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-   -   Percentage rate (https://www.classadrivers.com/forum/owner-operators-forums/22476-percentage-rate.html)

vontrial 11-22-2006 03:40 AM

Percentage rate
 
Would like your opionion on this Do you think that lease on with a company that 22% is to much. They pay 78% of gross pulling your trl. They furnish cargo and liability, permit you pull there freight out good rate nothing under 2.00 per mile plus 100% fsc. Backhaul you and company both look for reload. No forced dispatch Thanks

Rev.Vassago 11-22-2006 04:00 AM

Re: Percentage rate
 
Quote:

Originally Posted by vontrial
Would like your opionion on this Do you think that lease on with a company that 22% is to much. They pay 78% of gross pulling your trl. They furnish cargo and liability, permit you pull there freight out good rate nothing under 2.00 per mile plus 100% fsc. Backhaul you and company both look for reload. No forced dispatch Thanks

78% of what?


As far as percentage goes, 78% seems on the high end. I would guess (without knowing any of the details) that they are pulling cheap freight back in.

$2.00 a mile is nothing when you are getting garbage back, especially if that $2.00 a mile is BEFORE the 78%, knocking it down to $1.56 a mile.

GMAN 11-22-2006 04:29 AM

Most percentage carriers seem to pay around 75%+- if you furnish your own trailer.

vontrial 11-22-2006 10:11 AM

Hey Rev 78% of 100, the co. used the ld board to reload and yes most of it is cheap around 1.25 a mile,was looking over there contract and also had spoke with some of the O/O.

mrpersons 11-22-2006 12:32 PM

78% of gross isn't to bad at that rate. The thing I don't like is that you don't have much control over where you go with that $2.00 frieght! You may find yourself out in the boonies in a dead frieght area frequently, and your <u>overall</u> rate goes in the toilet, especially if the company is seeking frieght for your return.

You say "no forced dispatch", but if you turn down to many loads because you don't like where it's going or the rate sucks, you aren't going to be on the company's Xmas card list to long!

BanditsCousin 11-23-2006 04:46 AM

Thats cool you can find your own freight, especially if you are more resourceful than your dispatcher. On %, you can make (possibly) hundreds, if not thousands more a year :)

I pull for %55, so I must start hauling freight? 8) :lol: 8) :lol:

LOAD IT 11-23-2006 12:09 PM

Vontrial, living in MS, you would come out better getting your authority and hauling lumber at 100% gross rather than fleecing on to a carrier. Lumber can just be a start, so others here will tell you you cant make living hauling sticks. Your best bet is to run for 100%.

solo379 11-23-2006 06:19 PM

It's all just a "numbers" game. Eventualy, it's all comes, to "all hub miles" rate.
For example;- If your average, "loaded" mile rate, is $2.00(all inclusive), and you are getting 70%, your average "all hub miles" rate per mile, is gonna be, around $1.20.

The same, applys to the "mileage" pay, with the slighter less difference.

Dejanh 11-24-2006 04:47 PM

The thing about these % carriers that really ticks me off is the the fact that they have control over the price of that load, load may pay 3.00 per mile and they will tell you 2.00, which you will accept by any means without knowing a differnce in original price because they will not tell you.
i dont trust nobody in this buisiness and they can tell me whatever they want about their honesty, for me, its not worth a crap...


Only way that an individual can make something good in this buisiness is to broker your own freight, authority owner which is what am aiming at comming in July..

GMAN 11-24-2006 05:01 PM

If you get your own authority you will still likely need to deal with brokers unless you have your own customers. So, you still will not know exactly how much the load pays. If you lease to a carrier who pays percentage, they should be willing to show you the confirmation order with the rate, if you ask. If not, then they are probably skimming off the top. On the other hand, you have to trust some people. You can't distrust everyone.

Dejanh 11-24-2006 09:00 PM

I rather deal with brokers than deal with these so-called companies, at least you will have 1 person that the ,,cake'' goes through, with the companies theres one more and that cake can only get smaller if it goes through the additional set of hands....my 02..

I dont know how many times I refused the load from the company that am leased to because it didnt pay what i wanted, but since the load was hot they turn around and offer me more, not the broker but the company which can only mean that they got payed more than what they offered me and was hoping that i would accept the load, expecially haz-mat..and its all the same, CRST/Landstar, its all just the same.. and you're right about trust i have to admit.

