Lease Operator with Anderson Trucking Service (ATS)

[terrylamar]

Some of you may remember me as a "wet behind the ears" TMC company driver. I think I picked up on the driving game quickly and and was pretty successful at TMC. I made good money and enjoyed driving. I have found that, not only do I like the lifestyle, I am good at it, at least as a company driver.

I left TMC back in August of last year to take over a Martial Arts School from an old instructor. To put it bluntly, it didn't work out the way I expected. I was misled about many things and despite trying my best, I closed shop and decided to go back to trucking.

A few good things did come out my experience with the school. I lost about 50 pounds and got back into shape. There at the end with TMC I had cut out all the junk food and sodas and was beginning to feel much better. Now that I am back on the road I have to try to keep this up.

Once I decided to drive again I found that my 20 months experience with TMC didn't mean much. TMC didn't want me back because they moved their hiring boundaries almost 200 miles from where I live. I didn't have the magical two years experience for some of the companies I wanted to drive for. That and the economy made it difficult to find a job quickly.

For this reason and that one of my goals was to get heavy haul experience I decided to go with Anderson Trucking Service (ATS) Specialized. This is their flatbed division. Despite all the warnings I signed up for the Lease Operator Program. I didn't want to sit around for months waiting for hiring freezes to be lifted.

I have confidence that the economy will turn for the better shortly and I thought to position myself for that recovery. There is some indication that the economy is improving, not to say that it will happen overnight.

It took a couple of weeks to get to orientation in Saint Cloud, MN. There were about 12 drivers attending orientation, four van drivers, the rest flats, four Owner Operators and three Lease Operators and one Company Driver making the switch to L/O. Out of these we lost one O/O who's truck required $4K to bring it up to speed and one Van Driver for some unknown reason. One of the L/O had to go home at the end to get additional paperwork and he would be returning the next week. There were a couple of Drivers on the class who were returning ATS Drivers. They had nothing but good to say about ATS and the L/O Program.

We did the normal stuff you do at orientation. One the first day we got to select the truck we would lease. The Van and Flat Divisions select from a different truck pool, obviously, because the Flat trucks were set up differently. There were six Columbias, 3 with Cats, 3 with Det, 3 had Qualcomm and 3 had Driver Tech. There was one Pete 387 with a Cat. and Qualcomm which I selected. It is basically the same truck I drove while with my trainer while at TMC. It is not spec'd out for O/O like TMC's trucks, it is a working truck. I don't miss all that stuff anyways, well other than the CB and Radio/CD/MP3/Sat. I installed my own CB and I'll switch out the radio soon.

As this post is already becoming longer than I had anticipated I will give the basics and come back to it to post my actual numbers and experiences with ATS. If anyone has a specific question I will be happy to answer it.

We are paid mileage pay on a sliding scale depending on the length of the haul, anywhere from $1.50 to $.81. The shorter the haul the more money you make. Up to 399 miles you will receive $450.00 minimum. We are paid for all miles loaded and empty, but only get FSC for loaded miles.

We get 65% of the Over-Dimensional Charges and the other charges I'm forgetting the name of to go into Canada and New York City.

We get 100% of tarp charges, stop charges and Fuel Surcharge, based on a Fuel Index Rate for that week. Last week it was $.17 this week it is $.18.

There is no money down, plates and permits paid by ATS, passenger program from day one, pets allowed, weekly settlements , safety bonus and financing available on required equipment.

We pull a company trailer at no charge. These are flats, drop decks, double drop decks or RGN's, whatever is required for the job. All the trailers I have seen have been in very good condition or new.

I am on my third load now and just starting my second week. I needed to go home after orientaiton and I had 24 hours dead time in Ocala, FL. I am off to a good start this week, but deliver three stops in New Jersey on Monday and to Connecticut on Tuesday (maybe Monday.) I may get stuck, again, in the Northeast depending on freight.

I am hoping my experience with TMC will help me run a frugal business. I was able to keep my idle time to 8% and less, the last one was 4.76%. I was driving a 379 Pete and was getting between 6.25 and 6.75 mph. It is too early to tell what the trend is, but I seem to be getting at leat 6.75 mph with my 387.

Well, that is it for now. Next time I will post my actual fixed and variable cost and the numbers for the loads I have run so far.

[Snowman7]

While I'm never going to be a fan of leasing a truck I have heard good things about ATS. And like you (a former flatbedder) I would have an interest in learning heavy haul if I ever left LTL. I always remember your posts to be pretty intelligent so I'm sure you'll have as good a chance at success as anyone. Congrats and good luck Terry and keep us posted!

[freebirdrfd]

definetly keep us posted. good luck, i hope it works out for you.

