IS ANYBODY MAKING MONEY DRIVING WITH THESE GAS PR

LDB

Veteran Expediter
Retired Expediter
RE: Calculating trip mileage to determine making $

Regarding total trip mileage I would throw this out as an example. Get a job picking up 27 miles from wherever I'm located delivering to Whirlpool in Clyde, OH. It's 386 paid miles. I decide to go to the J in Toledo to wait on the next load after delivering to Whirlpool in Clyde. That's 33 miles. On this trip I have 27 starting miles, 386 paid miles and 33 ending miles for a total of 446 trip miles. That's what I have to calculate this trip on.

The 33 ending miles of the last trip are not going to be the beginning miles of the next trip because it's 99.997% guaranteed I'm not picking up my next load at the J in Toledo so I'll have an as yet undetermined number of starting miles on the next trip as well. Except for one time when I delivered to a place and literally 1/3 mile down the road was my next shipper I've always had starting, paid and ending miles on all my runs. Technically I should have added 1/3 mile to that run but I didn't.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.
 

BigRed32771

Expert Expediter
RE: Calculating trip mileage to determine making $

I was recently offered a load that was paying too little, and when I turned it down I was asked what I needed to take it. I ran the numbers and told the dispatcher he wouldn't pay that much, but I might be able to cut him some slack. I refigured my price without adding the "second deadhead" to layover since the load was going to Dallas and I figured I could get out without too much empty miles. As it was, I was still sitting in the lot after unloading when I was offered my next run. So I wound up actually doing the "zero mile deadhead" on the other end that I had based my price on. This is a lot like a "predispatch" situation where your deadhead is from the delivery to the next pickup. Unfortunately you can't count on this, but on average you can estimate what your deadheads are going to run. I add 20%, 50%, or even 100% to the loaded and unloaded miles on the offer to account for what I'll probably have to do on the other end in order to get my "all miles" rate. Sometimes I do more miles than the formula generates, other times I do less, so on balance I figure it's a reasonable way to estimate in advance. BTW, the 3 different rates are zoned on a map we carry and are geographic based on distances between or to the express centers.

Doug
expeditor/OO since Jan,'05
 

geo

Veteran Expediter
Charter Member
Retired Expediter
US Navy
RE: Calculating trip mileage to determine making $

it is truckad.net sorry so use to .com
but also look to local people in your area and see
if they would be interested in this, local sign place could do ad


a friend in upstate new york has a cover wagon and sale's ad's on the side and is doing ok with it
did this on his own with out ad company doing any of the leg work

also had one on my second truck that paid .20 a mile loaded or empty
and had one other one that paid .05 a mile so that add up to .25 mile and that adds up to a nice bit of change
egl doen't allow that as with the other that's why we pay extra to adv on the side
 

Broompilot

Veteran Expediter
RE: Calculating trip mileage to determine making $

Good Question, GREAT RESPONSES.

My Leased Company is quite different than most. Our DH is extremely low considering the industry average. Our Dispatchers work very hard in seeing that it is this way or neg. a DH package.

My observation is that yes I am still profitable reason being Low DH. This will without me telling anyone is the difference or in the future will be survival or sink.

I truley hope that these fuel prices do not kill our industry as we all depend on each other for the water to stay in the tub. If leaks begin than this will begin a trend of a smaller pool for our customers to utilize and choose from.

I wish us ALL THE BEST.
 

miko

Expert Expediter
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Venom, don't tell us, we know...:(
Same boat, same story.
$2.61 on Monday, $3.00 today, nuts...
 

davekc

Senior Moderator
Staff member
Fleet Owner
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

With fuel at $3.50 per gallon or higher, you need to be covering this through your rate or a decent fuel surcharge. Todays rates are based at the driver paying $1.50 per gallon for fuel. On a truck that gets 9 or 10 miles to the gallon, your fuel surcharge average has to be around .20 cents as an average. If running outside of the midwest or southern states, .30 CPM is what is needed.
Today, fuel on the west coast is getting close to $4.00 a gallon. Something to consider when looking at rates and fuel surcharges.

Additionally, if you do any amount of deadheading, that has to be priced accordingly as well. Take your DH percentage and factor that additional cost into your CPM.

Our trucks deadhead is extremely low, but for folks that are running 20 percent or higher, at $3.00 to $3.75 per gallon for fuel, you are getting hosed.

As they say, adjust accordingly.

