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no_worries
Joined: 18 Apr 2006
Posts: 860
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| Posted: Thu May 08, 2008 4:33 pm Post subject: |
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| I think what Solo was saying is that any increase is probably due to fuel going up (increase in FSC) not the base rate which would reflect an actual change in supply/demand. If gross rates are up $.20 who cares? That simply covers the increase in diesel. |
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rank
Joined: 02 Oct 2006
Posts: 1294
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| Posted: Thu May 08, 2008 6:59 pm Post subject: |
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BigDiesel wrote: rank wrote: DD60 wrote: BigDiesel wrote: I really don't care too much about FSC. For me it is the rate that matters....
Exactly. Who cares if a load paying 2.75pm doesn't include a FSC as compared to a load paying 1.45 with a .54 FSC.
I care. I would rather see it broken out. Why? Because in 3 months time when fuel is up 10% you can go to the shipper and show them the broker isn't passing on the 10% increase that the shipper has paid. That will really pi$$ a shipper off.
If this feel good legislation called the TRUCC act passes, you will not have to worry about the breakout of the FSC, because the FSC will go away...........................
Why? |
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no_worries
Joined: 18 Apr 2006
Posts: 860
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| Posted: Thu May 08, 2008 8:50 pm Post subject: |
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| How do you think a shipper is going to react to the idea of an annual freight bid that doesn't include a FSC? I suppose if the bid is low...good luck getting a truck. |
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solo379
Joined: 14 Feb 2004
Posts: 3162
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| Posted: Sat May 10, 2008 3:49 pm Post subject: |
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no_worries wrote: I think what Solo was saying is that any increase is probably due to fuel going up (increase in FSC) not the base rate which would reflect an actual change in supply/demand.
Exactly! 8) It's always a pleasure talking to you. Great minds, think alike! :lol: :wink: |
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no_worries
Joined: 18 Apr 2006
Posts: 860
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| Posted: Sat May 10, 2008 4:57 pm Post subject: |
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| Common sense...the universal language :wink: :lol: |
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rank
Joined: 02 Oct 2006
Posts: 1294
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| Posted: Mon May 12, 2008 8:06 pm Post subject: |
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Big D;
Interested to hear why you think the FSC will go away. |
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BigDiesel
Joined: 01 Apr 2007
Posts: 1178
Location: Space... The Final Frontier
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| Posted: Mon May 12, 2008 8:38 pm Post subject: |
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rank wrote: Big D;
Interested to hear why you think the FSC will go away.
Sorry, missed your question the first time around....
IMO, the TRUCC will hurt the lease operators the most. To put it simply the shippers and the carrier will simply do away with it, since it will not be mandated and the bill has no teeth for enforcement. |
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no_worries
Joined: 18 Apr 2006
Posts: 860
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| Posted: Mon May 12, 2008 11:17 pm Post subject: |
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| Big D, you haul what you've described as contracted rates with your nursery stuff. How would that work without a FSC? Will your customer be happy paying a contracted rate if two weeks into the season fuel drops by $.50/gallon and yet he still is paying the same rate? |
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RostyC
Joined: 21 Oct 2005
Posts: 1292
Location: Maryland
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| Posted: Tue May 13, 2008 4:59 am Post subject: |
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To steer back on topic a bit.....(no pun intended) :)
Do you think this increase in rates is due to fallen capacity only or is there more freight as well? I heard (can't remember where, maybe landline mag) that truck capacity fell by 40,000 units in the first quarter of 2008.
If it is more freight do you think it's a temporary push because of spring maybe?
The reason I ask is because for construction, in my area, it is very bad. I'm extremely slow right now. This is slowest I think I've ever been. On the commercial side there's a lot of bidding going on but no starts. My suppliers are hurting also.
I just can't see a recovery in the economy with 4 and 5 dollar fuel and with the housing crunch.
