20
Of Rates and Trucks - rates you will not believe
- Thread starter tasuinam
- Start date
30
There are really only 2 reasons why a shipper or a broker for that matter, offers seemingly low rates like these. 1) it is a new lane for them and they really have no idea what the rate should be. They're testing the market, or 2) it is an existing lane and these are the rates that carriers have been accepting.
30
We as carrier's have the power to say no to the low rates. But alas some dumbass will take it and lower rates become standard.
Shakey
Site Supporter
30
Don't think anyone should be surprised at these numbers coming out after the huge upswing in rates the last year and half. Not saying it is wrong or right but we live in an open market.
Hopefully you made some strong partnerships with your customers during the high times, and that should help you keep going in the downturns. If you held them ransom during the up, well you know what is coming now. If you didn't take advantage and tried to build a partnership but they are still looking to chop your rates, unfortunately it's time to build a new partnership with someone else.
Hopefully you made some strong partnerships with your customers during the high times, and that should help you keep going in the downturns. If you held them ransom during the up, well you know what is coming now. If you didn't take advantage and tried to build a partnership but they are still looking to chop your rates, unfortunately it's time to build a new partnership with someone else.
30
Got this off a load board forecaster. Like @loaders said, broker must be working with a new customer/lane and is probably trying to win the business at the expense of the carrier lol. BTW these are in USD.
Just got this on an email blast:
Program Start Date: July. 25th, 2022
Program End Date: July. 25th, 2023 (contract likely to be extended due to customer relationship)
Commodity
Description: Construction Related Items
Average Weight Per Shipment: Listed Below (Tri-Axel for intra-Canada / standard tandem for cross border)
Origin: Mississauga, ON (All loads originate from Mississauga, ON)
All rates are in CAD funds.
Deliver to:
Ontario Lanes ( required 53 ft TRI-AXLES ) ( 54,000 lbs to 59,000 lbs )
Mississauga, ON ( 8 to 10 trucks a month ) - $ ($250.00)
Milton, ON ( 8 to 10 trucks a month ) - $ ($250.00)
Bolton, ON ( 4 to 5 trucks a month ) - $ ($250.00)
Halton Hills, ON ( 2 to 3 trucks a month ) - $ ($250.00)
Etobicoke, ON ( 1 to 2 trucks a month ) - $ ($250.00)
St. Jacobs, ON ( 2 to 3 trucks a month ) – $ ($375.00)
London, ON ( 1 to 2 trucks a month ) - $ ($485.00)
Toronto, ON ( 1 to 2 trucks a month ) - $ ($250.00)
Vaughan, ON ( 1 to 2 trucks a month ) - $ ($250.00)
Quebec Lanes ( required 53 ft TRI-AXLES ) ( 54,000 lbs to 59,000 lbs )
Boucherville, QC ( 5 to 6 trucks a month ) – $ ($1000.00)
Terrebonne, QC ( 1 to 2 trucks a month ) – $ ($1000.00)
Laval, QC ( 4 to 5 trucks a month ) – $ ($1000.00)
Longueuil, QC ( 2 to 3 trucks a month ) – $ ($1000.00)
Cross Border Lanes ( required 53 ft Tandems ) ( 44,000 lbs )
Norwood, MA ( 4 to 5 trucks a month ) – $ ($1800.00)
Mansfield, MA ( 1 to 2 trucks a month ) – $CAD ($1800.00)
Westfield, MA ( 4 to 5 trucks a month ) – $CAD ($1800.00)
Sparrow Point, MD ( 3 to 4 trucks a month ) – $CAD ($1650.00)
Bloomfield, CT ( 3 to 4 trucks a month ) – $CAD ($1650.00)
South Windsor, CT ( 3 to 4 trucks a month ) – $CAD ($1650.00)
Swedesboro, NJ ( 2 to 3 trucks a month ) – $CAD ($1500.00)
Keasbey, NJ ( 2 to 3 trucks a month ) – $CAD ($1500.00)
Montgomery, IL ( 1 to 2 trucks a month ) – $CAD ($1000.00)
Solon, OH ( 1 to 2 trucks a month ) – $CAD ($1000.00)
Washington Court house, OH ( 1 to 2 trucks a month ) – $CAD ($1000.00)
Minneapolis, MN ( 1 to 2 trucks a month ) – $CAD ($1800.00)
Romulus, MI ( 2 to 3 trucks a month ) – $CAD ($800.00)
Grand Ledge, MI ( 2 to 3 trucks a month ) – $CAD ($800.00)
Hagerstown, MD ( 2 to 3 trucks a month ) – $CAD ($1650.00)
St. Joseph, MO ( 1 to 2 trucks a month ) – $CAD ($1850.00)
Philadelphia, PA ( 1 to 2 trucks a month ) – $CAD ($1200.00)
Zeeland, MI ( 4 to 5 trucks a month ) – $CAD ($1000.00)
Mind you this broker has been awarded these lanes already and are "currently looking for strong, reliable, and trustworthy carrier partners to assist with the volume" smh.
