I'm the problem for hauling cheap freight
#71
08-29-2007, 05:06 AM
Originally Posted by mike3fan
Originally Posted by SteveBooth
There are many people giving advise that they themselves do not follow.
I also tell people to get enough of a savings built up to have a sizable down payment on a new or used truck(something I didn't do). I tell new drivers to keep their driving record clean(also something I didn't do) Just because I may give,in my opinion,good sound advise that I had an inability to follow in my own world does not make it any less sound or what others should follow or try to,what I think is more hurtful is people coming on here and talking about all the high dollar freight they are pulling and not giving real world numbers of how many actual miles they are driving their truck and therefor making it out that it is much better than it is.If I were to only post about all the 2-3 dollar a mile freight I was pulling and then someone comes out to do what I am doing and then figures out I am not adding in 20-25% deadhead into my figures,just to make myself look better am i helping that person? I think it is more important to give people that want to become O/O's,or Independents a true measure of what they should expect out here. I also agree that everyone has a different barometer that they go by,some do not need to make as much per mile as others,every driver should know what is or is not a break even point for themselves and that what is written in here by some posters will not work for them,but I alteast try to be honest about what my experiences and overall costs of trucking in todays world is. So true. I try to keep deadhead to a minimum. It does not always happen. I make my money doing short hops same day pick and delivery, 15-400 miles and get better pay because these loads are time sensitive and needed on consignee side ASAP. We need to help each other even if showing someone how to negotiaite rates. I have a guy who lives in Cali I have been helping him negotiating his rates, he had no idea about this practice. He would just take whatever came from broker and run. He almost lost everything. I had him sign up with CH, he was reluctant because of all the horror stories about rates. Well he loves CH because most of his better loads comes from them. Sometime you have to try something different if it is not working.
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#72
08-29-2007, 08:12 AM
Originally Posted by mike3fan
Originally Posted by merrick4
I read recently that JB Hunt is going to increase their intermodal operations by 200% I think it was. This, one would think anyway, will have an effect on rates. Not all rates but as a matter of fact I know a guy who works for I think it is Babies R Us or some store. Well he use to tell me that the same guy I think it was from Landstar use to deliver their freight. Then one day he tells me that they switched to a railyard compay, I forget the name and now the stuff comes all damaged. But it was on a truck from Georgia I think and now it cames by train.
So in the end it boils down to less loads and same trucks but there is a reason for it. Yes very good point Mike. But I would think it would obviously change the type of loads being available. Maybe from OTR to local so maybe less loads for OTR, but it was just a thought and just one small observation.
#73
08-29-2007, 08:48 AM
Rail cannot haul the capacity this country requires. There aren't enough rails, cars or engines to meet the demand. In addition, distribution is not always near a railroad track or yard. All it will do is slow the time when receivers can get their products. For the most part, trucks will still be required to pickup and deliver their loads. Sounds like an opportunity to me. :wink:
#74
08-29-2007, 02:18 PM
I am an independient O/O the way I figure what to charge for a load is:
I know my daily fixed costs for operating my truck,Insurances,Tires,PM,Etc. I have an amount of money set aside for any eventual repair so I do not include that in figuring the rate, this particular truck does 6.5 MPG fully loaded so if I get a quote request for a 1000 mile trip I divide 1000/6.5mpg=154gls @ $3.00 =$462.00 $.030 CPM driver (myself) =$300.00 + daily fixed costs for 2 days $ 19.00 L Insurance =$ 38.00 $ 3.30 C Insurance =$ 6.60 $ 17.50 Tires =$ 35.00 $ 20.00 Food =$ 40.00 Total for 2 days =$881.00 So if I want my truck to make $600.00 in 2 days I would quote $881.00 +$600.00=$1401.00/1000=$1.40 PM from that since I am driving and own the truck I keep $900.00 not bad for 2 days... Just because someone has built up a maintenance fund doesn't mean the expense doesn't exist, it's just been prepaid. All that means is that your expenses were higher 6 months ago than they are today and they will be higher after you have a repair as you replenish the fund. You happen to have no maintenance expense today, but what will it be the day after you rebuild the engine? The guy that sticks $20,000 into a maintenance fund to cover the next two years has the exact same per mile expense as the guy putting away $.10/mile (assuming they both run 