Short haul pay vs long

Do you think it should be the other way around?

 

I don't think there is a business in the world where higher volume will give you higher margins. Just need to find a balance that will work for you.

 

Base freight rates are not that much lower than before. There isn't any FSC on spot market aka loadboard rates due to fuel being so low. It's too bad that many tied their profits to the fuel surcharge number.

 

That works for me. Less wear and tear on the equipment, less fuel, etc.... and sleeping at home every night on a warm bed with the other half.

 

Short trips pay more per mile because your time loading and unloading are factored into the rate, and a huge chunk of the time spent moving that load might be taken up sitting there getting loaded or unloaded. On a longer trip, the per-mile rate is lower because you'll spend a greater percentage of the time spent under the load actually driving down the road.

To illustrate this, let's look at some examples:

You've got a 75 mile haul. It takes an hour to get loaded, 2 hours to drive, and another hour to unload, the load needs to pay for those 4 hours. @ $100/hour, that comes out to $5.33/mile.

Likewise, if the load is going to be a 1500 mile haul, you've got 25 hours that you're going to be driving, plus the hour to load and the hour to unload...so the truck should be compensated for those 27 working hours it will take to complete the run. @ the same $100/hour, that works out to $1.80/mile.

So yes, as the length of haul goes up, the rate per mile is going to decrease because the driving takes up a larger percentage of the time spent on the load. As the length of the haul decreases, the on-duty not-driving time begins to take up a larger portion of the time, and compensating you for that non-driving time causes the per-mile rate to increase.

Pretty basic stuff...not all that complicated.

 

If you own the equipment it is your business, set the line where you want to. I have for many years priced short haul work , 400 miles or less, at around $3.75 and never budged. When the fuel went up I stayed the same, now that it is down I stayed the same. I have worked with the same folks for years for the most part and they get it, they appreciate consistency and knowing within $50 what the freight will be. Over 20yrs I have tried this thing sideways , front ways, upside down and right side up, I have never made much money running for brokers, it is just a way to get back to where my good stuff is and anymore I price the loads so if I have to, I can run empty back without getting hurt. Like I said though, it took 20 yrs and a bankruptcy to get it in my head, its my business not the brokers , I set the price I don't work for them, they need us way more than we need them.....just my opinion for what is worth, it was free....
J-J

 

Very good explanation

 

I'm looking at getting back into 100 Radius of home. And like J-J posted will set my rates and will not haul it cheaper. I have an edge on lots of people. As I can sit a day and not be an issue. Being I'm at home can go fishing or play golf if the pay is not what I want. Thinking if more did it that way, rates would go up. Bu as long as we have company's that will haul for 1 cent profit per mile its never going to get better.

 

I got a perfect example of why I love short hauls. I park my truck and live in Orlando. Drive 6 miles and pick up a preloaded trailer. Pays 325 to go to Jacksonville but has 5 stops so add 200 to that. Deadhead 30 miles to Yulee and pickup a preloaded that pays 960 going to tampa with 4 stops that pay 150. Best part is... I arrived and spent the night at the first stop in Tampa #### near legally. Boom.