Sunday, April 3, 2016

Wall of Shame

I WOULD LIKE TO START THIS BLOG OFF BY SAYING THAT "YES, I DO MESS UP FROM TIME TO TIME IN BOOKING A LOAD - NOBODY IS PERFECT...."

From time to time a broker or carrier comes along who decides to abuse your services by failing to pay what they rightfully owe.  It is tempting to plaster the company name across Social Media and stand up to deadbeat companies that lack the INTEGRITY to remit what they had agreed to pay.  I am "Chomping at the Bit" to call out this carrier but need to exercise some self control at this point.

Do you feel that I would be justified in "Calling Out" the broker or carrier on Social Media as an attempt to shame them into paying or at least get the satisfaction of "Venting"?  Let me give an example of a recent carrier that had hired me to Dispatch his Reefer.

When asked for payment the owner stated that he had experienced 1,000 miles of "Deadhead" during the TRANSPORTATION of freight for his Reefer.  Basically he was stating that running miles while the Reefer was empty was "Deadhead Miles".  Personally I do not consider "Empty Milers" to always be "Deadhead Miles", let me ask you if you would consider the following example to be "Deadhead Miles"?: 

  1. The truck is empty in Austin, TX looking for a load.
  2. The highest paying loads in excess of 500 miles were paying $1.30 per mile or even less.
  3. I located a load out of McAllen, TX to Monroe Township, NJ weighing approximately 25k and  paying $4,150.00 on just under 2,000 miles which comes out to $2.07 per mile.
  4. Moving the Reefer from Austin to McAllen incurred 315 unloaded miles, when added to the 2,000 miles comes to 2,315 miles (simple math).
  5. When adding the "Empty Miles", the $4,150.00 load going 2,315 miles it comes out to $1.79 per mile. 
  6. Let's say that we located a load out of Austin right next door to the previous delivery, going the same distance of 2,000 miles paying the rate of $1.30 per mile, that would come out to $2,600.00 for the run.
  7.  Would you consider the 315 unloaded miles as being unprofitable "Deadhead Miles"?

Naturally the question that comes to mind is "Why did you run him into Austin to begin with"?  Valid question - The reason is because his Reefer was not in good condition and the owner at the last minute wanted to swap it out with another Reefer he had in Katy, TX.  The load from Arkansas to Austin was the best load I could locate at the "Spur of the Moment"!

When booking any load I always look at a similar scenario of "Empty Miles" vs "Loaded Miles" to make sure that "Empty Miles" are not "Deadhead Miles" with loss of revenue from not taking a load that is closer to where the truck is empty.  I don't know any other way to realistically figure what Rate per Mile we are actually making on a Load - Any Comments?