As I mentioned earlier, turbulence continues. EIA is now at 4.54 - almost 45 cents per gallon US more in the past 6 weeks. That adds about US$140/week (190CAD) for a truck doing 2500 miles. In the meantime, rates have gone down and none have gone up. The amount of deadhead miles and wait time is growing.
Your right it doesn't. We just pay what the carrier asks for.
Going to be a shit show hold on tight here comes another bad one IMHO.
The good ones always do. Any broker who decides to quote rates without consulting/confirming with a carrier, is not only a fool, but he is also likely doomed to failure. The cost of diesel fuel, new commercial vehicles, truck insurance or any other component of my suppliers overhead isn’t my concern, nor should it be. How effectively he manages those costs and how efficiently he operates his business certainly is. A professional operator who has a firm grasp on his expenses is a freight brokers most valuable business partner.
Very well stated and we as carriers can only hope your thinking extends to all brokers but man o man are they ever playing the how low can you go bullshit. Lots telling me the rate and next thing they hear is pass and a dial tone. If you are going to start by insulting me then there is no use even trying to come to terms with a rate that works for both of us. Some of these brokers are a buck a mile and less so even a broker should be able to figure out that is not sustainable but well .....................
thye ask for a rate - and when you give them a rate - I get :LOL / this is post covid / four carriers are doing it for $xyz .... why ask me for a rate then ... just say this is what I will pay - yes or no
If you quote your customer current, realistic rates that are confirmed by qualified, professional carriers who are willing and able to service the shipment, there is no reason why any broker should be taking ”hits, left and right”. I guess on occasion, you may have to reduce your margin if it is a difficult lane with few carriers providing service, but even that should be used as a lesson to quote more accurately in the future. We have all been burned at least once or twice by quoting a rate that is too low, and as a result maybe have taken a “hit”. However taking ”hits” constantly indicates a degree of poor management.
Oh I agree with you.
Bingo! There is the problem in a nutshell. We can blame some freight brokers for offering ridiculously low rates, call them every name in the book, but what do we call the carrier who agrees to run his equipment at such crazy low rates? In tough times like these, people need to tighten their belts, not loosen them! Pull those pants up!!!
www.insidetransport.com
US to GTA / PQ is absolutely ridiculous right now .... regular shippers are taking advantage of the unsustainable rates - don't blame themU.S. autoworkers’ strike expected to affect Canada
A limited strike by autoworkers in the U.S. is expected to affect the sector in Canada as the industry in both countries is deeply integrated. About 13,000 U.S. workers went […] Continue reading...
UAW is on strike - you know what that means.
FIrst, all those carrier's drivers stuck away from home without their normal round trip back haul. They will all be flooding the LoadLink trying to find a load at any cost putting more pressure on the rates. On a Friday of course.
Second, automotive carriers will be looking for anything and everything that can generate some cash flow to keep the lights on or their drivers from jumping ship. This will get worse if the strike is prolonged.
Third, when UAW goes back to work, those carriers will be looking for something to get them back to start their runs over again. The guy who came back from Kansas City to Toronto with a LL load today will need one to go back out there after the strike.
Hold on to your hats! Rates will not get better soon.
Rest assured that you are not alone in your predicament..... Most people will be reluctant to divulge such a private information. However, the used truck market is a good indicator of what is going on. The average price of a used truck dropped 32% from this time last year. At the same time, auction yards are bursting in seams - 31% increase year-over-year ( as per FleetOwner data) So, parking the trucks is the only option as the sale prices are in the toilet too. No surprise there really. The only issue is for how long? The automotive labour issues in the USA are not very inspiring either. They could spell even more stagnation. I wish I had a crystal ball - maybe selling cheap now would be better than giving it away for free in six months or so....
