In my recent travels I saw a bumper sticker that made me smile. It stated, "I'm voting for the Old Man and the Hot Chick"-in reference to the recent presidential election. As the truck turned left in front of me I began to recall other bumper stickers that have humored me and the one that stands out in my mind relevant to the transportation industry is the large sticker on the rear door of some trailers that reads, "Say no to cheap freight." Each time I see this message I wonder where the truck is going and how much the load is paying to the truck.
The "Say no to cheap freight" approach sounds simple in theory, but we live and operate in a real world that is driven by capitalism. I only wish it were this simple. But alas the market determines the price and until we define what cheap freight is, we can't even attempt to adopt the "Say no to cheap freight" creed. What might be cheap to one company isn't cheap to another. One company might require higher rates on loads than another because they have a higher overhead. You could go on and on with the debate and it wouldn't amount to a hill of beans since it is all relative. In the free market supply and demand rule with iron fists and technology contributes even more to the fluid nature of rates by allowing information to be sent within seconds.
Thursday, December 4, 2008
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5 comments:
You hit the nail on the head as far as rates are concerned. There is no black and white answer as to what is a cheap rate and what is a great rate.
I tell my clients to set a limit on how low they will go as far as working with "cheap" rates are concerned. Then let the market decide - supply and demand as you mention.
John
El Paso, TX
http://www.atexfreightbrokertraining.com
your right but for a new guy just starting lookin for his first load to move any rate is a great rate
My passion is to help others enjoy working as much as I have as a freight broker agent. With integrity and hard work you can go far.
I had to post just to agree. The market system is supposed to be flexible and ever-changing. Things can get hard, but they'll always get better. It's the beauty of a free system.
Jenn | http://a1freightsystems.com
How do you get shippers when you are a freight broker. I need shippers.?
LOGISTICS COORDINATOR
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