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That's it right there, Gman. The market determines the rate. In any industry, someone is going to try to undercut rates- ANY industry where the market sets the rate. Trucking is the same as anything else. Are there poor operators taking freight too cheap? There are people in every industry governed by the market running themselves out of business trying to do it on the cheap. They wash out, that's how it goes.Originally Posted by GMAN
I am sorry to hear that you are having difficulties, lowrange. This can be a tough business. I don't think we need the government to step in and tell us what we need to be charging for our freight. That is what was going on in this business before rates were deregulated. You see, at one time rates were regulated. When we hear about this industry being deregulated, the only thing that was deregulated were our rates. Deregulation enabled anyone who wanted to buy a truck and get their authority to do so. They could charge what they wanted for their services. Carriers are free to give their services away or charge a decent rate. CARRIERS SET THE RATE!! They always have set their own rate. We don't need to blame brokers or shippers for lower rates. We need to blame the guy parked next to us or in the next lane of traffic. If you are hauling cheap freight, then looking in the mirror will tell you why rates are so low in some areas. There is a high demand for cheap freight. If there was not a high demand, rates would be higher. I don't want to point a finger at any one individual, but there are too many people who come into this business with no knowledge about what they are doing or how much they should charge for their services. They have limited funds to keep them going and little business savvy. They have no idea how to negotiate for the best rates. They also go to areas where rates are historically low. Most new businesses fail in the first year. Trucking is no exception. There are some who can start on a shoestring and make it work. Those are the exception. This is a capital intensive industry. It takes a lot of money to keep the wheels rolling. I don't think rates in Chicago are too high, lowrange. They are paying market rates for that area to get the trucks that they need. The market determines rates. The market in this case are the carriers and owner operators who haul the freight. I have always had a minimum haul rate. I won't go below that figure, even if I have to sit for a day or deadhead out of an area. I have a very simple philosophy. If the load isn't profitable, then I don't haul it.