Let's take those figures a little further. We will say you have a small fleet owner with 4 trucks. All 4 of those trucks run 2000 miles a week for 1.25 plus fuel. The drivers pay the fuel so they owner gets 40%. That is $4000 per week to the owner. Let's say, the trucks run on average 3 weeks out, one week off. So that's $12000 per month. Now let's also say all 4 trucks have a payment of $1500 a month. That takes an owners profit to $6000 per month. Now let's add in things such as insurance. We will use $300 a month per truck. Could be lower, could be higher depending on who they use. Now the profit is down to $4800 a month. We will also say that standard maintenance, not including any major issues is $150 a month per truck, averaging out the cost of PM's and tires and such throughout the course of the year. Now to owners profit is down to $4200 a month. That still isn't absolutely horrible. But it isn't good. Now let's also so one of the trucks out of warranty, needs an inframe . We will say that is going to be $16000. That is 4 months worth of profit from all of the trucks in order to pay for it. The amount of debt vs the amount of income on a flate rate program is not profitable.
I truly feel this means that maintence will be put off until it becomes a necessity, that equipment will become run down, violations will increase, safety scores will plumit, quality of drivers will decrease. Who wants to work for sub par rates? Those who are in desperate need of money. I think it will do more harm than good. The quality of service will drop, the standards will be set lower, and the "white glove service and purple promise" that was considered standard will disappear and Fedex will just become another name in a shippers book.
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