100,000/year). The same goes for guys who are running paid-for trucks. To say they have no truck expense is not accurate. The expense has just been prepaid. They have no truck expense TODAY but that expense was much different 1, 2, or 3 years ago. The same goes for the guys that get into the business with a bunch of money. They pay cash for a truck and set up a maintenance fund right off the bat. That doesn't mean those expenses don't exist. The money's been spent, just not out of operating revenues. It's why averages are almost always more meaningful that single-point data. It's the difference between cash- and accrual- accounting. There's a reason that the IRS and the SEC require almost all medium and large corporations use the accrual method. It's much easier to hide and manipulate the numbers with cash-basis. In other words, it's not near as accurate. Which of these is better? A: Today I take load for $1.40/mile and make $900. But 4 months ago, off the same load, I made $500. B: Today, 6 months ago, or next week, a $1.40/mile load makes me $700. If someone asks what your rates are, you don't say $2.50 or $1.10, even though the load you're on that moment might pay that. You tell them the average. Expenses should be treated the same way. While we're looking at the numbers, let's look at one more thing. Paying yourself $.30 a mile as an independent? That's the same as a company paying you $.28/mile. Throw another $3000/year for an average benefits package and you're making the equivalent of a company driver at $.25/mile :shock:
#75
08-29-2007, 07:38 PM
Guest
Posts: n/a
Originally Posted by Collard Greens
Steve I agree with you, but also you cant keep hauling for a $1.30 a mile. Yes sometimes you have to flex a little. The best time a broker can try you is when you get a load to your home state. When they give you that low rate, tell them I dont have to go home I can go somewhere else instead.
I've tried the approach of sitting for up to 4 days for a good paying load. That's BS, it doesn't happen. I could have sat there for 400 days and each day some large carrier would pick up the cheap stuff to move. I don't believe ANY of you and I defy you to help Pepe out next time he's in a bad area and the only thing he can get is $1.00 per mile. Lets see all you big brothers help out. Start a new thread with Pepe as the Guinea Pig. I'll even pony up as the test case for a 3 week stint. Keep in mind, I can do the $2.00+ short haul loads all day till I'm blue in the face. Just not my idea of trucking. I like the long runs. Or, how about this. Next time I'm in a bad area you guys help me out and lets see how well you do. I'm willing to sit and wait as an experiment for that MUCH higher rate you all tout.
#76
08-30-2007, 01:16 AM
For those of you with drivers do you pay him to deadhead to a better area.
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#77
08-30-2007, 01:52 AM
when I was a driver for an O/O I was paid percentage of the gross same as the owner,like 20%.no deadhead pay,in fact I did all the leg work looking for loads and calling agents(Jones Motor) to get loads.
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#78
08-30-2007, 04:55 AM
Originally Posted by SteveBooth
I don't believe ANY of you and I defy you to help Pepe out next time he's in a bad area and the only thing he can get is $1.00 per mile. Lets see all you big brothers help out. Start a new thread with Pepe as the Guinea Pig. I'll even pony up as the test case for a 3 week stint. Keep in mind, I can do the $2.00+ short haul loads all day till I'm blue in the face. Just not my idea of trucking. I like the long runs.
Or, how about this. Next time I'm in a bad area you guys help me out and lets see how well you do. I'm willing to sit and wait as an experiment for that MUCH higher rate you all tout.  LATEST LOAD: 1 pick, 2 drops, no tarp, step deck legal, <10,000 lbs. $1400 on 450 miles into a good area. But that doesn't meet the 1500 mile minimum requirement. This long haul preference that you have is fine and everything...no fun securing and waiting every day, I'll give you that. It's almost like.....dare I say it......work. That's why long haul rates are lower I guess. Unfortunately, some of us try to profit at this business and the higher per mile rates = more profit. 1. We are being paid NOT to burn fuel. 2. We are being paid NOT to wear out our equipment. Doesn't it seem odd that the long loads pay LESS? Shouldn't they pay MORE? Seems people would rather put more miles on the truck to earn less. Bizarre.
#79
08-30-2007, 05:24 AM
Maintenance Fund
Actually I never set a maintenance fund, I got this truck 3 years ago (1999 Century C-12) with 439000 miles, since then it has being making an avg. of $5000.00 per month after all expenses with trips no longer than
1200 miles, I have 3 trilers to pull with it, an 8 car high mount, a 53` Hunday A/S Dray Van and a 48` FB, the only major repair was a new camshaft 2 years ago + the normal PM and tires, 300000 miles in 3 years=$180,000.00=$0.60 CPM and I still have most of this money so running for $0.60 CPM is a good business for me |
