Cheap Freight Of The Day??

brwnee said:
Why is it when carriers are asking to be paid the big rates when there is a lack of capacity - they are looked down upon - NEWS FLASH - outbound rates have been in the 1.20 -1.40 range into the Midwest for a long time now - not just since produce season started - also do brokers not almost always make a profit on the loads they sell - do you think carriers should not be afforded the same opportunity to make profit when the markets warrant such - to help offset the break even or loss they have when the economy is down.
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It's because pricing is crazy!

When everyone was used to paying 75-80 cents for gas, everyone panicked when it went over a dollar. When it went way up to a 1.40, people kind of accepted it, and now that it's around a buck, people think it's cheap. There is a psychology to pricing.

That's why I get so mad when carriers get low oubound rates. I get it's supply and demand and it makes economical sense if the rounder pays, but the damage it does to the perception of cost in the market is horrendous.

I don't have any magic answers to correct the problem, but it is a problem. Just on market perception alone.
 
Cheap freight of the day!

Attar Transport: offering $225 from Cobourg to Brampton, deliver by 5pm. Then offered $250 when I balked at her rate and informed her that rate is a local Toronto truckload rate.

It wasn't too hard to guess what the goods were when she said it was plastics. Everybody knows! :)
 
Great Post... my two cents on the brokers making a 10 minute phone call and making 20%.

First off... such a ridiculous comment. What about the 200 calls we had to make for the client? What about the carrier that ignores all of our load instructions and costs us a client? What about the carrier that back solicits and steals our customer? Brokers and carriers will very rarely meet eye to eye on this subject but having been on both sides of the fence, I've learned that this is the way it will always be.

Sometimes, I make 20%, sometimes I make 1%. I'm in business to make money, not to make everyone else money... It's called capitalism and it's the same reason everyone here is in business. As many have mentioned, if you don't like the rate... don't take it....such a simple way of dealing with it. I am pretty sure you won't hear a carrier complain about making more on a load....lol!

Seriously though....this is business and basic economics. Work with the people you get good rates from and ignore the ones you don't and move on... hell.... even go out and find a client instead of sitting around staring at link waiting for the brokers to do the work for you.
 
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Every post seems to end up the same. Carriers vs brokers. Brokers you can't seriously put your responsibilities and costs along the same line as carriers. Sure you have to deal with unreliable carriers from time to time. That is usually because the "quality" comes with a price to match. If your customers knew that you went after price instead of quality and safety - they might think again before using brokers to handle their 3pl.

When CSA 2010 comes in line - any day now - you will have resposbility for who you use. Price might not be so important, when you see what type of carriers are hauling freight for 1 buck a mile.
 
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Yesterday, North Atlantic posted 5 skids Cobourg to Mississauga for a whopping $75.00. And justified it by saying that it's bonus money for any trucks coming through with 5 spots open.

That is insulting to carriers. Whether or not you have 5 spots open, there still should be some sort of standard pricing for what 5 skids cost to move that distance.
 
MyTrucksMyRates said:
Yesterday, North Atlantic posted 5 skids Cobourg to Mississauga for a whopping $75.00. And justified it by saying that it's bonus money for any trucks coming through with 5 spots open.

That is insulting to carriers. Whether or not you have 5 spots open, there still should be some sort of standard pricing for what 5 skids cost to move that distance.
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cost:

87 miles @ 6.5 mpg * 3.785 * 1.30/L = $65.86
+driver @ $0.40/mile = $34.80 (or use an hourly driver)...

Hmmm....$75 seems out the window pretty quickly...
 
LOADED MILES said:
Every post seems to end up the same. Carriers vs brokers. Brokers you can't seriously put your responsibilities and costs along the same line as carriers. Sure you have to deal with unreliable carriers from time to time. That is usually because the "quality" comes with a price to match. If your customers knew that you went after price instead of quality and safety - they might think again before using brokers to handle their 3pl.

When CSA 2010 comes in line - any day now - you will have resposbility for who you use. Price might not be so important, when you see what type of carriers are hauling freight for 1 buck a mile.
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Speaking of CSA 2010, Landstar has had to cut ties with over 3500 carriers already since this came out, and they're still cutting!! This CSA 2010 is a blessing for us.
 
Interesting attitude!!

Broker has light view on the way things work.

One skid as gravy might work out for a FTL carrier. Rarely will a FTL carrier have the space left for 5 skids on the trailer.

I see a lot of brokers trying to move large LTL in the last few weeks without much luck.
I received numerous calls this week for a 17skid shipment. My question to the broker was when does the shipment become a FTL?
There was even an offer of 23skids yesterday!!
We even had a client quote us on 18feet of truck and when we got there to load we loaded 10 skids sideways.

There is actually a shipment of 12 skids offered by three different load brokers based on old rates, that represents 20% less than a full load would bring from the same area !!
 
alx said:
Broker has light view on the way things work.

One skid as gravy might work out for a FTL carrier. Rarely will a FTL carrier have the space left for 5 skids on the trailer.

