Quote:
Originally Posted by rank
I agree with the part about the shippers having some responsibility for all the low freight prices.
Take for example some machinery that Landstar moves from PA into Canada for $1.70/mile. I never accepted one of these loads (we always go home empty when it gets to that point) so I figure the shipper is fair game. I give the shipper a call to offer my trucks (called him three times actually because he wouldn't return my calls). I tell him we travel in that one particular lane 2-3 times per week and we can do for $2.25/mile. He told me, "I get guys calling me all the time offering $2/mile. You aren't even moving my needle of interest". This guy was a real jerk. Now I won't pull his junk at all.
So not all Landstar guys are getting rich on every account, but it seems some will go in and undercut.
I always try to be courteous to everyone, whether I do business with them or not. There was no need for him to be rude to you. When things pick up he will likely need to pay more because fewer trucks will be available. I never sell on price. I don't play that game. I provide a service and do it well. I pick up and deliver in a timely manner and get the product to it's destination in one piece. If you provide a better service then you should be compensated for that service.
I hope I am not repeating myself here, but there is an account in Georgia who makes tractors. The rates were not bad. Not great, but not too bad. A Landstar agent went in and cut the rates to about $1.35 including fuel. Now they have a difficult time covering the loads. I have been told that even their BCO's won't haul them, so they broker most of them out to other carriers. They were getting at least $1.65+ fuel before this agent went in and killed the rates. Now, they expect anyone who wants to haul their loads to do it for the same rate as Landstar. She called me a few months ago. I was less than 100 miles from where these picked up. I would not touch it for that rate. I wound up deadheading home rather than taking something that cheap. In fact, this agent is such a poor business person I won't haul ANYTHING for that office. Frankly, I would not haul for that office at $5/mile, just on principle. Some Landstar agents do a good job of getting decent rates. There is no need to undercut the rates so much that no one makes money. If the load sits, the broker will either lose the load or the rate will go up. I opt for letting the cheap loads sit.