Curious -- have questions.

pamc · Dec 5, 2004

First I'd like to say that EO is a nice site.

At this point ... I am a looker. Curious about this industry. I love to drive, have a class B with endorsements, except hazmat. My experience is driving a bus. A self proclaimed busnut.

I deal with OTR truckers who deliver here at our business. We talk about $$$ and I often think, wow ... these guys work their butts off, make a sacrifice if they have a faimly and (it seams) for not a whole lot.

I've been reading EO and the forum. Trying to learn what I can, understand and try to get some sort of feeling of earnings, etc. Don't really have a handle on it.

Assuming you own your own truck (26-foot w/ sleeper), contracted to a solid company, that provides steady loads -- what would be an average annual gross earning to hours invested?

Average weekly miles for a solo vs team driver ?
Average rate per mile?
% of DH miles vs. paid miles -- what's average?
Is the industry too saturated?

Any other information is greatly appreciated.

Thanks,
Jerry

Crazynuff · Dec 5, 2004

I'm sure you will be told income is up to you and how you're willing to run but call FedEx Custom Critical recruiting and ask them to send 2003 figures . They send charts with complete info - average miles run , rate per mile loaded , average for all miles , etc. for all type units .

davekc · Dec 5, 2004

I don't know that I would rely on any information from the carrier. They could tell you whatever they think you want to hear. Talk to current and former drivers from that carrier. That will probably give you a more realistic picture. Read alot of these posts and that should give you some information as well. In alot of instances, recruiters will paint a picture that is clearly not there. Just read alot of the posts on here. Take your time and educate yourself on the various companies and how they operate.
Davekc

JohnO · Dec 5, 2004

Here is 2003 average gross numbers for a D unit from my recruiter at FedEx Custon Critical.
Call Kerry Klodt 866-274-6116 for a wealth more of information
Revenue $95,595.99
Miles per year 99,032
Miles per week 1,904
Average per mile loaded $1.56
Average total miles $0.96
Loads taken 168
Availability 77%
Load acceptance 69%

pamc · Dec 5, 2004

John:

Thanks for the info!

Jerry

---------------------------------------------------------------------
Follow up:
I will contact FedEX, but ...
...trying to do some math here:

Should I assume the $95,595.99 was a GROSS income for an owner/operator leasing to FedEX?

If so, at 99,032 annual miles, that's about 15,236 gallons of fuel at $2.25/Gal = $34,281.00 a year.

Deduct truck payment ($1,070.00/month), maintenance ($8,000/yr), insurance ($???), tolls and other expenses.

That's well under $35k annually, or somewhere under $0.30/mile.

Don't company drivers, who drive a company truck, using their fuel cards and services, etc. -- pull about the same?

I must be missing something here (Aside from business write off's, etc., etc.).

Thanks again,
Jerry

rode2rouen · Dec 5, 2004

Those are pretty cool numbers.....I didn't realize that FedEx would give out a breakdown like that. Will any of the other Expediting Cos. do that as well?

Jerry, keep in mind that those average numbers are just that, average. A lot of trucks did better and a lot did worse. Also, the numbers show the need for anyone getting into expediting to speak with an accountant who is familiar with the industry. I'm thinking a good one would seriously lower the taxable gross while enhancing the net.

Rex

Tennesseahawk · Dec 5, 2004

Being that figure is an average of ALL D-units, that includes white glove. Take them out of the equation and you're looking at alot less.

blucolr · Dec 6, 2004

Hi Hawk. This is one I know because I have the same numbers in front of me. They DO NOT include any White Glove numbers here only what FedEX calls "surface expedite" or dry box freight.

Mike

Tennesseahawk · Dec 6, 2004

thanx for clarifying that

redytrk · Dec 6, 2004

FECC recruters are very honest when you ask the proper question.I would allways ask for a breakout between solo and team operations.
Makes a big diferance in fulfilling your expections.
A solo driver from my town didnt ask,and when his revenue fell 40% below his expections,he was told he would have to be a team.He left!

JohnO · Dec 6, 2004

These numbers I posted yesterday are 2003 average combining singles & teams for D unit surface expedite only: no white glove vehicles were considered
The numbers for each category with at least 60% availability:
Single- $71,321.50
Team- $117,705.03
Team status determined by having two people in the truck on 60% of the truck loads.
All this information cam from handout recruiter sent me.

mrgoodtude · Dec 6, 2004

Pam,

What number are you basing your mpg on? From reading various forums on EO, I would estimate that the average would be 9 mpg. You came up with a figure of $34K+ at $2.25 a gallon but if you base it on 9 mpg, it would be just under $25K which is a substantial amount of money.

I am also doing a great deal of research on getting into this business with my better half as a team. I've received (actual business records) from individuals on their gross earnings, but have been trying to pull the information on expenses (truck payment, maintenance, insurance, fuel, etc.) to get a more realistic idea as to what we can expect.

Any input from anyone on the expenses would be helpful.

Kitty Litter and Ms Puss

pamc · Dec 7, 2004

On the MPG ... I was using less than 9.
Is 9-mpg an optimistic figure. I'd be quite happy to see 9-mpg.

Thanks

mrgoodtude · Dec 8, 2004

From reading many of the forums on truck mileage, it appears that 9 mpg with a "D" truck is realistic. Of course, this figure is based on maintaining your truck and not driving like a bat out of hell. Some people get as much as 10.5-11 mpg average. Someone posted on here a website to check fuel prices at the major truck stops across the nation and many of the truck stops update it daily. I based the cost of fuel at an average of $2.10 which seems to be fair.