I see a lot of brokers trying to move large LTL in the last few weeks without much luck.
I received numerous calls this week for a 17skid shipment. My question to the broker was when does the shipment become a FTL?
There was even an offer of 23skids yesterday!!
We even had a client quote us on 18feet of truck and when we got there to load we loaded 10 skids sideways.

There is actually a shipment of 12 skids offered by three different load brokers based on old rates, that represents 20% less than a full load would bring from the same area !!
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Generally, 20000 lbs or more is the deciding factor if a shipment is subject to a truckload fuel surcharge would be the easy answer if you live by FCA or fuel surcharge systems like that (even though it's technically an LTL shipment.) Shipments of 30000 lbs or more usually are rated mainly as truckload for practical purposes unless you're dealing with someone who is quibbling over a couple of empty skid spots. It depends on what the freight is and what someone would call a capacity load (and service plays into it too.)
 
This discussion has an interesting reverse side to it. It has happened to us on more than one occasion, where a carrier has accepted a full load from us of perhaps 17 skids. When we called to trace the delivery we were told that the truck was stuck at customs due to a couple of skids that were put on by another shipper. I can't fault someone for trying to maximize their capacity, we're all in it to make money, but please, don't accept a full load and then service it as LTL.
 
A full load of 17 skids may be paying a full load rate, but it isn't a full load therefore the carrier has the ability to add 9 more spots for "gravy". As long as there are no appointments being jeopardized, then there should be no problem with the carrier adding more freight.

If on the other hand you are paying a full load "exclusive", and the carrier missed an appointment because of the other freight, then you might have grounds for a complaint.
 
Correction

A correction to my earlier rant.

The rate for those 12 skids of ltl is 20% less than half of a full truckload rate and the 12 skids weigh in @ over 24,000 lbs.

So we have brokers that are looking to pay 20% less than 1/2 of a truckload rate fof ltl that if doubled would represent 2000lbs more than a 44000lbs truckload.

What of the added cost of running ltl ??? I.E.

extra pick up and delivery charges
mileage between stops
out of route mileage
warehousing costs
added staff
 
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LTL as a full load ?

With van freight, my reckoning for LTL that seems to have worked over a number of years has been along the following lines.
Max weight for a skid = 1,875 lb. (X 24 + 45,000 lb.). If more = extra skid allocation.
3/4 load = 90% of full load rate.
1/2 load = 70% of full load rate.
1/4 load = 70% of 1/2 load rate.

If I've booked less than 24 skids at a full load rate, and somehow the shipper has more than anticipated, I don't want to hear the carrier asking for more money because they've lost an opportunity for additional revenue.
If not and the carrier has an opportunity for some "gravy", then I don't have an issue as long as there's no negative impact on my shipment.
If I've booked it as "exclusive use", even if it's only 1 skid (has happened), then I want what I've bought - no extra freight on board for any reason.
 
Activet said:
Max weight for a skid = 1,875 lb. (X 24 + 45,000 lb.). If more = extra skid allocation.

3/4 load = 90% of full load rate.
1/2 load = 70% of full load rate.
1/4 load = 70% of 1/2 load rate.
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Pretty accurate Activet. I have been using similar formulas for years and it always worked for me. Obviously not everybody goes for it, but that just the perks of free enterprise. You choose what service you want to do and at what price.
 
I've always used a formula where you take the truckload rate and take into consideration, one P, one D charge. When you move LTL, you prorate the number of skids of the full load rate, then add in P&D. So on some lanes you could possibly go to 20 skids as LTL, one others maybe a half load ... with most in between. Always seemed to work and still does.

As far as the gravy on a short full load, to mytrucksmyrates ... especially since we know who you are ... full truckload service is always exclusive use service. If you're going to pull that kind of stuff, you better be post-audit so the LTL doesn't screw up the service of the full load -- and deal with the re-distribution later.

I'm sure with the other side of your company, that excuse wouldn't fly to its customers.

It's no problem to ask for a fair rate ... just give the people what they paid for.
 
My point exactly theman. A "full" load of 17/18 skids should get the same service as a "full" load of 24/26 skids. As far as the "gravy" is concerned, as long as it doesn't spoil the main course, I don't have a problem.
 
Sorry I should have clarified.

If someone is paying me full load rate but I have the ability to add on a few more skids to the truck, the FTL rate payer gets first drop even if I have to bypass the other drop. It's only fair.
 
Whether they can do it or not does NOT make it right. Thank God I have no truck payment ....and my heart goes out to those guys that do. Tough times in all segments.
 
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Worst one yet!!!

Almost fell off my flippin chair laughing, Tony Daniel at FLS offered this one up.

Welland, ON to Charlotte, NC -- Full load, skidded, 44K for a flat, rolltite or step, needs tarps for a whoppin :eek: $1,100.00 !!!!!!!!!! I couldn't drive my pick up down there for that, even with a good tailwind!!! lmao
 
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