Quote:
Originally Posted by coolbreeze
So your saying load boards alone, you can not succeed? If the truck is kept moving 4,5,6 days a week then why not? Could you explain in more detail?
It isn't about keeping the truck moving. It's about moving the truck for a rate that justifies it, and most loads off a load board do not justify it (on a regular basis)
First, let's take a load off a load board. The shipper is paying $1.22 per mile, plus $0.26 FSC. The broker is going to take a 35% cut of the per mile rate, dropping it down to $0.90 per mile.
Based upon 3500 miles per week
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FUEL @ $3.00 PER GALLON x 6 MPG = $0.50 PER MILE
TRUCK PAYMENT OF $1500 PER MONTH = $0.11 PER MILE
INSURANCE = $0.095 CPM
TRAILER PAYMENT OF $500 PER MONTH = $0.036 CPM
PLATES, 2290, IFTA, ETC. = $0.012 CPM
DRIVER WAGE = $0.40 CPM
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TOTAL COST PER MILE = $1.153 CPM
I can run 7 days a week at $0.90 per mile, plus $0.26 per mile FSC, running 500 miles per day, and earn $3,150 for the week, and earn $4060 per week, and have expenses of $4035.50 per week, giving my business a net profit of $24.50 per week.
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OR, how about this? Let's take that 35% that the broker from the load board is going to take off the top, and haul it directly for the shipper.
Based upon 2500 miles per week
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FUEL @ $3.00 PER GALLON x 6 MPG = $0.50 PER MILE
TRUCK PAYMENT OF $1500 PER MONTH = $0.15 CPM
INSURANCE ($16,000 per year)= $0.13 CPM
TRAILER PAYMENT OF $500 PER MONTH = $0.05 CPM
PLATES, 2290, IFTA, ETC. = $0.017 CPM
DRIVER WAGE = $0.56 PER MILE
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TOTAL COST PER MILE = $1.407 PER MILE
I can run 5 days a week @ $1.22 per mile, plus $0.26 FSC, covering the same 500 miles per day, and earn $3700. My expenses will run me $3517.50, giving me a net profit of $182.50 for the week.
And yes, I know I did not include maintainance or repairs in either scenario, even though they would have been higher for the first one. Consider that one a free pass. :wink:
99.9% of the time, you will get a better rate by working OUTSIDE of a load board. Why give a middleman a cut, if it is possible to go directly to the source (the shipper)?
I'm not completely dissing load boards - they can be a godsend in a pinch. But when you are constantly giving what amounts to
ONE THIRD of your income away to a broker, then it just doesn't make sense.
Run smarter, not harder.