Profitable Freight Lanes
What lane are you in?
Freight runs all over the country, we know that. But did you know that some regions have a higher percentage of the freight that hotshots haul and the rates for these loads vary significantly?
You want to be in regions, or super-regions, with the best ratio of spot freight. Specifically, you're looking for areas that have a load-to-truck ratio greater than 2.5. That's an indicator of high volume of frieght - and generally the best pay rates .
Take a look at the current hot zones for flatbed spot freight.
Hey hotshot, green means money.
The darker the green, the more the gr$$n.
- per DAT
Now let's talk rates.
Don't get too excited there chief...we're not talking about LTL/Hotshot rates...yet.
- per DAT
So what percentage of TL rates do you think hotshot loads pay?
A TL is 42,000 - 45,000 lbs.
Logistics Dynamics says, LTL rate is a portion, or percentage, of the TL rate. For example, one-quarter of a truckload would equal 50% of a truckload rate to customer, one-half truckload would equal 75% of a truckload rate to customer, and three-quarters of a truckload would equal 95% of a truckload rate to customer. Hotshots generally are grabbing a max of 15-16K load. Right? So according to this Brokerage, a 10,500 lb load might fetch 50% of the TL rate. uh huh.
Our super power is negotiating the right loads & rates
After considering the flatbed spot freight TL rates and the loads to trucks ratios, we help you determine what the fair rate is for you in that lane. Then we consider if the load is expedited or time sensitive, as that increases the rate, of course. Next we consider the delivery location. If it's an area with poor outbound loads, we're going to do two things. 1. Review whether or not you want to run this load; and 2. Consider the deadhead miles you may be running to get to a better outbound location. We're going to factor this into the rate as well.
So, you see there is no hard and fast rate per mile. Just like LTL shipping rates, the carrier rates vary as well.
Last but not least, we look at accessorial fees based on the shippers needs. Tarping required? Special securement devices? (say for wire rolls, etc).
Hotshot Loads Pay
These flatbed TL (truck load) rates will give you an idea of where the rates are higher & where they're lower.
You know where the flatbed freight is. You know what areas have the highest rates. Where does your hometown sit in all this? Now, it's time to develop YOUR profitable freight lane(s). N'es, pas?
Super-Region to Profitable Freight Lane
Now that you know the hot spot for spot freight, you can begin to develop your profitable freight lane. Hopefully, your home town in within this zone. Plot it on the map, we'll call that Point A. Next you're going to use the load boards to filter for this hot spot area. You can then build freight lanes that moves from Point A to other Points in the zone, and back again.
Create a triangle or octangle lane to and from your home. Sure, you going to run outside that lane at times, but you want to develop your lane over time. Soon enough, you'll be making established runs, save money on routing and get home on a farily established schedule.
Maybe there's areas you just don't want. Why? Well....expenses and headhache, mostly. More tolls. Fewer truck stops. Narrow roads. More traffic congestion. cough cough. You get the idea. Don't foget to factor in lower MPG for mountain terrain and those toll booths1