I'm hoping to get into the industry in 2007, plan on working for an O/O in a team operation to learn as much as I can about the business first hand, as recommended by most of the experienced folks at EO. My question: If you get into a team truck for a fleet owner and you're responsible for fuel, what is best way to handle it? Do the drivers split it 50/50 or does one driver pay for it and take a bigger cut? (Ex. Driver 1 pays for the fuel and takes 40% of a 60/40 split and gets the fuel surcharge, while the driver 2 pays no fuel and takes 20%) Also what is the best method for paying for fuel, setting up an individual business credit card acct., or using ComData card? At tax time if drivers are splitting fuel 50/50 how do you break down the receipts for tax purposes? Sorry for my ignorance on this, I've always had a company fuel card to use or company expense money for fuel. Thanks, Tom.
Fuel purchase question.........
- Thread starter tlang563
- Start date
If you get into an owners truck with a 60/40 split and the truck averages $1.40 all loaded miles with a 20 cent fsc for loaded miles, the team will get 84 cents plus 20 cents for all loaded miles.
If you take 60% of that and pay the fuel you will get 50.4 cents plus 20 cents and your codriver will receive 33.6 cents. If you buy all the fuel at todays avg cost of $2.56 and you get 9 mpg, or 28.4 cents per mile, thereby reducing your income to (50.4 + 20 - 28.4) = 42 cents per mile. From that 42 cents you'll need to buy deadhead fuel. so, given these subjective numbers, you'd earn less money than the second seat.
My point here is you really need to think about this and determine, from the carrier you choose, statistics concerning paid miles, deadhead miles, effective cost of fuel after applying FSC and MPG for your chosen truck. Also find out if carrier pays any FSC for deadhead miles.
It's pretty tough to feed three families with the revenue from one truck; it's done, but not easily.
If you take 60% of that and pay the fuel you will get 50.4 cents plus 20 cents and your codriver will receive 33.6 cents. If you buy all the fuel at todays avg cost of $2.56 and you get 9 mpg, or 28.4 cents per mile, thereby reducing your income to (50.4 + 20 - 28.4) = 42 cents per mile. From that 42 cents you'll need to buy deadhead fuel. so, given these subjective numbers, you'd earn less money than the second seat.
My point here is you really need to think about this and determine, from the carrier you choose, statistics concerning paid miles, deadhead miles, effective cost of fuel after applying FSC and MPG for your chosen truck. Also find out if carrier pays any FSC for deadhead miles.
It's pretty tough to feed three families with the revenue from one truck; it's done, but not easily.
>My point here is you really need to think about this and
>determine, from the carrier you choose, statistics
>concerning paid miles, deadhead miles, effective cost of
>fuel after applying FSC and MPG for your chosen truck. Also
>find out if carrier pays any FSC for deadhead miles.
>
>It's pretty tough to feed three families with the revenue
>from one truck; it's done, but not easily.
Thanks for the advice, I really appreciate your input. It's kinda scary makin' a career change, but it sure helps with the support and words of wisdom I've been able access from this site. Definately lots of homework to be done before you jump in. Hopefully, I will find an O/O to team with, that way all I do is drive and learn. I'd guess by teaming with the truck owner, you'd probably expect about 20% with the owner getting 80% plus surcharges. Is this about right? Thanks again for your input! Tom.
>determine, from the carrier you choose, statistics
>concerning paid miles, deadhead miles, effective cost of
>fuel after applying FSC and MPG for your chosen truck. Also
>find out if carrier pays any FSC for deadhead miles.
>
>It's pretty tough to feed three families with the revenue
>from one truck; it's done, but not easily.
Thanks for the advice, I really appreciate your input. It's kinda scary makin' a career change, but it sure helps with the support and words of wisdom I've been able access from this site. Definately lots of homework to be done before you jump in. Hopefully, I will find an O/O to team with, that way all I do is drive and learn. I'd guess by teaming with the truck owner, you'd probably expect about 20% with the owner getting 80% plus surcharges. Is this about right? Thanks again for your input! Tom.
