The last couple of weeks there has been a hard push by brokers to bring rates down. I have been offered rates as low as $1.74/mile this week. That was going to the West Coast. :roll: Until carriers take control of the freight rates, brokers and shippers are going to keep pushing rates downward. When you give your labor and equipment away at bargain basement rates, there is no need for them to pay more. If you think brokers are not getting better rates, you need to think again. Some have annual contracts with shippers. Some of them are getting well off the backs of carriers and owner operators. The best thing that could happen for the trucking industry is for fuel to go up significantly. It may sound crazy, but when fuel goes up it gets rid of more trucks. When that happens rates go up due to decreased capacity.

 

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Or drivers educate them-self of the effect to there bottom line when they participate in the Companies driver training program.

 

I understand that. Supply vs. demand.

 

Supply vs. Demand

You know that is another thing many people do not look into when they are talking about rates. A trucker is in LA on a Friday. A broker calls on his posted truck and offers him 1.50 / mile on his van. He is inclined to take it because he is scared of sitting all weekend and wants to get home to the east coast. If the trucker would have looked at the supply and demand of the day he might have found he had the last van in LA and there where 500 loads posted. He could have gotten much more from that broker.

Now that was an example only and is probably not the case in LA on Fridays. The exercise to be learned is what is the supply versus demand where you are and where you intend on going. It may change by the day, week, season, or never. The key is finding a profitable lane and sticking with it.

When you go across the country you are competing with the railroads. Right now a lot of companies are going intermodal domestically when containers are available. With fuel being what it is, intermodal is half what a truck would be. Intermodal prices on the east coast are not competitve against trucks. You can often find a truck cheaper in that corridor.

 

If owners and drivers were more patient they could get much better rates. Some will take the first load offered whether they make money on it or not.

 

I just cant understand why someone would haul something for free or next to free just to get a load out of that place. DEADHEAD is not a bad thing to do. :wink: