[solo379]

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]

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]

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]

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

[Windwalker]

Originally Posted by Bigmon

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]

Originally Posted by Bigmon

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]

Originally Posted by Bigmon

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]

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

[solo379]

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]

Originally Posted by solo379

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: