Fuel Prices

[Drluvv]

The price of fuel is almost $3.00 a gallon, I was just wondering how high are you guys willing to pay for fuel before throwing in the towel and finding a new career? I might quit at 3 dollars.

 

[bryan]

HI

I have a set cents per mile formula based on all miles driven.If the load doesn't meet that criteria I turn it down.From 1996 thru 2003 I hauled anything I was offered. It was a no brainer back then you made money on every load. From 2003 thru 2004 I turned down 1 load Was originally told 96 miles empty for 300 loaded miles. Dispatch error they had switched the pick up location with the cosignee.So it was 360 miles empty for 80 miles loaded. From 2004 to date I've turned down too many.
I guess once there is no more loads that I can afford to haul then Im done. Fortunatly Im still making it. Fuel surcharge is a big help and some loads actually pay enough to allow me to haul some of the crappy loads.
Hopefully fuel prices will drop and freight will pick up so I dont have to burn up so many brain cells just trying figure it out.
Have a good one

 

[LDB]

If the fsc keeps pace I won't have a problem no matter what the price of fuel. I'm starting to get picky and won't haul below 8cpm fsc and won't haul if d/h miles are over 1/4 of total trip. Those numbers could change but for now they work well.

Leo
truck 4958

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

 

[Beemer]

What has me worried is what's going to happen to diesel cost once the new year rolls around and the second stage of the mandated lowering of sulphur content goes into effect. It is my understanding, from what I've read about the issue, that this will have a big impact on diesel price, with an almost certain spike above $3.00 a gallon as refineries try to meet the new requirements. As it costs more to get the sulphur out, it is unlikely the price will ever be lower.
As someone who is thinking about getting back into expediting after several years doing other things, it's just another cause of concern about the business.

 

[davekc]

Hopefully the fuel surcharges keep pace with the increases.

I don't believe we have seen the worst as far as fuel prices go.

Changes in winter blends with the new sulfer regulations, will certainly make it interesting.

Davekc

 

[TJ959]

I've been running my own little study on profitability for the past six months. Actually it will be six months at the end of this month. I decided to take all loads that could be run legally regardles of where they went or deadhead involved etc. I'm doing this to prove or disprove the theory that most companies have. That is if you take anything that's offered you will be busy and profitable. So far, it seems to prove that with the current fuel prices you have to be nuts to do what I have been doing. Even with the fuel surcharge. I don't think I would even have tried it but I have very few bills and my truck is paid for.
I'm not complaining here. I really like my company. I need them to be profitable and stable. That's why I tried this. So now the question is. Where is the happy medium? How many loads do you turn down before you are not an asset to your company.

 

[raceman]

I know where I had planned to make big changes when I was a fleet ownwer. That figure was $3.25 and above. Now that I have one paid for truck and a dedicated run, well I see no figure that would stop me based on the current pay. I have no deadhead and run 10 to 12 hours a day six days a week. The truck and I are paid by the hour plus fuelSC. In this situation fuel price will not concern me until $4.00. I would give a big thought at that point.

I have had such a horrid past six months I am very content to just enjoy my current situation and hope it lasts. I am glad I listened to many of you when you told me how great it was to get a dedicated. I almost gave this away because I missed the highway and traffic and dirty showers,and nasty counter people and sleeping in the truck. Whew! What was I thinking.


Raceman
OTR O/O

 

[davekc]

On one side of the coin the company is at times trying to satisfy a customer. Sometimes not, as they are just bid loads. These are good for the company, but not the owner operator.
On the other side, your truck has to remain profitable, or the company's success doesn't really matter.
"Businessman first, driver second"

That being said, we generally will take one or two small loads and that is it.
Last month in Detroit our drivers had 6 refusals in a three hour time period after we ran two small ones.
It is just luck of the draw.
They did eventually get a decent load.
We have since moved to other load sources when getting into that situation. Especially in Michigan. More freight than trucks on most days.
In that situation, we get a decent run, and everyone benefits including the carrier.

Sometimes you have to get creative

Davekc

 

[guest]

Tell me more about getting creative. What are some other load sources that work well for you.

 

[davekc]

I am talking about finding your own load sources.
Primarily brokered loads.

Davekc

 

[muleteam1]

Call me stupid,but I don't understand what fuel prices have to do with what we do.. Now,fuel surcharges has everything to do with what we do..And that has been my concern for several years.
I put my business plan together with fuel being at $1.35.I beat that to death during the late 90"s when we were paying $.97.But that was then.
I believe in win-win-win.. everyone needs to get what they need,the carrier needs the freight,the consignee needs the goods and I need to be profitable to succeed !!! I am not a greedy person but at todays national average ( $2.23 diesel) I need $.148cpm fuel surcharge to be profitable.If it ain't there,find someone else to run it.And god knows,there are plenty of drivers that will..
I have difficulty with the driver that say's "my truck is payed off so I can run cheaper" what's that about?? 1st off, a truck is never payed off and what are you thinking when it comes to replacing that equipment?.. Profit is not a dirty word,it's a necessity to your survival.
The only persons I feel sorry for,is the poor devils trying to afford the increases in costs for goods and services due to these outrageous fuel prices and surcharges.but,unfortunately,not to the extent that I would run without fair revenues.I refuse to go broke over this.....
muleteam1

 

[kg]

DON'T TAKE LOADS THAT ARE NOT FUEL SURCHARGED UNLESS THEY ARE PROFITABLE.


DON'T WORK FOR COMPANIES THAT DON'T TRY HARD TO OBTAIN SURCHARGES FROM THEIR CUSTOMERS.

DON'T DEVIATE FROM THE ABOVE TWO PRACTICES.

JUST MY OPINION.