1.20 /mile expedite freight

[astikhossw]

for a straight truck, for the past couple of months i having been getting a flood of this type freight, have missed something or is this going to be norm for expedited freight.And if you solo operators or running it how do you make a living with it.

 

[layoutshooter]

for a straight truck, for the past couple of months i having been getting a flood of this type freight, have missed something or is this going to be norm for expedited freight.And if you solo operators or running it how do you make a living with it.

Who do you run with? We could not make a living in this truck at $1.20 per mile. We would go broke and fast. We seldom take anything near that low. Some trucks could make a living at that under the right conditions.

 

[astikhossw]

THE fedex custom critical

 

[layoutshooter]

THE fedex custom critical

Are you solo? Team? White Glove? Surface? I don't know much about solo work and do few surface loads. Most of those loads don't even reach our break even point. We take them if they pay enough or will take a slightly lower pay to get us home or to a better area.

 

[astikhossw]

solo surface expedite.If there are any solo surface expedite or even other companies please chime in.Like i was in the elk groove il. center a couple of weeks ago and turn down at least 20 plus loads under 1.20 per mile.Are you guy's taking this freight.

 

[layoutshooter]

solo surface expedite.If there are any solo surface expedite or even other companies please chime in.Like i was in the elk groove il. center a couple of weeks ago and turn down at least 20 plus loads under 1.20 per mile.Are you guy's taking this freight.

Do you know your break even point for you truck? Do you have payments? Do you drive for an owner? If so, have you talked to him/her about what loads you should be taking?

 

[nightcreacher]

Sounds like he's getting LG offers,or some of the other highly discounted loads.I know most of the D truck owners say they can't do the $1.20 / mile freight,but guess what,ask one of those Forward Air teams what they are getting per mile in their tractor trailers.They wish they made that much.
I know there are many load opportunity's that won't even pay that $1.20 for surface E trucks

 

[Dakota]

That is what Ceva pays on all expedited loads.

 

[jjoerger]

We are a team running surface expedite for FedEx.
(I also run solo for a few weeks every couple of months so that my wife and I can have a break from each other.)
We see a lot of opps coming out at rates between $.70 and $1.20 all miles. We can not profitably run these loads.
I wonder too, does anyone take these discounted loads at those rates?

 

[greg334]

This is normal.

Back in 2006 I was getting these offers all the time. I guess with the new dispatch system that gets drivers to react, it was expected to see a large increase in these offers.

So with paid DH and paid relocation, what is the actual cost of these runs?

BEP?

What is the break even point for most of you?

60 cents a mile?

80 cents a mile?

I heard if it is over 90 cents a mile, then you need to find out what you need to cut out in your finances to bring that down.

I asked what does a van driver get per mile on average for this reason in another thread to invoke some thought. If someone working for say the Pumpkin company gets 32 cents a mile, then what should we be getting in a straight truck?

42 cents a mile?

I think some better get used to it because it is the way things are. Maybe the Fed will dump the percentage rate and go flat rate, it seems to have worked out for them with the vans.

 

[layoutshooter]

If they went to flat rates they would most likely need 2 to 4 "flat" rates. One rate for a surface truck with no lift gate pallet jacks etc. One for a non-temp controlled white glove truck, on for non-TVAL reefers and one for TVAL trucks. Higher rates for loads that cross into "E" truck weights when hauling loads that heavy. Our truck is a "D+" truck, we can legally scale up to 18,000lbs.

How do other flat rate companies work? Is it a flat rate plus the fuel surcharge or does the rate include that surcharge? What about hand load and unloads, do they pay above the flat rate?

 

[greg334]

One rate - say a $1.30 a mile.

If a lift gate is used, then there an additional 5 cents a mile.

If a reefer is used, then there is an additional 15 cents per mile.

If the load is over say 15k, then there is an additional 10 cents a mile.

All of these things cost to use in one respect or another.

The problem is FedEx has created this idea that because the truck has the equipment, it deserves more regardless what the load is. IF you never use the reefer, then you shouldn't be paid for it.

 

[layoutshooter]

One rate - say a $1.30 a mile.

If a lift gate is used, then there an additional 5 cents a mile.

If a reefer is used, then there is an additional 15 cents per mile.

If the load is over say 15k, then there is an additional 10 cents a mile.

All of these things cost to use in one respect or another.

The problem is FedEx has created this idea that because the truck has the equipment, it deserves more regardless what the load is. IF you never use the reefer, then you shouldn't be paid for it.