[Creek Jackson]

Very informative and well-written. Please keep it up and Best of Luck!

[mudawg]

I have a good friend that signed on to thier blanket wrap div. and while he doesn't make great money he is working a whole lot more than I am.It seems to be for the most he reloads within hours of unloading at most the next day seems to be the longest he waits unlike me waiting for up to several weeks to get reloaded.ATS seems to be doing alot better then most right now but like one of the above said leasing operator situations are something to be very leary of,if it works for that would be a great thing but,it would be the only L/O deal I have ever heard off in more than 20 years doing this being a positve thing for the operator.Good luck

[coastie]

I drove for ATS many years ago and made money. Yet I had a friend who went with them as a Lease Driver in the Flatbeds. He had a minor accident and was terminated after they made him deadhead from Charlotte NC back to St Cloud. So keep your nose clean and do not have a minor fender bender, it can cost you more than you think.

[terrylamar]

ATS Lease is for one year. I was assigned my truck on 3/19 and dispatched on 3/20 loading on the morning of the 21st. The actual lease dates are 3/21/09 to 4/20/09. That date may be a misprint, but it is what everyone signed. So, the lease is one year and one month.

There are no payment due for two weeks. This allows for us to have settlements due before payments become due.

My truck is a 2005 Peterbilt 387, Cat. engine, Meritor Drive Axle, Eaton Transmission (9 speed,) Merritt Cab Guard and has 10 Aluminum Wheels. It has the normal scratches and scrapes, but is in good shape. It had about 485,000 miles one it. They value it at $49,975.00.

At the end of one year I have the option to purchase it at $35,600.00. I am not thinking that far ahead and will do more investigating before I go that route.

The factory warranty is good up 500,000 miles. Obviously, I'll hit that mileage in a few weeks. ATS does offer a 30 day, unconditional warranty and will warranty the drive train components for the life of the lease.

Now to the numbers:

My weekly fixed cost are $610.36.

Escrow $75.00
Insurance
Contingent Non-Trucking Liability $40.00 per month.
Physical Damage $33.36/$154.00 (I opted for the supplemental ins.) per month.
Occupational Accident $155.00 per month.

Weekly $163.24

******************************
I don't understand this section:

Lower Deduction Physical Damage $33.36 monthly.
Reduciton of Charge Backs $86.52 Monthly.

Weekly Breakdown:

Auto Liability $11.68.
Cargo Liability $5.87.
Physical Damage Libility $2.42.
*************************************

Truck Payment $400.00
Federal Highway Used Tax $11.00
Transaction Fee (Fuel Card, Advances, per use) $1.25
Tax Service $16.15
Maintenance Fund $0.065 per mile.
Tires $0.0185 per mile
Promisory Note (Sercurement equipment, until paid off) $0.04 per mile.
Qualcomm Rental $60.00 monthly.
Trippak (includes TransFo) $11.25 monthly.
Prepass $10.00 per month.

My variable expenses:

Maintenance Fund $0.065.
Tires $0.0185
Promissory Note $0.04
Fuel $2.20 gallon / 6.75 $0.33

Total $0.4535.

Keep it simple and figure I get $1.00 per mile.

Miles per week to pay fixxed expenses:

$610.36 x $1.00 = 610.36 miles.

Variable cost per mile for the week $0.4535.

My break even:

$1.00 minus $0.4535 = $0.5465.

$610.36 / $.5465 = 1116.883 Miles per week. Anything over 1116 miles per week is profit.

Hopefully I did this right. If I did, it is encouraging. Even in this economy I should be able to average that many miles.

Remember, in addition to mileage I get FSC, HAZMAT, OD, New York, Canada, Safety Bonus pay.

I'm sure someone can come along and check my figures. My head is spinning right now.

So far my loads have been:

# 1)

1600 miles @ $0.83
FSC $207.79

#2)

898 miles @ $1.01
OD $87.50
FSC $148.75

#3) (I'm currently on)

1271 miles @ $0.90
FSC $169.02
Stops $225.00

On paper I am making money, not getting rich, but not going into debt. I just have to keep my expenses under control.

Thing will get better as I get more comfortable with the system I am working under now.

I, also, need to accept the shorter, higher paying loads and seed out the loads with the higher additional pay.

I hope this hasn't been too confusing.

[Mackman]

I cant really help you. But i wish you the best of luck. You might need it.

[mike3fan]

I have the same problem with this as I do with all L/P deals, at anytime the company can stop giving you loads and you have no recourse. I will be interested to see how your actual hub miles work out compared to what you have posted. Good luck and keep up the posting.