Program Start Date: July. 25th, 2022
Program End Date: July. 25th, 2023 (contract likely to be extended due to customer relationship)
Commodity
Description: Construction Related Items
Average Weight Per Shipment: Listed Below (Tri-Axel for intra-Canada / standard tandem for cross border)
Origin: Mississauga, ON (All loads originate from Mississauga, ON)
All rates are in CAD funds.
Deliver to:
Ontario Lanes ( required 53 ft TRI-AXLES ) ( 54,000 lbs to 59,000 lbs )
Mississauga, ON ( 8 to 10 trucks a month ) - $ ($250.00)
Milton, ON ( 8 to 10 trucks a month ) - $ ($250.00)
Bolton, ON ( 4 to 5 trucks a month ) - $ ($250.00)
Halton Hills, ON ( 2 to 3 trucks a month ) - $ ($250.00)
Etobicoke, ON ( 1 to 2 trucks a month ) - $ ($250.00)
St. Jacobs, ON ( 2 to 3 trucks a month ) – $ ($375.00)
London, ON ( 1 to 2 trucks a month ) - $ ($485.00)
Toronto, ON ( 1 to 2 trucks a month ) - $ ($250.00)
Vaughan, ON ( 1 to 2 trucks a month ) - $ ($250.00)
Quebec Lanes ( required 53 ft TRI-AXLES ) ( 54,000 lbs to 59,000 lbs )
Boucherville, QC ( 5 to 6 trucks a month ) – $ ($1000.00)
Terrebonne, QC ( 1 to 2 trucks a month ) – $ ($1000.00)
Laval, QC ( 4 to 5 trucks a month ) – $ ($1000.00)
Longueuil, QC ( 2 to 3 trucks a month ) – $ ($1000.00)
Cross Border Lanes ( required 53 ft Tandems ) ( 44,000 lbs )
Norwood, MA ( 4 to 5 trucks a month ) – $ ($1800.00)
Mansfield, MA ( 1 to 2 trucks a month ) – $CAD ($1800.00)
Westfield, MA ( 4 to 5 trucks a month ) – $CAD ($1800.00)
Sparrow Point, MD ( 3 to 4 trucks a month ) – $CAD ($1650.00)
Bloomfield, CT ( 3 to 4 trucks a month ) – $CAD ($1650.00)
South Windsor, CT ( 3 to 4 trucks a month ) – $CAD ($1650.00)
Swedesboro, NJ ( 2 to 3 trucks a month ) – $CAD ($1500.00)
Keasbey, NJ ( 2 to 3 trucks a month ) – $CAD ($1500.00)
Montgomery, IL ( 1 to 2 trucks a month ) – $CAD ($1000.00)
Solon, OH ( 1 to 2 trucks a month ) – $CAD ($1000.00)
Washington Court house, OH ( 1 to 2 trucks a month ) – $CAD ($1000.00)
Minneapolis, MN ( 1 to 2 trucks a month ) – $CAD ($1800.00)
Romulus, MI ( 2 to 3 trucks a month ) – $CAD ($800.00)
Grand Ledge, MI ( 2 to 3 trucks a month ) – $CAD ($800.00)
Hagerstown, MD ( 2 to 3 trucks a month ) – $CAD ($1650.00)
St. Joseph, MO ( 1 to 2 trucks a month ) – $CAD ($1850.00)
Philadelphia, PA ( 1 to 2 trucks a month ) – $CAD ($1200.00)
Zeeland, MI ( 4 to 5 trucks a month ) – $CAD ($1000.00)
Mind you this broker has been awarded these lanes already and are "currently looking for strong, reliable, and trustworthy carrier partners to assist with the volume" smh.
left out.. *Strict appointments starting at 5am*, *waiting time paid after 3 hours at 50$/hour*, *driver must provide passport, SIN and first born*, *Loads cancelled within 2 hours before pick up are not eligible for TONU* and of course *Customer pays in 90 days from receipt, our terms are NET 90*.
BUT THERE IS OPPOURTUNITY FOR LARGE GROWTH - WE ARE THE (9th of 16) PREFERRED CARRIER AND MUST BE COMPETITIVE TO BEAT CANADA CARTAGE.
Good ol' Trucking..
BUT THERE IS OPPOURTUNITY FOR LARGE GROWTH - WE ARE THE (9th of 16) PREFERRED CARRIER AND MUST BE COMPETITIVE TO BEAT CANADA CARTAGE.
Good ol' Trucking..
30
I guess being on the broker side, like all of us we have had to deal with rates rising incredibly fast due to the fuel increases. Carriers react with increases immediately after fuel rises. Not to mention that most increases for a lane were a lot more than what the fuel costs increased. (Yes we can do math)
So why is it when fuel has a pull back, they act like they don't know that it has come down? This is always an interesting challenge.
