A. Blair

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skyraider

Veteran Expediter
US Navy
A friend of mine runs for Blair, he is paid 65 cents a mile and has been running hard , out to Laredo and El Paso alot. He is worn out, but likes it, he n I own our cargo van, but i DRIVE for a Mom and Pop service,,,my pay is 85 cents a mile all the time and Im getting decent miles in this economy. IM in a dodge b350 15.5 mpg, so I have to watch all dead head stuff..
 

Tom Robertson

Veteran Expediter
This is an attempt to set the record straight on some of the postings to this thread.

To Blue Dragon
First of all, Dave is not married to one of my daughters, and is not the “head dispatcher”. Secondly, if you were offered 70cpm, it was probably because of a glut of trucks in a particular area and we saw an opportunity to get one load at a reduced price with ample time to build a reasonable paying load for you. If you opted to leave prior to our acquiring additional freight you did so knowing you would be accepting the lower rate.
We did not then, nor in the first quarter of this year offer rates to our drivers at less than a buck a mile, without FIRST approaching the driver for acceptance. Advances cost money because it takes time and book-keeping efforts to coordinate pay. Sorry it did not work out for you, but your take on our operations is skewed and inaccurate. Grudges against drivers are unproductive and not profitable for either party. If we have problems with a driver or O/O we simply agree to disagree and part company. I am glad you are doing well with the cat.

To all others…
If you cannot turn a profit on your straight truck at $1 per mile, then you probably do not know how to accurately compute your costs per mile… OR you may have limited your ability to handle the maximum amount of freight for your size vehicle, and or you may spend more on repairs than you do on preventative maintenance. Over the past 25 years I have owned dozens of trucks and I know what your costs are. The question is… do you?

Can you double stack 52” skids in your box? Can you handle skids at 49” side by side?
Did you buy an underpowered import with a 96” condo thinking you were getting a 22’ box only to measure much too late and find that your 22’ box is actually 19.5 feet? Are you getting less than 10 mpgs on this great purchase? Do you drive a motor-home with a 12’ box? Do you carry spare serpentine or fan belts and fuel filters in your truck, or do you call a tow truck? The question is “Are you managing your business or is your business managing you?”

The same guidelines hold true for vans and Sprinters. You should be profitable at 65 cpm. Did you pay the dealer too much? Did you buy a sprinter with one of those wonderful interior cabins? I’m sure it is very comfortable, but you are failing to maximize your load carrying capabilities. Have you installed insulation in your van that limits your maximum load to less than 48” in height? Do your personal items consume valuable floor space?

MOST vehicles can and will provide you a minimum of 500,000 miles of service, before repairs begin to exceed replacement costs. For many of you, that mileage will translate into 5 or more years of service. Whatever the period of time, your cost per mile will remain relatively constant. Your greatest variable in this cost is fuel expense. Show me a straight truck that looses money at a dollar a mile and I will show you why. You paid too much, you equipped it incorrectly, your insurance costs are too high, you spend too much on the road, and/or you don’t have a preventative maintenance program. The list of reason is much longer than these few items.

The first quarter of 2009 for our industry was brutal. Many companies reduced their acceptable charges to the point of no return. Some of those companies cheated their drivers and other reputable expedited companies out of hundreds of thousands of dollars by simply refusing to pay those who did the work for them. I can name five well known companies in our industry who owe my company and sadly many drivers thousands of dollars. Whether this was done in an effort to survive or simply to scam us is unknown. Four of the five are still in business today, and continue to be “slow” or “no pay”.

We took a different approach at survival. We set a minimum acceptable rate that would allow us to continue in business, reduced our office staff while increasing the hours for the remaining, pared unnecessary expenses, asked our drivers to accept less and NEVER in 25 years have we cheated a driver out of miles or pay.

The second quarter of 2009 began the “turning of the worm”. While our ability to charge more per mile did not improve, our load opportunities increased and we were able to dramatically increase our average miles per driver per week. Again, understand that our drivers continued to haul for a buck a mile, and that we NEVER asked our drivers to accept less than a buck without their consent. Once the driver accepted our offer to wait for additional freight, they were paid a buck per mile EVEN if additional freight was not acquired. YES… we took losses in those gambles, but our drivers did not.

Two thirds of the way through the third quarter we are now seeing some daylight. We have acquired a couple of new accounts. We believe we are seeing a trend toward increasing rates and as a result have begun paying FSC’s once again. Our FSC’s for straight trucks will vary based on our ability to attain higher rates. The sliding scale moves up to 20cpm for straights and 15cpm for Sprinters and vans. Couple this increase with our continued bonus for additional freight when and where the opportunities are presented and our straights CAN make up to 1.60 per mile.

