Broker doing something wrong?

[thbogle]

Im an agent for a broker and having trouble moving freight. Ive got good rates and move freight regulary but having a hard time getting the trucks in to move it. The companies credit score is good rates at or about 2 a mile. It's even easy freight to haul, small companies, no tarps usually, and its light weight. Granted some of the freight I get is LTL around major cities in IL but you can double it up and make some major money. I would have killed for some of this when I had a truck but apparently Im doing something wrong here.

Ex. 1 load, partial, 156 on miles, p/u del same day, 1 4' drop tarp, 4000 lbs, rate 375.00 flat.

[Rev.Vassago]

$2.00 per mile around the IL area isn't anything special. In fact, it is kind of low.

[Triple Digit Bob]

Originally Posted by thbogle

Im an agent for a broker and having trouble moving freight. Ive got good rates and move freight regulary but having a hard time getting the trucks in to move it. The companies credit score is good rates at or about 2 a mile. It's even easy freight to haul, small companies, no tarps usually, and its light weight. Granted some of the freight I get is LTL around major cities in IL but you can double it up and make some major money. I would have killed for some of this when I had a truck but apparently Im doing something wrong here.

Ex. 1 load, partial, 156 on miles, p/u del same day, 1 4' drop tarp, 4000 lbs, rate 375.00 flat.

No wonder you are having trouble moving these loads. 2.00pm going from IL to the west coast is pretty good but very low if it is going only 156 miles. I get offers like these all the time and just laugh and hang up the phone. Personally I am getting fed up with negotiating brokers over their ridiculous offers. The minimum for loads going less than 200 miles is around the 700.00 range in that area. The last one I did went 250 miles and paid 750. It was only 40 cases of frozen who-knows-what. You could pay 5.00 a mile but if the load is going only 50 miles than that would make that rate ridiculous. LTLs are not as easy to put together as some of you may think.

[BigDiesel]

Originally Posted by thbogle

Im an agent for a broker and having trouble moving freight. Ive got good rates and move freight regulary but having a hard time getting the trucks in to move it. The companies credit score is good rates at or about 2 a mile. It's even easy freight to haul, small companies, no tarps usually, and its light weight. Granted some of the freight I get is LTL around major cities in IL but you can double it up and make some major money. I would have killed for some of this when I had a truck but apparently Im doing something wrong here.

Ex. 1 load, partial, 156 on miles, p/u del same day, 1 4' drop tarp, 4000 lbs, rate 375.00 flat.

:roll2::roll2::rol l3:

I would not turn my key for less than a $ 750.00 flat rate on that, hell we get a $800.00 daily rate to Bellevue. WA from PDX for nursery.... $750 for a reefer rate of whatever.....

[devildice]

Originally Posted by thbogle

Im an agent for a broker and having trouble moving freight. Ive got good rates and move freight regulary but having a hard time getting the trucks in to move it. The companies credit score is good rates at or about 2 a mile. It's even easy freight to haul, small companies, no tarps usually, and its light weight. Granted some of the freight I get is LTL around major cities in IL but you can double it up and make some major money. I would have killed for some of this when I had a truck but apparently Im doing something wrong here.

Ex. 1 load, partial, 156 on miles, p/u del same day, 1 4' drop tarp, 4000 lbs, rate 375.00 flat.

I pull a flatbed and would not even blink my eye at that load especially when tarping is required.

[Orangetxguy]

So yeah...there is something wrong.

[GMAN]

Originally Posted by thbogle

Im an agent for a broker and having trouble moving freight. Ive got good rates and move freight regulary but having a hard time getting the trucks in to move it. The companies credit score is good rates at or about 2 a mile. It's even easy freight to haul, small companies, no tarps usually, and its light weight. Granted some of the freight I get is LTL around major cities in IL but you can double it up and make some major money. I would have killed for some of this when I had a truck but apparently Im doing something wrong here.

