Just Say No To Cheap Freight!
#23
Senior Board Member
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
When talking about cheap rates, many bring up supply and demand. This is absolutely true, supply and demand are the biggest drivers of rates. Florida will always have cheap rates. Yet a "good" rate out of Florida will be lower then a "cheap" rate out of Illinois.
It's all about maximizing the rate wherever you are. Some areas it's just easier to do this.
#24
There are soooo many factors that go into what would be considered "cheap freight". I am leased on with a carrier and some would consider the average $1.20 a mile I am getting now as "cheap". But I don't have to wait for or factor the settlement, pay a broker for the load, have my own authority, didle with rates/region or seasonal fluctuations, I get up to $.28 a gallon off of the cash pump price when I fuel (even after getting fuel surcharge in the rate). So, am I hauling "cheap" freight? No, I am not with one of those mega carriers either and I run primarily the upper midwest, average 2800 miles/wk, get home every weekend, and do my own services and some of the maintenance as well. In good times, I could see the advantage of running on my own. In these times, it pays to have a little leverage that even OOIDA will not provide (even though I am a member).
#25
Leasing to a carrier who offers deep fuel discounts can make a difference in the rate you can afford to haul for if things get tight. I have seen some as high as $0.50/gallon off the pump price at TA. Discounts vary from one TA to another. Many of the large carriers offer price plus at TA. Some also offer discounts at other store such as Petro, Pilot and Flying J. If you have one of the major fuel cards you may be able to get a discount on fuel at certain independents and chains. You could equate cheap rates with your operating costs. If your operating costs are high, such as having high equipment payments, then a cheap rate for you may be higher than someone with low operating costs or someone whose equipment is paid off.
#27
Rookie
Join Date: Sep 2009
Posts: 16
Hello All,
I,m new here but been trucking for over 40 years. Call it what you please but I can't understand how anyone paying near .50 cents per mile for fuel, can twist their mouths to justify hauling anything for a dollar a mile. Call it back haul, loading to a better area, needing to get home or whatever you will. THAT behavior is killing ALL o/o's future, and it will only get worse as time and history have proven. ![]() 99 MACK 460ho 18 spd 3:70 twin screw 97 Great Dane 53 ft dry van on board scales apu
#28
to me, cheap freight is when a carrier cuts the rate. the rates originally set by the shipper or who ever pays the freight bill is usually o.k. it gets cheap when a carrier offers to run the loads for less $$ & other cut that rate even more. I used to haul for Worthington steel, back when ruan was the logistics. their pay sheet was not bad at that time(several years ago) it was when some co's would send in a bid sheet & offer to haul a lot cheaper to get the freight & even when they got it, they would not have enough trucks' that would haul it, so they would broker a lot out & that would even cut the rates more. but having some driver 500-800 miles from home & no load he will take one for .70 a mile just to get home. I dead headed home a few time over 500 miles , rather than take a cheap load. I don't do it. home or away. I don't do it! last time was just 3 weks ago.
#29
Welcome to the forum, kotflb. I agree that it doesn't make sense to me that there are owner operators who will take a load for $1/mile. It may help them get home but next time the same broker or shipper will expect him to take a load for the same rate no matter where it goes. It also hurts the next guy who wants to make a living out here. The shipper or broker figures that if one guy will take a load for $1/mile then everyone should be able to take it for the same rate.
#30
to me, cheap freight is when a carrier cuts the rate. the rates originally set by the shipper or who ever pays the freight bill is usually o.k. it gets cheap when a carrier offers to run the loads for less $$ & other cut that rate even more. I used to haul for Worthington steel, back when ruan was the logistics. their pay sheet was not bad at that time(several years ago) it was when some co's would send in a bid sheet & offer to haul a lot cheaper to get the freight & even when they got it, they would not have enough trucks' that would haul it, so they would broker a lot out & that would even cut the rates more. but having some driver 500-800 miles from home & no load he will take one for .70 a mile just to get home. I dead headed home a few time over 500 miles , rather than take a cheap load. I don't do it. home or away. I don't do it! last time was just 3 weeks ago.
Things will not change until owner operators start running their truck like a business. There is a high percentage of loads that are hauled by owner operators in this country. Many of the major carriers are moving more toward recruiting owner operators to haul their freight. If the owner refused to haul below a certain price then rates would go up. I will also deadhead home if that is what I need to do rather than take a cheap load. I deadheaded from Pennsylvania home a few weeks ago rather than haul a cheap load. I had to be home to take care of some personal business. |


