Drivers/Owners situation

[OntarioVanMan]

Say I am a team in a C truck....getting 60/40 owner pays the fuel...I be sittin for a couple days and an offer comes up,,,after figurin it out. We would make money but the owner won't, yet the fuel is at least covered....do we turn it down because the owner won't make money? or do we take it because our money is getting low and this load might just get us on a roll for a better load for both us and the owner

 

[davekc]

One always has to look out more than one run out for profitability.
On the other side of that, I personally have never ask to have a driver make a run in which I made money, and they didn't.
Not how it works.
It is a team effort. No other way to look at it.
As for that specific run, it would depend for me whether it is taking you to additional opportunities or away. In the pay scheme, the fleet owner is still running at a loss.
Why? Because there are other expenses to factor outside of just the fuel.

 

[pjjjjj]

What if the load were thought of as being split into 3, driver, owner, and fuel, with fuel being the 20% difference. If the driver calculated it would not be worth his own while to take that load because of the dh, *if* he were paying the fuel, why would it be worth it the other way around? If the driver figured it might be a break-even venture, *if* he were paying the fuel, but it would take him to more opportunities, as Davekc stated above, then worth the gamble, no matter who's paying the fuel.

Interesting point though.. for the drivers who are *not* paying the fuel, yet making the decisions which loads to take without consulting their fleet owner.. hopefully they're not thinking in terms of just their own needs.

 

[davekc]

PJJJ

Your described scenerio is exactly what tanked many fleet owners when fuel spiked. Companies that had low FSC's were killing some of these owners. Rather than taking a profitable load for both, the drivers/team would take anything as their pay would remain the same.
In those situations, even though it is usually less FSC overall, a owner may have to entertain a flat rate program if they are doing that type of plan.
Outside of wages, fuel is the next highest expense. Who ever is paying for the fuel should have the last say on a load if it is questionable.
Just my penny in the pond.

 

[OntarioVanMan]

One always has to look out more than one run out for profitability.
On the other side of that, I personally have never ask to have a driver make a run in which I made money, and they didn't.
Not how it works.
It is a team effort. No other way to look at it.
As for that specific run, it would depend for me whether it is taking you to additional opportunities or away. In the pay scheme, the fleet owner is still running at a loss.
Why? Because there are other expenses to factor outside of just the fuel.

Dave...I realize there is more then just the fuel consideration....My example was built on another statement a member said about not taking a load because thier consideration the owner wouldn't make money...so does one sit and starve with the owner being the first consideration?
With the redundant prices on load offers lately one has to eat.

 

[davekc]

If it is a isolated situation, then I would move the truck whether I made anything or not.
If on the other hand this was a reoccurring theme, then I think both the driver and the owner would be in that soup line eventually.

 

[BillChaffey]

I'm not a Fleet owner, or a Driver. Right now I'm sitting home for the winter, that being said I would think a Fleet owner would interview team or solo drivers, and the team or solo would want to ask as many questions and possible scenarios as either could think of. Also no matter who you work for you should always be trying to do your best by them.

 

[OntarioVanMan]

I'm not a Fleet owner, or a Driver. Right now I'm sitting home for the winter, that being said I would think a Fleet owner would interview team or solo drivers, and the team or solo would want to ask as many questions and possible scenarios as either could think of. Also no matter who you work for you should always be trying to do your best by them.

absolutely....without splitting the straw too many ways...it must be a team effort or BOTH lose!

 

[nightcreacher]

Say I am a team in a C truck....getting 60/40 owner pays the fuel...I be sittin for a couple days and an offer comes up,,,after figurin it out. We would make money but the owner won't, yet the fuel is at least covered....do we turn it down because the owner won't make money? or do we take it because our money is getting low and this load might just get us on a roll for a better load for both us and the owner

If your spitting 60 40 owner is getting the 60 plus the fsc,and in most instances will have money left after the road expenses.What he has left after that only he will know, cause this depends on his total expenses.What the drivers look at is what they make with the 40%.I had a co driver which I paid 20% to.He always questioned why I would turn a load down,when it would pay him very good.

 

[FIS53]

I assume that during the meeting between driver and owners there is a stipulation of what a load must pay as a minimum or the driver(s) don't take it. It would be prudent for the driver and owner in todays environment to possibly alter or have another requirement to accept lower income runs, such as dave mentioned of going to a freight lane that has better possibilities. The driver/team must take into account the owner as he is providing their ride to be able to work, so of course this has to be a team effort to continue in business. I know we all know this, but how low do you go, or do many allow the driver to make a decision based on possibilities without consultation?