Ex. 1 load, partial, 156 on miles, p/u del same day, 1 4' drop tarp, 4000 lbs, rate 375.00 flat.

I am surprised that you would think this is a great rate if you have owned a truck. Most of the time you tie a truck up for most of the day with a short run. That means that you only make $375 for the entire day. This run is only 156 miles but you will likely have deadhead to get to the next load. When it comes down to it anyone who hauled it would likely lose money. I have a minimum haul rate and this is well below what I would charge especially if it had to be tarped. I have been offered cheaper loads than yours lately. Some have offered me as little as $1.50 for about 100 or so miles. Frankly, I don't waste my time on something that cheap. It isn't worth my time. If that is all that I could get I would deadhead out to a better area where I could get a decent rate. In fact, I have done that several times lately rather than waste my time. If you want to move your loads then get the rate up. Offer $800 and it will move quickly.

[Rev.Vassago]

This is one of the many reasons why I have always advocated calculating your revenue both by the mile and by the day. $2.00 per mile may look like a good per-mile rate, but if it doesn't meet what you need for a minimum per-day rate, then it wouldn't matter if they were offering $200 per mile.

[Jumbo]

Originally Posted by thbogle

Im an agent for a broker and having trouble moving freight. Ive got good rates and move freight regulary but having a hard time getting the trucks in to move it. The companies credit score is good rates at or about 2 a mile. It's even easy freight to haul, small companies, no tarps usually, and its light weight. Granted some of the freight I get is LTL around major cities in IL but you can double it up and make some major money. I would have killed for some of this when I had a truck but apparently Im doing something wrong here.

Ex. 1 load, partial, 156 on miles, p/u del same day, 1 4' drop tarp, 4000 lbs, rate 375.00 flat.

As a company driver I pulled a load similar to your example. Picked up in Jackson, Michigan in the morning and delivered in Chicago in the afternoon. Four pallets, one tarp, 3000 pounds. I made $370 on that load. Your rates are too low in my opinion.

[thbogle]

This is very good feedback and I appreciate it. I need to get more out of the shippers in order to get this freight pulled. I'm pretty new at this on the broker side and am looking for any help I can get. I just work for a broker as an agent. Ive only been out of a truck for a few months the last year or so was driving a company truck. So I'm pretty out of the loop it seems on freight rates. Thanks all, any other advise?
Im already passing on 100% of all accessorials. I look at both sides of the board, I look at other partials in the area that wouldnt be that hard to throw on quick and even tell drivers of other freight in the area when I call them about my load. The driver who pulled this load already had a coil on that was paying him somewhere around 2 a mile and delivering to just south of chicago anyway within 15 miles of this drop. And this was a weird load because it was the shortest load I've booked.
I always try to get other freight to go with any LTL's I get from other customers to make a full load or just make it two partials. This way I can always get drivers more money and make these loads more profitable for them.( I dont have trouble getting these loads moved). Sometimes I just can't get them other freight, so I help by getting them to other brokers who do have some other freight. I won't double broker a load, this takes too much money from the drivers.

I always disliked the brokers or agents I had when I drove because I would think I was getting a good deal on a load and find out the broker took all the fuel, and part of the tarp and stop pay. I'm just trying to do this right and not be like any of the others out there. I don't care if people like me just as long as they know when they book with me I'm giving them the money they deserve.

[Mike Hunt]

Originally Posted by thbogle

This is very good feedback and I appreciate it. I need to get more out of the shippers in order to get this freight pulled. I'm pretty new at this on the broker side and am looking for any help I can get. I just work for a broker as an agent. Ive only been out of a truck for a few months the last year or so was driving a company truck. So I'm pretty out of the loop it seems on freight rates. Thanks all, any other advise?
Im already passing on 100% of all accessorials. I look at both sides of the board, I look at other partials in the area that wouldnt be that hard to throw on quick and even tell drivers of other freight in the area when I call them about my load. The driver who pulled this load already had a coil on that was paying him somewhere around 2 a mile and delivering to just south of chicago anyway within 15 miles of this drop. And this was a weird load because it was the shortest load I've booked.
I always try to get other freight to go with any LTL's I get from other customers to make a full load or just make it two partials. This way I can always get drivers more money and make these loads more profitable for them.( I dont have trouble getting these loads moved). Sometimes I just can't get them other freight, so I help by getting them to other brokers who do have some other freight. I won't double broker a load, this takes too much money from the drivers.

