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.

 

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

 

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.

 

:roll::roll::roll::roll2::roll::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.....

 

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

 

So yeah...there is something wrong.

 

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.

 

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.

 

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.

 

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.