Fleet Owners

[ham6]

I'm seriously considering purchasing 12 trucks next year and moving into fleet ownership. The company I'm currenlty leased with is good and I'm making good money with them, after all expenses (fuel, bobtail, liability, workers comp) I net about 56% of the gross with weekly settlements. I was going to pay my drivers 47% of my net, which is close to half and I have all the liablity of truck break down, repairs, workers comp, etc. Of course they were going to be 1099.

What I wanted to know from other fleet owners is what do you see as the advantages to being a fleet owner? What are the drawbacks? The way I see it I'm more in the truck management and people managment business vs. the 'trucking logistics' business. I'm not dispatching or getting contracts, but managing my drivers and maintaining my trucks. It's almost like a plug and play system.

Also what other issues as a small fleet owner would I face legal wise and insurance wise? Would I have to have my own authority if I lease all my trucks on to 1 company? Would I have to get liability and bobtail insurance regardless if the company provides the insurance already?

I will maintain my own base plates and have all the trucks apportionated for the states the company currently runs that way IF I decided to lease on with another company I won't have to worry about plate issues.

Any advice, sites or info I could use to help me make good knowleged based decisions, would be a big help.

Thanks
Big Ham6

 

[Glen Rice]

There is a great acticle in Overdrive Magazine this month on being a fleet owner. I recommend you read it.

 

[LDB]

>I'm seriously considering purchasing 12 trucks next year and
>moving into fleet ownership. The company I'm currenlty
>leased with is good and I'm making good money with them,
>after all expenses (fuel, bobtail, liability, workers comp)
>I net about 56% of the gross with weekly settlements. I was
>going to pay my drivers 47% of my net, which is close to
>half and I have all the liablity of truck break down,
>repairs, workers comp, etc. Of course they were going to be
>1099.
>Thanks
>Big Ham6

You aren't talking about jumping in feet first, you're talking about being shot out of a cannon way way into the deep end. Have you considered adding one truck and if that goes well add another in a few months and so on?

As far as your numbers the most common scenario by far is a 60/40 split of the gross with the 60 side buying the fuel and getting 100% of the fsc money. The driver gets 100% of fingerprint pay. I'm not sure of your 47% of net being enough. For arithmetic let's say 1500 miles paid at $1.40 average including fsc. That's $2100 gross. Your 56% net is $1176 and 47% of that is $552.72 to the driver or .37cpm for the paid miles and nothing for the deadhead.

Just my initial thoughts. Good luck.

Leo
truck 4958
73's K5LDB

Support the entire Constitution, not just the parts you like.

 

[davekc]

I was going to pay my drivers 47% of my net, which is close to half and I have all the liablity of truck break down, repairs, workers comp, etc. Of course they were going to be 1099.

Who is paying for the fuel? You or the driver.
Most operate on a 60/40 or 40/60
The higher amounts representing who is paying for the fuel.
In my personal situation, I pay 60 percent of the gross and 100 percent of the fuel surcharge. I am not sure what your 47 percent represents.

Unless you really understand the business, buying 12 trucks is a recipe for disaster. Buying trucks is the easiest part. Managing them and finding the right drivers is what will determine whether it can be successful or not.

Davekc
owner
21 years

 

[RichM]

Leo hit it on the head,go slow on this. Twelve trucks will require you to live on the telephone. Expediting life sytle does not always fit a drivers needs so you will probably be looking for good drivers on a constant basis. I am not saying you can't succeed as many fleet owners have but before you make a major investment try it on for size.

 

[ham6]

I'm currenlty leased to a company that owns it's own shipping company, so we carry container freight. They do all the work in regards to freight contracts, dispatch, etc. Right now as a single owner operator I'm paying all the fuel, insurance etc. The gross is generally $3,500, after fuel and insurances I generally net about $1,950 (56% of the gross). I was going to pay my drivers 47% of my net or 1,950 x 47%= $921. IF they run less then they make less but still get 47%.

Do you have a link to Overdrive Magazine?

 

[ham6]

I forgot.

The container company pays both ways, bobtailing miles and loaded miles, so there little to no deadhead miles. Containers are generaly a 8-5 business M-F and there is generaly freight always coming off a ship and the company I'm leased on with owns a huge international shipping company and the freight delivery (trucking) is a subsiderary of the shipping.

