You all had to know I was going to weigh in on this topic
First of all, the marketplace is a little more complicated than it appears on the surface, and most of that has to do with the USD exchange rate. The current exchange situation is an indication that the economy is in a state of flux. Have you noticed that the cyclical northbound shipments on consumer goods has become more pronounced? Generally, in a 4 week month it is nothing, nothing, a little, and a lot, as far as freight volumes are concerned. The higher the exchange rate goes, the more pronounced this cycle becomes.
As mentioned earlier, carriers that feel they must make a certain margin on each and every load/leg/lane will go out of their minds trying to accomplish that goal. In this day and age, it is simply not possible. You have to be more attuned to what your truck is making per day, per week, per month, and per year. Miles are immaterial now. Hours are the key to the future, especially with ELDs on the way.
Keep in mind that I like brokers. Frankly, I believe they are the best value available for your sales budget dollar. Generally, I find that there are three types of brokers.
There are brokers, the ones I call quality brokers, that go to their carrier base, which is already a select section of carriers in general, and get a cross section of rates, along with volume commitments, and a sense of the marketplace in that area. They take an average, or medium, rate, add their mark up, and present that to the client, along with real world promises on services and capacities. These are the people we all like to work with the most, but we have to work hard to become part of the select few.
Then there are those brokers who go out and get rates from a bunch of carriers. They take the lowest rate, present it to their client as the rate for all carriers, and promise the world. Eventually they fail. However, the problem is that the client now believes that this rate is the rate by which all trucks should work. This makes a pretty big hurdle for quality brokers, and carriers, to jump over, but it can be done.
Lastly, there are the scumbag brokers. The unethical ones. I'm certain we all know who these people are. If you don't, you need to do some research (one of the prime reasons to belong to this board). There are only two reasons you should ever work for this type of broker;
1) You have come across a guaranteed opportunity to rip them off.
2) You fully intend to back door, and steal their freight. (It's the only time I ever advocate back-dooring, and no quality broker would ever fault you for it ... it's in their best interest too)
If you as a carrier are working for one of these people, for any reason other than the two mentioned above, you deserve every problem you get, and I for one have no sympathy for you.
There were also statements earlier along the lines of if you don't like the rates, then don't take the loads. That's an awful lot like saying if you don't like the prices at the grocery store, don't buy the food. That statement now sounds kind of silly when put that way doesn't it? What needs to be remembered is that the rent is still due at the end of each and every month, so unless you are independently wealthy, or have just won the lottery, your trucks and drivers need to go to work every day.
Carriers also need to look at broadening their horizons. While it is true that there is a general shortage of trucks and drivers, there are certain segments of the marketplace where there is an over supply. It stands to reason if there is an over supply in one area, there must be an under supply in another area. If you're in those over supply lanes, then start thinking about under supply lanes, or different equipment, or value added services. Think outside the box. Staying in your comfort zone, if it's in an over supply lane, will eventually spell disaster.
Finally, remember that Darwin is watching ... all day, every day.
