Trucking rates, like any open market, are a collection of data points that reflect what trucking companies are willing to accept loads for a given day. Generally, when people refer to trucking rates, they are talking about truckload freight quotes (LTL is priced differently: per pound based on class).
Trucking rates are generally described as “spot” or “contract.”
To make your life easier, we attempt to break these down.
Before we get started, here are a couple of terms to know about truckload rates:
Linehaul rate: The rate quoted for the load, usually reflected in dollars and pennies per mile.
Fuel surcharge: An index-linked surcharge added to the linehaul rate based on the current price of fuel. The fuel surcharge is normally calculated based on the date a load picks up.
Accessorials: Additional fees for services added to the linehaul and fuel surcharge rate, based on activity incurred by a trucking company that is not based on distance or fuel. Common accessorials include detention, multi-stop charges, driver unload, lumper fees, or in-transit dwell.
Truckload rate descriptions:
Trucking spot rates: The term “spot” means a rate that is offered from a trucking company to a broker or shipper for a specific load on a given day. Spot can refer to a quote for a single load or a quote for a set of loads over a specific short period of time.
In the spot market, rates are reflected in rate per mile (RPM), plus any accessorials that occur. Fuel surcharge is usually baked into the spot rate, since the fuel costs are known and fuel cost is unlikely to change drastically between the time the quote is given and the load is transported.
Oftentimes, brokers and carriers will agree to “all in” rates for a spot quote which include all costs associated with the load. Carriers should be cautious when agreeing to this, as things tend to happen in trucking and not having an accessorial schedule can come back to bite the carrier as they will be stuck with performing all of the known and unknown load requirements, but not able to bill the broker for these fees.
Trucking contract rates: The term “contract” means a rate that is given to a shipper or broker and will be honored by a trucking company beyond a load or project for an extended period of time.
The term “contract” can be misleading and normally does not mean a binding rate agreement between a carrier and broker or shipper. In other words, “contract” just means that the rate is fixed and does not have to be negotiated on each load or project.
In recent years, the terms “committed rates” or “paper rates” have started to appear, which are more reflective of the nature of trucking contracted rates. “Committed” refers to the fact that the carrier and shipper have committed to a rate, but can’t enforce the contract rate in court.
In the contract market, rates are reflected in rate per mile (RPM), plus fuel surcharge and accessorials.
Noble1
Below is an example that WE must discourage . This sort of behaviour unfortunately tarnishes “our” reputation as truck drivers . Such an act would expel a member from the “Alliance” unless the “driver” agreed to take anger management classes .
However, we the “Alliance” would establish a program within which all members/drivers in the “Alliance” would have to participate . A “continuous self improvement program” . Everyone would also be taught to develop critical thinking skills . These are just a couple of examples that should and thereby would be among our policy . We strive to be nothing less than the very best . We owe it to ourselves . An “Alliance” just like a chain , is as strong as the weakest link .
Wishing you all a great prosperous new year !
In my humble opinion ………..
Google this unfortunate preventable incident .
Amazon trucker rams, beats man on Interstate 70
News | December 20, 2019
Noble1
Quote: “What are trucking rates? ”
From my perspective ,
Answer = Policy based on shenanigans
The trucking industry needs to be restructured . You are right . YOU the “drivers” are the backbone in the industry . As much as you are its strength , you are also its weakness .
You are its strength because without you the system would be in a pickle . You are its weakness because you are competing against each other rather than uniting with one another .
“Labour unions” have their strengths and their weaknesses as well . WE can learn a lot from them , however , we truck drivers shouldn’t join any of them . WE should create our own “Alliance” owned collectively by truck drivers .
A New Age Truck Driver Alliance should be internally funded by its members . The Alliance should create its own policy and code of conduct . The status quo has failed us and took advantage of us .
Together we CAN create a change . We MUST create a change , and we WILL create a change . The trucking “system” of our day is “broken” . It wouldn’t be wise to complain to those that broke it and expect them to fix it .
We need to become leaders rather than remain followers . We need to ask different questions which will lead to sustainable and prosperous solutions . Each one of you is an invaluable asset . You deserve recognition . You deserve to be treated with dignity . You deserve to be happy . You deserve success .
This is your industry and it’s “driven” by you , , by your ideas , by your decisions , and by your actions .
Collectively you have more power than you can possibly imagine . With power comes great responsibility , and you must act wisely . You must be ethical . You must become a role model that sets an example for others to follow on all levels .
We can certainly take this industry by storm , for without drivers there would be no trucking industry . We must also recognize the fact that if it were not for others in different trades , there would be no us . We must remember that our goal is not to “fight” , be unjust , nor start a “war” . Our goal is to create a new structure , a new way of doing things that is fair , honourable , and prosperous for all . A New Order !
In my humble opinion ………….