[terrylamar]

I have the same problem with this as I do with all L/P deals, at anytime the company can stop giving you loads and you have no recourse. I will be interested to see how your actual hub miles work out compared to what you have posted. Good luck and keep up the posting.

While this is true, I haven't heard of it happening to any ATS drivers. I admit I haven't talked to every ATS driver.

With TMC my strategy was to have low out of route miles, now I am trying for the most fuel efficient route. I messed that up today by trying to avoid tolls and ended up wasting an hour on my shotcut.

My actual fuel mileage to date is 7 mph. I am happy with that, but challenge myself to improve.

[mike3fan]

My actual fuel mileage to date is 7 mph. I am happy with that, but challenge myself to improve.

That is fine, just don't get carried away trying to save .01cpm at the cost of lost productivity by missing more loads per week. There is a balance to be had, good luck.

[terrylamar]

That is fine, just don't get carried away trying to save .01cpm at the cost of lost productivity by missing more loads per week. There is a balance to be had, good luck.

I try to be waiting at the consignee 1st thing in the morning by arriving the evening before. Although, this is not always possible, it sets me up to get unloaded early and on the board. I don't have to wait in long lines and puts me at the front of the line for loads. It, also, gives me the maximum amount of time to travel to the next consignee.

Now, I know I am preaching to the choir, like I said, I learned some good habits while with TMC.

I have a 70 mph truck, it sure is nice to have that extra when you need it.

I have been dispatched on 3769 miles
My actual miles are 4265.
A difference of 496 miles.
giving me an out of route of 11.63%
adjusted for my little side trip home 340 miles for 3.63% O/R.

Or to keep me real, it cost me approximately $108.30 to make that roundtrip. I can't afford to do that too often and will stick with home time under a load, just grabbing a day or two or even a few hours.

I have had load offers to San Antonio, TX and Corpus Christi, TX that would have taken me through the house with a few out of route miles. I would have had to sit over a weekend being nonproductive. I opted to make some money and find myself in Eastern CT.

[terrylamar]

Load #4)

Stroudsburg, PA to Sikeston, Mo.

Bounced 41 miles to swap required trailer.

180 miles to Shipper.

980 Miles to Consignee.

It is a single steel beam weighing 25,920 pounds.


1151 miles @ $0.90
Tarp fee $35.00
FSC $153.09.

Total $1223.99

This is a light load, so I should have decent fuel economy.

I pick it up on 4/01 and it delivers 4/03, I should be there the afternoon of the 2nd.

I had almost the same load offered earilier in the day, but was right in the middle of turning arround on a construction site road, holding up traffic. By the time I got turned arround and parked someone else has taken it.

I had one construction detour which added a few miles and forced me onto a toll road for about two miles that cost $16.75. I hate tolls.

Maybe, after I deliver this load I can find a load in the Midwest or West.

[JR OTR]

Hello Terry,

Interesting thread, hope you keep it up. I have a few comments I hope you'll find useful or at least stimulating:

******************************
I don't understand this section:

Lower Deduction Physical Damage $33.36 monthly.
Reduciton of Charge Backs $86.52 Monthly.

Weekly Breakdown:

Auto Liability $11.68.
Cargo Liability $5.87.
Physical Damage Libility $2.42.
*************************************

You should insist on having all aspects of your lease explained, to your satisfaction (preferably before signing). Leasing is a potentially hazardous financial experiment at best, no sense in keeping a quarter stick of dynamite in your back pocket that might decide to go off. Talk with the L/P person at ATS as soon as possible to have them explain this to you, in writing if necessary.

Maintenance Fund $0.065 per mile.
Tires $0.0185 per mile

Transaction Fee (Fuel Card, Advances, per use) $1.25
Qualcomm Rental $60.00 monthly.
Trippak (includes TransFo) $11.25 monthly.
Prepass $10.00 per month.

The maint and tire escrows seem a bit high to me, even on the used truck you describe. I assume each escrow has a limit, once reached, where no more money is withheld?

The other four items are basically cost shifting on to your back from the company. Do they seriously charge you $1.25 to fuel your truck, or is that just if you want an advance?

So far my loads have been:

# 1)

1600 miles @ $0.83
FSC $207.79

#2)

898 miles @ $1.01
OD $87.50
FSC $148.75

#3) (I'm currently on)

1271 miles @ $0.90
FSC $169.02
Stops $225.00

I notice you don't mention the deadhead miles for each load, or over what time period they cover. If I read the first one right, they only pay 83 cents per mile plus FSC for loads over a certain mileage threshhold? Especially considering they don't pay FSC on deadhead miles, that is extremely low.

I lease a truck from Hill Bros out of Omaha, Nebraska and post quarterly financials to my lease-purchase blog, link in the sig.