Kitty Litter and Ms Puss

Crazynuff · Dec 12, 2004

FedEX CC will send you those figures for all types units when you request info . When figuring fuel costs keep in mind those are last years figures and they are now getting a higher fuel surcharge . Also look at the mileage and availability figures . Most run under 2,000 miles a week and only run 3 weeks a month . Teams make good money . I didn't think a solo operation justified truck expense .

NoProblem · Dec 14, 2004

That's well under $35k annually, or somewhere under $0.30/mile.

Don't company drivers, who drive a company truck, using their fuel cards and services, etc. -- pull about the same?[/i]

Yes. Well under $35k annually is more realistic.

I must be missing something here (Aside from business write off's, etc., etc.).

I don't think you are missing a thing. You are actually doing your homework and coming up with genuine figures - and figures don't lie.

First, take a closer look at the figures provided:

Revenue $95,595.99
Miles per year 99,032
Miles per week 1,904
Average per mile loaded $1.56
Average total miles $0.96

Where the $1.56 per mile plays out as an average is the great mystery of our time. Throws up a red flag right off the bat (to me) but I admit that it does look good.

Plan on your average to be alot closer (give or take) to the .96 per mile.

A few things missing from your figures might include your eating on the road - very expensive and can easily top $150 a week if you are not careful, so for the heck of it, lets say you are carfull and only spend half of that, so deduct just another $3000 from your annual revenue.

Another thing not in your figures are DH miles. IF you are fortunate enough to actually average almost 2k miles per week (do not plan on it), plan on adding about 20% for unpaid loaded miles and DH, so thats about another 20k miles @ 9 MPGs @ $2.25 per gallon or another $5000.

That should hopefully pretty well cover much of the unforseen - that amounts to about an additional $8k off the top.

So, starting with $95k gross to the truck, subtract your $34k for fuel, $13k for payments, $8k for PM, $8k for the stuff I just posted and you are looking at an income alot closer to reality - or before paying income taxes, the $32k neighborhood.

Naturally, the figures are all based on assumptions, and to assume you'll be averaging 2k paid miles a week would be a good trick if it happens.

If you only average 1700 miles per week, the truck will gross about $10k less, after re-working fuel, your bottom line goes from about $32k to about $29k before income taxes.

Take 30% income tax from $29k nets you about $20k per year or about $380 net per week in your pocket! I can't be absolutely positive but I think that equalls what the state (Mi.) will pay as a max for unemployment benefits.

Boken down further equates to you netting about .22 per mile - at 40 mph thats 43 hours of drive time which works out to about netting $9 per hour or grossing about $12 per hour.

Now, if we want to include all time spent in the truck away from home instead of just drive time, that hourly figure falls off a cliff.

Your milage may vary.

pamc · Dec 14, 2004

NoProblem:

Thanks for the response.
Ok, those numbers were being under contract with someone (ie: FedEX, Panther, etc.). where they're picking up the tab for authority, insurance(?), and obviosuly getting you the loads.

Here's the next $0.50 question.

Let's take the company out of the equation.

If you add authority, insurance, and all the other nitty-gritties needed to be "legal" on the highway -- what might that total up to?

Then, how impossible or feasible is it for an O/O to have his client base and earn the gross number that a company would take for loads?

Again, just chomping numbers and trying to learn.

Thanks,
Jerry

a "PS" to this post: Nothing personal, but at $12.00 "before" taxes, unless you simply want to travel and see the country, that's pretty sad. Our district school bus drivers start at $14.00+ an hour. Add to that, if full-time, you get benefits as well!

RichM · Dec 14, 2004

One thing to consider is what I call intangible income. This income is derived from not having expenses that you might occur with a 8-5 job. In expediting you do not have to commute,all of your meals are deductible,your utilities at home are generally less as you are out on the road. The big one is that at least in my case you can get away with one car.Many people spend 15-20% of their income just to generate the other 80%.If you were a white collar worker as I was you no longer have the dry cleaning and all of the suits,jackets etc that go along with that type of position.

ATeam · Dec 14, 2004

>On the MPG ... I was using less than 9.
>Is 9-mpg an optimistic figure. I'd be quite happy to see
>9-mpg.
>
>Thanks

Driving a fleet owner's Freightliner Century Class D Unit with a generator (important to reduce idling) and a 10-speed Eaton Auto-shift transmission, and a CAT 350 engine, we got 9.5 MPG average over several months in all types of terrain and conditions. A few weeks after we turned that truck in, we received a call from the next driver of that truck. He wanted to know what kind of fuel mileage we got. He said he was getting 8 MPG or less with the same truck. He admitted he had a heavy foot.

It's an expensive foot too. If you drive 100,000 miles at 8 MPG and say $2.00 a gallon, your fuel consumption is 12,500 gallons at a cost of $25,000. At 9.5 MPG consumption is 10,526 gallons at a cost of $21,053. That's a gallon difference of 1,974 and a cost difference of $3,947.

We generally buy about 100 gallons per fuel stop. One way of looking at the above numbers is, our fuel-economy-oriented driving gives us about 20 free fuel stops a year.

Some people have the need for speed. My guess is the other driver will adjust his expectations, settle for 8 MPG, and keep on trucking. Before he'll change his driving habits, he'll likely settle for the 8 MPH results his habits produce.

By the way....way to go, doing the research you're doing!