Can someone please Justify this!!!

YYZRIDER

Active Member
15
Just got to know from a friend of mine...

Montreal to Dallas offered rate $1600.
Toronto to Delta, BC offered rate $2200

I mean common Why someone would do this. I mean there is a limit where one should stop underbidding. Seriously but this is not good.
 

YYZRIDER

Active Member
15
No do you think they deserve a counteroffer... its a disrespect... turning down won't help the industry either.
 

chica123

Site Supporter
30
No, don't counter offer. You will never get close to a decent rate if that is the starting point. Move along and find something better.
 

Freight Broker

Well-Known Member
30
Its not disrespect... its just a low offer. Its the same when a carrier offers to book your load from Toronto to Atlanta for $9500 US.. we just say no and keep on going. They're allowed to act in their own best interest and we're allowed to say no without taking offence..There's no harm in counter offering.. takes 3 seconds and costs nothing.
 

YYZRIDER

Active Member
15
I would call that disrespect too... Now we realized that particular short period (post-ELD implementation) is a prime cause of the current market state... carriers invested too much in new equipment plus new carriers jumped on the boat too. and now trucks are sitting in the yard with no revenue and expenses stays the same forcing them to run for dirt cheap.
 

Freight Broker

Well-Known Member
30
Its whatever the market allows.. no disrespect intended I'm sure. Everyone shopping for the best deal, and what that deal is very much depends on where you're sitting..
 

Weallw8

Member
5
I don't know any carrier that would run Toronto to Delta for 2200.00..... that seems a bit extreme... can I get their number? Is this for an FTL or LTL? give us some context!
 

bigt

Active Member
10
I don't know any carrier that would run Toronto to Delta for 2200.00..... that seems a bit extreme... can I get their number? Is this for an FTL or LTL? give us some context!
I believe the reason for this is, all the carriers who just found good rates ( blueberry season) out of BC paying really good rate to east and they can't find any thing coming back to BC and would take this kind of rate. I was talking to one company owner yesterday who said they took few loads of berry to east and now 4 trucks sitting in Toronto area looking freight to come back home to BC. I believe he will take this $2200 load so he does not lose his drivers.
 

Rob

Site Supporter
30
I believe the reason for this is, all the carriers who just found good rates ( blueberry season) out of BC paying really good rate to east and they can't find any thing coming back to BC and would take this kind of rate. I was talking to one company owner yesterday who said they took few loads of berry to east and now 4 trucks sitting in Toronto area looking freight to come back home to BC. I believe he will take this $2200 load so he does not lose his drivers.


Bad business, Same guy will want $7500 in a week when the berries are done. Freight rates suck right now but some people are just playing the game as alot of carriers are slow. But 2200 to the coast is an insult and whoever offered it is a crook or stupid, if their customer really wants it done that cheap tell the customer to go buy a truck and try it themselves.
 

YYZRIDER

Active Member
15
Direct Connect Logistics Paying $2200 to BC
Coyote Logistics paying $1600 to Dallas..
and shockingly both were able to cover...
Yes you are correct Berry season is going on and certainly pays well.. but won't last long and will be like Florida soon.. carriers used to run empty down south and now running away from the south.
 

Freight Broker

Well-Known Member
30
Covered for those rates?

One of my accounts has what he calls his stupid board. He has his established carriers and brokers but anyone new who calls him for business gets put onto his email listing which he sends out at the end of every day. He admits he doesn't get much from it... but every once in awhile someone will come along and they'll switch him out for their regulars. I ask why he does that.. he says carriers and brokers call him all day and every day looking for freight.. putting them on "the list" shuts them down and why not if someone cheap comes along. Only way to get in with them solid as a core vendor is to hit them up when they're stuck and can't get a load covered... that's how I got in with them.
 
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MikeJr

Moderator
Staff member
30
It's been a few years since I was in sales (about 10 actually), but if I recall that is how we obtained the large majority of our newer customers. Come through when the other company can't. Do that a few times and the customer comes to realize that your business relationship is worthwhile. The RFP, race to the bottom price wars to get your foot in the door means that you'll likely also be dropped the second someone else undercuts you by $5.

This is all the more reason to maintain strong relationships with the TOP carriers. When you call them, you need them to be willing to assist you (instead of other cusotmers) because that skid going to timbucktwo that you are asking them to haul for you could be the load that gets you in the door at a new client.

Anyway, in my books July was 7.28% greater in order volume than July 2018. I'd say we're doing something right but still not everything perfectly. Fix one thing at a time and lets hope August is good for everyone!! :)

Keep well,
Mike
 

wesward

Active Member
10
Cant make out the rates
all over the place
one minute one amount and next not even close
Whats going on here
 

PatTetro

New Member
2
Long time listener, 1st time caller ... well folks, I agree as a carrier, the key to success and stress level is staying connected with direct customers who won't offer things like $1600.00 to Dallas ($1600.00 / 1425 miles = $1.12 / mile) losing at least 50 cents a mile to do this run.... why anybody say yes to this is beyond me, I guess they haven't figured out that sometimes parking a truck for a week is better than moving and losing money every mile you run. That being said, these same guys know they have a $4000.00 bill coming to them at the end of the month for their unit and figure they need to put miles on (Even if they haven't figured they are losing money doing it). On the other hand ... I still can't get the fact some brokers wake up every day and have to look at themselves in the mirror. If you haven't figured out that offering $1.12 / Mile to run a load down to Texas is insulting, than you do not belong in our business. It would be like you breaking down in the middle of nowhere and having the only towing company charge you $1000.00 for a tire,, having the local restaurant charge you $200.00 for a burger and the local Motel Owner ask you to to pay $1500.00 for a room to stay in their motel. ... Yep, my example may sound exaggerated, but heck ... if they are stuck and willing to pay ... why not! At the end of the day ... being a Freight Broker isn't easy, trying to please customers and yet having a good connection with carriers, all we ask is to be fair and have some respect, the same can be said for some carriers ... not all carriers were very good to brokers last year, I believe in long term relationships, working all together to get things done.
 

Freight Broker

Well-Known Member
30
We're all ready to skin our fellow biped.. which is why all of our clothes come from Bangladesh, Vietnam.. etc. Why do you think that is? It ain't one big happy family.Probably the kid who made the shirt you're wearing right now got paid 12 cents a day.. okay.. my shirt too. We're all part of the same hypocracy..Only diff is the kid making your shirt has no other choice.. you can choose to say no to 1.12 / mile.. don't be so offended.. say no, count your blessings, and keep going.
 
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Salma

Well-Known Member
20
Unfortunately, this is how our industry operates. If we say no to a cheap rate, there are 500 other carriers in line behind us who will say yes. It's just the way it is... and sadly it will always be that way. We stick to our guns and don't take "insulting" loads. Yes, we have taken the hit for it many times but that is how we choose to operate.
 

Freight Broker

Well-Known Member
30
There are ways to lessen the blow through marketing and branding. But when your customers view you as "just one of a million available freight companies" then the price default kicks in and the freight goes to the flogger with the lowest price. But having said that, it is very difficult to develop a sustainable brand that sets you apart from everyone else. I struggle with this too..I find it almost impossible to do it with new accounts.. but the brand develops on its own over time with existing accounts. When I attempt to find new business its all about the money.. but when they get to know me they gradually loosen up the purse strings.. some to the point where they pretty much let me quote whatever I want and they say yes. So I think that's the answer.. when they quit thinking of you as a broker or as a carrier and instead think of you as "that guy or gal who gets it done for us every time".. then you're there.
 
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