I always disliked the brokers or agents I had when I drove because I would think I was getting a good deal on a load and find out the broker took all the fuel, and part of the tarp and stop pay. I'm just trying to do this right and not be like any of the others out there. I don't care if people like me just as long as they know when they book with me I'm giving them the money they deserve.

My advice...

If it's not time-definite, then leave the rates where they're at. Some freight-ho' will be around sooner or later to pull it. So many trucks hauling for nothing now and so many guys sitting around in the truckstops, you wouldn't believe some the rates these guys are pulling for. Where I work, we've seen .80 cpm purchase transportation move on load boards (no that is not a mis-type) so just hang tight.

Right now, YOU the shipper/broker are in the driver's seat as far as rates go, not the drivers. Alot of these guys are sitting around sending $$$$ up the stack in the truckstop. And with the way this economy is, the freight pickens are slim and will only get worse in Jan-Feb so alot of guys will be pulling loads for fuel money.

You can probably even lower the rate and somone will pull it. Like I said, if it's not time-definite then just sit on it...someone will be around to bite on it sooner or later.

[thbogle]

That is true about shippers and broker's in a lot of areas in the country being in the driver seat as far as freight goes. I've seen states that are showing 4:1 and 5:1 ratio's. Meaning 4 or 5 trucks to every load. That's not my point though I dont want freight hos pulling my freight. I've always lived by the addage that you get what you pay for and I dont want freight lost or damaged or worse a carrier not even show up because they found better paying freight elsewhere.

[devildice]

Originally Posted by thbogle

That is true about shippers and broker's in a lot of areas in the country being in the driver seat as far as freight goes. I've seen states that are showing 4:1 and 5:1 ratio's. Meaning 4 or 5 trucks to every load. That's not my point though I dont want freight hos pulling my freight. I've always lived by the addage that you get what you pay for and I dont want freight lost or damaged or worse a carrier not even show up because they found better paying freight elsewhere.

I hope you keep that mentality and wish every broker out there felt the same.

[Mike Hunt]

Originally Posted by thbogle

That is true about shippers and broker's in a lot of areas in the country being in the driver seat as far as freight goes. I've seen states that are showing 4:1 and 5:1 ratio's. Meaning 4 or 5 trucks to every load. That's not my point though I dont want freight hos pulling my freight. I've always lived by the addage that you get what you pay for and I dont want freight lost or damaged or worse a carrier not even show up because they found better paying freight elsewhere.

Perhaps I shouldn't have used the word "freight ho's", but the point I'm getting at is that there's NO REASON to pay up for moving any freight that is not time-definite in this environment. You are doing a disservice to your client by not getting the best possible rate...which is rather easy to do with all these O/O's sitting around not making any money.

If you don't do it, then CH Robinson will.

Don't let these guys fool you saying "I wouldn't pull this" or "I wouldn't haul that for those rates"....BS!!! Look at the stuff being moved on the loadboards for nothing and you will see what the going rate is. That's proof in the pudding enough for me.

What it comes down to for alot of these guys is either sit in the truckstop another day or make a little bit of money to pay for fuel. That's all you need to know. You're not out to screw anyone...but business is business...and if people are willing to work/haul for $0.00 then that's their problem, not yours.

[BigDiesel]

Originally Posted by Mike Hunt

Perhaps I shouldn't have used the word "freight ho's", but the point I'm getting at is that there's NO REASON to pay up for moving any freight that is not time-definite in this environment. You are doing a disservice to your client by not getting the best possible rate...which is rather easy to do with all these O/O's sitting around not making any money.

