Does the association that coined and placarded this phrase offer its members access or training to finding Not Cheap Freight?

 

No. They don't define the term either.

 

And how would you define it? Personally, for me, "cheap";- means below average, and customary, for that particular area, and season. And in any case, i would not haul below cost. And since i'm mostly running rounds, i'm also considering average for that particular round.

 

Below ones' own personal break even point, wages included. Anything above that I consider average or above average.

What is cheap for you may be just fine for someone else, if their costs are lower than yours.

 

Agreed. Assuming they are know "real cost".

 

Other than discussions on their forum little assistance is offered. Some think that $1.20 is a good rate while someone else may think that $2.50 is too cheap. Much of the difference will depend on the length of time someone has been in the business and the type of freight they haul. I think some give little thought to what is cheap. They just want to keep moving. Their only thought seems to be to get one load off and throw another on as quickly as possible with little or no thought given to the rate.

 

The cheapest rate is turning down a load and ending up not hauling anything. When you, finally, find a "no cheap freight" load, you are that much further in the hole because of missed days and the rate has to be that much better just to break even.

There will never be a concensus on "no cheap freight." Like someone else said, what is cheap for you, may be just fine for me.

For example, a group of drivers are sitting around waiting for a load. Shipper offers a load that is "too cheap." All the drivers agree not to accept it. Shipper finally raises the rate. Now who gets the load? Which of the five drivers gets the load at a good rate and whick four are going to sit without a lload?

Now, all the back stabbing begins, whoever got the load, another driver will go to the shipper and offer to do it for .10 cents less and so on. Chances are the driver who finally gets the load is going to haul it for the original rate and maybe less.

No Cheap Freight will never work. The free market is at work the way it should be. If you can't find ways to reduce your cost, you will be out of business.

 

It's a catchy slogan though that helps them sell worthless memberships.

 

But isn't there a "general average" for the type of freight? For example - Dry Van $1.35, Reefer $1.65, Flat, etc., etc.?

I mean, its always a "what the market will bear", in a free enterprise system. Folks that are stuck in an area with slow freight (South Florida for example) will take ANYTHING rather that have to deadhead out - so So. Florida rates for ANY KIND of freight may be typically way lower than say, Arkansas, California or the NW during harvest. Some folks will do the HAUL cheap, to make the killer BACKHAUL - as solo was indicating - where he averages both out and back to arrive at what is "worth it for him" to take a run. The difficulty and added expense of running into/out of NYC, makes rates there higher also.

Since I'll be "home port'd" out of South Florida - I can see myself taking "cheep" runs, just to get OUT of the area to where freight IS moving. Runs INTO So. Florida seem to pay decently, as you can't talk folks (who know how difficult getting a haul OUT is) into coming down here.

I have an number of O/O friends that just run EMPTY out of here, rather than sit and wait for a load.

If you think the shippers and brokers don't look at how things are moving in a given area, and use that to "beat rates down" - think again. Just "saying no" isn't going to FORCE the rates up. As has been already mentioned, SOMEONE will take the load just to get MOVING. But again, supply and demand (of both trucks and freight) in a given area will dictate rates (as they ALWAYS HAVE). It's just the sense of DESPERATION that permeates ALL BUSINESSES right now - that drives folks to take ANY CRAPPY RATE out of FEAR. Until the FEAR SUBSIDES (and we have quite a ways to go), this is the way things are gonna be - like it or not...

Rick

 

Exactly, those going out of business are the ones who cannot adapt to this poor economy. The only way you will make more money is to haul more freight, get better rates on the freight you do haul or CUT EXPENSES.

Cutting expenses is one variable you an affect immediatly. Quit running at 70 mph plus or do so when it truely makes the difference in delivering that day or getting another load that day. Nurse all the fuel savings you can. Quit idling. Keep your truck/trailer in good operating condition, get you PMs, learn to do maintenance yourself, have spare parts, etc.

I know I am preaching to the choir, you drivers know how to do, so pull a Nike!