Rates

[bobbi]

Hi everyone,
Can someone tell me as to how to rate any load these days?? Even the O/O are working at $1.65 per mile plus the overhead costs of the company... and the brokers are thinking that the trucks are running for free... I think that this business is gone to the lowest rates in the history of trucking.
I would like to see all the comments please and suggestions as well...

 

[Freight Broker]

Rates went through the roof over the summer but have since settled down somewhat. Who knows what happens next.. The USMCA is signed.. and there may be end to the American trade standoff with China on Sunday.. I expect we're going to experience a fairly strong year in 2019... especially if the tariffs finally come off. Rating loads is fairly straightforward.. there's lots of information out there that will tell you where the market is on any particular lane, and when in doubt, go high. At least that's what I've always done, and it seems to work.

 

[WALTERK]

Comment:
The majority of the load brokers don't think the trucks run for free! That's WHY the majority of them don't own trucks! The majority of load brokers only do what their customers expect from them - get the best possible rate to move the freight. If carriers are unable to turn a profit because they never took the time to create a solid business plan for their operation, it is not their problem. They have a business plan that they follow and carriers should follow theirs.
Advise:
Stick to your own customers and avoid load brokers that don't allow you to operate according to your business plan.
Did I mention business plan....
And good luck!

 

[Freight Broker]

Comment:
The majority of the load brokers don't think the trucks run for free! That's WHY the majority of them don't own trucks! The majority of load brokers only do what their customers expect from them - get the best possible rate to move the freight. If carriers are unable to turn a profit because they never took the time to create a solid business plan for their operation, it is not their problem. They have a business plan that they follow and carriers should follow theirs.
Advise:
Stick to your own customers and avoid load brokers that don't allow you to operate according to your business plan.
Did I mention business plan....
And good luck!

Yeah.. what he said. and load brokers (at least moi) don't want to go cheap either... Nothing quite like trying to move a load when you don't have quite enough money in it. Happens to the best of us sometimes, but we try hard to avoid that scenario. And.. we too want to turn a profit.. much easier to make more money ourselves when we charge the customer more! Cut the price to make more money is not a concept that works well if at all, unless you're in an industry where volume discounts on large purchases are the norm (i.e. most definitely not the freight biz).

 

[Salma]

Hi everyone,
Can someone tell me as to how to rate any load these days?? Even the O/O are working at $1.65 per mile plus the overhead costs of the company... and the brokers are thinking that the trucks are running for free... I think that this business is gone to the lowest rates in the history of trucking.
I would like to see all the comments please and suggestions as well...

I don't believe that brokers think trucks run for free. We are a small carrier and, honestly, you can only blame other carriers for the low rates. The ones that don't care about running a viable business and they don't care how badly they impact other carriers by accepting loads at super-cheap rates! Bottom line - brokers can't sell loads at cheap rates if no one is accepting those rates in the first place. Same old story - carriers are stabbing each other in the back rather than standing in solidarity and demanding fair rates.

My next concern is: Since several GM plants are now set to close, is that going to make capacity even tighter then it is now? Are rates going to drop even more? Am I just being paranoid?