Rate per day?

layoutshooter · Jun 3, 2011

We have been talking about rates per mile for a bit. What about "rate per day"?

Assume for a minute it is Friday. You are offered a load that pick up on Monday or Tuesday and delivers on Wed. It pays great per mile. Not real heavy etc. BUT the total pay is, let's say, around $3200 bucks and ties up your truck from Friday to the following Wed. How good is it? Is $500 per day enough?

jjoerger · Jun 3, 2011

Since I don't plan on getting a run on the weekend your example would only be tying up my truck for 4 days. $800 bucks a day, count me in.

kwexpress · Jun 3, 2011

it would depend on many things.and the answer would vary depending on truck payments and if the load was getting to a good area or if I would have to deadhead for two days after before I got another load.

layoutshooter · Jun 3, 2011

Yeah, no easy answers. Much like the rate per mile thing.

LDB · Jun 3, 2011

What time on Friday? What time does it deliver on wednesday? How good are weekend prospects where you are waiting? Since weekend loads are the exception I'd consider it moot for the two days Saturday and Sunday. If the offer is early Friday and delivers later Wednesday probably no. If it's late Friday afternoon/evening so chances are slim of another offer and it delivers Wed morning then probably yes.

layoutshooter · Jun 3, 2011

Yeah, it would make a difference if it delivered in Montana or New Jersey.

ATeam · Jun 3, 2011

Layout's hypothetical run may make sense from a revenue per week perspective.

That run combined with another that will likely come may do the trick, especially if the per mile rate is good. You could meet your weekly revenue goal while putting only high paying miles on the truck.

As a percentage-paid contractor, I would rather do 10 runs in a month with 10,000 miles at $2.00 a mile than 15 runs with 15,000 miles at $1.33 a mile. Doing so would put less miles on the truck for the same amount of gross revenue, thereby increasing the revenue per mile figure.

Paradoxically, putting fewer miles on the truck would increase the cost per mile of everything because you reduce the number of miles that are divided into the costs to get the per-mile figure.

In discussions like these, how granular does it pay to get? Smoothing the numbers out over a month makes sense to me. Stressing one's cost per day to sit today, and cost per mile or revenue per mile for the next 100 miles you drive may lead to bad decision making.

I'd rather view things a month at a time instead of a day or week at a time.

davekc · Jun 3, 2011

Lot of factors would go in to this type of call. If in a remote area, you almost have to give it consideration even though the 500 per day is likely below the average threshold.
And of course where it is going.
Dispatch on a Friday for a Tuesday pickup is certain to get scrapped. I would think another load would come up over a four day period or I would find it myself.
And of course the obvious. You commit to a load Friday for a Tuesday pickup, and they cancel it Monday. There are those companies that will want a commited truck while they shop rates.

dabluzman1 · Jun 4, 2011

No.
I would need to be desperate to get out of an area or to drop in an area (like home) to tie the truck up for that long of a period for $500/day.
mmmmmmm, come to think of it I am pretty desperate.
Now, one thing the Mrs mentioned.
If we laid over at a CASINO........WELL, thats a horse of a different color.

WOW, you are right, lots of variables.

nightcreacher · Jun 5, 2011

week end freight for most expediters isnt that good,does happen,but not often,at least not in a tractor.If iwere offered a load picking up on monday delivering on wed,to me thats just 3 days,my weekend would be resting for the next busy week,and as Phil said,still can get 1 or even 2 more loads for week.That 3200 could be the start of a 6000 week,wed pick up deliver friday.
I have always used the motto,a bird in the hand is worth 2 in the bush.Make hay while the suns shinning otherwise.Say no to this load,and you may sit the rest of the week too.sat sun mon tue and so forth

dabluzman1 · Jun 5, 2011

nightcreacher said:
week end freight for most expediters isnt that good,does happen,but not often,at least not in a tractor.If iwere offered a load picking up on monday delivering on wed,to me thats just 3 days,my weekend would be resting for the next busy week,and as Phil said,still can get 1 or even 2 more loads for week.That 3200 could be the start of a 6000 week,wed pick up deliver friday.
I have always used the motto,a bird in the hand is worth 2 in the bush.Make hay while the suns shinning otherwise.Say no to this load,and you may sit the rest of the week too.sat sun mon tue and so forth

We are in a DR and have always run weekend loads. On any given year we run 20 to 25% of the time thru the weekend.
We have just run our 5th straight weekend load. Shortest was 1500 miles all at a very good rate.
I like being pre-dispatched but on a Friday I know will be dispatched Monday so why sell myself short.

jimlookup · Jun 5, 2011

As a solo I would gladly accept the load, assuming there isn't any redicules dead head. You are actually only driving on it 2 or 3 days. 3200 bucks over 2 or 3 days isn't too bad for a solo. If you accept the load at home, great. If on the road; find a place to go fishing.