low rated freight offer by brokers
- Thread starter ONMARST
- Start date
Here is what causes price jumps - when the average fuel price for the USDOE jumps $1.15/gallon in two weeks with no end in sight. On a 750 mile trip, the fuel cost increased about 150.00US. When you have to put 150.00 US in your tank for this short of a trip and you don't know what it will be in the next 3 or 4 days you have to be very careful. Then you have to remember that you have to carry this cost until you get paid and there is a price for that too. I recently got a quote for dry van trailers - $60,000 which is a whopping $20,000 more than it was 2 years ago. Try dealing with a 50% increase in your equipment costs moving forward.
There may be price gougers out there but remember, if you take the load at the wrong price and at a loss then you can only blame yourself.
There may be price gougers out there but remember, if you take the load at the wrong price and at a loss then you can only blame yourself.
| On-highway diesel prices, by week and PADD (Self service cash price in dollars per gallon, including taxes) | |||
| Date | 02/28/22 | 03/07/22 | 03/14/22 |
| U.S. | 4.104 | 4.849 | 5.250 |
| PADD 1 - East Coast | 4.161 | 4.970 | 5.334 |
| PADD 1a - New England | 4.158 | 4.815 | 5.231 |
| PADD 1b - Central Atlantic | 4.309 | 5.093 | 5.474 |
| PADD 1c - Lower Atlantic | 4.069 | 4.919 | 5.264 |
| PADD 2 - Midwest | 3.968 | 4.649 | 5.044 |
| PADD 3 - Gulf Coast | 3.872 | 4.703 | 5.110 |
| PADD 4 - Rocky Mountain | 3.976 | 4.542 | 4.966 |
| PADD 5 - West Coast | 4.711 | 5.393 | 5.867 |
| PADD 5b - West Coast less CA | 4.295 | 4.978 | 5.416 |
| California | 5.077 | 5.759 | 6.264 |
| Source: Gasoline and Diesel Fuel Update |
this is a great source! wondering if there is a Canadian equivalent? Side Note: I'ev had some success on used trailers from Ryder and Penske, we don't do long hauls so its worked out pretty good for us and their service records are up-to date till point of sale. still its a hit or miss with anything used but worth a shot.
Canadian average:
Average Retail Fuel Prices in Canada | Natural Resources Canada
Average Retail Fuel Prices in Canada
thank you sir!Canadian average:
Average Retail Fuel Prices in Canada | Natural Resources Canada
Average Retail Fuel Prices in Canadawww2.nrcan.gc.ca
• Did you know the average age of a trucker has increased over the last decade?
• Did you know that for every trucker that moves into construction to have more home-time or slips and falls on the yard; there are 0.2 truckers to replace them.
• The next cycle flip will be when otr trucking becomes popular or self-driving trucks become the norm.
• I'll be damned if the concept of demand and supply works here; half these brokers sound like cartoon villains. One day they're mauraders the next day they're martyrdoms.
• Did you know that for every trucker that moves into construction to have more home-time or slips and falls on the yard; there are 0.2 truckers to replace them.
• The next cycle flip will be when otr trucking becomes popular or self-driving trucks become the norm.
• I'll be damned if the concept of demand and supply works here; half these brokers sound like cartoon villains. One day they're mauraders the next day they're martyrdoms.
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It is entirely understandable that most of the professional, honest carriers out there might not know, or even be aware of the amount of price gouging currently taking place, nor should they be. Their core business is hauling their customer’s freight on their own trucks on the lanes they have decided to service. Their business is hauling freight, not selling freight. As a freight broker, our business is selling freight each day to every possible and sometimes unimaginable destination in North America.. In the recent past, we would occasionally encounter a carrier who would quote well above the market rate on a particular lane. In todays, crazy marketplace, the occasional has now become more commonplace. If every carrier was adopting this new “get whatever you can and don’t think twice about it” pricing structure, no problem, that would be the new reality and we would all have to live with it. Fortunately the gougers, while definitely more numerous, are still in the minority. Only someone who has just woken from a decades long sleep doesn’t realize that costs have risen dramatically and left no industry untouched. There are two ways to deal with it. 1) increase your rates and be able to explain in reasonable fashion, as Jim L did above, why these actions are necessary, or 2) quote every shipment as if it was your last with no regard for what the future might bring. Given the choice, we try to deal with the former at every opportunity.
