Rates

You're absolutely right, and drivers aren't making $400 because there are other fees such as insurance, repairs and maintenance, etc. The driver may not be making only pennies. These last two months have been really bad and took another downturn last week.

The rates are set by the cheapest trucks. Lots of guys parked the dry vans and decided to hook on to a hopper..... After all, a lot of those guys pulling hoppers are running nice trucks so obviously the money is good right..... Now with the sarcasm off I will break it to those guys and let them know that those nice trucks are often paid for in part by a farming operation that hauls commodities on the side.... You can't compete with that.

8 to 10% is the industry standard for most brokers. What is most needed from brokers is a truck-first mentality. Finding good lanes that offer great rates. The transparency of what the shipper is charging is a breath of fresh-air, but I'm not sure that it's enough to win over a lot of trucks. Good rates, knowledge of the industry, & passion for trucking logistics is what seperates the good brokers from the bad ones. This is a hard time to get into the industry. So many lanes are being undercut by newer brokers that are trying to get their foot into the door. Most shippers want the job done for as little as possible, and won't fork over some more money until you have a great years-long relationship with them. I'm not saying it can't be done, and I hope it works out. Good luck in your endeavors!

Rates are cheap because we are in a "Recession". Trucking is always the first to feel a recession. The government will come out in a year from now and admit it. Many brokers are out there cutting rates just to get business and keep money coming in. Carriers are taking loads at prices they shouldn't to keep paying the bills. Hopefully the spring will boost freight. When that happens there will be more loads than trucks, and the rates will have to come up to cover the loads. In the last up "Cycle", shippers and brokers felt they were getting screwed by carriers with prices being so high. When freight is low the brokers and shippers feel as if it's their time to dish it back. But, we know that will drive companies out of business and the next up "Cycle" there will be even less trucks and higher rates, and the "Cycle" repeats.

When freight was "high" as you put it, we were finally making a reasonable profit, enough to make being out here worth the grind. Those are what the rates should be all the time. Trucks should neve get squeezed to subsidize someone else's profit, but that's how it seems.

To that end, I'm gonna start a brokerage, AND a dispatch service. For a mere 8-10% I'll find you plenty of $2.00 a mile freight off the load board, sell your DOT numbers to someone who lost theirs, AND, FOR A LIMITED TIME ONLY, quick pay you for a paultry 4%. The fine print reads, for all transactions after Thursday at noon, the previously quoted rates go up 4% because lets face it, you're getting into my weekend...Ladies and gentlemen, the line forms to the left, WHO"S IN???