Cheap freight
- Thread starter Dunkscd
- Start date
20
No, it wasn't but I guess I can assume by your comment that some US broker is doing the same thing?
After reading these comments I agree and disagree. I agree that CHEAP freight is out there and at times it does pay fuel. Sometimes it even pays more than fuel. However how many of us are out there to JUST PAY THE FUEL BILLS?
The more times we haul cheap freight the more the Companies / Brokes / Farm out carriers are going to see how low they can get some idiot to haul it for. There will always be some idiot out there willing to run 600 miles for $300.00 just to get the truck moved.
I admit to doing this myself. I once loaded a tridem load of lumber out of Winnipeg to Caledonia ON for a whole $1200.00 for 1450 miles. They were only paying $700.00 for a tandem load so I did better. In my defense it was Dec. 21/2011. But it will NEVER EVER HAPPEN AGAIN.
When I take into account the extra fuel & time it took to haul this cheap S**T - I would have been futher ahead to just bite the bullet and dead head home.
The more times we haul cheap freight the more the Companies / Brokes / Farm out carriers are going to see how low they can get some idiot to haul it for. There will always be some idiot out there willing to run 600 miles for $300.00 just to get the truck moved.
I admit to doing this myself. I once loaded a tridem load of lumber out of Winnipeg to Caledonia ON for a whole $1200.00 for 1450 miles. They were only paying $700.00 for a tandem load so I did better. In my defense it was Dec. 21/2011. But it will NEVER EVER HAPPEN AGAIN.
When I take into account the extra fuel & time it took to haul this cheap S**T - I would have been futher ahead to just bite the bullet and dead head home.
Last edited by a moderator:
2
I remember moving loads of empty skids all over the place and the pricing was tight on the base rate. 4 years ago, when fuel was high, the fuel surcharge (on miles) was decent and really was your profit. I had no trouble selling to within 15-20% off the base rate alone and still moved loads. Today, with fuel surcharges not being as high as they were back then, making margin off of a base rate alone is a tough proposition if you had to quote really competitively to get lanes (read: make an attractive rate per mile on your base rate.) If you make 10% off your base rate alone and you're selling truckloads with really tight rates, you're doing okay. You'll win some and you'll lose some. Couple that with winning lanes where the volume isn't really high and the rates you quoted are really competitive, then you had better step up to the plate and work for that margin and don't complain about the market. I know some carriers will quote and win almost everything because they're quoting to shut out the competition. I've seen it in action, in fact. And I've also seen it backfire when they get awarded these lanes based on really carved up rates...and then can't match loads and capacity. So who gets to rescue that schlub? The "B" list carrier and someone who has to trot out the old reliable "gee, that's all I have in it" phrase, which makes them appear cheap. Poor planning and lack of capacity matching can produce that "cheap" freight scenario just as easily as someone who is trying to profiteer to the extreme.