Are these rates extremely low or am I missing something?

H

HeroMarcus

New Member
May 1, 2019
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Woodstock, ON
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Hey everyone,

I got an e-mail tonight about some outbound freight and they are looking for a 1 year commitment. But upon running miles and comparing it to the rates - they would be new lanes for us - it just seems very low. I wanted to know what kind of companies could actually support such lower rates.

The lanes I am questioning and rates are (copied right from the e-mail):

Etobicoke, ON to Warsaw, IN………approx 400 shipments....700 cnd
Etobicoke, ON to Kendallville, IN…approx. 70 shipments....700 cnd
Etobicoke, ON to Crawfordsville, IN…….approx 50 shipments....700 cnd

I can understand some companies having good backhauls from the US to support the first two lanes, they sit around $1.70-1.72/Mile, but the Crawfordsville is below $1.30/Mile before any deadhead.
These are apparently Rolls of paper so they are going to be loaded to the nine as well so no fuel savings there.

Just makes me very curious on who could actually support an outbound rate that's @ the $1.30/Mile?

Seems fairly impossible to me at least unless you have an amazing inbound
 
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Reactions: Trans
Some companies still taking these loads just to keep the drivers busy in slow time.......
 
I'm pretty sure I know the company and I'm pretty sure they have trucks so the question is would they run for this price with their own equipment?
 
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Used to be us - not anymore so I do not also who's moving those :P

These days are ridiculous. We do something we usually don't which is call of the link to cover trucks.
We got 400$ for Montreal to Toronto - stupid.
The worst we saw is 100$ power only Montreal to Toronto. And they said they were WILLING to pay up to 100$. Hope they call us to have loads too at some point! ;-)
 
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Reactions: Igor Galanter
@Trans Just don't know why you would take a load for that cheap, your fuel and driver pay alone is going to close to the same rate. No point in keeping trucks busy if they are just going to keep losing you money, they are probably going to want a year commitment as well.


@misto27 indeed the MTL-TOR lane is so over saturated, it's not worth it anymore for us to send 53' out there unless they are tri's+ I find. I remember when the bottom dollar was $600 but now a days that's a good paying load I find
 
@HeroMarcus - we are not taking anything under 700-800 and we're giving the same to our partners. Nothing moves under 800$ GTA to GMA tandem dry.

It's not a question of Market rate but what its worth all year long.
 
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Reactions: Igor Galanter
@misto27 Indeed we just found when we were out there, those loads were about 1/10 calls we would make. We only go out there once in awhile for an expedite for customers. Very much a lane that we started to do LTL on our way home when we are out that way.

@Rob Jesus, I just don't understand how people get away with stuff like that, I've seen a lot of larger brokers send out freight lists for low paying freight and it always stays up on there till after their Pick appointment they list.

Just makes me wonder why people take the freight even if it's to keep trucks busy - better off parking it then losing that much on moving it - and how brokers can keep carriers coming back for more.

We are always telling our customers that we are no where close to being the cheapest as we need to get sustainable rates so fleets can actually stay open and pull the freight.
 
Rates are significantly below market. I'm guessing this shipper has carriers who pull these loads for normal market rates, but they will put these rates out there for the odd time someone cheap comes along. At that point they'd switch out their partner carrier and let the cheap guy/gal have at er. Probably doesn't happen too often though.

Probably alot of shippers work that way... i.e. if you can work dirt cheap you're in! But until then we'll keep our longterm reliable vendor.
 
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