I am not predicting a full economic recovery, and I cannot make any statements for any other carrier regarding increasing rates. I believe that certain expedited carriers habits have been noticed by certain shippers. I believe that they are no longer able to influence the market as they once did, and hope they never have that opportunity again. I believe the truck to shipment ratio is improving. I also believe that the increased revenue per mile will continue, or I would not have reinstated our FSC program.

Our drivers have an average of more than 7 years in the expedited industry. Most of our owner operators know their costs, and all of them are operating at a profit…some in spite of their own bad business practices. We have had O/O’s who have not made a go of it with our company, and for the most part it was because of their lack of experience and/or bad business decisions. Our starts up costs are minimal. Our weekly deductions are fractional. Our deadhead miles are less. We pay on time every time. We have never cheated anyone out of mileage or pay in any way.

Xiggi...
“It isn't that simple. Compared to the cat my paid miles have doubled and my deadhead miles are down by 70%. I set empty less, have paid for no showers out of pocket, and been able to give several to othet drivers, I have even spent less on drinks from earning free ones. Deductions from the company are lower too.

Just because a company pays more per loaded mile does not mean your net will be higher.”

OntarioVanMan
“But is he making money...that is the magic question ”

The answer to the magic question is … ABSOLUTELY! And now more pm!

FACTS…
It is Sunday morning and every truck in our fleet has been loaded over the weekend.
Our teams are averaging over 4000 miles a week. Our solos are maxed out most every week. We have Sprinters that are averaging over 3000 miles a week and we could load three times the number of trucks we have in our fleet. And yes, we are signing on additional straight trucks, Sprinters and cargo vans with a minimum of two years experience. Refer to our ads for owner ops on Expediters Online for contact information and applications.

I do not intend to answer questions or accusations in this forum but felt that this thread needed clarification.
 

OntarioVanMan

Retired Expediter
Owner/Operator
I can be profitable at 50 cpm. I can also eat a plate of liver, but I don't want to.

I' am leaning in Moots direction on that point..My sprinter is paid for now I could run for less per mile as my CPM is quite low...the question is Why would I?
I worked hard to get to this point and why would I give it away and depreciate the industry as a whole...It is time to reap the rewards of my hard work..not give it to a carrier or some cheap azz shipper...

I could outbid Moot and do that 50 cent run for .45 and make money...but you know where would freeze over before I would..
 

Oilerman1957

Expert Expediter
I signed on with A.Blair 2 weeks ago, had my best 2 weeks since i have been expediting. They got me out of every city i was in in less then 24 hrs and most times within 12 hrs or so of drop. Most loads were over 500 miles with some at 1000 miles and 1 at 1600 miles. My fuel cost dropped over 10%. I even wanted to get home for this weekend and they got me a load out of chicago to within 30 miles of my house. So far so good. Would i like to make more per mile? sure, always. Last company i worked for paid me an average of 85-90 cents per mile, but if i only get 800 miles a week want good is it. All in All im making more money with Blair including all my expenses
 
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OntarioVanMan

Retired Expediter
Owner/Operator
I signed on with A.Blair 2 weeks ago, had my best 2 weeks since i have been expediting. They got me out of every city i was in in less then 24 hrs and most times within 14 hrs or so of drop. Mostly loads were over 500 miles with some at 1000 miles and 1 at 1600 miles. My fuel cost dropped over 10%. I even wanted to get home for this weekend and they got me a load out of chicago to within 30 miles of my house. So far so good. Would i like to make more per mile? sure, always. Last company i worked for paid me an average of 85-90 cents per mile, but if i only get 800 miles a week want good is it. All in All im making more money with Blair including all my expenses

No ones knocking Blair...I am sure not...

In this biz no one driver/owner needs are the same...That is why at least one reason people move around..to find the right mix so to speak...
In all my years I've not met one other that their needs, wants, desires for what they expect from this business being the same...as mine.
The only sameness?
Bottom line...to make a living...
and even that is of a different expectation.
We all have our path of least resistance...and that path can be quite different from each other...
 

davekc

Senior Moderator
Staff member
Fleet Owner
I think that is the issue. What does it REALLY take to run your truck? That CPM is everything. From my perspective, we couldn't consistently operate at $1.00 a mile. For a straight truck. More miles also can mean higher operating costs. Fuel of course being the largest.
For a fleet owner operating at a dollar, .25 to .30 cents just goes for fuel leaving .70 per mile assuming 10 MPG. For me, that is moving at cost, not really a realized profit.
If it is done on volume, say 4k per week @ 48 weeks and zero deadhead, that truck will have 576k on the odometer after three short years. The balance left makes it a tough one. On five, you are a hair under a mil and changing trucks at a must faster clip.
Got to watch the ROI. Oops. Have to be careful on that one.
Lot of different ways to look at it.
 

