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Same Load. Three Different Decisions.
Let's try something a little different. Imagine this load is offered to you. - 420 miles - $1,100 - Picks up today - Delivers tomorrow morning - Average freight market on the destination end Now answer from YOUR perspective. Owner-Operator: Would you take it? Why or why not? Dispatcher: Would you recommend your driver take it? What else would you look at first? Office Manager / Operations: What information would you want before saying yes? I'm curious how differently each role looks at the exact same decision. I have a feeling we'll all learn something.
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Why Cheap Freight Exists
One of the biggest questions in trucking is: "Why does cheap freight exist if nobody can make money hauling it?" After a few years running my own authority, I don't think there's just one answer. Sometimes it's because a carrier doesn't know their true operating costs. Sometimes they're trying to get home. Sometimes they're repositioning into a better market. Sometimes they're trying to keep a driver moving. Sometimes they already have the next load booked. Sometimes they're short on cash and need revenue today, even if it hurts tomorrow. Sometimes they're simply making a bad business decision. The broker doesn't know which one it is. The shipper usually doesn't either. They only know someone accepted the load. That's why the market keeps moving. The lesson I've taken from this isn't to get angry when someone else takes a load I won't. The lesson is to understand why it makes sense for them—and why it may not make sense for me. Every trucking company has different: costs customers goals equipment cash flow risk tolerance The objective isn't to win every load. The objective is to build a business that can consistently make good decisions. Because in the long run, trucking isn't won one load at a time. It's won by making hundreds of good decisions over thousands of miles. Question: What's the biggest reason you think carriers accept freight that you would turn down?
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Why Someone Else Takes the Load You Won't
One of the biggest mistakes I see in trucking is assuming a load is either "good" or "bad." Most loads are context-dependent. For example: A 90-mile load posted for $350 came up recently. For my operation, it didn't make sense. But that doesn't automatically mean it was a bad load. Someone else may have: - Been heading home - Needed to reposition - Had a dedicated customer nearby - Been setting up a stronger reload - Been running a local day-rate model - Had lower operating costs The interesting question isn't: "Who is dumb enough to take that load?" The interesting question is: "What problem are they solving that I'm not?" The longer I operate, the more I think freight can be evaluated three different ways: Revenue per Mile-- Good for comparing similar loads. Revenue per Day-- Good for local and short-haul operations. Revenue per Week-- Good for understanding the bigger picture and overall profitability. A load that looks terrible by one metric can make perfect sense by another. That's why I try to understand the context before judging the decision. Discussion Question What's your primary decision metric? - Revenue per mile? - Revenue per day? - Revenue per week? - Something else? And has that changed as you've gained experience?
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A Load Isn't Just A Load
A lot of guys compare loads one at a time. I try to compare them as part of a week. Example: Load A pays $2,400 and gets me unloaded Tuesday morning. Load B pays $2,600 and gets me unloaded Wednesday afternoon. Most people immediately focus on the extra $200. I start asking different questions: - What freight is available where I'm delivering? - How long will it take to get unloaded? - How much deadhead am I likely to have? - What does my next load look like? If Load A gets me reloaded Tuesday and Load B leaves me sitting until Thursday, that extra $200 disappears pretty fast. I've had plenty of loads that looked great by themselves but ended up making the entire week worse. A load isn't just a load. It's part of a sequence. That's why I evaluate loads based on what they do to the rest of the week, not just what they pay today. How do you guys think about it?
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