I miss the days of wanting to crush my cell phone whenever it would ring......... :lol: :lol: Now it makes for a good timekeeper. |
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GMAN
Joined: 13 Feb 2005
Posts: 9868
Location: Tennessee
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| Posted: Tue May 13, 2008 6:41 am Post subject: |
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RostyC, the article was in Landline magazine about the reduced capacity. When you consider that there are from 3-5 million trucks in this country (depending on who's figures you use) and take more than 40,000 units out of the picture it may or may not have an impact. That only reflects about 1-1 1/2% of the available trucks. I have noticed fewer trucks at times on the road, but other times it seems that there are as many as always. There seems to be plenty of freight and rates have gone up somewhat. Part of the increase in freight availability is likely due to the time of year. There is usually more freight in summer months. The reduced capacity can also have some affect, depending on where you run or live. I expect to see more trucks turned in or parked. That should also help decrease capacity and increase rates. During the last couple of weeks, I have had numerous calls stating that they were unable to find trucks. It is difficult to say whether the lack of available trucks is due to some being parked or the fact that some owners are deciding to not run for fuel money. I got one call yesterday and their rates started at about $2/mile. Previous calls from the same broker and rates would have started somewhere between $1.50-1.80/mile.
I hear some frustration in the voices of some brokers when I tell them what I will charge them to haul their freight. There has been something of a shift in the paradigm. Of course, I have always negotiated my own rate rather then relying on the broker or shipper to dictate what they will pay me to haul their freight. After all, it is my truck. I will be the one to decide what I will charge to haul freight.
If fuel goes higher, then I will have to charge more to haul freight. We will adjust to whatever happens with the economy. If freight is slow in your area, then I suggest looking to other areas where there is less capacity and more freight availability. Finding better paying freight may require more deadheading. Profits may be down somewhat, but you can survive. It is a matter of planning for difficult times. |
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no_worries
Joined: 18 Apr 2006
Posts: 860
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| Posted: Tue May 13, 2008 10:55 am Post subject: |
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| All indications are that freight is not meaningfully higher on a seasonally adjusted basis (year-over-year). Capacity is lower than it was at the peak at the end of last summer. But I think Solo was pretty much on the money. Diesel was $1.55/gallon higher last week than one year ago. That's roughly $.25/mile more that you need on the rate just to make the same profit. I haven't seen any measures indicating that rates are up anywhere near $.25/mile on average. Maybe those of you that subscribe to one of those rate services could let us know...if they have a year-over-year comparison. |
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BigDiesel
Joined: 01 Apr 2007
Posts: 1178
Location: Space... The Final Frontier
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| Posted: Tue May 13, 2008 1:08 pm Post subject: |
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no_worries wrote: Big D, you haul what you've described as contracted rates with your nursery stuff. How would that work without a FSC? Will your customer be happy paying a contracted rate if two weeks into the season fuel drops by $.50/gallon and yet he still is paying the same rate?
I am in the enviable position in that I and or my family personally know the families of the large nurseries that my trucks haul for. Negotiating rates for the 8 to 10 week shipping season is not rocket science. We sit down over coffee or lunch and work out a rate that makes both of us happy. We discuss a rate that is all inclusive as they are aware of the cost of fuel. I do the same with my produce brokers ( 2 ) and xmas tree farmers.
Remember it is not what you know, but who you know.......... |
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sidman82
Joined: 21 Jun 2006
Posts: 410
Location: Long Island,NY
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| Posted: Tue May 13, 2008 5:29 pm Post subject: |
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I have noticed rates up. Mine :D Fuel is up to $4.89 on Long Island.
Even the load boards are showing alot of loads over $2 a mile.
I do think it has to do with decreased capacity. |
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GMAN
Joined: 13 Feb 2005
Posts: 9868
Location: Tennessee
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| Posted: Tue May 13, 2008 8:08 pm Post subject: |
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| I have noticed some reduction in capacity, at least in some markets. I had two brokers call today and told me that they could not find trucks in a couple of markets. The two markets are currently noted for having little decent paying freight. Shippers and brokers will be forced to pay higher rates or they won't find trucks to haul their products. |
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merrick4
Joined: 08 Nov 2006
Posts: 880
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| Posted: Tue May 13, 2008 9:11 pm Post subject: |
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I'm still being offered $1.00 freight. But I'm also being offered $3+ freight. Needless to say I am not taking the $1.00 freight.
Today I had one guy call for a truck in NC, "would you go to Delaware for $4.00 a mile?". I said no, thanked him for the call and hung up. Tell me some of these guys aren't getting desperate. |
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