INBOUND SLOWED DOWN?

Well said Rob,

I've got sales and customers asking why outbound rates are going up. My reply is that the inbound rate has declined equally on a particular lane. The reason is that carriers costs do not change (they are regularly increasing) and that for every dollar revenue lost on inbound they must make the identical or more on the outbound in order to operate and make a fair profit. Simple really.

Then I suggest looking at the same time last year, oh, that's right there was tight outbound capacity, increased outbound rates and inbound rates were being pushed down.

No matter what happens to the rates, up, down, sideways there will always be a party that complains.

Keep well,
Mike
 
It's just supply and demand. Back in July I got an offer of 5.50/mile for a flatbed outbound from ON to NC. I didn't take it. today I offered the same guy 1.10/mi. on a load inbound from GA.. He didn't take it.. No harm done either way..
 
Freight Broker said:
It's just supply and demand. Back in July I got an offer of 5.50/mile for a flatbed outbound from ON to NC. I didn't take it. today I offered the same guy 1.10/mi. on a load inbound from GA.. He didn't take it.. No harm done either way..
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The 1.10 a mile freight should NEVER be offered to anyone for any reason. That is a disgrace. That is either the broker gouging a carrier or a shipper that does not have any scruples and their freight should rot in their shipping area.

PROFIT is not a dirty word!
 
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I am not sure if freight Broker seriously offered the $1.10/mile. As he said, someone offered him a truck at $5.50/mile, an exorbitant rate that he turned down. Just as ludicrous was his offer of $1.10/mile to the same guy (chickens coming home to roost kind of thing), surely knowing that it too would be turned down. Fully agreed Rob that $1.10/mile is nowhere near a compensatory rate for any carrier. However, all it takes is one desperate carrier to accept that rate and then what should the shipper think? There are a large number of unsophisticated shippers whose only knowledge of freight rates, is what their last load went out the door for.
 
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It was a one time special offer just for that guy..Normally my rates are fair.. You know the old Barney tune.. You gouge me.. I gouge you .. la ta ta ta..

BTW.. I paid another carrier 2.65 US to move it..
 
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