Tennesseahawk

Veteran Expediter
Dave makes a good point. Trucks that are running at 1.00/mi are not usually getting taken care of. That preventive maint. and repair money has to come from somewhere. And if it's competing with household bills, the truck will come up short.

Granted, the trucks with 500,000 on them are less than half the price they were 5 years ago; but chances are they weren't taken care of either, before they were put up for sale. What you have is what many in OTR dealt with... running for your truck, while eating Pilot hot dogs or bologna sandwiches. That's no life.

One other thing... all those 2000 and 2001 trucks will soon not be allowed by the NLM customers; yet, it's their demand for minuscule rates that keeps most o/os away from newer trucks. Some dilemma they'll have in the next couple years.
 

EdwinDavis

Seasoned Expediter
I went with A.Blair back in July of this year. I love working for them thet are straight up with me on everything.No lieing here with them. I have worked with several other companys in the past. And some of them do not know how to tell the truth. Tom,Steve,Shawn,and Dave are very good people to work with. B unit #63009
 

OntarioVanMan

Retired Expediter
Owner/Operator
Dave, Hawk, Moot...all make valid points...ok I get my CPM in order, do all the right things....eat PBJ sandwiches so I can run cheaper? No No No....there has to be a line in the sand....
 

Moot

Veteran Expediter
Owner/Operator
Dave makes a good point. Trucks that are running at 1.00/mi are not usually getting taken care of. That preventive maint. and repair money has to come from somewhere. And if it's competing with household bills, the truck will come up short.

Another point to consider is if any money is being put away for a down payment on the next truck.

I'm not slamming A. Blair. 65 cpm cargo van rates and liver are personal things with me. Both leave a bad taste in my mouth. Even when smothered in onions and no QualComm fees.
 

Tennesseahawk

Veteran Expediter
Another point to consider is if any money is being put away for a down payment on the next truck.

I'm not slamming A. Blair. 65 cpm cargo van rates and liver are personal things with me. Both leave a bad taste in my mouth. Even when smothered in onions and no QualComm fees.

I'll take the onions without the liver, and as little NLM as possible, thank you. :D

I find it interesting that a company owner can tell people how much they need to survive. Yes, with no extra costs, it can be done. But I figured that an owner paying a team 40% (which is .40 at 1.00/mi), fuel being another 40% (counting dh), that leaves the owner with 20% to make payments, insurance, maintenance, repairs, and make a small profit - it ain't gonna happen... not at 20 cents. It can't be done with a newer truck, and payments around the $2000 mark. And it can't be done if your truck is older, and is starting to nickel and dime you to death.

We can always put the shoe on the other foot, and have a company owner tell us how much he's bidding on freight; then tell him where he can cut costs... either in the office or at home. Maybe it's too bad his wife wants the kitchen remodeled, or he wants that new boat...

But what it comes down to, always, are the drivers who say, "OK", when told that freight is going for 1.00 (or .65 for vans). They screw it up for the industry. Then when things pick up, like now, the drivers will never know when the rates really pick up, cause they're too used to having their tails between their legs enough to call their company out on it.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Another point to consider is if any money is being put away for a down payment on the next truck.

I'm not slamming A. Blair. 65 cpm cargo van rates and liver are personal things with me. Both leave a bad taste in my mouth. Even when smothered in onions and no QualComm fees.

The QC would be negligible. The difference in rates from a buck a mile to 1.20 to 1.30 a mile or whatever takes that off the table. At 140 month, that thing is paid for just in the rate difference of one load at 700 miles. Not even counting a FSC in that comparison.
 

OntarioVanMan

Retired Expediter
Owner/Operator
the chances of doubling up on a CV or sprinter is almost nil....
maybe a straight yes...

.65 just doesn't cut it....there is no buffer zone...:mad:
 

guido4475

Not a Member
I had a good week,a real good week, with alot of miles, this last week, making 75.4 cpm for all miles, empty and loaded in a van.This shows how important good loaded per mile rates are to the bottom line.
 

Moot

Veteran Expediter
Owner/Operator
Yea, liver is about the only food I dislike. The last time I had it was about 30 years ago. It was cooked with onions and bacon which I like, but underneath all of that it was still liver.
 
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