OOIDA does have a program through Fleet One called Truckers Advantage. It is their own version of the Fleet One or Trans-platinum card. There are some fuel discounts, but minimal at this point. If more used the card they could likely work on deeper discounts. Most are only about $0.02/gallon. I met a fleet owner at a Flying J just West of Salt Lake who told me that he bought fuel in bulk from Flying J. The way it worked is that he paid in advance for about 50,000 gallons of fuel and that is what he paid when his trucks fueled up at their fuel stops. Anyone could do it with enough money. Most owner operators cannot afford to prepaid for that much fuel. I am sure TA and Pilot have similar programs. Flying J has their own refineries. I think it would be possible to negotiate better rates at the pump with enough participation.

 

AS IF YOU DIDN'T ALREADY KNOW THAT. a fed-ex driver showed me his fuel reciept. this will blow your mind!!! they were paying 1.25 at the terminal for fuel!!! $!.25!!!!!! now forget the fact that after you refine the oil to make the gasoline, add a little water to the left overs and you get diesel, how are they getting fuel for less than a third of wht the rest of us are. they must have bought this fuel back in the 70's. WORST CASE SCENARIO...OWNERS SHOULD POOL THEIR MONEY AND SET UP OUR OWN FUEL STOPS AROUND THE COUNTRY. NO COMPANY TRUCKS. BUY IN BULK AND SAVE.
ANYONE INTERESTED? IT'S THE ONLY WAY WE CAN COMPETE! FUEL SURCHARGES ARE NICE, BUT NOT ENOUGH.


Tinman, I have a cousin who drives for Flying J Feul Transport. They have little hand held computers(guess they call them PDA's). He has shown me several times what the Hook pays for their diesel at the refinery(loading racks). Last Friday, they were getting it for 0.164 per gallon. Not to mention FedEx buys their feul in mega quantities, so they get a huge discount and they probably bought this feul months ago, when the prices were much lower.

 

You would be paid .34 for EVERY mile you drive not just taking .34 off each gallon of fuel you buy. That is why the MPG of your truck is important. If your truck gets 6mpg that is .34 x6 miles driven for each ONE gallon of fuel. Just remember it is for each MILE you drive not the amout of gallons you buy. So if your trip is 1000 miles you will be paid 340.00 for your fuel. That 1000 mile trip would cost you at 6MPG apprx 558.00 in fuel so your cost is only 218.00

Thanks for explaining this to me. Been out here awhile, but a company driver - the vast majority of us dont try to figure these things out. But I am looking at buying my first truck in January, so I have been trying to learn the business side for several months now - catching on - jsut taking some time. Thanks for the chat it sure helps.

 

OK you want a newer truck I assume? Within 2-3 years?

In todays climate, I'd advise against a "wind catcher" truck. But wanting to run 60-62 mph is a definite PLUS.

Try to find a truck with a direct drive transmission, and 2.64 gears. It's actually geared the same as that truck with 3.55 gears, because the gears in the tranny are different. Kevin talks about this a lot.

Just a FYI, most parts "under" the truck are the same things. It's the cab that makes the truck.

If you really want a 2005 truck or so, try to find an aero truck with that cummins engine(say 450-500 hp), 2.64 gears with direct drive tranny, 22.5 Low Profile tires. Try to get a shorter wheelbase so you can suck up that trailer to the back of the truck.
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Hey partner thanks for the info. I am approved for a W900L, or I can also get into a T2000, same year - newer if I want - just dont want the payment. I have been negotiating this, especially with the "new and in the eyes of congress - improved feul prices"(yes, I am being very sarcastic here). I'll call Kenworth up and ask them if they have these specs in a used -if not, I am sure some dealer in this country has one. I do appreciate the advice.

 

Your cousin is misinterpreting whatever information he's getting. Neither the Hook, nor anyone else for that matter, is getting fuel at wholesale or any other level for $.16/gallon :roll:

Just because Fedex contractors are paying $1.25/gallon does not mean that is the cost. Fedex is simply subsidizing the fuel to its contractors. I don't believe they get a FSC, so that works out to about the same as any other big company contractor is paying.

Fuel margins are thin on the retail side...pennies on the gallon. If anybody was getting wholesale prices for the numbers you guys are throwing around truckstops would be making a killing on their fuel sales. Taken a look at the financials of any fuel retailer lately? It ain't happening.

 

Large companies also engage in Futures trading. Also known as Commodity trading. Basically, you lock in the price of a Commodity, like fuel, at todays price for future delivery. The idea is that you lock into a price today that's cheaper then it will be in the future.

You might ask who would be on the other end of the deal. There are people that think you will be wrong and are betting against you. Someone wins and someone loses.

 

Your cousin is misinterpreting whatever information he's getting. Neither the Hook, nor anyone else for that matter, is getting fuel at wholesale or any other level for $.16/gallon

Just because Fedex contractors are paying $1.25/gallon does not mean that is the cost. Fedex is simply subsidizing the fuel to its contractors. I don't believe they get a FSC, so that works out to about the same as any other big company contractor is paying.

Fuel margins are thin on the retail side...pennies on the gallon. If anybody was getting wholesale prices for the numbers you guys are throwing around truckstops would be making a killing on their fuel sales. Taken a look at the financials of any fuel retailer lately? It ain't happening.

well, just going off what I saw on the flying hook's computer. He's a night driver and is responsible for his own dispatches. He has several providers which he can purchase feul from at the rack. He has to buy the one with the cheapest price every night, which varies form night to night. As of last Friday, when I looked on his computer the cheapest supplier was 0.164 per gallon - displayed right there on his computer - so you believe whatever fallisy you want - I believe what I saw on the screen. Also, remeber flying J isn not jsut a truck stop, they have their own refineries, for feul and crude oil, etc. they are a lot more of a diversified corporation than just feul and truck stops. So .16 per gallon, plus .60 per gallon tax, plus transportation costs, plus what they charge equals $3.34 per gallon - welcome to free trade.

 

That computer is probably reflecting some sort of cost-plus pricing or pricing on the margin, which is all the information necessary to determine the best value but doesn't provide the unit price.

Last quarter, TA made $.08 off every gallon sold at a price of $2.60. We'll use your $.60/gallon tax figure. If it costs $3/mile to transport 45,000 gallons 500 miles the transportation cost is $.033/gallon. Any pipeline charges are included in the wholesale price. So, $2.60-.08-.60-.033= $1.887

Incidentally, that's lower than the average wholesale price of $2.12/gallon but is most likely explained by bulk discounts, hedging, and long-term contracts.

Flying J certainly has a cost advantage over TA, but they give much of that back in terms of lower retail pricing and the balance certainly doesn't add up to $1.723 (1.887-.164).

As for believing FALLACIES, I tend to believe those things I understand well...economics happens to be one of them. But I'm always keen for a lesson on the free market :lol:

 

Sorry, that was rude...but these truckstop rumors really get old :roll:

 

Yeah sometimes I think people misinterpet gas stations from oil companies,gas stations make their money on convience store sales and not gasoline,oil companies are the ones who are making the money off the gas/oil.

I've heard it's like 3-4cpg profit for station owners.