85 cents for all miles

whitewolfteam04 · Jan 21, 2006

Opinions needed! I have an opportunity to run my straight truck for 85 cpm.But wait before ya'll hollar!This is a dedicated run out of texas to the neighboring states,it actually pays 1.70 per mile loaded,but coming back is my nickel,therefore its 85 cpm for all miles.Trips are about 500-700 miles out and back for next load.No laying over at truckstops waiting for next load,3 runs a week,off weekends,off 1 day a week.This is a team operation.I will need my own authority,ins,etc.No deadhead to any other destination to p/u a load,always same load p/u point.Any critique or suggestions will be appreciated!thanks

Tennesseahawk · Jan 21, 2006

Well, if you're looking at your own authority, count on spending in the range of $10,000/yr for insurance, for starters.

That's not a bad gig if you can find something for the return trip. Depending on where the load drops, that may be the reason you got it in the first place. If you're going to Phoenix, or somewhere there bouts, you'll have a hard time finding expedited, or LTL for that matter, back to your origin.

When you're used to companies paying $1.25 for a loaded mile, $1.70 sounds awful nice. But the fact is, $1.70 is a little below average. The ONLY way you'll come out in the black, is if you can consistantly get backhauls.

Let me know origin and destination, and I'll do some homework for you.

Broompilot · Jan 21, 2006

Does sound good, until you do the math please do it and post the #s for us to see. What I see as not being able to make this profitable is the TEAM I see no way you can share a dime of that to pull a profit.

Do not factor in finding a return load as if time is an issue (3) times a week your gona have to run to get back for the next one. Sounds like the guys pulling the FEMA house trailers. Good luck hope I am wrong for your pocket.

LDB · Jan 21, 2006

I can only offer my opinion as to what I would do and I wouldn't look twice at this unless I had a guaranteed return load with the time available to make it. I don't know what your expenses are but I can't see any profit in an 85cpm operation, especially when talking about a team situation. You said 500-700 miles and you said dedicated run. To me a dedicated run is exactly xxx miles every time not a range of miles which suggests a single shipper with multiple consignees.

You said off weekends and off 1 day a week and 3 runs a week. To do that I presume it's something like you load at 0600 Monday and go straight to delivery unloading around 2200 Monday. Driver 2 makes the return drive and you load at maybe 1200 Tuesday repeating the process. That would put you back from the last run sometime Thursday evening, finished until the following Monday.

The only way I would personally take this gig would be if I could find something coming back at least twice a week for at least $1.20 per mile. Using 600 miles (the midpoint in your 500-700 estimate) as the average that would be 3 runs 600*$1.70=$3060 and you'll run 3600 miles for that. If we can add 600*$1.2*2 that's another $1440 for a total of $4500 for 3600 miles or $1.25 for all miles, not fantastic but not horrible. If the return load runs all 3 times that's even better producing 600*$1.2*3 or $2160 for $5220 total or $1.45 all miles. At that rate you may be able to pay a codriver and all the other expenses of your own authority and do well but at 85cpm I see no way it's a good deal.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator 1+ Years of Service
-----
Support the entire Constitution, not just the parts you like.

teacel · Jan 21, 2006

Turn and walk away!

I pay my vans more and I have the authority. Who ever this person is giving or offering this knows it won't pay you to do it.

May I suggest finding a company in that area who is willing to take the route and hire you on as the driver doing it.

Let him incorporate the insurance into his daily percentages and let him make 2 or 3 present for doing the billing.

If you have to set up and get your authority, you will also have to keep accurate records and pass a 6 to 8 hour DOT safety inspection. Are you going to run all in state runs, or are you going into other states as well? If so you need a single state authority and safety inspection, then a fed authority. Insurance, a processor, filings and much more will be needed to do this one daily route. For you to set yourself up to do this one route is a bankruptcy waiting to happen.

As I started the post with,
Walk away, if you trust what is being told, if not HEY!!! Go for it!

davekc · Jan 21, 2006

Most Texas loads that are even hotshot are $2.00 to $2.50 per mile one way.
I can't see that working on .85 cents.
As mentioned, all of the costs will eat you up at that rate.

Davekc
owner
21 years
PantherII
EO moderator

whitewolfteam04 · Jan 22, 2006

My wife and i will be teaming on the runs,destination is new orleans ,551 miles 1 way at 1.70 per mile.The road cost will be dramitically low --no idling at truckstops-no clothes washing-no big food bill while on the road for weeks like we do now-no deadhead chasing loads-Load out on mon 1800 arrive back in dallas 1800 tues arrive back in dallas 1800 wed,off till thurs 1800 back in dallas 1800 fri nite,off until mon 1800.There is the back to back mon and tues,551 mi.at 60 mph is about 9.5 hrs give or take,for 1 way.The run could be done faster than the 12 hrs i'm alloting for the trips.I'm trying to think "low running cost" as mentioned above will make the 85cpm for all miles a doable thing.Thank you guys for your imput ,please give me more! My wife and i run the 48's and canada and this opportunity looks appealing,it may not be doable,however we are giving it serioys thought.

