Is it realistic to ...

[Dennis463]

I am using the spreadsheet at OOIDA to draft up financial numbers. I am seriously looking into expediting, but after running my numbers the spreadsheet indicates I need to average 133,000 miles and get $1.50 a mile. I am looking to draw a salary of $50,000.00 gross a year. Two fold question:
1) are the fixed and variable cost indicated all necessary for a straight truck operation (I realize not the trailer category)?
2) Is the salary to unrealistic for a first year operator / driver?

As a side note the truck will be a used truck, I am looking at one that is a 2004 with 519,000 miles. Just overhauled the engine. The cost is $52,000.00. I calculated fuel at around $40,000 per year at $3.08 a gallon for 100,000 @ 8 miles to the gallon. I know there is a fuel surcharge coming back to the truck, just don't know how to calculate that to the equation.

Thanks for any and all information that will help me in this desire to become an expediter.
Dennis Carmichael

 

[terryandrene]

Are you planning on being a solo in a Large (D) straight truck operated under lease with one of the well known carriers? The FSC is generally expected to bring the effective fuel cost to about $1.25. Will you have any documentation to support the 8 MPG?

One carrier, FedEx Custom Critical, advertises 2005 and 2006 fleet avg for a D truck as $1.22 for each of 119,950 loaded and empty miles. That's an average for a team, so many do better. A Solo averaged for the same time frame, $1.11 for 66,732 miles.

 

[Dennis463]

>Are you planning on being a solo in a Large (D) straight
>truck operated under lease with one of the well known
>carriers? The FSC is generally expected to bring the
>effective fuel cost to about $1.25. Will you have any
>documentation to support the 8 MPG?
>
>One carrier, FedEx Custom Critical, advertises 2005 and 2006
>fleet avg for a D truck as $1.22 for each of 119,950 loaded
>and empty miles. That's an average for a team, so many do
>better. A Solo averaged for the same time frame, $1.11 for
>66,732 miles.

Thanks for the reply;
I will be driving as a solo, a straight truck with a 22 foot van body (gvw 52,000 lb). The 8 mile per gallon came from my experience in the 27 foot flatbed with a 230 cat(415,000 miles on it). I maybe underestimating the fuel mpg to try and be on the safe side. I currently drive through out the six states of New England . Right now I am looking into Bolt Express, but I am keeping all options opened. I do not hardly see any expediters in New England except Panther II and Fed Ex CC, and they seem to be heading out of the area. It is very infrequent to see one sitting at a truck stop / rest area. Many local day cabs running around though.

 

[terryandrene]

I don't know about Bolt's New England opportunities but FedEc Custom Critical and Panther do well in the New England area. The area bordered by Albany south to Harrisburg to Delmarva stay relatively busy. One of our carrier's consistent top performers drives a T/T out of southern CT.

One reason you don't see many expediters in NE is the lack of truck stops and rest areas. Many have found a favorite Wal-Mart at which to camp out while awaiting an offer. Another reason, I've found is that we are either moving under load or stuck in the ubiquitous traffic jam around the metro areas of NYC, the Cross Bronx, Boston or Hartford.

I'd think that your trucking experience and non-fear of Bos and NYC driving would be an attractive asset desired by any of the carriers. Your $50K goal might be achievable by you but difficult for a trucking novice. Start-up costs, Base rates, FSC and toll reimbursement would best be answered by the carriers that can convince you that NE is lucrative for them. Let's hope a NE based driver will chime in here.

 

[RichM]

When I operated as a solo FedexCC driver I found the NorthEast and New England to be the most profitable areas. I would have a trip virtually every day, some relatively short in miles but decent revenue. The teams usually refuse the shortr trips as they want to head back to the midwest or south.

 

[ATeam]

If a $50,000 a year salary is your goal, there are a number of companies that put solo drivers in big trucks for that pay. You would be a company driver but would also be without the overhead and risks of truck ownership. Of course, if considerations other than income apply, solo D-unit driving in the Northeast may be the opportunity for you.

