Have you ever looked on the load board and got frustrated at the low rates that you are seeing? Do you know why you are seeing these low rates? Brokers and shippers both know that there is somebody out there that will take their cheap load.
Example: From my years in the trucking business, I still have old customers call me up and ask me to help them get their freight moved. This week I had a customer with a flatbed load, no tarp, just good ol strap and go. The loaded miles were 2514. The shipper was getting quotes from $4600 to $5200. Those rates were roughly $1.83 to $2.00 per mile. Not bad rates (for the carrier). You could actually make some money with rates like that. Then along comes a big national carrier and offers the shipper $3900 ($1.55 per mile). Of course, the shipper took the cheaper amount and wondered why these other brokers and carriers were charging such a high amount.
Needless to say, the shipper will be offering those lower prices all the time now. Why? Because somebody took it for that price.
What is my point? Prices are always going to fluctuate. Huge national carriers will always be able to haul for the cheaper prices. What can you do about it? Go get your own freight, provide quality on time service and build relationships with those in the traffic departments.
Cheap freight will always be around. Do your best to develope your contacts where you don't have to use a load board.
Until next time,
DIG Enterprises LLC
www.directusfreight.com
Tags: Direct Freight Cheap Freight Freight Brokers Owner Operators
[ Report this Blog ]
