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How can owner operaters make all there payments if the rates r low

i had a question about rates what causes low rates is it because the owner opps are taking the low rates and the brokers are capatalizing or is it because there are more trucks in the area vs frieght which one do you think it is because it seems that sometimes even if there is a lot of frieght they still r not wanting to pay thats why i am confused i can offer my value and my experiance into the game but to me it just seems to be a challenge to deal with the spot market can you please give me your take on this matter.thx gary

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It is pretty much the truck to load ratio that determines the rate. From what I’ve been seeing, the number of trucks have been rapidly increasing while the number of loads have been steady with only a slight increase. This is causing a drop in spot market rates. I’m still finding pretty strong overall rates though, but not like they were last year at this time. The more you study the ratios, patterns, and the rate index the more successful you will become. There are always drivers who just take loads way below the spot rate, mostly because they don’t know what the spot rate is. The more information you know the better you can negotiate and the better you can position your truck. Learn where the stronger markets are and try to build specific lanes that give you an overall good rate per mile. Of course this is much easier said than done. Hope this helps. Great question,

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ok thx for your view on this matter

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Great answer. The only thing I would add is to ALWAYS POST YOUR TRUCK! Rates are always higher when they call you than when you call them on a load. First offers out of the gate are usually low, my rates are $2.27 cpm, I take the DH, + loaded miles, X 2.27, + $100 per extra stop, that's the rate I give them. My cost is $1.44 cpm, so I can make money at less, if they are close to my figure, it's light, not going to a grocery WH, and going to a better freight area, I may take it. The key info you get when you post your truck is the number of calls you get. If the load to truck ratio is 1:1, yet my phone is constantly ringing, I know the city I'm in is experiencing a higher volume, and I'll usually wait until a good load is offered. If I'm in a city where the state ratio is 25:1, but my phone is not ringing, the opposite is true. So I will expand my search to 300 miles out, sort by city, to find the highest volume of loads. It's often better to DH 200 mi to get a $2+cpm load, than to take a $1 a mile.

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