 

[Broompilot]

Dennis great questions and nice investigating prior to entering this business:

Speaking from Expierence on Big Trucks and there incomes:

It is in no way: Possible to earn $50K a year until after Three Years expierence starting with maybee the 4th year.

These companies Speaking from Expierence here will keep those miles low as to not loose you to Ownership and to improve there own bottom line.

Want more proof? Ask any Averitt driver ask any Swift, Werner, U.S. Express the list can continue on and on. Not saying these are bad companies they are just not into what I believe should be first, and that is seeing to it that a working person who wants to work can earn enough $ to support ones family. My thinking is that $50K a year is not asking for to much if one is willing to give the energy and time to get there. These companies only care about the time in the Tractor, not about if YOUR earning or not earning. $28k to $maybee $36 is what one could expect, benefits are included. Time out varies ask any Co. Driver and one more thing you need a good MVR.

 

[LDB]

As mentioned, the fsc is meant to bring the cost of fuel to about $1.25 per gallon for the loaded miles. Your $3.08 figure is much too high. Adjust that to about $1.95 a gallon, to account for the empty miles as well, and see what your numbers look like. I can't comment on your %50k goal since I don't know what company you'll wind up with, how well the jobs will line up etc. but you'll at least have a much more realistic cpm number. Good luck.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

 

[Dennis463]

Thanks to all for your replies, I redid my numbers and that brings it down to $1.19 per mile and now I only need to run 103,000 miles per year. I'll run as many as I can get as this number is just a goal.

After reading through the replies I am not looking to run tractor trailer for they run but your right they do not make $50K for a long time behind the wheel. I am looking to run straight truck only. I will look into Fed Ex CC as well as LandStar. I understand Panther II is really looking for team operations. It looks like I need to be very wise in my dealings with perspective companies and not get sold a bill of goods that wont meet my needs as I am willing to meet their needs.
Dennis Carmichael

 

[ATeam]

Dennis,

I get it about you not wanting to run tractor/trailer. I wish you luck in finding a profitable niche in expediting. As others have said, you are doing a good job researching the opportunity.

I would like to mention that there are companies out there that advertise $50,000+ pay for inexperienced drivers. While there are those that pay less, there are also those that pay more. One example:

http://www.schneiderjobs.com/drivers/Drivers_Pay_Northeast.html

It would be a simple matter to check with drivers of the advertising companies to verify if the numbers in the ads are true or false. With Schneider, I believe the numbers to be true and base that belief on the reputation the company has with Schneider drivers I have talked to. I do not have big-rig experience, but they do. It is their reports I rely on.

 

[Broompilot]

I also forgot to Mention SCHNEIDER, ask any driver with them Solo if he is making $50K even after ten years it takes that to get to the top with them.

Advertising is just that Advertising or it could also =LIES. Have a Schneider driver who picks up at the same day of the week with me at the same PU, ten years with Schneider, he runs 2,500 miles a week with them pay=$800.00 a week. TEN YEARS is his employment with the same company Schneider.

If he wants to run wild and never go home, it could be $1,100.00 a month according to him.

Than again forget the advertising and ASK THE REAL PEOPLE WHO DRIVE FOR THE COMPANIES. Ask several though not just two or three, my mistake with Averitt, I asked three guys all out of MS or AL the states with the favoritism and best dispatch in the system. All other drivers only do less than half of what AL and MS do. Why? I asked that same question. Answer=time to move on.

 

[ATeam]

I guess the people climbing out of those orange trucks that I talk to are not real Schneider drivers. Sorry to be so wrong.

 

[terryandrene]

OK sports fans. The man is interested in Expediting, not OTR in a tractor. Let's get back to the topic of the thread.

 

[Dennis463]

Thanks for that response Terryandrene. I was getting nervous about the direction of the thread. It started to sound like I couldn't make an income in expediting to support me and my family. I shall not give up!
Dennis Carmichael

 

[tallcal101]

Nothin from nothin is nothin.Thats about what you can expect.