I could calucate on a 60/40 split from them paying fuel or a 50/50 split. As a driver I just want to pay fair wages and decent wages to keep decent drivers.

 

[davekc]

Are you talking about buying expediters or tractor trailers?
The container business is quite different?

Link to overdrive is www.etrucker.com

Davekc

 

[trhoades]

Good luck finding 12 decent drivers at one time. I went through 5 drivers before finding a quality driverfor my second truck. I'd have no hair if I had to do it 12 times over.

 

[ham6]

Buying Tractors. Umm, I know this is an Expediters site but I made the assumption that the knowledge about fleet ownership would be the same, I should have thought that each segment of the industry has it's own special situations. I've been a company driver for 25 years and just getting into the O/O business, So I do have things to learn about and a new mind set to get adjusted to. You get caught up doing what you do and forget that other drivers carry other things beside what you carry.

Any sites would you recommend to better help or more specific to my segment of the industry?

Thanks!

 

[davekc]

Some things are the same and some aren't. I would in addition to this site, find specific sites that deal in hauling containers. That would provide you with case specific information.
Glad to have you aboard as you will find many helpful tips and ideas here.

Davekc

 

[Crazynuff]

Buying 12 tractors ? Have you considered leasing ? That would take care of all the downtime problems - you'd get a replacement tractor . You might also consider employee leasing . Small businesses use employee leasing companies to provide more affordable benefits like health insurance and 401K's . Companies like SkillStaff provide this service and handle all the employee tax paperwork .

 

[kwexpress]

KW Express
o/o till i die



Some days are diamonds and some days are coals
sometimes the hardtimes wont leave you alone.

You might do a good job for the company you haul for
But to depend on 12 others is a big risk

I am an ex-fleet owner with p2

had four trucks on at one time with them and would never
do that again.

maybe you are dependable but to find 12 others like you will be impossible.And the deductions dont stop if a trucks down sometimes it takes me 2 hours to find a driver and sometimes it takes 2 weeks
and dont be shocked when you have four or five sitting.

But dont let me discourage you it can be very provitable at times.
now im down to 2 tractors running and im very happy this weeks average was $1.47 for all miles loaded and empty and in the seven day period my fleet moved 6,200 miles if I used teams it could have been twice that.But who really knows what fuels going to do/
When I first started trucking diesel was around .90 cents a gallon
and I was getting 1.25 a mile

today its 2.50 a gallon and im lucky to average 1.25-1.70 per mile
on an average month I spend at least $500.00 on repairs to each unit.

insurance runs me 1k per month

and with 2 drivers I have to come up with a payroll of 2k per week

Im on the phone for 12 hours each day with just 2 trucks but thats because I load them myself and deal with the drivers.

if you leased on to someone you wont have this problem.

but if your a real problem solver then you can make it.

 

[guest]

>Unless you really understand the business, buying 12 trucks
>is a recipe for disaster. Buying trucks is the easiest part.
>Managing them and finding the right drivers is what will
>determine whether it can be successful or not.
>
>Davekc
>owner
>21 years

That was a good post davekc
:7

 

[Broompilot]

I'm on the phone 12 hours a day for just two trucks. People are you reading this. Those of you that are gona load your own trucks do you see the amount of work that goes into this.. It is not as easy as it seems.

Some days you may only spend 1 hour and get lucky, other days you may spend 12 and still not find anything but a large cell phone bill. Be carefull who you sign on with, know that they can keep you loaded. To do it yourself is time consuming, time you need to be resting when the load comes around.

More could be said. I hope you see where this is going.

 

[kwexpress]

KW Express
o/o till i die


Well dont take that the wrong way.yes i am on the phone for 12 hours a day for just two trucks.

I can load both trucks for a whole week in 1 day.

But its the other calls you have to be available for drivers who get lost,have truck problems,will you wake me up at calls,Im sorry but the appointment has changed calls or could you deliver to somplace else calls. Just think anything can and will go wrong.

Im on the phone 12 hours to solve problems,Be a salesman,Customer service rep and not all of those 12 hours are spent even searching for loads.I to have goals for my company so alot of it is spent trying to obtain those goals and when im not buying,selling,or solving problems then the extra time I spend recruiting and safety issues.

And also I like to keep as much of the money as I can so things would be different if I would hire some help.But Im not going to do that yet cause I believe that one should only hire from within.