LTL Rate Sanity Check - Bolton to Calgary

EricG

EricG

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Aug 2, 2011
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Having a client concerned about pricing... wanted a sanity check on what a broker should be paying a reputable carrier to move this freight. We broker out this work to a carrier currently, service is on point, and we think rates are on point as well, however our client is looking for better pricing.... claims to have better pricing already... We move a fair bit on this common lane, and haven't really had someone raise a pricing concern previously.

Bolton -> Calgary
LTL via ROAD

2 (two) CRATES @ 12’ L x 7’ H x 4’ W
Approx. 1500 lbs. each crate, 3000 lbs. total shipment weight.

What's the going market rate for reputable carrier? Asking cause our client came back with 3 quotes that were significantly less.. like $1000+ less..
 
My two cents, I run my own brokerage as well - I'd probably pay a carrier $2000-2250 for this. Although, the current market might dictate something lower, but I try to not be a part of the problem as best I can.
 
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NTravels said:
My two cents, I run my own brokerage as well - I'd probably pay a carrier $2000-2250 for this. Although, the current market might dictate something lower, but I try to not be a part of the problem as best I can.
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I would say be asking in your range if we where going with room. I would also expect to pay in that range as we will only use the best carriers on our western freight. J&R Hall or our own equipment on all Western Canada freight. It may cost more but I can sleep well and not have to worry about the Kuldeeps of the world.
 
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I ship mostly intermodal LTL on that lane, when I do have send over the road it is on the spot market but I don't use rando's from the link, I stick with carriers I have worked with.

For 12 feet of trailer, less than 1000 lbs, I paid $1800 for GTA to Edmonton and that was on team service, shipped approx. 3 weeks ago
 
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It puts reputable brokers in a tough position. All it takes is one fly by night, Driver Inc., shoddy maintenance (if any) carrier to throw out a cheap rate and the market gets turned on its head. Now, even your most loyal and understanding customers are pressured into asking for a rate review. Yes, you can explain that good carriers require higher rates, that good service means paying a bit more, and at the end of the day, you get what you pay for. What we have been doing to adjust to this downward pressure on rates, is being especially diligent about getting at least three quotes for every move, all from our regular carrier base. If they make the decision to move rates down, we prefer to ride it down with them, not some unknown entity.
 
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Manitoulin is great for this lane as well. They’re good…but, again, not the cheapest. Not best price but best value perhaps.
 
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Thanks for the input... I agree a carrier is worth $1900-$2200 or so to move this freight in my opinion, but when the client advises they recently moved same loads with 2 new carriers for much less, its makes me wonder... It didn't move intermodal, as the time span for pick till drop was too short for intermodal. Blows my mind that two carriers are running that lane for so much less for 12 feet OTR.... intermodal, I could see it.. but road.. wow.

old story tho.. when the industry is slow, even the sketchy carriers can pickup and delivery on time because they aren't busy or over booked/capacity... its when things pick up, you really see the service differences between the proven carriers and the sketchy carriers. The sketchy guys keep accepting loads well past the point of capacity, and start assigning loads to "sister companies" based in nowhere with AB phone numbers, and UPS store mailing addresses and shit never works out. Hence why we only use reputable proven carriers.
 
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EricG said:
Having a client concerned about pricing... wanted a sanity check on what a broker should be paying a reputable carrier to move this freight. We broker out this work to a carrier currently, service is on point, and we think rates are on point as well, however our client is looking for better pricing.... claims to have better pricing already... We move a fair bit on this common lane, and haven't really had someone raise a pricing concern previously.

Bolton -> Calgary
LTL via ROAD

2 (two) CRATES @ 12’ L x 7’ H x 4’ W
Approx. 1500 lbs. each crate, 3000 lbs. total shipment weight.

What's the going market rate for reputable carrier? Asking cause our client came back with 3 quotes that were significantly less.. like $1000+ less..
Click to expand...
Not shocking posted a flat bed 53 load from Niagara falls to Nanaimo BC not over sized and 40000 lbs. Got rates of $8500 , $10500, $13200 and $15500.
 
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Mario said:
Not shocking posted a flat bed 53 load from Niagara falls to Nanaimo BC not over sized and 40000 lbs. Got rates of $8500 , $10500, $13200 and $15500.
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$1400 Ferry + $500-$600 for the entire day of the driver delivering in Nanaimo and time on ferry and terminal. not much left on that $8500
 
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LrgCar said:
$1400 Ferry + $500-$600 for the entire day of the driver delivering in Nanaimo and time on ferry and terminal. not much left on that $8500
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Exactly, fuel alone is gonna set ya back around 1200. I dont know how rates are on open decks coming back east but doubt that would justify these rates.
 
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MLCAR said:
Exactly, fuel alone is gonna set ya back around 1200. I dont know how rates are on open decks coming back east but doubt that would justify these rates.
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1200 in fuel what the heck are you running? 2850 miles closer to $25-2600 in fuel $1550 to the driver plus plus that is just base rate etc etc. Will not take long to suck up 8500 that is for sure
 
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EricG said:
Thanks for the input... I agree a carrier is worth $1900-$2200 or so to move this freight in my opinion, but when the client advises they recently moved same loads with 2 new carriers for much less, its makes me wonder... It didn't move intermodal, as the time span for pick till drop was too short for intermodal. Blows my mind that two carriers are running that lane for so much less for 12 feet OTR.... intermodal, I could see it.. but road.. wow.

old story tho.. when the industry is slow, even the sketchy carriers can pickup and delivery on time because they aren't busy or over booked/capacity... its when things pick up, you really see the service differences between the proven carriers and the sketchy carriers. The sketchy guys keep accepting loads well past the point of capacity, and start assigning loads to "sister companies" based in nowhere with AB phone numbers, and UPS store mailing addresses and shit never works out. Hence why we only use reputable proven carriers.
Click to expand...

The other carrier's rates could be intermodal. When posting LTL I get emails from carriers that are actually intermodal resellers and consolidators but they dont tell you the freight is going via rail.

When a rail load goes perfectly, the freight moves like a single. But this means there is no delay at the ramp on both ends and the freight goers on the train the day it arrives.
 
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Rob said:
was hoping you had some big secret you where going to let us all in on for that kind of fuel bill. Only way i could get ours down like that would be steal fuel and i am much to good looking to go to jail..
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Off-Road or Farm Diesel won't even get you down to that rate, I think I paid $1.40 ish /L for my farm fuel fill at the house a few months ago.
 
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EricG said:
Having a client concerned about pricing... wanted a sanity check on what a broker should be paying a reputable carrier to move this freight. We broker out this work to a carrier currently, service is on point, and we think rates are on point as well, however our client is looking for better pricing.... claims to have better pricing already... We move a fair bit on this common lane, and haven't really had someone raise a pricing concern previously.

Bolton -> Calgary
LTL via ROAD

2 (two) CRATES @ 12’ L x 7’ H x 4’ W
Approx. 1500 lbs. each crate, 3000 lbs. total shipment weight.

What's the going market rate for reputable carrier? Asking cause our client came back with 3 quotes that were significantly less.. like $1000+ less..
Click to expand...
I would rate it at $200.00 per foot based on a max weight of 1000 lbs per foot.
 
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