Why are people panicing?

T

theman

Well-Known Member
Nov 19, 2009
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Thornhill, ON
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I know it's a tough market out there and things are slow. But why are people going and quoting such low rates on outbound to the NE seaboard? Is there a huge demand for trucks there coming back to the GTA that I don't know about?

For our fleet, I don't want to take anything that doesn't make economic sense. If brokering out, believe me ... I want it to be win-win ... I expect that you will operate profitably.

But if we let things go into a tailspin, it's bad ... for ALL of us!

My rant ...
 
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I was just saying around the office it's like summers 10 years ago, steady but very quiet and I agree do not panic. I do have a truck stuck in NC that we are open to options with.
 
Rates are a joke and the carriers hauling for a buck a mile are out of their minds doing it. If I am going to go broke it will not be because of the trucks pounding down the road for nothing. Might just aswell sit on the porch and drink beer as loose money so some dumbass can look good screwing carriers.

Lost a 17 year customer because a big carrier out of Woodbridge's broker department went in and slashed the rates..

It is July folks and hot as hell out, don't panic the harvest is started and you all will be busy as hell in a couple weeks.
 
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I'm with Rob, year after year I see a dip in July and sometimes the first half of August, just wait until 3rd week of August right through to the 3rd week of December. That seems to be 'our' busiest time. I'm looking forward to breaking more volume records during those months, this year has been a doozie already!

Remember 'nos amie' to the east are 3/4 shut down for the next 2 weeks anyway, may as well enjoy a few cold ones in the short term also.

Keep well,
Mike
 
I've traditionally only do about 10% or so of my business as spot business, most of what I normally do is contract. So while I see volumes normally slow in July and pick up the last half of August, I am not used to relying much on spot business. I believe this whole year has been a challenge, but what I've seen in the past month really takes the cake. The only difference between now and late 2008-early 2009 is that there isn't the problems of customers going bankrupt that I was experiencing then.
 
I run a fleet composed of only owner-operators with flatbeds. It's been a very difficult time educating them on the current economic situation especially when they expect 3.00/mile.
 
This is true, RavkUNIQ. I had a driver say just the other day, he doesn't understand why people say it is slow and he sees a 2 hour lineup at the Lewiston bridge. I tell him that trucks may be rolling, but it doesn't mean they are all making money..lol
 
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Someone wise once told me that the market is the market, but we have the choice to participate or to not participate. Where rates are too low I take my ball and go home. The market is in affect telling me it doesn't need my services. There's always stuff to move that has special needs or priorities.. it's really up to us to find that freight and leave the rest where it sits . Looking at my own book of freight, its no accident that I move mostly oddball freight in off beat lanes. That's where the money is. I move almost nothing in dense lanes like Montreal-Toronto. No traffic manager worth his salt needs a freight broker to find him a truck for that. The other day a shipper asked me for a quote on a skid from Cambridge to Mississauga. I asked him if he seriously couldn't name off 25 carriers in 60 seconds who will do that for next to nothing. It would be a waste of time for me to quote that as even a good margin would be the equivalent of $15.00 profit.
 
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I guess traffic mangers and brokers are just doing their job but I got a call the other day from someone who had a load from GTA to London. I quoted and was told I was to high. They asked if I could beat $300.00. (same day service by the way). I said, "you have a carrier that will move for $300.00? And you are still shopping around? What is your target, $299.00.? It aint a hobby. Thanks for the call but please lose my number,
 
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It's the buyer's job to get the job done for best value. I don't have a problem with this. The problem is more when people are not pushing back when the demand is not realistic. I believe it mostly comes from people who don't understand their costs, or those who want to make a sale with no regard to how it affects the whole cycle of things.
 
So - I see more clearly what everyone else has likely gone through lately -
Just lost a lane that I got waaaaaayyyyyyy back when I was in sales, so it's been several years and many gray hair ago...
Never missed a load, never had to ask the client for a revised rate beyond regular increases in the marketplace (gradual over 10 years or so).
Lost the lane because their head office has found an American carrier that will run PA - ON full loads for less than Canadian carriers are charging me.
It makes me wonder if we'll get it back in 3-4 weeks when the market tightens or if we're paying too much to begin with. We know they'll be back, just like everyone else that comes back. We always welcome clients back with open arms.
The good news is we are gaining more business (not by hoaring prices) than we are losing to price, so life is great actually.

Bah, I need a vacation, taking next week off.
Keep well,
Mike


Rant over.
 
whatiship said:
I guess traffic mangers and brokers are just doing their job but I got a call the other day from someone who had a load from GTA to London. I quoted and was told I was to high. They asked if I could beat $300.00. (same day service by the way). I said, "you have a carrier that will move for $300.00? And you are still shopping around? What is your target, $299.00.? It aint a hobby. Thanks for the call but please lose my number,
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I have a better one. Had a call about round trips Guelph to Pickering local moves . I quoted them and they said well they have a guy that will do them for get this 300 bucks.. I asked him why the hell he was asking then because if someone is that stupid then take him for all he is worth before he goes broke.

My rate was a little more..
 
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On these regional moves, usually you don't get the full story. He could very well be paying $300 but I guarantee there is a commitment on their part. Like guaranteeing 3 trips a day, so $900 per day of revenue. To cover a regional driver using a day cab and having 3 dry vans ... operate pin to pin.

Moving such a thing on the spot with live/live scenarios actually costs way more. Sometimes, it's not a matter of the customer being cheap, it's a matter of the opportunity not fitting your business model. Such a thing would never work as a brokerage model unless it was a manifest billing where you'd bill once a week or something like this.
 
theman said:
On these regional moves, usually you don't get the full story. He could very well be paying $300 but I guarantee there is a commitment on their part. Like guaranteeing 3 trips a day, so $900 per day of revenue. To cover a regional driver using a day cab and having 3 dry vans ... operate pin to pin.

Moving such a thing on the spot with live/live scenarios actually costs way more. Sometimes, it's not a matter of the customer being cheap, it's a matter of the opportunity not fitting your business model. Such a thing would never work as a brokerage model unless it was a manifest billing where you'd bill once a week or something like this.
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Nope it is 3-5 loads a month. The receiver is one of my best friends the shipper is paying the freight.
 
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