If you were thinking of getting a truck or own authority....
#11
Board Regular
Thread Starter
Join Date: Sep 2006
Location: Mahwah,NJ
Posts: 450
but the lack of compensation has to be covered by yours truly
which is sorely needed to cover dedheads and subsidize lower paying loads I study the load boards and right now brokers are ignoring the cost of fuel because they are afraid they will lose their shipper if they ask for more $$$$$$ Its busness as usual unless you press. And you have to press your select brokers who know you because the others will not budge until they are motivated Its getting unbelievably complicated and a newbie will get woofed in no time
#12
Senior Board Member
Join Date: Aug 2005
Location: jackassville (winnipeg, mb)
Posts: 3,280
I don't understand the equation of customers not paying enough to newbies should stay away.
If freight is undesirable, and doesn't pay enough, it will sit. It's not our fault(truckers in general) that this freight will sit. We need to cover our costs. That's all there is to it. If you refuse to go to your customers to ask for money to cover our costs, then obviously you do not think much of the companies that haul for you.
#13
Originally Posted by allan5oh
If freight is undesirable, and doesn't pay enough, it will sit.
Here is a very famous phrase;-"You don't want it? OK! Somebody else will!" Ever heard that from a broker? And they know, what they talking about! :sad:
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Pessimist,- is just well informed optimist!
#17
Part of it is the time of year. Rates tend to drop during winter months and rise in warmer weather. Some brokers and shippers are playing games. There are some owner operators and carriers who are so terrified of sitting for a day that they will take whatever is offered regardless of the rate. Those who haul these cheap loads have more to do with low rates than brokers and shippers. Freight needs to move. If it doesn't then the price goes up until it does move. It is a very simple law of supply and demand.
#18
Board Regular
Join Date: Jun 2006
Location: Rockwall,Tx
Posts: 477
As a new motor carrier it takes a lot of time and hard work to get established and succeed since the trucking market is saturated with competition with idiots hauling loads for 1.10 a mile or even LESS to another dead area. :roll: I have seen loads for as low as 1.05 a mile get moved to the northeast. :shock: If you put your mind to it and are motivated enough there is a good chance of success. Having a lot of capital will help and is a nice assurance but it is still possible to succeed without it,though I wouldn't recommend it.
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Keep right,Pass left
#19
Board Regular
Join Date: Jul 2005
Posts: 235
The saying on Wall Street is, Sell when everybody wants in and buy when there's blood in the streets.
The best time to get into business IMHO is when its the toughest. If your business model works at the low point in the cycle you will be established and profitable when times are better and everyone and their brother is trying to jump on the gravy train.
#20
Board Regular
Thread Starter
Join Date: Sep 2006
Location: Mahwah,NJ
Posts: 450
The cost of fuel is so high now that trial and error can become very expensive.
You have to come out with a load out and a load back from day one. Trust me with 30 yrs exp as an o/o and a couple of years as an independant Unless a new entrant has a proven game plan given by a friend or mentor, the 3.25 per gallon of fuel will bury them. I am basing this on what I had to go through for the last 3 months to put a decent weeks work together on a consistant basis To be able to connect the dots of a load board takes time + mistakes To determine what is cheap freight and what is the market rate also takes time + mistakes Unfortunately mistakes are very expensive. I have every reason to believe that a new entrant will wind up with the crappy load. |
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