Quote:
Originally Posted by blomkvist
Hey, thanks for making this thread, I hope you still answer questions.
I was wondering how different players approach pricing their services. It seems that the service is highly configurable and terms (and thus prices) can get stretched quite a lot.
You're certainly right about the rates varying widely for a wide range of reasons. Freight brokerages generally are happy to take any freight that they can book at an acceptable profit. The actual carriers are generally concerned about opportunity cost (could I get a load that paid better or went to a better market?), actual cost (how much does it cost to pay my driver, buy gas, and own the truck?), and when the driver needs to be home by.
Obviously the above factors can lead to WILDLY different rates. The main thing that impacts pricing from a customer viewpoint is supply and demand. Cities supply empty trucks (loads that go into the city to delivery goods to different receivers are empty after delivery) and smaller towns with industry/agriculture tend to supply freight. Most of you have never heard of Vincennes, IN but I assure you that anyone who runs a trucking company pulling reefers or vans in the midwest knows exactly where it is. Anywhere that has produce being harvested is going to see a significant spike in truck rates for the duration of the season.
The only two major cities that actually supply more freight than empty trucks are LA (because of the port and the fact that it's a major west coast distribution hub) and Chicago (because it's the main distribution for the eastern half of the country).