getting stupid now, I was keeping an eye on the link the other day looking for some extra work for later in the week to fill in a bit. I saw a truckload posted on Monday for Wednesday AM delivery to Laredo for $1900 cdn, and I saw a load go to MO for $850 all in and it was 945 miles...do the math.

The one good thing is those carriers going out for $1/mile and less won't be around for too long so less competition for the rest of us.
 
Below is an excerpt from a popular transportation source. Notice the "Best 3pl for Retail Goods". The fact is C.H.Robinson is here to stay. If we are not prepared to get our heads out of the sand and adapt to the changing times we may be left behind. You may have your pride left but who will be the real winner. There are many ways to remain competitive and profitable if you are willing to change the way you have been doing business. There will be plenty of new players willing to adapt and find ways to generate profit in the trucking industry if we do not. I suggest we spend our time trying to become more innovative rather than just moaning and groaning. See below

The winners for this year's 3PL awards were announced during an awards reception in Atlanta, Georgia on June 25th. Awards aim to recognise those 3PLs that continuously deliver excellence in logistics operations and superior service to their customers.The awards are decided by 3PL customers - the manufacturers and retailers who depend on and work with logistics service providers every day. As such, these awards take on a special significance, and the winners can feel confident in the knowledge that their customers have chosen them as best of breed partners in supply chain excellence.

"With the largest response rate to date, we were very excited to announce this year's winners. The increase of participants responding exemplifies the support and satisfaction of the companies which depend on the 3PL providers" said Chris Saynor, CEO of eyefortransport. "We strive to recognise those companies which diligently work to provide consistently excellent logistics operations and superior service to their customers."

Winners of the eyefortransport North American 3PL Awards 2009:

Best 3PL for Retail Goods: CH Robinson
Best 3PL for Industrial Supply Chain: Logistics Management Solutions (for the third consecutive year)
Best 3PL for Hi-Tech & Electronics: FedEx SCS
Best 3PL for the Automotive Industry: Schneider Logistics (for the second consecutive year)
Best 3PL for Pharmaceuticals, Chemicals & Hazmat: Penske Logistics
Best 3PL for Consumer Goods: Transplace (for the second consecutive year)
Best 3PL for Fresh Food Supply Chain: Total Quality Logistics
Best 3PL for Sustainability: Transplace
 
JN1981 said:
Rates are just getting stupid now, I was keeping an eye on the link the other day looking for some extra work for later in the week to fill in a bit. I saw a truckload posted on Monday for Wednesday AM delivery to Laredo for $1900 cdn, and I saw a load go to MO for $850 all in and it was 945 miles...do the math.

The one good thing is those carriers going out for $1/mile and less won't be around for too long so less competition for the rest of us.
Click to expand...

Same B.S. again - Just saw a load posted going to Laredo, TX for $1900 CDN!!! It hasn't disappeared yet so I'm not sure if that is a good sign or not...
 
Salma said:
Same B.S. again - Just saw a load posted going to Laredo, TX for $1900 CDN!!! It hasn't disappeared yet so I'm not sure if that is a good sign or not...
Click to expand...

Nevermind - it is gone.
 
Laredo

Canadian Bacon said:
If that was from Guelph it started out at 2500US from Warren Transport
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The first one I saw ($1900 cdn) was from Concord but then I saw another one, from Woodstock, posted by a different company for $2200 cdn so who knows?
 
is $1/mile the standard rate now?

Pretty much everyone I am calling today for outbound has rates of $1/mile or they "just covered the load" for close to that rate.
I just spoke to a guy who had a load going to the Kansas City, KS area and he sold the load for $1.09/mile. I told him I would be concerned about that carrier but he didn't seem worried at all. I could tell by his voice that he was overcome with joy and probably had visions of dollar signs dancing in his head.
Wow!!!!!!!!
 
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