Good luck,

Jim

[terrylamar]

We are paid on a sliding scale.

LENGTH OF HAUL 0-12 Months with the Company

0-399 ($450 Min.) $1.50
400-599 1.07
600-899 1.01
900-1,1499 .90
1,500-1,899 .83
1,900-Over .81

After one year this will go up. I don't have those numbers handy. I am a class 4 driver, the lowest. Once I make Class 2, in addition to the regular mileage pay I will get $0.01 more and $0.02 for Class 1. Over Dimensional Pay is additional and so is Arb pay to go into Canada or New York City.

[terrylamar]

Hello Terry,

Interesting thread, hope you keep it up. I have a few comments I hope you'll find useful or at least stimulating:

Thanks, I can use all the help I can get.

You should insist on having all aspects of your lease explained, to your satisfaction (preferably before signing). Leasing is a potentially hazardous financial experiment at best, no sense in keeping a quarter stick of dynamite in your back pocket that might decide to go off. Talk with the L/P person at ATS as soon as possible to have them explain this to you, in writing if necessary.

You are right. I know what all the totals are supposed to add up to, but I need them to show me as they wrote it out.

The maint and tire escrows seem a bit high to me, even on the used truck you describe. I assume each escrow has a limit, once reached, where no more money is withheld?

I don't know, this is my first time around the block and have nothing else to compare it to. I don't mind the amounts. At the end of the lease I will get the unused portions back. No they do not have a limit. I cannot touch the Maintennance Accounts. The Escrow account, once I reach the minimum, I can borrow against. Once the Promissory Note is paid for, it stops.

The other four items are basically cost shifting on to your back from the company. Do they seriously charge you $1.25 to fuel your truck, or is that just if you want an advance?

Yes and no, the charge is to use the card, just like any credit card, there are usage fees. I can combine and advance with fueling and have only one $1.25 charge. I can pay fuel in cash and have no charges. We are on the same fuel plan as the company drivers, so we save money on fuel, which more than offsets the $1.25 charge.

I notice you don't mention the deadhead miles for each load, or over what time period they cover. If I read the first one right, they only pay 83 cents per mile plus FSC for loads over a certain mileage threshhold? Especially considering they don't pay FSC on deadhead miles, that is extremely low.

I can list the deadhead miles, I see no point. I add the miles up. I get paid for all miles. The FSC is for loaded miles only. They either reward you for less miles or punish you for more miles. They try to encourage short runs. What do you mean "or over what time period they cover?"

I lease a truck from Hill Bros out of Omaha, Nebraska and post quarterly financials to my lease-purchase blog, link in the sig.

Good luck,

Jim

I'll check it out as soon as I get a chance. I'm sure I can find something that will help me.

[terrylamar]

Load #4)

Stroudsburg, PA to Sikeston, Mo.

Bounced 41 miles to swap required trailer.

180 miles to Shipper.

980 Miles to Consignee.

It is a single steel beam weighing 25,920 pounds.


1151 miles @ $0.90
Tarp fee $35.00
FSC $153.09.

Total $1223.99

This is a light load, so I should have decent fuel economy.

I pick it up on 4/01 and it delivers 4/03, I should be there the afternoon of the 2nd.

I had almost the same load offered earilier in the day, but was right in the middle of turning arround on a construction site road, holding up traffic. By the time I got turned arround and parked someone else has taken it.

I had one construction detour which added a few miles and forced me onto a toll road for about two miles that cost $16.75. I hate tolls.

Maybe, after I deliver this load I can find a load in the Midwest or West.

I delivered a full day early. I ran with a couple of other ATS drivers going to the same place. I pushed a little. I ran at 70 mph where possible and a little fast through the slow states. I'll have to see wat running fast did to my fuel mileage. The qualcomm gives me a running total, it was down to 5.8 for a while then went back up to 6.7. On average it may not have hurt too much. I will know when I fuel next. I think I'll just run by myself from now on.

I'm not sure if it did any good to deliver early, I haven't received any decent load offers yet. One was offered, but it didn't load until Friday at 2000 and delivered Monday 0800, 378 empty and 528 loaded. Not worth my time to sit most of the weekend if there is a chance to get a better load offer tonight or first thing in the morning.

[solo379]

or New York City.

What do they pay for NYC, if you don't mind me asking...?

[terrylamar]

What do they pay for NYC, if you don't mind me asking...?

They take a national average each week.

For the week 03/17/09 to 03/23/09 it was $0.17
For the week 03/24/09 to 03/30/09 it was $0.18
For the week 3/31/09 to 04/06/09 it is $0.21

[JR OTR]

I think the poster wanted to know how much NYC pay was, not the FSC.

Jim