Robert Akers
Years ago in 80’s owned cold cash I found the brokers in ark,ok,texas,mo.calif ,is, to all be shit balls would screw it brains and swear best deal there was when getting a load sold the trucks and the trucking company. Now the industry is full driversthat run up and down the road that busy talking on the phone and paying attention to everything but driving , just my opinion if ur driving in auto watch a few really good dedicated drivers and the rest are wannabes. Remember the trucking Wii drew u for fun and set in there offices and laugh about it. Just my thoughts I loved it did it from 20′ till in late 70’s good luck young drivers merry merry Robert /cold cash/
Michael Page
I recently left a company because they were paying HGM (Household Goods Miles), which pays by the zip code or zone, & not practical miles. Translation: I was getting beat to the tune on average of between $25 – $100+ every week. How do companies get paid? Is it by zone or practical miles? Coupled with no detention until a certain number of hours have passed drivers are cheated out of thousands of dollars each year. Why isn’t this collusion?
Mr Billy Wilford
It’sall bull shit, and now thar looking women truck driver’s to mess oover, but thyll catch on to all the bull shit, with trucks and truckers, THE CITY’S AND STATES WILL HAVE ADAM F SHUT DOWN!!
Abdul Qawi
Rates should always be higher in the Northeast of the country because of tolls and high fuel cost. Eld doesn’t make it easy it rushes the slow down. Meaning the travel of traffic slows trucking down and we burn more fuel than the rest of the country
Jim
I’ve been in this industry for 30 years. I worked for Trucking companies years ago that would go through a broker to get freight and the trucking company wasn’t making money by doing this. I drive for a company now that contracts with major companies that paid big money but now my company doesn’t have a contract with any of them. The company I drive for gets this same freight through a broker now and it’s not good. Why in the Hell are we going through broker’s? Don’t tell me that the Trucking industry has to have broker’s. Broker’s are crooks and C H Robinson is the biggest of all. The trucking industry has no backbone I know that we’re not union but we don’t have a leader and I don’t understand. We need someone that can standup for us when all of this bullshit erupts and get rid of every broker that exists. Without the Trucking industry the U.S. would come to a halt. The largest Trucking companies need to get to Together and put a stop to this.
Mrtr4jesus
30 yrs huh.. Brokers started way back in the 30s when companies couldn’t find carriers, so there was a need for brokers but now they’re crooks because of capitalism in America and CH Robinson is paying me the best out of anybody out there right now, you have to work for yourself and negotiate A price to haul for
MrBigR504
Well if your bragging that CH Robinson is paying you the best rates, your minimum rate to move your truck must be damn near free!
Elvis Durant
Agreed! Reason I quit trucking. No UNION everybody getting screwed left n right!
Terry
At some point all this who’s screwing who need to be replaced with action. I agree we’re getting screwed royally, and yes the trucking industry could bring our country to a standstill in a short period of time, it who’s willing to put that money where there mouth is. Who’s willing to stand up against the greedy brokers who’s stilling our livings load after load. Let’s stop talking about it and do something about it. I can’t stand when I’m talking to another trucker who says all the right things, until that inevitable phrase pops out of their mouths “They’re gonna do what they want to do anyway.” At that point I walk away. We seem to blame everything but our selves. Capitalism is our system of earning wealth. I happen to believe that what I’ve worked to build is mine not the communities. If you want your stake in the American dream, then be willing to fight for it; plain and simple. I’m not speaking about violence, I believe the pie is big enough for all of us. I’m pushing forth the idea of standing together. TOGETHER WE STAND, DIVIDED WE FALL!
Stephen Webster
The large trucking companies are not able to get together under U S law. Canada looked at bringing. In minimum wage at a trade rate in 2006 but under the old free trade agreement. When E =logs and possibly speed limiters hourly wage rates need to be set by the government is plus overtime and minimum freight rates under the new trade agreement for the U S Canada and Mexico.. This will save more lives as the trucking Industry will keep experience truck drivers.
Edmond
I totally agree👍
Leo
Jim, as an ex owner operator, company driver and current Operations Manager for a trucking company I can tell you exactly why your company is now pulling for a broker the same freight your company pulled direct from the company. Your Company did not have a long term contract with the customer to pull his freight. they probably had a great relationship with the owner and agreed to move his freight for a set rate. One of the brokerage companies got in his ear and convinced him that they would save a bunch of money letting him move their freight at backhaul rates as opposed to paying your company full line haul rates. This trend will continue until almost all freight,, with the exception of high value, time sensitive freight is all backhaul. It’s been going on aggressively for 30 plus years. The rate reduction doesn’t stop at the first broker either. What then happens is the broker’s all attack each other and outbid each other until the rate is so low there is no profit in it for anyone. It is sad but true that this once prosperous field is such a shit show now!!!
Capt Kirk
Exactly even my union driver wages are not the same (figure cola, equipment cost etc) been out here since 92. Local driver the last 3 years. Love otr but the money’s not worth it
Boky
ELD is making pressure on truck drivers. That’s why rates should go up.
Captain Kirk
Freight rates are horrible now plus fuel? Geeeeeeeze. Not currently worth it even working with Landstar as a BCO. Back on the sidelines again at my union job and the 2 drivers in the trucks at Pride in SLC..