At that rate I would be out of business in months. It costs me about $2000 to 3000 a year to remain a TVAL truck. That is taking all costs over several years into play. I put out that money if I run TVAL loads or not. Those are expenses REQUIRED by FedEx.

I guess, since I have all this stuff, I see it a bit different. My costs are higher, when I use the toys or are not using them. MUCH higher when you take TVAL into play. If I provide the equipment to FedEx, without it they could NOT offer the services, then I should be paid more to cover costs. Just how I look at it.

Does your $1.30 include the FSC? Is that ALL miles, just loaded miles?

 

[moose]

and turn down at least 20 plus loads .

Very good job right there .
Cheap freight is not industry wide ,
it is freight YOU cannot afford to haul under cretin conditions .
Just please remember : you can't buy food with Cents per mil ...

 

[jjoerger]

At that rate I would be out of business in months. It costs me about $2000 to 3000 a year to remain a TVAL truck. That is taking all costs over several years into play. I put out that money if I run TVAL loads or not. Those are expenses REQUIRED by FedEx.

I guess, since I have all this stuff, I see it a bit different. My costs are higher, when I use the toys or are not using them. MUCH higher when you take TVAL into play. If I provide the equipment to FedEx, without it they could NOT offer the services, then I should be paid more to cover costs. Just how I look at it.

Does your $1.30 include the FSC? Is that ALL miles, just loaded miles?

You failed to mention the initial start up costs of your TVAL truck. Those fully loaded trucks do not come cheap. Why would anyone spend the money for one if they were going to run at the same pay as a dry van?
When we were TVAL contract drivers for a fleet owner we had to run at a higher rate then we have to run now in our own dry van. We only paid 28k for our D unit (2006 Freightliner Columbia) and since we are keeping 100% of the income we can run for less and put more in our pocket. Our operating cost is around $.45 per mile. But we do not have a truck payment.

 

[layoutshooter]

Start up is much higher, you are correct. I forgot to put that in the post

 

[greg334]

Those are rates as examples.

Tval or no Tval, that's a company thing. If they require testing to maintain it, then they should pay for it. Direct pay or by providing you with the minimal amount of work to pay for it.

Base rate is loaded mile, not all miles and not including FSC.

The point is that many mismanage their business and don't get that in other parts of the industry, $1.20 is what many get and it isn't all that cheap.

But that $1.20 means people like jjoerger can turn a good profit because their BEP isn't high and that is what we all should be striving for, low BEP and flexibility - BUT not letting the company walk on us.

 

[nightcreacher]

E unit team,around 140000 miles a year:fixed costs:
insurance $1800 year
lisc. plates $1600 year
2290 tax $ 550
variable costs:
fuel @ 6mpg for 140000 would be 23000 gallons
$ 69000
service @ 15000 miles
$1800
washes $ 700
misc expenses $6000
co-driver $50000
sub total $131450
this is basic cost to operate your truck.I don't show a cost for truck payment,Qualcom,work accident insurance
and if you put 2 drivers in truck,or what you figure your pay would be
Just something to think about

 

[guido4475]

E unit team,around 140000 miles a year:fixed costs:
insurance $1800 year
lisc. plates $1600 year
2290 tax $ 550
variable costs:
fuel @ 6mpg for 140000 would be 23000 gallons
$ 69000
service @ 15000 miles
$1800
washes $ 700
misc expenses $6000
co-driver $50000
sub total $131450
this is basic cost to operate your truck.I don't show a cost for truck payment,Qualcom,work accident insurance
and if you put 2 drivers in truck,or what you figure your pay would be
Just something to think about

Those kind of numbers bring back some memories, that's for sure.I kinda like the van thing alot better now that I have been doing it for a year.

But a question I must ask, and please do not be offended by it, cause I have a bad habit of doing that to people unintentionally.

Is having a truck with all if that extra added equipment really worth it in the end? I mean, I had a truck with all of the latest technology and options (generator, rooftop a/c, shower and bathroom,sink,and anything else) and it always seemed like the more I had on it, the more time I was spending away from my Ex-Finance and home because of always having a repair or just maintenance downtime.I mean, does all of the extra stuff like a liftgate, reefer, etc really make that much more money in the end? Even with all the extra added costs and time involved maintaining it? Do you come out any further ahead than a regular straight truck? Just wondering, that's all.

Hope youre all having a great weekend, by the way.

 

[OntarioVanMan]

Even if not using all them toys there is still an expense to haul it around, all that extra weight...

Hey Greg wasn't it you that chided me for wanting to be paid for the extra 4 feet I have available? or was that a teaser? Now you say extras over and above should be charged for?