Why does it cost more to go here than there?

Customers often ask, “Why does it cost so much more to go here than there?”

The truth is the market is different everywhere. We like to think what we paid for a run in the past should be what it will cost to go to a different location. That is not the case and why?

The example used here will be a Flatbed Semi the lane is Seattle, Washington to Anchorage Alaska. It is the most extreme of all examples to use.

First you must understand you are driving to Alaska up the Alcan highway through Canada crossing the border in and out of Canada at least twice up and back down. Next on this road there is little in the way of places to stop to get fuel, or even eat. It would be possible to have a bad encounter with a bear anywhere you stop along the way. Need medical attention forget it you will not make it home from this trip. Another item of contention is the abuse you put on the truck and the possibility breaking it along the 2261-mile (one way) journey. Even the simplest repair on that road for a big truck could be several hours before the roadside service even reaches you. What does that cost? With a crooked tooth smile from the roadside mechanic “How much ya got ah?” I forgot to mention the fuel, to get diesel along this road is not going to be a bargain for sure.

So, what does an operator need money wise to be profitable on that run? If the national average were $2 a mile this truck would require a minimum of double that and more. To speak from experience $5 or more a mile is not out of the question.

Why the double plus charge? Fact is they do not manufacture anything in Alaska that ships down the highway back to the US. So that means you run a good way home empty, with an operator’s best shot at a load is lumber 1000 plus miles back down the road paying very little.

In many places an operator can easily find a load for their rig. It may not always be going in the direction they want to go but there is still a good chance they will find work going somewhere. Alaska is a totally different animal than most places. It should be understood that freight is not available close by and an operator needs money to help with fuel getting out of the area.

In closing there are many factors that affect each individual run, population density is relevant (most of the time) to available work for the truck around the drop.