Davekc
owner
21 years
 

simon says

Veteran Expediter
Charter Member
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Dave KC: for once I agree with you. One is now better off taking the later offered loads, and refusing the small ones- as well as the other points you made vis a vis the distances, DH, load destination, etc. AS a solo, e.g. I need to make smart choices. Better be almost a turnaround to go back to DFW & forget an extended visit to east coast right now. Dropped CA, AZ, & NM as well.
Fuel was $2.79 in Denton, TX last week, and two days later, $3.23 in Memphis. Fueled under 2 loads in MO., and IN., passing on IA. IL, and MI. just to stay under $3/gal. FSC cannot keep up fast enough- but saw a big jump on latest load. My paid miles are not that far ahead of expenses the past month... Someone is wrong when he thinks we come out better as survivors of hard times. Only IF you survive: how many go down this month or next?
One more thing- don't forget the new DOT regs. If you take the short one, you don't have the luxury of a 4 hr sleeper berth to do one more short one. You can now have a 14 hr. violation, before you run out of driving time. Anyone interested: get DDL and use it (Drivers Daily Log.com $70 for quick download version.) STill hate oil companies and their political hacks in office, including the fake oppositionists...x(
 

BigDiesel

Expert Expediter
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

I just am not understanding why with FSC people keep saying they cant make ends meet, can someone give me a breakdown especially you guys that say you are broke. There are always two very broad ends of the spectrum when it comes to this topic and i dont see how this happens especially when all the better companies are paying FSC and are all needing O/Os. Are your guys drivers or O/Os?
 

davekc

Senior Moderator
Staff member
Fleet Owner
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Hey Simon..........you knew it was bound to happen sooner or later:7

That was funny.

Be safe out there

Davekc
 

davekc

Senior Moderator
Staff member
Fleet Owner
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Big Desiel
just am not understanding why with FSC people keep saying they cant make ends meet, can someone give me a breakdown especially you guys that say you are broke. There are always two very broad ends of the spectrum when it comes to this topic and i dont see how this happens especially when all the better companies are paying FSC and are all needing O/Os. Are your guys drivers or O/Os?



The difference is that there is a wide gap among companies with regards to fuel surcharges. In some cases, nothing is paid, to a few cents per mile to something that is enough to cover most of the fuel cost.
Runs that may be under a contract are based on a rate that was agreed to a year ago. Drivers running alot of these loads will go broke if they have additional obligations whether personal or a high truck payment. It is those cases that you see the problems.

A load for example with a 5 cent surcharge has little impact on your total fuel cost if you are paying $3.00 per gallon and your truck gets 10 mpg. That moves your fuel purchase to $2.50 per gallon on just the loaded miles. Nothing to write home about, and pray you don't have to deadhead anywhere.
Any issues where a owner is keeping a percentage of the fuel surcharge will also have a negative impact on a driver. No owner should be keeping any of the fuel surcharge.

Davekc
owner
21 years



Davekc
 

devarga

Expert Expediter
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Ok, what I do not understand is that all the owner operators are "not making money", but as a driver making 60% of the trucks base rate + all the fuel surcharge, bonuses, and other items I still make between 700-1000 per week after expenses. That includes me covering the fuel...
 

BigDiesel

Expert Expediter
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Thats exactly my point these guys come on here and complain about fuel and expenses but they never give you names of comapnies or the pay rates. The only way they are not making money is if they choose not to. IMO
 

davekc

Senior Moderator
Staff member
Fleet Owner
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

For what it is worth.

The ones that are failing are usually in the below catagories.

accepting unprofitable loads.
following advice from the inexperienced
excessive deadhead
mismanagement of income
overspent on equipment
running with little or no fuel surcharge
running home every weekend
equipment that is improperly speced or is too old.
income tax problems
Dishonest owner or company
family or health issues
poor work ethic

I might have missed a few, but those seem to be the most common. They are in no particular order of occurance.

Davekc
owner
21 years
 

simon says

Veteran Expediter
Charter Member
RE: IS ANYBODY MAKING MONEY DRIVING WITH THESE GA

Let me respond to that. Yes the list of expense drains is long and multi-varied, and a lot depends on the individual. But... I am running quite well, especially at the moment. Yet, my fuel expense was $1000 over budget for the month of Sept! No one can take that hit for very long. FSC always lags behind the actual jump in fuel price. Dave said previously, most of us are working at rates based on fuel prices of $1.50 or what the shipper will pay. I haven't done an NLM run in 6 months, they will not pay my co's rates.
Our base rates should be rising faster as well. A $1.20 or the same % as before, is inadequate now. And shame on the expedite outfits who glorify the spot bid. Told them at the time, not in my truck! But industry wants to have it on the cheap with us as well. We are now just finding out, that we are just as exploitable as the drivers of any trucking outfit. That was my point about being "Contract workers" living off the phone to ring.
If fuel goes from $1.88 in Sept. 04- then up to $2.15 in the spring of 05, and now over the Mendoza line, if it costs a D' unit $.032 to operate per mile now, where it used to be $.22, and the FSC is only $.25 per mile-do the math! Now if you are a Van and have some good weeks, it doesnt hurt as much. A D' unit now almost has to make well over two bills a week to be doing as well as he did before; loads, DH, etc. being equal. x(
 
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