It seems to me that owners should be quite proactive in their fleets ops in order to keep the drivers and the trucks operating and hopefully profitable. Those that take a laid back attitude with their fleets (assuming drivers are not old farts of the business), stand to be lossing income rather drastically as the drivers go after loads.
Rob

 

[davekc]

To be fair, in many instances it was a combination of several things that sank the ship.
Drivers consistently taking low FSC loads when fuel was higher.
Running trucks with no generator. That would compound the problem for some because of taking profits and using them for a generator, they would get greedy and go put money down on another truck. And...........the hemorrhaging begins.
Even more so if they bought the wrong type of equipment.
Then you look at a month worth of activity only to see the truck DHing all over the place or in some cases, going home after a few runs. All of those will create a beautiful casualty if done over a period of time.

 

[nightcreacher]

If I knew how I could write a book on the what to and what not to do in the trucking business.While I never had more thyan 3 trucks,sometimes that was two trucks to many.The bigest mistake you can make is a person that has a company driver mentality,and usually if you find someone really good,they are going to be around to long as they will be buying their own truck.But I can say this,the worst drivers that I have ever had,they still made me a profit.
My first team,H/W came from Schneider.I paid them 30%,this was back in 1988.Their first week,they dead headed home from Dallas Texas.That was the start of the new pay plan,50 50.Fuel cost was about 10% of the loads,so with them buying the fuel it actually gave them a raise in pay,and no more dead heading on my money.As the years went by,fuel prices went higher and my last team made 65%,plus fsc.Even at that rate I still did ok.
There have been other years with the economy in the tubes,you learn to tighten your belt and you will survive.
What you do have to do is watch where you go.You dont want to dead head a long distance to pick up a load,and after delivery your going to have another long dead head .Last year I had weeks that I ran over 40% dead head,but believe me,bottom line was still a profit,of course the loads I took were well worth it.
Ive had trucks on with regular freight carriers,you know the .85cpm companies.and at a couple different expedite carriers.We are in a crunch right now,but we will all get thru it.

 

[Yesteryear]

Say I am a team in a C truck....getting 60/40 owner pays the fuel...I be sittin for a couple days and an offer comes up,,,after figurin it out. We would make money but the owner won't, yet the fuel is at least covered....do we turn it down because the owner won't make money? or do we take it because our money is getting low and this load might just get us on a roll for a better load for both us and the owner

When looking at your pay load you also have to take into account all of the loads you have taken where the owner made a profit off the FSC. There are going to be some loads, when going 60/40, where the owner makes a killing and others where the owner takes a loss. It balances out in the long run. We have taken loads where the fleet we drive for made a pretty good profit off the FSC and others where they have lost a little. What you need to look at is where the load is headed. Is it going to a location where you may be able to get a nice load or is it going to some po'dunk place where you are going to sit for days or have to DH hundreds of miles for another load. If it is going to a good freight area then take the load if it is going to po'dunk then turn it down as you will be better off in the long run. Don't focus on one run, look at the runs as a whole.

 

[nightcreacher]

When looking at your pay load you also have to take into account all of the loads you have taken where the owner made a profit off the FSC. There are going to be some loads, when going 60/40, where the owner makes a killing and others where the owner takes a loss. It balances out in the long run. We have taken loads where the fleet we drive for made a pretty good profit off the FSC and others where they have lost a little. What you need to look at is where the load is headed. Is it going to a location where you may be able to get a nice load or is it going to some po'dunk place where you are going to sit for days or have to DH hundreds of miles for another load. If it is going to a good freight area then take the load if it is going to po'dunk then turn it down as you will be better off in the long run. Don't focus on one run, look at the runs as a whole.

very good answer,in fact excellent

 

[morningstar55ny]

Say I am a team in a C truck....getting 60/40 owner pays the fuel...I be sittin for a couple days and an offer comes up,,,after figurin it out. We would make money but the owner won't, yet the fuel is at least covered....do we turn it down because the owner won't make money? or do we take it because our money is getting low and this load might just get us on a roll for a better load for both us and the owner

me.............. i would of took the load
why....... keep the truck rolling.... pay for fuel used idling....going to another area for more frieght....... thats just my 2 cents. hope that helped...