How about"all of the above"?. But....there is an always the "but", isn't it? While is the last two, are always the case, the first one, could just prolong your agony....

 

Some bullhaulers feel that anything under $3/mile is unacceptable. If interested in some discussion on a bullhauler forum, click on this link: LIVESTOCK NETWORK - Livestock Loads | Cattle Loads

or this one: LIVESTOCK NETWORK - Livestock Loads | Cattle Loads

 

There are average rates by the region and nationally. Vans typically have the lowest rates mainly due to the number available. I have seen many offering rates of $1/mile or less. A friend of mine who runs his own authority just took a van load for $2/mile. That is not a widely available rate for vans right now. You can usually do better running short if you pull a van.

When people get scared then they do stupid things, such as haul cheap freight. The thing is most of us are hauling cheap freight if you look at what you were hauling for last year and then check out this years rates. When I go to an area where I know freight is cheap or sparse then I get a rate that will allow me to deadhead to a better area. For instance, if I go to the Northeast or New England then I get a rate that will allow me to deadhead to an area where I can get a better rate. From New England I expect to deadhead at least 300 miles to get a load. I don't usually sit for more than a day in an area unless I am putting a load together. When I go to Florida I deadhead out unless I have something lined up or booked before I get unloaded. Past experience tells me that I either deadhead out or take a load half way across the country for $1/mile. I prefer to deadhead out to Georgia or perhaps north Florida where I stand a better chance of booking a decent paying load.

The truth of the matter is that there will always be someone who will haul a cheap load. They are most likely taking loads that are too cheap into a cheap area so they may not have the money to deadhead out. It becomes a vicious cycle. I can't control what others do. I can control what I do. I just hauled a load into the northeast. My reload canceled so I had a choice to make. I can deadhead home for a cost of about $450 for fuel or sit for the long weekend for a cost of about $150. Had I deadheaded home I would still have made about $1.30/mile for the round. By waiting I should do much better even though I sat for the weekend. That is a choice that I made. Someone else might have deadheaded home because of the holiday weekend rather than sit and get a decent paying load on Tuesday. Had I deadheaded home then my good paying load would have turned into a cheap load. I will still make less due to the expense of sitting, but it will not be as much as paying for fuel to go home. While sitting I ran into someone who gave me a lead on a shipper who is having difficulty getting some product shipped. It may turn out to be a blessing if this turns into some new business.

 

A small correction. I do not haul "cheap", in my defenition. Last year, i've averaged $2.00 per loaded mile. That's not the whole rate, that's my cut, 72%+Fsc+extras. And that's for all directions and miles.
I'm pulling dry box, buttom of the barrel. Yes, $1.00 a mile seems to be "cheap", but i'll take it, coming out of NJ, NY, cause with the very few exception, it's what the market pays from that area, for dry box.

At the same time, just a few days ago, i've refused load, going to my hometown, from OH, $1.51 a mile, cause tho i know it's not too bad this days, i simply can't afford it, considering my roundtrip. Just to make something clear, $1.51 was 72% of the actual rate.

 

You're much too picky. That eliminates 90% of the freight out there!

Disclaimer : the previous post was in jest, and full of sarcasm.

 

Wasn't calling you a cheep-ster scoundrel there bro. Just noting that there may be a compelling reason to take a below-average load and average out BOTH SIDES of the trip.

Seems like full dry-box on most of the boards runs at, or below that $1.51 rate (depending on total miles). If you've got the patience and foresight to load plan LTL's from point A-B and back, then multiple LTL loads along route would maximize the cpm #'s. If you're getting paid all directions and all miles (including MT) then it sounds like you're not independent - but leased on, or at least subscribing to a dispatch service. Not that there's anything WRONG with that - but 100% O/O's that have their own clients and shag the load boards have to factor the MT miles, usually NO FSC, and negotiate extra's. Thus is the lot of deregulated trucking. Having your own "published tariff" as a single unit (or small fleet) independent is nice - but actually contracting work at your PUBLISHED RATES (including FSC, detention, lumper pay, etc. etc.) is a whole other story.

Most dry box out of South Florida runs significantly lower than that - but it comes down to - would you rather EAT your fuel to get out, or at least break even and get to where freight is running and paying better. Personally, while I'd LOVE to stand on "principal", if I need to get the duck out of dodge <quack quack> and I can do it and not go INTO POCKET - I'd probably be inclined to grab a cheap run, than run MT.

Rick

 

That thinking is the reason rates are so cheap in some areas. I understand why someone might take a cheap load, but it does perpetuate cheap rates. As long as shippers and brokers are moving loads for $1/mile there is no reason to raise the rate to $2/mile. Until owners stop hauling at or below cost, rates in these cheap areas will continue to be below average. I won't haul for $1/mile but am hauling for less than I was last year at this time. The big carriers average the rates for the entire trip. If they get $2/mile going to an area and $1/mile out then they will average $1.50/mile for all miles. While I understand it in principal it does leave a sour taste in my mouth to haul a load, even one way, for such a cheap rate. It boils down to how you want to run your business. Everyone will do what they feel is best for their own business interests.

 

No Allan, i call it "selective". And 10% is plenty for me. Last month, i've compared 2 weeks, i run back to back. One week was 3300 miles, and another 1295 miles. After all said and done, i've maid $400 more "absolute" net, for 1295 miles. Gross net, was $200 bigger on 3300 miles...it pays to be "picky" sometimes....

 

"IT Internet Truck Stop" magazine in its May/June 2009 issue ran an interesting story on freight rates (Page 26).

"To understand supply and demand the first thing to understand is that there are regional differences that affect rates. Some regions command a higher price due to higher overall demand for trucking services than other regions..

According to the magazine, there are best states, worst states and then those in between. Here's the magic list:

Best states (highest rates):

Wisconsin, Michigan, Missouri, Iowa, Illinois, Indiana, Kentucky, Tennessee, Ohio, Virginia, West Virginia and (surprise!) Nevada

Worst states (lowest rates)

Idaho, Montana, Wyoming, South Dakota, Colorado, Vermont, New Hampshire, Massachusetts, Connecticut

Average states (average rates)

Everything else

So, I'd say let's stay away from "the bad states" and haul more often to and from the "best states". I've cut out the story from the magazine and will keep it until I get my own authority and will have a chance to test this theory in real life

 

I am surprised that Florida wasn't in the worst states category.