PS
How come you never check your Pm's Mr. Gman?

solo379 11-24-2006 09:18 PM

Quote:

Originally Posted by Dejanh

I dont know how many times I refused the load from the company that am leased to because it didnt pay what i wanted, but since the load was hot they turn around and offer me more, not the broker but the company which can only mean that they got payed more than what they offered me...

Not really! It's also could mean, that they payed you a higher %, of that load, in an order to cover it, and keep the customer.
It's happening all the time, sometimes, they could even pay you 100%+on that load.

BTW, if you work on%, you have the right to demand to see an actuall rated BOL, on any load, you've hauled.

Dejanh 11-24-2006 10:46 PM

Well, it can mean a'lot of things but by the time i get that figured out ill probably do ten more loads and i just dont have enough time to deal with all this paperwork as it is.....

Best thing is to be in charge of all that cash flow yourself, if you know how to manage money that is and are willing too, i just feel that everytime i take a load i get ripped of somehow, cant prove it but i just know it for a fact.!

Just brought the load from L.A. to Charlotte, N.C this morning, picked Tuesday night in Ontario, broker liked it so much that he offered me a load out of Charlotte to Aurora I.L. for 1800 flat, I CAN NEVER GET OUT OF NC for that kind of money or even close that, am lucky if i get a 1.02-4 to get me through to Chicago unless i go to Florida for about 2 bucks but i get hammered each time am down there, turn down just about everything..

These companyes are making a killing on us, i just wish that OOIDA would join forces with the willing O/Ops and take over these load boards and pay the drivers what we are suppose to get paid, all of us.

For whatever money that they pay to a truck there is at least double that amount that they arwe making without doing anything and we are getting hammered with these fuel costs and everything else, its just sad i have to say...

LOAD IT 11-24-2006 11:15 PM

Dont think that all freight pays DOUBLE what you are getting. If that were the case, we wouldnt be able to afford anything on the shelf in the store. I have said since I first logged onto this board "GET YOUR OWN AUTHORITY AND CUSTOMERS" Otherwise, you get what you get. No one has ever made someone take a load. You took it because you HAD to move. You hold out and turn down loads waiting on the big one, sometimes it comes, most times it doesnt. This is all a part of trucking, if you get your own customers, you can negotiate your rate, if you fleece on or rely on brokers, you will go broke.

GMAN 11-25-2006 01:48 AM

Quote:

Originally Posted by Dejanh

PS
How come you never check your Pm's Mr. Gman?


I am usually notified when there is a new pm. I haven't seen anything new in a while. Did you try to send me something? If so, I didn't receive it.

solo379 11-25-2006 02:00 AM

Quote:

Originally Posted by Dejanh
and i just dont have enough time to deal with all this paperwork as it is.....



Than how are you gonna handle at least double paperwork, being independant? :roll:

GMAN 11-25-2006 03:45 AM

Quote:

Originally Posted by Dejanh
These companyes are making a killing on us, i just wish that OOIDA would join forces with the willing O/Ops and take over these load boards and pay the drivers what we are suppose to get paid, all of us.

For whatever money that they pay to a truck there is at least double that amount that they arwe making without doing anything and we are getting hammered with these fuel costs and everything else, its just sad i have to say...

I don't see OOIDA getting involved in something such as this. Besides, the load boards are not the problem. It is those who take the cheap loads. While there are some brokers who do take a much larger share of the pie than they deserve, it is ultimately the carrier or owner operator who decides whether a load moves or not. So it is essentially the guy with the truck who determines the rate. If the rate isn't high enough, let the load sit. Eventually, the rate will rise to the point where someone will move it. Right now that is really what is happening. The broker starts out offering a load at low price. The price rises until someone takes the load. Don't blame the broker for offering a cheap load. Blame the guy who took the cheap load.

Dejanh 11-25-2006 01:24 PM

Well, i dont mind dealing with the paperwork if i know that am working for myself, fuel taxes someone does for me now, my girl is getting involved gradulally and am teaching her about the buisiness right now since am plannin to set sail on my own in the next couple of months. Even if i would ask for the original confirmation, by the time it gets to me they can do something to it to meke it look nice or whatever, i just dont buy it really..

