Minimum wage may go up to $10.10 in some state.

[Bruno]

With some states looking to increase the minimum wage to $10.10 per hour. I think its time for a rate increase for owner operators. Carriers are making more money off of owner operators than before. There is few carriers that do the right things for their Owner/Operators but that is not the case with all. Everything has went up except truck rates. When I started at Roberts Express back in 1995 a D load payed $1.41 a mile for loads over 300 miles, and we only got 58% of what they charged the customer. Fuel was at .86 a gallon and I could fill my truck up for $125.00. I had two 75 gallon tanks which is pretty much what we use today in most trucks. Some carriers want you to run for $1.20 a mile and be on a flat rate FSC, instead of paying 100% of the FSC.

Costs keep going up and here are just a few, Qual Com is up, road taxes are up, fuel is up, insurance is up, but the rates have not went up. In some cases the rates have went down at some carriers. I look to see another bunch of trucks getting turned back in if things don't change soon. So many things have changed with all the new laws for drivers that there is a shortage of drivers and owner operators. CSA scores are now making it harder for drivers to even get hired. With the shortage of drivers, why are we still getting paid less than what we made almost twenty years ago? Last year we paid over $75,000.00 for Qual Com and plates at our carrier. You think having 24 trucks would get you a reduced rate on these things. Nope it's a profit center for most carriers. They say you are partners, when really your just another number when it comes to some things.

Don't get me wrong, we have done very well at our current carrier. Just feel some things need to change as far as charges to the Owner Operators.

 

[Lawrence]

Dave,

There are many trends some positive - others not so positive. Let me say, one item that has me very concerned is the erosion of detention time pay for owner operators. If you ask a $40K or $200K expedite vehicle to wait at a dock to load or unload....the ticker should start rolling after 60 minutes.

 

[zorry]

I like that my carrier charges D per load, not per stop,
If you load me slowly, you better be quick on the other end.

 

[Bruno]

Dave,

There are many trends some positive - others not so positive. Let me say, one item that has me very concerned is the erosion of detention time pay for owner operators. If you ask a $40K or $200K expedite vehicle to wait at a dock to load or unload....the ticker should start rolling after 60 minutes.

Lawrence I agree with what you are saying 100%. Detention time should be 40.00 an hour for vans and sprinters a hour after an hour. C and D units should get 60.00 an hour after an hour. Tractors should get 85.00 an hour after two hours as it takes longer to load a tractor. I don't think any carrier should make anything off of detention time unless they owned the power unit. The cost of a brand new truck has went up almost $100,000.00 since 1995. I bought my first truck brand new for $47,500.00 from Freightliner of Knoxville. That same unit starts at $139,000.00 now. Expediting has changed so much since then. The Expedite Expo and Expediters Online has brought drivers together more over the years. Owner Operators and their drivers are moving to carriers that treats them better with higher pay and 100% of the FSC. I heard of one carrier going to a flat rate per mile from a percentage that they have been on for many years. I wish them luck as I feel that the owner operators will leave and go to other carriers that will pay them more. You have to ask yourself that if someone offered you 500.00 more each week for your truck, would you sign on with them? Mainly when everyone that is leased on with that company loves working there.

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[zorry]

It's pretty public what FedEx's pay plan is.
Isn't Panther also flat rate ? With more than one FSC plan ?
And penalties for turning down loads ?

I'd like to know the upside to Panther .
PM me if you'd like.

 

[Bruno]

It's pretty public what FedEx's pay plan is.
Isn't Panther also flat rate ? With more than one FSC plan ?
And penalties for turning down loads ?

I'd like to know the upside to Panther .
PM me if you'd like.

No penalties for turning down loads. Very happy over all with Panther. There is a big difference between the two companies. Well to be honest I don't know how Fedex does things anymore since I was asked to leave as a driver after being there almost fourteen years. I'm very happy and hold no hard feels against Fedex as we have moved on and have done very well for our business with Panther.

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[davekc]

The clash with many carriers is that they are trying to maintain the same profits as years past. Since freight rates have been stagnant, they are going right after the owner operators earnings. That is why you see detention and dry run pay issues. Most are afraid to even approach the customer for fear of losing their business. The owner operator bears the costs and the carrier short of lost capacity, loses nothing. Why would they change?
As I have stated before, you can usually watch the stupidity unfold right before your eyes. Operations cuts the rates, fail to pursue detention or pay anything (or close to it) on dry runs, and the list goes on. Then the recruiting side takes those saved pennies and burns them on the 100 percent turnover ratio.
It is becoming tougher for the single truck to operate as they did before. Equipment and operational costs have pushed a late model vehicle almost out of the equation for many. Fleet owners are usually in a better position because they are capitalized much better and have a steady flow of income. Or they better hope they do. In todays world, one significant event can put a operator under.