I had a brokerage count my costs and break down my costs to me and explain why rates should be at 2.17$ a mile. If you're not selling the freight; you brokering the transportation of said freight. I don't think your client who's moving 750k worth of medical equipment would lose sleep over an extra thousand bucks in transportation costs on a load.
I'm talking to shippers and AM's from Sephora are telling me brokerages are quoting up to 20 thousand from Port NYC to Toronto... I'm not getting these rates on the assets anywhere near that.
If you're complaining let's bring this conversation back to 49 Code of Federal Regulations part 371.3 ?
I'm willing to bet that that's a conversation you'll opt out of.
I'm talking to shippers and AM's from Sephora are telling me brokerages are quoting up to 20 thousand from Port NYC to Toronto... I'm not getting these rates on the assets anywhere near that.
If you're complaining let's bring this conversation back to 49 Code of Federal Regulations part 371.3 ?
I'm willing to bet that that's a conversation you'll opt out of.
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Obviously, you missed my point. I am not complaining, just pointing out a new dynamic to our industry. The carriers who treat us fairly and honestly with consistent, reasonable pricing and good service get our business. Those who want to take advantage of temporary, wild market fluctuations, please look elsewhere thank you.
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Shippers understand why the rate is higher because of obvious reason I.e we need 700 more on the rate to cover the new price of diesel, or we need an extra 350 for the far redelivery from my yard.
But customer cannot understand more often then not amazon relay takes all trucks on open board
Shippers, dont care or want to understand a rate like port of nyc to Toronto is at 20k because no capacity on lane
But customer cannot understand more often then not amazon relay takes all trucks on open board
Shippers, dont care or want to understand a rate like port of nyc to Toronto is at 20k because no capacity on lane
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Its crazy even the guys with straight trucks are making crazy money doing amazon relay
its really good times for everyone- it only sucks if your customers dont agree to new rates
its really good times for everyone- it only sucks if your customers dont agree to new rates
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I am having the brokers make the call on what they can pay and while we do not do a lot of brokered loads the numbers we are hearing when we do need a load are pretty darn good. That being said I also sell freight and those numbers are nucking futs some jackass wanted 5800 on 750 miles um no. Load will sit a couple days longer and my client will get their load at an raised rate but not 5800. It may in the long run cause us as a carrier to run some miles but every customer is being more that receptive to not only the rate but the fact they are still being serviced.
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Higher rates…sure, it is inevitable…..good reliable service….of course, why not……a nucking futs jackass rate…..,go yuck fourself
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Great time to be in sales.. almost everyone needs help... whoa.. people are answering their phones!
Shakey
Site Supporter
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I'll bet as soon as the construction is done on the 401, rates will settle down. That's a scary timeline.
Igor Galanter
Well-Known Member
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I think these rates are the "new normal"... too many factors pushing prices up. Driver demographics.. the average age of truckers is somewhere around 52.. ever increasing fuel prices.. more regulations... wonderful but expensive technology... customer expectations.. And its harder than ever for someone to get into the biz.. All prices are going up... as no doubt most of us have noticed at the supermarket.
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I would disagree. I think that freight rates will stabilize at levels higher than they have been for the last couple of years, but down from their current astronomical levels. A number of factors will contribute to this. Higher interest rates that are forecast for the very near future might slow down new orders in manufacturing. Less freight to move resulting in lower rates. An increase in competition is also on the horizon as many carriers attempt to ramp up capacity to take advantage of this new, higher rate environment. Granted, that will be very difficult as both trucks and drivers are in extremely short supply, but where there is a will, there is usually a way. Oil prices will also stabilize at a lower level than they are currently resulting in lower fuel costs. Many of the disruptions attributable to the last two years of a world wide COVID pandemic are slowly sorting themselves out which will also tend to stabilize rates in all transportation modes. Some of these current, sky high rates are unsustainable, especially for low value shipments. Sure, a shipper moving a 750k shipment of expensive medical equipment might not balk at paying a few hundred dollars more to get his freight moved. A shipper of a 10K load of widgets definitely might. Time will tell of course, but I don’t expect to see some of these real crazy rates surviving for more than a few more months at the most. The market always seems to straighten itself out, regardless of how twisted it might be.