Basic transportation rate?

[slimer]

I am studying transportation rates right now at my CDL school online lesson.
I was curious about the transportation basic rates.
In the lesson it says the following;
"
Once the shipper knows the type of truckload, the level of service, and the cargo valuation, the "BASIC RATE" is known. The shipper also needs to know the weight of the cargo in pounds and the distance to be hauled in miles. To get the transportation rate, the shipper then adds the cargo weight to the distance hauled and multiplies the sum by the basic rate.

cargo weight (in pounds)
+ distance of haul (in miles)
x "BASIC RATE"
transportation rate "

What is normally the ballpark figure for a
"BASIC RATE"?

Cargo weight=40,000lbs
+
Distance = 1000miles
=41,000 x Basic rate =transportation rate?

How is that transportation rate relates to drivers O/O cpm AND COMPANY DRIVERS CPM?

[Cerberus_Kelpie]

I, for one, understand not the computation.
How can one add the weight to the mileage and derive an estimate?
Maybe BROKErs use this concept for their figures.
If one can pull directly FOR the shippers and eliminate the BROKErs, one will do well.
One need factor in ALL expenses then one gets an average of what the costs are related to what the rate requires which usually anymore isn't even close to what one needs to operate above the red/black line.

Last year a company I drove for needed a minimum $1.50 a mile to operate and cover expenses of the Truck, Trailer and Driver.
We rarely saw that rate and usually settled for $1.40 (very rare), $1.20 (standard then) as well as $1.15, $1.10, $1.05, $1.00, as well as less a mile when trying to leave FloriDUH, Denver, California, Albuquerque and other well known cheap freight rate locations.
The average this year seems to be in the $.80 to $1.00 a mile range while the weights have stayed around the 40k+ mark.
Flatbeds and Reefers generally receive more per mile pay than Dry Vans, so go figure even when hauling the same type freight.
Auto Haulers receive generally more than Flatbeds, Reefers and Dry Vans yet are usually only paid loaded miles.
I know not of Tanker rates whether or Dry Bulk or Liquid.
Heavy Haul or Specialized is generally in a class by itself and its rates are usually set and non negotiable because of the Equipment, Permits, Restrictions, etc., involved.

I hope you discover that for which you seek and are prosperous in this economy where many have not been.

[ranger309]

Originally Posted by Cerberus_Kelpie

I, for one, understand not the computation.
How can one add the weight to the mileage and derive an estimate?
Maybe BROKErs use this concept for their figures.
If one can pull directly FOR the shippers and eliminate the BROKErs, one will do well.
One need factor in ALL expenses then one gets an average of what the costs are related to what the rate requires which usually anymore isn't even close to what one needs to operate above the red/black line.

Last year a company I drove for needed a minimum $1.50 a mile to operate and cover expenses of the Truck, Trailer and Driver.
We rarely saw that rate and usually settled for $1.40 (very rare), $1.20 (standard then) as well as $1.15, $1.10, $1.05, $1.00, as well as less a mile when trying to leave FloriDUH, Denver, California, Albuquerque and other well known cheap freight rate locations.
The average this year seems to be in the $.80 to $1.00 a mile range while the weights have stayed around the 40k+ mark.
Flatbeds and Reefers generally receive more per mile pay than Dry Vans, so go figure even when hauling the same type freight.
Auto Haulers receive generally more than Flatbeds, Reefers and Dry Vans yet are usually only paid loaded miles.
I know not of Tanker rates whether or Dry Bulk or Liquid.
Heavy Haul or Specialized is generally in a class by itself and its rates are usually set and non negotiable because of the Equipment, Permits, Restrictions, etc., involved.

I hope you discover that for which you seek and are prosperous in this economy where many have not been.

the basic transportation rates idea is a joke, post-deregulation. Freight gets hauled at a price depending on how cheap someone can haul it or who is slapping whose backside.

[vwaggs]

basic rate would refer to common charge for a typical type of commodity. As an example, HazMats cost more than regular. Special handling factors such as refer also cost more.

[ranger309]

Perhaps so, but got out of hualing fuel becuase it didnt pay any better then hauling feight did and it did take more time and paperwork to get the ball rolling. Hazmat loads get stopped at the DOT chicken-coop inspections way more often cutting into your time. I'll let someone else have those headaches now. I make more now and rarely have to placard a load.

[Cerberus_Kelpie]

Originally Posted by ranger309

Perhaps so, but got out of hauling fuel because it didn't pay any better then hauling freight did and it did take more time and paperwork to get the ball rolling. Haz-mat loads get stopped at the DOT chicken-coop inspections way more often cutting into your time. I'll let someone else have those headaches now. I make more now and rarely have to placard a load.

Plus the (extra) Insurance costs just to be ABLE to haul Haz-Mat which is why some O.O.s refuse to haul such and some large/larger Companies too.

I never cared for hauling H.M. because no company ever offered incentive pay and treated such loads as (like some Drivers say) just another load.