It is the fact that some people are taking cheap freaigh, i dont know how many i turned down just in the last couple of weeks that i've been out but we gotta face the facts here, theres just no way that the northeast loads will ever-ever pay more than what they paying right now where they offer loads that are 800 miles long for even 700 flat, i allways deadhead when am up there but its getting to be more like that all across the country, this job changed a'lot in 3-5 years, brokers know it and are taking advantage of it, theres a'lot of trucks and freight is getting shallow, even the mega carriers will take cheap freight, theres just no way to go around that. GMAN, not everyone can afford to deadhead like myself, a'lot of people take that cheap northeast load to cover for their fuel, they have fammily to support and may not even know tha're getting slammed by the company, it is what it is and i dont see anything changing any time soon..and am sorry but i blame brokers for a'lot of things, they know how hard it is to just drive this truck and when theres couple of trucks in the area, price automaticly drops down, sad.. I talked to a guy who owns a company in long beach about how he moves freight and all that and this dude tells me that for that 12 pallets he's loading me with he pays 3200 to move it to St.Louis, and that ALL THE TIME he has a probblem to, get this, MOVE IT OUT OF LA because theres just not enough trucks there :lol: , he's obviously being played by the broker who tells him that he has to fork out more to get this moved telling him untruth about how theres just no trucks to move your stuff BUT, if you pay little more i might be able to get you something.. :?: They are obviously taking a HUGE CHINK to themselves, turn around a find a truck in 5 min. to move this playing both sides, and they're all the same, all across this country.


LOAD IT, that may be true but EVERY single time i fount out the real price of that load, from talking to the shippers for example, there was a big chunk of money misining compared to what they offered me and that led me to believe what i posted up there...

This buisiness is good buisiness, i made alot of things happen for me since i started and even with all of this things are looking good, it just bothers me that we cant do something together with OOIDA for example to turn this thing around somehow because we deserve it....

PS
Yes GMAN, i sent you a pm and it told me that it was succesfully sent, dunno. :?:

GMAN 11-25-2006 02:06 PM

I am sorry that I never saw your pm, Dejanh. I just checked my messages and there wasn't anything there. You may want to resend it.

You are correct about some of these brokers taking a big chunk of the money. A lot of these owner operators think that the West Coast only has cheap loads. Well, that is because the brokers are working the shippers and are taking a huge piece of the rate for themselves. A friend of mine took a load from one of those brokers and found out that the broker got 40% of the line haul. I was offered a load once in California for $0.90/mile. This same friend has hauled the identical same load for $1.75-1.80. Part of the problem is double brokering. This is especially true when things get slow. Schneider works with other brokers to market their freight. Not long ago, I hauled a load for a broker that I found out originated from Schneider. The load still paid $2/mile but I have to wonder what Schneider was receiving. Schneider got their cut, then the broker with whom I dealt got his cut. This goes on all the time. I would like to see more independents go after the shippers direct. It could help turn things around. I have thought for some time that it would be good to have a clearing house, of sorts, where independents could combine their resources and meet the needs of shippers while making more money and not deal with the brokers.

Dejanh 11-25-2006 03:03 PM

Yes, clearing house of some kind, something that each of us would go to to get in contact with the shippers. Like for ex, if i know some shippers in NC that are good i tell you so that when you head up this way u have something good to get out, sharing experiences and everything else, bypassing these middle men that are making it much more harder to get something decent. Its sad that we are geting screwed the most and are doing all of the work except loading and unloading, they dont do anything but take about as much as we do, you know, it just doesnt make sence.

I think OOIDA can play a big role in this if they are really concerned about the drivers. Yes, i joined and i really liked that ,,SAY NO TO CHEAP FREAIGHT'' decals they sent me for free but they can do much more as a only organizing force for an independent operator, and you know what, its just so sad that they are the only ones doing this and so many operators out there..so many things i dont understand about this buisiness.If we all worked together it would make it so much easyer, i think that truckers have ENORMOUS power within themselves, we just dont know it.

solo379 11-25-2006 04:54 PM

It also would help, if there would be a law, that every BOL, should have full disclousere of freigt charges. That would put a lot of greedy brokers, out of business!

GMAN 11-25-2006 05:03 PM

There has been some discussion about disclosures, Solo. It pretty much died with the FSC bill. It makes some of these shippers about as angry as the carriers and owner operators when they find out.

solo379 11-25-2006 05:26 PM

Quote:

Originally Posted by GMAN
There has been some discussion about disclosures, Solo. It pretty much died with the FSC bill.

Yea, i know. :sad:

allan5oh 11-25-2006 08:47 PM

I sure don't have a problem with full disclosure! Some of the shippers do it here already, I guess they've caught on!


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