If you don't do it, then CH Robinson will.

Don't let these guys fool you saying "I wouldn't pull this" or "I wouldn't haul that for those rates"....BS!!! Look at the stuff being moved on the loadboards for nothing and you will see what the going rate is. That's proof in the pudding enough for me.

What it comes down to for alot of these guys is either sit in the truckstop another day or make a little bit of money to pay for fuel. That's all you need to know. You're not out to screw anyone...but business is business...and if people are willing to work/haul for $0.00 then that's their problem, not yours.

Sure glad I don't need to worry about being laid off or paying the bills.

[Hoyt602]

Purely a case of supply and demand. Too many trucks and too little freight. That will most likely change late 2009 into 2010. From what has been published rates should double in some sectors regardless of fuel. The advice about waiting is correct. If it don't have to go wait until the perfect situation happens. Sooner or later someone will be going right by there with an almost full load and will take that partial for some extra money. I think that is what most brokers think and why the rates are so low. Of course if it has to go now you'll pay through the nose. You can't piece together a bunch of LTLs on a short haul and make it work. Just not enough time in the day. Flatbed LTL isn't like dealing with the LTL common carriers where there is a route guy every few miles. Flatbed LTL is more like "sometimes it works out, sometimes it doesn't". Unless you work in a sweat shop brokerage where there are 200 people out calling to carriers to move their cheap freight you'll have to go to the shipper for more.
Your comment about passing along the tarp pay and such suggests you are pricing these loads a little different than the majority of brokers. Unless you are dealing with a large corporation that employs analysts to break down your tariff, most brokers quote shippers and trucks all inclusive. It's up to the trucker to determine what they'll do it for.

[sidman82]

Brokers and shippers are only hurting themselves in the long run. These jackass's are running for less then $1 mile and will go out of business. When the freight comes back trucks will be in demand and you will be charged top dollar for freight movement. Keep rates fair and stay in business. You are contributing to the failure of tom, ****, and harry. Actually, I should be thanking you. (Brokers and shippers who do not pay good rates.) Good luck.

[possum]

I wouldn't touch it without a tarp and you wont a tarp on it for that. Good luck with that.

[thbogle]

Well I am not out of business nor does it look like i am anytime soon. Freight is moving at extremely low rates and mine are still up. Sure I have lost some customers for now because my rates are too high and people have undercut my rates. I'm still moving freight though at much better than a buck a mile. Dry van loads I had were moving at 1.65 a mile I got undercut and put out. Now those same loads are moving at .85 cents a mile. I had flat loads ltl, 18000 lbs no tarp 2.05 a mile il-ca got undercut now they are moving less than a buck a mile. Some of my customers are sticking with me though. they like the carriers I use. and my rates are fair to drivers. and im the enemy? I dont have a problem finding quality driver to pull em either.

[LOAD IT]

Originally Posted by thbogle

Well I am not out of business nor does it look like i am anytime soon. Freight is moving at extremely low rates and mine are still up. Sure I have lost some customers for now because my rates are too high and people have undercut my rates. I'm still moving freight though at much better than a buck a mile. Dry van loads I had were moving at 1.65 a mile I got undercut and put out. Now those same loads are moving at .85 cents a mile. I had flat loads ltl, 18000 lbs no tarp 2.05 a mile il-ca got undercut now they are moving less than a buck a mile. Some of my customers are sticking with me though. they like the carriers I use. and my rates are fair to drivers. and im the enemy? I dont have a problem finding quality driver to pull em either.

THB, how's it going? This was posted almost 4 months ago and rates havent come up any so I was wondering how you were doing. Have any of those low-ball customers come back to you? They will!! I also want to add, dont over pay for a lane, offer a fair rate and pay more if needed. I know Chicago carriers that would have taken that 156 mile load for less than $375, I know others that wouldnt touch it. My point is everyload serves a purpose for some carrier.