Approximate Diesel Rates in:
Feb -1.57 litre
March - 1.97 litre
April - 2.27 litre
May - 2.10 litre
June - 2.21 litre
July - 1.95 litre
So shouldn't all of the increases we we given after March should go back to the March rates?
Of course not. Raising rates is easy for them. Lowering rates, almost impossible. We then become forced to look for more reasonable options.
So why is it when fuel has a pull back, they act like they don't know that it has come down? This is always an interesting challenge.
Approximate Diesel Rates in:
Feb -1.57 litre
March - 1.97 litre
April - 2.27 litre
May - 2.10 litre
June - 2.21 litre
July - 1.95 litre
So shouldn't all of the increases we we given after March should go back to the March rates?
Of course not. Raising rates is easy for them. Lowering rates, almost impossible. We then become forced to look for more reasonable options.
Shakey
Site Supporter
30
Shakey
Site Supporter
30
Having some of those conversations as well, fun aren't they? We always try to ensure we set carriers up with FSC broken out for orders to help with the swings, but still it causes issues.
But to note issues for asset side, labour, parts, scheduling, and the best one, what will it cost to replace equipment. Fun times!
I know right. At first we are talking about FUEL. Of course we agreed and paid the increases if they were fair. Try to point out fuel is back to March levels and every other cost becomes the new dialogue. I'm not ripping on all carriers. They know who they are. LOL
30
The costs increases were justified by saying diesel went up, but in reality the increases were just forced upon everyone. This is because the market was trading way below our American counterpart standard and sometimes even below the break even point. These forced increases come down to inflation and over all the low barriers to starting a trucking company.
I can remember a time not far back when dry van single driver service was 85 cents- 1 $ cad rpm on 600 miles or more. With this rate the phones would ring and ring and ring for hours. Not anymore - same thing happened during the flooding and during peak covid.
Because shippers are accustomed to crazy spot quotes they have come to accept high rates as the new normal to obtain service. Just compare the price of a dry van 45 months ago with today. If you think that's crazy- try buying some rgns this week.
When it comes down to the wire and in uncertain times like today carriers and brokers alike always quote every shipment like its the last one and when it comes time to booking the back haul have already incorporated coming back to yard empty on the outbound. This makes them able to accept very low home bound freight rate which we all see every day.
On the BC Lanes things get even more complex when you compare a single driver and trailer to road train carrier who can take 2 loads at 6500$ and make a 13,000$ train
Just my opinion
I can remember a time not far back when dry van single driver service was 85 cents- 1 $ cad rpm on 600 miles or more. With this rate the phones would ring and ring and ring for hours. Not anymore - same thing happened during the flooding and during peak covid.
Because shippers are accustomed to crazy spot quotes they have come to accept high rates as the new normal to obtain service. Just compare the price of a dry van 45 months ago with today. If you think that's crazy- try buying some rgns this week.
When it comes down to the wire and in uncertain times like today carriers and brokers alike always quote every shipment like its the last one and when it comes time to booking the back haul have already incorporated coming back to yard empty on the outbound. This makes them able to accept very low home bound freight rate which we all see every day.
On the BC Lanes things get even more complex when you compare a single driver and trailer to road train carrier who can take 2 loads at 6500$ and make a 13,000$ train
Just my opinion
30
You telling me you drop rates for customers without them asking for a drop? Brokers love to use the fuel game more than carriers if you ask me. You also seem to forget trucks, trailers, drivers, insurance have all gone up but folks are out cutting rates what a joke. Some of the above have almost doubled. All up though.
Some of these have doubled since March? Once again the dialogue changes immediately. My point is, we had increases based on fuel prices rising. That was the discussion. When carriers asked I informed my clients, we reviewed it and we obliged willingly. It was obvious that it was necessary. When fuel prices come down, the discussion completely changes, as you just proved.
And no, my good clients are aware how much their increases were and when they were. I can only relay the message. They, as well as I, had no issue with it. To be honest in this case, they have not even asked for the lower rates. I was striving to get it for them and yes, actually pass it along to show them that this was real and based solely on fuel. Every carrier I have opened up this dialogue with has been a brutal debate with no logic whatsoever. You want to raise rates based on other factors, we can talk about that. Right now we are talking about fuel prices. The dramatic increases were justified and based on fuel. Lowering rates back to March levels is also justified.
The real problem may be that when I deal with a client, I consider them my bread and butter and treat them like I need them. Some carriers like to treat brokers like we need them. Of course at times we do, but we should all be treated as the same relationship they have with a client they deal with directly. When some carriers are paid by a broker, they treat a broker very different than they would treat a large Customer they deal with directly. Try telling your largest client that the past increases for fuel are no longer for fuel, they are now for entirely different things that went up but we didn't tell you about it.
Don't get me wrong, some carriers are reasonable and totally awesome
Some brokers are reasonable and totally awesome as well.
I'm just making a point as not one of my "awesome" carriers has willingly lowered rates as of yet.
We'll see what the near future holds. If it continues on a down trend we'll be having many more of these discussions.