If you were thinking of getting a truck or own authority....

[Sonny Pruitt]

At fuel prices right now you will lose your shirt so fast you won't know what hit you.


A 10 mile mistake costs six dollars

[allan5oh]

That's if you drive a nice windcatcher 70+ mph with your big "kitty cat" engine.

That same 10 mile mistake would cost me $3.75.

I've averaged 7.8-8 mpg for several months now.

[mike3fan]

At fuel prices right now you will lose your shirt so fast you won't know what hit you.


A 10 mile mistake costs six dollars

If fuel prices are what makes you lose your shirt I think you maybe in the wrong buisness anyhow.

[Sonny Pruitt]

I am talking about new entries

[allan5oh]

Why would they?

Get on a good company that has a fuel surcharge based off the industry average of 6 mpg, and if they have a good truck they'll make more money when the price of fuel goes up.

[mike3fan]

Why would they?

Get on a good company that has a fuel surcharge based off the industry average of 6 mpg, and if they have a good truck they'll make more money when the price of fuel goes up.

shhhhhhhh

[Rev.Vassago]

I am talking about new entries

Why do new business owners have to get crappy rates? Why not start out at great rates, and not have to worry about fuel prices?

[mudpuddle]

Yep If you get 6.5 miles per gallon and your surcharge is based on 6 you should be doing a chant every night and praying for 10.00 per gallon. That is until you think of the impact that would have on freight.

[Sonny Pruitt]

You ever hear of the landstar line "it takes 6 months to learn the system"
Well guess how long it takes on your own

Surcharges are for loaded miles and dedheading or even bobtailing home is extremely expensive

Good paying loads like 3 per mile are not budging to raise their rates to compensate
Lower rates you can get up but you still lose a little more
They never cover all of the new fuel
But home run loads are not moving the bar
(or if you are canadian "in the house" loads are reluctant to raise rates)

other than that I guess everything is fine

[allan5oh]

$3 a mile shouldn't budge to compensate, there's more then enough profit to be had on those loads.

$1.50 loads should compensate, and I'm glad they do.

[Sonny Pruitt]

but the lack of compensation has to be covered by yours truly
which is sorely needed to cover dedheads and subsidize lower paying loads
I study the load boards and right now brokers are ignoring the cost of fuel
because they are afraid they will lose their shipper if they ask for more $$$$$$
Its busness as usual unless you press.
And you have to press your select brokers who know you
because the others will not budge until they are motivated
Its getting unbelievably complicated and a newbie will get woofed in no time

[allan5oh]

I don't understand the equation of customers not paying enough to newbies should stay away.

If freight is undesirable, and doesn't pay enough, it will sit.

It's not our fault(truckers in general) that this freight will sit. We need to cover our costs. That's all there is to it.

If you refuse to go to your customers to ask for money to cover our costs, then obviously you do not think much of the companies that haul for you.

[solo379]

If freight is undesirable, and doesn't pay enough, it will sit.

Yes, if most folks would use a "business logic", instead "got to go logic", which is unfortunately, not the case.
Here is a very famous phrase;-"You don't want it? OK! Somebody else will!"
Ever heard that from a broker? And they know, what they talking about! :sad:

[rank]

Try paying a driver. A 10 mile mistake costs me 17 dollars.

[solo379]

Try paying a driver. A 10 mile mistake costs me 17 dollars.

Are you saying, you paying "hub" miles?

[jdtj63]

I called about a load I had done before and they wanted to pay less than I did it for a month ago. I said no way. This is crazy! :shock:

[GMAN]

Part of it is the time of year. Rates tend to drop during winter months and rise in warmer weather. Some brokers and shippers are playing games. There are some owner operators and carriers who are so terrified of sitting for a day that they will take whatever is offered regardless of the rate. Those who haul these cheap loads have more to do with low rates than brokers and shippers. Freight needs to move. If it doesn't then the price goes up until it does move. It is a very simple law of supply and demand.

[DD60]

As a new motor carrier it takes a lot of time and hard work to get established and succeed since the trucking market is saturated with competition with idiots hauling loads for 1.10 a mile or even LESS to another dead area. I have seen loads for as low as 1.05 a mile get moved to the northeast. :shock: If you put your mind to it and are motivated enough there is a good chance of success. Having a lot of capital will help and is a nice assurance but it is still possible to succeed without it,though I wouldn't recommend it.

[mudpuddle]

The saying on Wall Street is, Sell when everybody wants in and buy when there's blood in the streets.

The best time to get into business IMHO is when its the toughest. If your business model works at the low point in the cycle you will be established and profitable when times are better and everyone and their brother is trying to jump on the gravy train.

[Sonny Pruitt]

The cost of fuel is so high now that trial and error can become very expensive.
You have to come out with a load out and a load back from day one.
Trust me with 30 yrs exp as an o/o and a couple of years as an independant
Unless a new entrant has a proven game plan given by a friend or mentor, the 3.25 per gallon of fuel will bury them.
I am basing this on what I had to go through for the last 3 months to put a decent weeks work together
on a consistant basis
To be able to connect the dots of a load board takes time + mistakes
To determine what is cheap freight and what is the market rate also takes time + mistakes
Unfortunately mistakes are very expensive.

I have every reason to believe that a new entrant will wind up with the crappy load.