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solo379 · Joined: 14 Feb 2004 Posts: 3145

There is been a lot of talks, about "cheap", and not so "cheap" rates lately.
But with all due respect to the posters opinions, it's reminds me comparing "apples to oranges"! :)

To talk about rates, we'd have to agree on a terminology, cause there is a lot of different factors, besides plain buck, or two bucks a mile figures.

Type of equipment, origin and destination, time consumed...to name a few.
I wouldn't say anything about "back", or "front" haul, but we got to deal with reality of the "free market economy", supply and demand.
You can't expect the same rate, from the area, with 5 truck per load, as to from the 5 loads per truck area.

So while considering good or bad rates, all this factors, must be taking into equations. Cause plain "bucks a mile" figures, didn't mean much, without it!

GMAN · Joined: 13 Feb 2005 Posts: 9393 Location: Tennessee

You are correct, Solo. There are a number of factors which affect rates. Supply and demand are the primary factors that dictate rates. Any time you get into a more specialized area of the business, rates will tend to be higher. Vans are usually more plentiful and rates tend to be lower. Flats tend to be a little higher, but will usually require more work, such as tarping and being out in the elements. Step decks will often pay more than a standard flat, because they can haul those that are higher without having to be permitted. Pulling a double drop, RGN or car hauler can pay more because they are more specialized and their aren't as many as some other types of trailers. They can also require more work, experience and liability.

Another thing we should mention is experience. The more experience you have the greater your income potential. Some areas tend to have lower paying freight than others. Experience will teach you to stay away from those areas. I understand that may not always be possible, especially if you work for someone else. If you own your own equipment, you and only you, can decide where, when and for how much you are willing to run. An owner operator should NEVER pull a load that doesn't pay a fair profit. That is my philosophy. This is a business. Unless you can make a profit the business will cease to exist.

beachbum2 · Joined: 29 Aug 2006 Posts: 69

When I went away to school, my dad gave me a book published by the chamber of commerce. I'll never forget the title, or the content of that book.

"Why the S.O.B succeeds and the nice guy fails in the small business world". The book tells of all the successful business people who won't do ANYTHING in business unless they make a profit. I agree with 99% of that. You can bet the broker won't take a load without making a profit, so why should we? There might be times to make an exception, but the thing to remember is THIS is a business, and we must make a profit to stay in business.

The rates are only a part of the equation. How we spend the income wisely and put aside enough to maintain equipment. What happens if you blow a head gasket, an injector or two dies? Maybe I could do without that $1500.00 stop at the chrome shop. My truck is clean, but it isn't a show truck. I would LOVE to have a truck tricked by the chrome shop maffia, but the bills come first.

In a dry van with logistic equipment, I shoot for $2.00 per mile plus fsc. Anything less is what I consider "cheap freight"...and I have pulled some to get home, or to a better lane. This takes alot more thought than I "thunk" it would when I got into this gig.

Bigmon · Joined: 13 Jan 2006 Posts: 687 Location: S. Cal.

I noticed everyone talks about cpm, but I don't recall anyone talking about weight as a factor in pricing.

Windwalker · Joined: 22 Oct 2005 Posts: 2822 Location: Holiday, FL

Bigmon wrote: I noticed everyone talks about cpm, but I don't recall anyone talking about weight as a factor in pricing.

For the most part, shippers try to put as much on a truck as they can fit. So, unless the load is something that has bulk without weight, you can pretty much figure on a 45K load, and grossing near 80K. A load of bathroom tissue won't weigh as much as a load of paper rolls, and a load of styro-foam insulation will not weigh as much as a load of steel I beams. Unless you're making several pick-ups and deliveries. Shippers don't mind sharing the freight bill. Unless you know what the commodity is, plan on a gross of near 80K. There are also shippers that pay according to the weight you load on, too.

GMAN · Joined: 13 Feb 2005 Posts: 9393 Location: Tennessee

Bigmon wrote: I noticed everyone talks about cpm, but I don't recall anyone talking about weight as a factor in pricing.

Weight is always a factor, but with the exception of some loads, such as steel which are paid by the hundred weight, the heavier the load the lower the rate seems to run.

yoopr · Joined: 01 Dec 2004 Posts: 12866

Bigmon wrote: I noticed everyone talks about cpm, but I don't recall anyone talking about weight as a factor in pricing.

many companies pay by the 100 Weight. Usually it pertains with Produce hauling.

Kintama · Joined: 12 Mar 2006 Posts: 273

Or you can get paid by the MBF, which is really cheap freight.

solo379 · Joined: 14 Feb 2004 Posts: 3145

Yes, weight is one of the components to consider. But normally, only in your cost chart.
Cause with the few exceptions, heavier loads don't pay any better, and a lot of times, even worse, due to the "cheap" commodity!

Rev.Vassago · Joined: 04 Apr 2006 Posts: 5402 Location: Green Bay, WI

solo379 wrote: Yes, weight is one of the components to consider. But normally, only in your cost chart.
Cause with the few exceptions, heavier loads don't pay any better, and a lot of times, even worse, due to the "cheap" commodity!

Not in HHG. :wink:

Jackrabbit379 · Joined: 22 Oct 2005 Posts: 4741 Location: Wichita Falls,Tx

and not in hauling cows. :P

solo379 · Joined: 14 Feb 2004 Posts: 3145

Didn't i say;-"With the few exceptions..." :P

Jackrabbit379 · Joined: 22 Oct 2005 Posts: 4741 Location: Wichita Falls,Tx

Ahh man,I lost. :| Yeah,you did say that. :P :lol:

Cam · Joined: 27 May 2002 Posts: 717

Windwalker: Quote: So, unless the load is something that has bulk without weight, you can pretty much figure on a 45K load, and grossing near 80K...Shippers don't mind sharing the freight bill. Unless you know what the commodity is, plan on a gross of near 80K. Sounds like this is a function of the company you are leased on to. I don't find this to be the case at all. Yes, there is heavy freight. But odds are at least even for me that it'll be in the 30's or less. Do you think your company just has accounts with a lot of paper companies and the like?

LOAD IT · Joined: 02 Sep 2006 Posts: 614

We all equate heavy with cheap, like that old brokerage joke, What does the C H in C H Robin.... stand for? Cheap and Heavy. When you have a lightweight rig, and loads paying a good hundred wt rate, load em up. Who wants the wear and tear on the truck? I say target light loads, like styrofoam, plastic products, plastic tanks, plastic pipe, etc. Look for those types of manufacturers/shippers.

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