LDB · Jan 22, 2006

Ok, we've got 551 miles at $1.70 for $936.70 to the truck. You've got an 1102 mile round trip 3 times a week for 3306 miles. You've got extra miles from wherever the shipper is to home, at least one round trip per week and you've got a few extra miles for fuel stops etc. so lets say you are going to run 3400 miles a week for $2810 or 82.65cpm. Let's say you get 10mpg so you'll burn 340 gallons of fuel a week at $2.499 for $849.66 leaving $1960. You said you have to have your own authority and insurance so that's another $300 a week leaving $1660. You've got another $300 a week in maintenance and repairs plus $20 a week toward tires. Truck payment of $300 a week, and if the truck is paid for then you should have a $300 a week "truck payment" into a money market account toward the replacement truck that you must buy eventually. That's another $620 leaving in round numbers $1000 a week. You've got apportioned tags, inspections, accounting, and other expenses for say $100 a week leaving $900. Now and then you'll have to wash the truck and there are other miscellaneous expenses and maybe a big expense I haven't thought of since I don't have my spreadsheet handy to refer to. It sounds like you are looking at running about 3400 miles a week to put about $800 into your pocket. Those are just not exciting numbers. You also have to consider when the cost of fuel goes to $3 a gallon again, and it will, that's another $170 a week out of your pocket. It also sounds like your mind was made up to do this before you ever posted asking for opinions. Good luck to you whatever was you go with it.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator 1+ Years of Service
-----
Support the entire Constitution, not just the parts you like.

raceman · Jan 22, 2006

Oh My God! Run as fast as you can. No way do you want to touch this. He or she is taking you for a fool. If you do this under his authority and get a load back each time you would make a killing. Do what you describe, well you are headed for a new job and the poor house.

I got a dedicated run about a year ago and I was lucky enough to get it and be paid by the hour for the truck and me and a good percentage of fuel.

I use thier authority and therefore they pay the insurance and keep the records and the trip is a loop. I end up right back were I start.

You do what you want but if you take this as you describe it, YOU are a FOOL.

There must be a little more to this story. If so you may be able to negotiate and get it to a point where it is a great deal.

Good Luck

Raceman
OTR O/O

Tennesseahawk · Jan 22, 2006

That's the whole thing, Race... IF he can get a return load. My guess is, he only has a couple hours to look for one. And if he drops in the boonies, he's stuck deadheading.

If it were just the load you'd be concidering, you'd make money. If you tacked fsc onto it, you'd be in a better boat. But for you to pay for insurance and get your authority, you won't make it. Plain and simple.

Broompilot · Jan 22, 2006

After driving and thinking about this last night Dave Hawk Race are all correct.

The shipper is looking for a fool, he is obviously trying to cut corners for a while avoid paying an Expediter Co. or cheaper yet an LTL so hey I can offer a carrot and see if I can get a bite and pocket the difference of .40 a mile until this driver discovers he is actually broke.

Then again do the numbers, post them, lets see what you come up with.

kwexpress · Feb 5, 2006

KW Express
o/o till i die

Buy an e-unit

and look for more ltl to LA ltl to LA from texas will pay good cause its hard to get out of
so you can find a couple more ltl to baton rouge for 600 each
and then you can get the rate up closer to $3.00 for the trip out to LA

then for an e-unit
there is 2-8 loads a week out of pineville,la going to waco tx.

they want a bid before 02/08

you can make this work if you find a dedicated back to tx so you dont have to spend time everyday looking for your backhaul.

the lane is posted on getloaded.com just do a radius search for lanes out of your drop point.

I can usally get a better rate going to TX than out so keep that in mind when bidding.

wahoofan · Feb 14, 2006

DUH!!!!! .85cpm hmm what a deal!! LOL

:* :+

:'(

}>

Florida Express · Feb 15, 2006

RE: 85 cents for all miles you HAVE to be kiddin'

Yup, you sure can believe that shippers are puckered up tight when it comes to freight rates. Takes between $1.50 to $2.50 /mile to operate nowadays.

Mike

terryandrene · Feb 15, 2006

Leo mentioned repairs, so now I'm wondering when repairs will get accomplished and the financial impact of overnight repairs while on the road. Will the shipper impose a penalt for late or non-performance? Does the contract holder or shipper have a back-up truck and driver?

Every one of us, including whitewolfteam04, has had breakdowns, so this is surely something WWT04 must have considered. What say you WWT?

Terry

whitewolfteam04 · Feb 15, 2006

The 1.70 per mile loaded is great,but with no backhaul it would be stupid to take thus offer!Yes,the dedicated part is very alluring and predictable/stable etc.But if the coins aint there then this driver doesnt care.This company has about 12-15 contractors running out of Texas,out and back out and back. I guess, with a breakdown they would shuffle drivers around.Anyway,the thought of taking this offer had left my mind days ago.Thanks for all of the ideas and comments.I was 80/20 against this offer to begin with,however, I really respect the "peoples" advice and comments from the expeditors online,you guys are most knowledgeable and watch out for each other,we are all in this together.I wanted to get the opinion of people that were more experienced and smarter than I in the ways of freight/trucks/truckstops/and flyin j buffet's.thanks again