nightcreacher
Veteran Expediter
your best bet is to get into a truck with the owner,to learn this business the best way,when i had multiple trucks,i paid each driver 20%, without the fsc,i gave 20% plus fsc to lead driver,his responsibility to buy fuel
if the truck did the 6 mpg it was very capabile of doing,that 20% was more than was needed to get delivered and had enough fuel to get to next load
if the drivers were doing long dead head home,then that would come out of their fuel money
but as i stated in beginning,to learn this business well,you need to drive with the owner
if the truck did the 6 mpg it was very capabile of doing,that 20% was more than was needed to get delivered and had enough fuel to get to next load
if the drivers were doing long dead head home,then that would come out of their fuel money
but as i stated in beginning,to learn this business well,you need to drive with the owner
themagicoen
Expert Expediter
You need to look at it like a business, you both are employees of it. What I did is I took what we made total - fsc, mileage, etc then took off expenses I.e Fuel, tolls, etc. Then what was left we each got 50%. It was a running total though, so as loads came in pay went up but as I put in a tank of fuel it went down, tolls, etc. Now when it comes to tax time you get a 1099 from the owner, then you 1099 your partner for the 50% he got. Your income will include whats left and you can write off all the fuel, tolls, etc. And you'll pay the same in taxes as him.
Broompilot
Veteran Expediter
Do not use Comdata for fuel purchases. Way to many fees by the end of the year.
Credit Cards get a surcharge but not as high as Comdata, OOIDA has a fuel card program that will save you some $ and there are other ways also, Flying J has a card these are all cash price cards.
As for your other question, Terry and others had great answers.
Good Luck
Credit Cards get a surcharge but not as high as Comdata, OOIDA has a fuel card program that will save you some $ and there are other ways also, Flying J has a card these are all cash price cards.
As for your other question, Terry and others had great answers.
Good Luck
themagicoen
Expert Expediter
If you goto the TA's you get a discount on fuel with Panther + you get a .01/gallon in points. So on 150 gallons you get a $1.50 back in points so the $1.50 in fees on the comdata get wiped out.
Broompilot
Veteran Expediter
Them, how long does it take to get a Comdata loaded and than fuel? Is a credit card or cash not faster? I do not use one but it seems when ever I am in a hurry someone is having problems with using Comdata.
Life is stressfull enough out here without adding the aggrivation of extra paperwork.
Life is stressfull enough out here without adding the aggrivation of extra paperwork.
Broompilot
Veteran Expediter
I also use a Hess Credit Card (Visa) last month my charges were $900 with them. My wife told me today they credited my account $45.00 for paying the bill on time.
4 fill ups total. No Fees at all just a credit now I like that, and its fast real fast no lines just sign and go....
4 fill ups total. No Fees at all just a credit now I like that, and its fast real fast no lines just sign and go....
themagicoen
Expert Expediter
I've never had problems with comdata, now I've alway used the card not a check and thats where I see a lot of problems. With Panther and Fed ex you get 40% of the load after delivery to your comdata, if the owner you go with sets it up that way. Now if you want cash and what not then it can get expensive. I just can't see using a credit card for Fuel, the price you see on the sign is cash, CC is usally .05-.10 more. With Comdata you get .05-.15 - or more off the cash price PLUS your .01 points. But everyone has their opinon on it.
> I just recently learned from Bryan that Comdata cards can
>be used at the Pilot pumps, (gas or diesel), which is handy
>for me, and I haven't had any problems with it yet. I really
>like to slide the card & not have to wait in the sometimes
>very long lines.
The problem is the transaction fees every time you use the Comdata card . ( Did you know it can also be used as a debit card at WalMart ? ) I had my Comdata set up to allow direct deposit to my business checking account . As soon as funds were available on my Comdata I deposited them in my checking account and made fuel purchases with the debit card from my business account . I haven't bought at Speedway for a while but they were selling $50 gift cards for $48 and the cards work at the fuel pump . Strange thing was they'd work at the big truck pumps in IN and not ask for your MC number .
>be used at the Pilot pumps, (gas or diesel), which is handy
>for me, and I haven't had any problems with it yet. I really
>like to slide the card & not have to wait in the sometimes
>very long lines.
The problem is the transaction fees every time you use the Comdata card . ( Did you know it can also be used as a debit card at WalMart ? ) I had my Comdata set up to allow direct deposit to my business checking account . As soon as funds were available on my Comdata I deposited them in my checking account and made fuel purchases with the debit card from my business account . I haven't bought at Speedway for a while but they were selling $50 gift cards for $48 and the cards work at the fuel pump . Strange thing was they'd work at the big truck pumps in IN and not ask for your MC number .
nightcreacher
Veteran Expediter
at fed ex ,we get our advances after we pick up load,not after we deliver,also,if you empty your card in three uses,there is no charge for useing it
it will work in all atm machines,but the owners of the machines charge a fee for you useing machine and com data does too.
it will work in all atm machines,but the owners of the machines charge a fee for you useing machine and com data does too.