As I was driving tonight I kind was kind of getting madder and madder. I just figured it out, since I've been out here these last 3 weeks, I'm averaging $1.30 a mile. As I've said before, my friend isn't dispatching but he's got this guy doing it and I know he has to stay on top of him for a reason.

I don't know why in my 36 years I haven't learned that nobody is going to do things for you like you would do them yourself. I do a lot with banks and stuff and a relative works for Bank of America. He is always telling me I should go with him cause I usually open accounts and do what I do online. So what happens? I put in for a Heloc last week under my wifes name through him. I need to call him to find out it's declined as he never called to give an update. So I say ok put my name on it too. He says ok and I'll call you tomorrow to let you know what happens.

Well no phone call and today I called Bank of America and gave them the info that they have been needing which I wasn't aware of til I called. What did I need this guy for? Time and time again I get burned for putting my affairs in other people's hands.

Don't get me wrong I like this guy I'm working with and he's been a big help but I didn't need to take this load for $1.00 a mile. He has 10 trucks with obviously 10 drivers and two full time office people. I don't think he can afford to let a truck sit for a day like I can.

I think GMAN is right, if people pull this stuff then they have no need to pay more. The only thing is there is always going to be someone to pull this cheap stuff. But that doesn't mean I have to do it. I need to talk with him tomorrow. I don't want to burn bridges that's for sure, but I have a computer in the truck and fax number, I can get loads. He has good contacts in Florida but I don't need to be in Florida all the time. I'll stay out here.

The post by Joymax_Trans2 was great. Nobody is going to make us rich. In the end I need to find my own way. I go to google news and type in things like "freight tonnage" and good stuff comes up. Stay up on trends etc.

A couple of years ago I went to a real estate group meeting and the topic was CRA's (maybe called somethign different in other places but it's when they come into blighted areas and buy everything up and make it nice) and I remember one guy standing there and he said we are not here to make you rich, YOU need to make you rich.

I know I know I get to rambling, all that iced coffee I drink every day. But in the end I don't need to be hauling cheap freight.

 

Could someone please explain load density for me?

Also, GMAN, you say you won't haul for less than $1.50 but don't you take a lower rate to get to a better area? I mean in most business they have loss leaders etc. You won't haul for say $1.25 from a bad area to a great area? Don't get me wrong, I like the way you do things but am just trying to understand it.

I mean even airplanes, the rate to one city is not the same as the next.

 

When you look on the Internet TruckStop you can click on load density for a particular area of the U.S. and it will breakdown the data like the number of flatbed loads going into Boston and the number of flatbed loads going out. It does the same for Vans, refers and other equipment.

So, if a broker calls and says he has a great paying load from Boston Seattle Washington you could click on the load density for the state of Washington and see the number of loads leaving is like 17 then say, OH CRAP, can't go there unless he gives me an extra $500 to deadhead out.

Or, you can just take any load to Ohio and get a load in 2.3 seconds.

 

LOL aint that the truth.

I don't know so much about van frieght, but with flatbed, you can make money just doing OH-PA-OH. OH is good for outbound.

 

of course I took that load
5 bucks a mile for 4 skids
I was singing zippity doo dah all the up the Wurtsboro Mtn on 17


again 1,25 "sounds "cheap
but its part of a round trip

 

Pepe, you would still have about as much freedom leasing to Landstar as you do running your own authority. The main difference is that they do all the paperwork and keep part of the money. They have a lot of small fees they charge for different things, such as Comcard usage, advances, etc., If you don't get advances, run on your own money, buy your own base plate, etc., their isn't that much difference between running your authority and leasing to them. From the rates you posted, you can probably do as well leasing to them as you are now on your own. The don't pay on 100% of the load rate. They pay on 98%. If you only have power only they pay 67% of 98%, which is just over 65%. If you have your own trailer you can add about 8% to that figure. Landstar has rates from one end of the rate spectrum to another. Keep in mind that you can haul their loads now while you run your authority. They broker loads to other carriers, as does Schneider, etc., One major difference between running your authority and leasing to Landstar is that you can currently book loads from any broker or shipper you choose. When you lease to Landstar you must use their agents to book loads. It is rare that they cannot get you moving, but should that occur you could find a load, but will need to book it through one of their agents. It will take about 6 months to learn your way around their system. You will need to find agents who have some of the better paying loads. There is a fairly large agent in Fontana. You might check with them to see how their freight is running and rates. If you plan on leasing to them to pull a flat, you will need to go through securement training. If you don't have your own flat bed or step deck, you will need to rent one from them. There is sometimes a waiting list.