 

[Jamin_Joe]

Dave,
What cost cutting Ideas do you have for owner/ops, since from what I read many dont have the fat to cut? May be a good new thread, unless another one could be rectivated by a new post.

 

[usafk9]

Dave,
What cost cutting Ideas do you have for owner/ops, since from what I read many dont have the fat to cut? May be a good new thread, unless another one could be rectivated by a new post.

Fuel economy. I realize you didn't ask me, but it's the best place to start as a one-truck operation, IMHO.

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[usafk9]

The clash with many carriers is that they are trying to maintain the same profits as years past. Since freight rates have been stagnant, they are going right after the owner operators earnings. That is why you see detention and dry run pay issues. Most are afraid to even approach the customer for fear of losing their business. The owner operator bears the costs and the carrier short of lost capacity, loses nothing. Why would they change?
As I have stated before, you can usually watch the stupidity unfold right before your eyes. Operations cuts the rates, fail to pursue detention or pay anything (or close to it) on dry runs, and the list goes on. Then the recruiting side takes those saved pennies and burns them on the 100 percent turnover ratio.
It is becoming tougher for the single truck to operate as they did before. Equipment and operational costs have pushed a late model vehicle almost out of the equation for many. Fleet owners are usually in a better position because they are capitalized much better and have a steady flow of income. Or they better hope they do. In todays world, one significant event can put a operator under.

Absolutely perfectly said. While the "spreading the losses" conflicts with Linda's comment earlier (another thread, perhaps?), the asterisk would probably apply to heavily-leveraged fleets. I would not want to be in that spot right now.

Save, save, save. Live frugally.

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[Jamin_Joe]

This is open to anyone to post cost cutting ideas. From what I read, you all have that penney well squeezed already.

 

[davekc]

As for "shared losses", I am not seeing that. Rates have went up to the customer, but rates in many instances have dropped with relation to the operator. Last Sylectus report confirms that. To be fair, cost to operate from the carrier's side have continued to rise as well. Can't be blind to that. But make no mistake, they are trying to make that cost up through their fleet. There are exceptions, but I believe I can just about count them on my hand. When I see a nameless carrier that thinks 1.12 a mile for a straight with using a Midwest FSC average is good, that is all the information one needs.

If looking at cost cutting measures, it just depends, but AJ hit on a big one for a single operator. Fuel costs. After that it comes down to fixed costs, maintaining your vehicle (easier said than done for someone broke), utilize as much freight info as possible, broker your own freight to minimize DH, and the list is pretty long. Maybe instead of buying new, maybe a refurbished truck is a better answer. Rate doesn't go up because its new. Probably a good idea, to start a new thread on just that.

 

[Bruno]

Carriers are charging fees for everything. One week of Com Data charges almost pays for the whole month if your using MPC 50 or the MPC 100 units. The big carriers with a 1000 plus trucks are making good money off of their contractors just on Qual Com.

 

[zorry]

Dave, with 24 trucks aren't you big enough to negotiate with your carrier ?

 

[Bruno]

Dave, with 24 trucks aren't you big enough to negotiate with your carrier ?

I don't think any carrier will negotiate on cutting cost for fleet owners.

 

[davekc]

Most of the advantage to a fleet owner depending on the company is either through operational issues or a higher percentage or mileage rate.
A fleet owner likely pays a lot less per truck for insurance but that would be outside of a carriers offering.

 

[T270_Dreamin]

Bring it up another 10.10 and I'll park the sprinter and hang the keys up.

 

[skyraider]

Question: If one owns a dozen straight-trucks/big rigs , why sign own with Panther or anyone else if you have your own authority? If you have your own authority and load board tools, you can see what the lanes are paying all over America.

 

[usafk9]

Question: If one owns a dozen straight-trucks/big rigs , why sign own with Panther or anyone else if you have your own authority? If you have your own authority and load board tools, you can see what the lanes are paying all over America.

You also have much higher insurance premiums, your own collection department and waiting to get paid. Sometimes it may be easier to lease to a carrier.

 

[aimeejos]

broker your own freight to minimize DH

Apparently FedEx does not carry enough liability or cargo or something because we can no longer get back haul loads through CH Robinson. So basically there are no back haul options for us anymore.