:shock: :shock:

 

I know, seems a little high. This is the cost I use in quoting rates, it differs from the actual cost in that it's forward-looking. Many of the figures are based on last year's number, some of which will be lower this year. But I never lower cost figures from one year to the next. I increase them if need be or leave them the same, even if they might decrease.

Also, after the first two years of owning equipment (new when purchased) I start using replacement costs rather than my actual cost. So this year, my equipment costs are based on $150,000 tractor and $75,000 trailer. This way my rates are always keeping up with increases in equipment prices (which has been significant the last few years). The alternative is to work with a flat equipment cost for several years and then try to push through a large increase when it comes time to buy new equipment. I prefer to keep costs as current as possible.

If it makes you happier :wink: Our costs for 2007, not including driver pay, ROI, or depreciation, were $.91/mile on 91,000 miles.

 

Our costs for 2007, not including driver pay, ROI, or depreciation, were $.91/mile on 91,000 miles.

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.91cpm pulling a reefer? Can you break this down?

 

Sure, but I'm going to consolidate some of the categories...I've got them broken into minutiae :lol: I'm also going to round.

Tractor fuel 42897
Reefer fuel 1855 (lots of dry and dh last year)
Insurance 7829
Tractor repair & Maint. 7931
Trailer repair & Maint. 7123 ('98, when one thing needs fixing, I tend to fix a bunch of stuff)
Plates, permits, taxes 5407
Phone, fax, internet 2000
Misc. 2333 (drug screens, physicals, postage, loadboards, and anything else without a category)
Hotels 1511
Load expenses 1068 (pallets, lumpers, etc.)
Banking and finance 1265
Washes 1143
Prepass, tolls, scales 393

Tires are included in maintenance.

 

I've posted this site in another post recently, it gives a pretty clear picture what the average cost perm mile is if you are a true trucking co.

http://www.freightrateindex.com/inde...s/page0008.htm

The US Freight Rate Index:



The US Freight Rate Index is a comprehensive Cost Per Mile (CPM) indicator that is based on fact. Comprised of 8 main and 65 total cost and cost influencing components, it considers completely, every cost related to freight transport by land. Each component is from the factual source and apportioned per mile, or is a calculated derivative of the actual cost.

The Freight Rate Index or “Cost Per Mile” (CPM) indicator standard equipment model configuration is a full loaded 48 foot trailer with a standard long-haul semi-tractor power unit. This general configuration complies with the laws of, and is usable in, any jurisdiction, and therefore is an average which closely represents the cost of most equipment configurations.

The US Freight Rate Index information presented herein, represents the cost and potential profit for the standard equipment model configuration to travel 1 mile, and is reflected in USD$, or portion thereof.

 

I wonder how many miles that index is using for a base to get that number?
Also, if you look at the graph below it goes from 2.39 in Jan to 2.26 in Feb and than back up to 2.32 in March, why such a large swing? Fuel has been increasing since Jan.
I wish they had more information explaining these figures.

 

lol....YUP!


I'm on a 2600 mile for Landstar at the moment. Pretty good rate and a light load.

 

I'd be curious as to where those numbers come from. Based on those, most big carriers wouldn't have turned a profit in years. Van is the most common mode. When was the last time you saw a 48' van?

 

Most mega carriers' profit margins are extremely thin. They make up for this by having thousands of trucks. If a mega carrier with 2000 trucks makes $0.10 per mile profit off of each truck, multiply that times 2000 trucks, and they are making $200 per mile. Multiply that times 120,000 miles a year for each truck, and they just made $24,000,000 profit off of their $0.10 per mile.