 

$1.25 isn't enough for me to put a load on my truck. If all I can do is buy fuel without any profit, I see no need to waste my time, wear and tear on my equipment. I don't take anything that cheap to get to a better area. I turned several loads down this week for $1.50. It isn't enough for what they wanted hauled and where it was going. This is the way I do business. We all must decide the minimum rate for which we will haul a load. If you get a good enough rate going in, you can afford to deadhead out. You are correct about rates being different from one area of the country to another. I cannot control what others do. I can control what I do. I cannot prevent someone from taking a load for $1.25/mile. That is their decision. I can decide not to haul that load myself. One thing I have found is that if the load sits long enough, the rate will come up. I remember being in California about a year ago. I received a call from a broker who offered a load going across the country for $1.08/mile. Yep, I am serious. Just after lunch the load moved for $1.51/mile. So in about 4 hours the rate went up over $0.40/mile. Had the load not moved at that rate, it would have continued to go up until someone took it. That is only one example. It happens every day. I have seen it happen over and over again over the years. Shippers and brokers MUST move their freight. It is a matter of how long it can sit. The longer it sits the greater the rate is likely to go up. There are some areas I go that I assume I will deadhead out and price the rate accordingly. If I get something out, fine. If not, then I can still make money. That is the way I run my business.

 

Personally GMAN I agree with you, but I bet there are a lot of people that agree but can't afford to do that, that is sit or don't haul cheap. As Sonny said people have the mortgage, car etc. In the end as you say then people shouldn't get into this if they can't afford to.

I am fortunate that I don't need to haul cheap freight. But that only lasts so long so I need put my a** in gear and learn as much as I can cause as I said I can only last so long. I don't have a money tree.

I am currently sitting at a Freightliner dealer in Wisconsin. The truck started making some noise last night. I think it's the fan motor bearings or something like that. I was supposed to make my deliveries today but got them all off yesterday so am in luck. I'm hoping this is covered under warranty. I can see how people fold up quick here.

I spoke to my friend today. You know he's just an old time trucker. During the real estate boom in FLA I asked if he was going to buy real estate and he said " I don't know anything about real estate, I know trucks". But times are changing. Information is more readily available.

You know, I heard that Gainey goes around buying truck companies that are undervalued. For example, LCT. Well before he bought it they didn't even have stuff computerized. Lester Coggins was just an old time trucker (and a real son of a bitch from what I hear).

He told me today that he's selling the business (well I knew that before anyway) and to just keep asking questions. He said that if he were to become rich off it that he wouldn't sell but with repairs, drivers pay etc that I will make more the way I run with my one truck than he will with 10.

Everyone says don't buy a truck. I didn't listen. Everyone says don't buy 2 trucks, that I think I am going to listen to. (although I am getting ahead of myself as I'm only out here 3 weeks).

Thanks Steve for answering the load density question. This computer and stuff is great but with this slow internet connection it's a real pain. What good is a load board if you can't load the page? I might try Sprint.

 

Merrick, not being able to afford to pass on a cheap load is why some should not be out here. If you cannot afford to deadhead out of a bad area without taking loads which only pay fuel, you are probably hauling regular freight too cheap. And I am not picking on anyone in particular. There are a lot of people who do it. I understand the bills go on whether we are running or not. It costs a fortune to run a truck, as you are finding out. I am not trying to force anyone to operate their business as I do. That is a personal choice. I can tell you one thing with absolute certainty. Unless you make a profit, you will not last in this or any business. Rates are somewhat seasonal, depending on the type of freight you haul. Rates are softer in winter months than summer, especially for flats. I know there are some people who will take a load no matter what it pays because they are running so close on money that they cannot afford to deadhead out of a bad area.

When you run a business, you need to maximize you profits. You can't usually do that by running in areas which have cheap freight. I prefer running the West coast. However, the rates are not high enough for me to justify running a truck in that area. I can make more money running in other areas, because rates are higher and fuel is cheaper. There are those who think that they can haul the cheap freight and drive more miles and make more money. Unless you make a decent profit, you won't be able to make necessary repairs on your equipment. The harder you run the sooner the equipment will need repairs. We need to get past the miles = money. That is only true up to a point. Those of us who have been at this for a while understand that we need higher rates rather than more miles.

By the way, I hope the repairs to your truck can be covered under warranty.

 

Thanks Gman. I'd prefer to run out west too but if the money isn't there than I won't be there. I'll make the money then go on vacation if I want to see the West.

Anyway just as an update, they replaced the fan drive and tensioner gate or something like that. It didn't cost me a penny. Glad I had this warranty.