69% of load
 

I am a company driver doing reefer. If I go owner operator with my current company, they pay 69% of the load with 100% fuel surcharge. My question is, Is this a high enough percentage to stay afloat and show a profit? Yes I know there has to be certain minimums as far as miles per week driven and truck payment and maintenance and so on. Landstar pays 64%, Schneider pays 65%, on up to 80% with Gulick or Interstate, once in a while even higher percentages depending on the company. I know I am not being very specific on numbers, I am just asking a general question at this point in time. I would like to be an o/o but only if I like what I hear, from my employer, from this forum, and anyone else.

While the percentage is importent but it's NOT everything. I'd much rather have 50% of say $10,000 than to get 70% of $6500.
Who can keep you AND provide good paying loads?

i get 70% and 100% fsc, pulling rail containers. i must say i am quite comfterable. i get $250 to go 54 miles... a few weeks ago i went to nj from harrisburg got $633 to go maybe 150 miles. what i say is.. you make it sometimes... sometimes you dont. no companywill show you what they're getting for it so you dont know if you are really getting the % they say you are

It depends on the rate. If the rate is high enough the money could be good. Do you furnish your own trailer or use the company's?

It is 69% with company trailer, 80% with my own trailer. I have not asked my company yet what the rates generally range. If I do o/o I would use company trailer. If the lowest rates were $1.50 and the highest were $2.20 would that be viable?

Well, if that's equal amount of both, your average cut would be 1.27 a mile. Plus let's say a $0.50 fuel surcharge, 1.77 loaded "book" mile. Which probably will translate to around $1.5-60 per all hub miles run. Which is depending on a whole deal could range from a livable, to not too bad.....

Who pays for the reefer fuel? That may sound trivial, but it will add up to thousands per year. I would assume they pay for trailer maintenance, right?

I noticed you mentioned Interstate… I assume you mean Interstate Distributor Company (IDC) out of Tacoma. They pay 80% with their trailers if you have your own authority. Also, they, and I imagine all the big companies will tell you that you will be dispatched just like any of their company drivers… alleging that you will have the same random chance at good and bad paying freight as their own trucks do. THAT IS A LIE, and you should beware of those companies, especially IDC. IDC and those other companies I imagine, have several categories of freight. YOUR freight will come from their general, low-paying freight pool and even cheap broker freight. Meanwhile, they have stuff that pays literally 300% better that they term “dedicated” that you will never have an opportunity to pull. I know this for a fact because I’ve been there. Not to mention that IDC went nearly NINE MONTHS owing me almost $35k.

Am I just a little bit bitter and vindictive? Hell yes!

Very good points here. For example, I get 55%. I'll take it over the higher precentages :) Musicman is correct on competition between contractor and company trucks.

The disadvantage in running for percentage is being a bit more difficult to track what the company is doing to you. You start off just fine, but as time goes on, the overall average of the loads starts to drop. Their excuse, "Freight is down". But if you see other guys buying new trucks with high monthly payments, and you are just able to hold your own, the company may be "playing with the rates". I know of one company that does that to some drivers, while others have no trouble making monthly payments of over $2,000/month on a new truck. They have to be a bit more blatant if you're running by the mile.

Good companies will make the original freight bills available for you to see, at LS you can see all load documents on line whenever you want. The law requires percentage companies to provide you copies of original freight bills, but some make it difficult or treat you bad if you even ask.