I have noticed in the past couple or three weeks that I have been getting calls and faxes "What will it take to move this load" instead of "Here is the rate" Rule of thumb I have used is add 50% to what I hauled the last one for. After bitching and whining and telling me how they would loose their shirts two out of the five went for it, and one of the others called back but I don't like her so said I was already booked
Gota remember that most of these agents are double brokering and also have a lot more in the load than they are saying.

 

I think some of these brokers have no idea of what it will take to get a load moved with the current market conditions, so they start by asking what it will take and go from there. I have one broker in particular who calls me. He NEVER quotes me a rate. He always tells me what he has and asks me what I need to do the load. Most of the time we agree on a price and I take the load, provided I have a truck near by. It is interesting that his counterpart in another office told me a while back that my rates were above market. I thought that was interesting. His office usually calls me when they have an over-sized load or one going somewhere that they cannot get covered. In any case I usually get a good rate. I will stick with being above market. :lol:

 

Everybody is confused about rates, right now.

That suggests that capacity is getting tighter, vs. volume, and makes it a little easier to get a better rate.

Trouble is, how long will it last..

 

That is very true, BigDiesel. Once a shipper or broker gets a carrier to take a load for a cheap price it is next to impossible to get them to come up. I would much rather be too high than too low. I know a broker who has an account in the Northwest. This account paid decent rates. There were 2 or 3 owner operators who wanted to get back home so they took loads from this shipper at a discount rate. That totally destroyed the good rate the broker was getting.

 

I expect it to last as long as carriers and owner operators hold out for better rates. I think we should see higher rates through the rest of this year and most of next. If fuel continues to remain high, rates will need to go up in order to get the products moved. We still have some difficult times ahead of us. We may see slight relief of fuel costs, but I don't expect to see much in the way of lower prices for a while. I think most of those who have lost their equipment and gone out of business are the ones who have been hauling the cheap freight. If those remaining want to stay in business they will need to raise their haul rates.

I think the reason some brokers are asking for a rate is to save both parties time and effort. I have had some who ask for a rate and then go back to the shipper to sell the rate. Sometimes the shipper goes with the higher rate, other times they don't. Some will try to wait out the carrier. It is a matter of who blinks first. Shippers MUST get their products to the marketplace. I would rather sit and wait for a decent rate or deadhead out to a better area than take a cheap load. I see no need to haul for fuel money to just keep the truck moving. When my truck moves I expect to do so at a profit. No profit, no move. 8)

 

The last couple of months or so have been great. But this week I am seeing a lot of downward pressure on the rates. I have been offered some rates that were just ridiculous. Of course I just held out for the better ones.

On another note, I was at the Freightliner dealer today and they towed in yet another repo.

 

I have begun to notice some downward pressure to get rates down. Apparently, there are some who are starting to take some loads at reduced prices. I am truly amazed. Some people have no business being in business. They will take anything to keep the wheels rolling. Carriers and owner operators are in the best position we have been in many years. It is a pity that some don't realize that they are in a great position to negotiate good rates. :roll:

 

It's possibly just a second wave of carriers getting ready to go out of business.

 

I certainly hope so. That was my thinking. These people are desperate. When you thrust a lot of debt upon a company or owner operator on a poorly managed company the writing is already on the wall. The unfortunate thing is that it muddies the waters for the rest of us for a while. I am still getting pretty good rates, but sometimes have to work a little harder to get them. If I don't get the rate I want I don't move my truck. But then, I don't have a mountain of debt on my equipment.