Just curious but is that rate of a buck a mile for all loads including Hazmat and Canadian runs?
Thanks A Team, sure hope you were right!
- Thread starter jjoerger
- Start date
The rate is $1 per mile + FSC + tolls for all dispatched miles including deadhead, loaded and deadhead to planned layover. Deadhead to planned layover is an area that FedEx wants you to wait in for the next load, so after the delivery you go to that area.
Here's an example. We are at home in Lake City, FL. We get dispatched on a run picking up in Orlando, FL 155 miles away. We deliver in Sequine, TX which is 1343 loaded miles. After delivery we are authorized to Dallas to layover for the next load, that's another 267 miles. Total miles would be 1765 and total pay would be $1765 + 539.38 for FSC (.3056 per mile) + tolls. For a total of $2304.38.
Anything extra is an accessorial and pays 60 percent of what the customer is charged.
Here's an example. We are at home in Lake City, FL. We get dispatched on a run picking up in Orlando, FL 155 miles away. We deliver in Sequine, TX which is 1343 loaded miles. After delivery we are authorized to Dallas to layover for the next load, that's another 267 miles. Total miles would be 1765 and total pay would be $1765 + 539.38 for FSC (.3056 per mile) + tolls. For a total of $2304.38.
Anything extra is an accessorial and pays 60 percent of what the customer is charged.
You are calculating the pay per mile exactly as Diane and I do; divide total pay by total miles to determine your pay per mile.
In the example you provide, it is:
$2,304.38/1,765= $1.31 per mile.
Assuming that fuel costs $4.00 per gallon and your straight truck gets the presumed fleet average of 9 mpg, $0.44 per mile is spent on fuel that is pumped into your tank.
$1.31-$0.44=$0.87
$0.87 per mile seems a bit light to pay all other truck expenses and earn a living too.
Last edited:
For a surface truck that sounds alright to me.
Do you guys have anything extra such as a pallet jack, blankets, corner protectors or anything else to increase your chances of getting accessorial pay?
Another way to increase your income is to increase your fuel mileage.
Do you guys have anything extra such as a pallet jack, blankets, corner protectors or anything else to increase your chances of getting accessorial pay?
Another way to increase your income is to increase your fuel mileage.
We get around 10 MPG and are hoping to keep $.90 per mile after fuel.
If we run 13,000 miles a month we will gross $11,700 after fuel. Deduct Work Accident Insurance, QC Fees, Bobtail Insurance and our maintenance fund and we will net before taxes a little over $10,500. Put away 10% for taxes and we bring home $9450 a month or $113,400 per year.
Our bills and monthly expenses total less than half of that.
I think we will be OK.
We are going to be purchasing a pallet jack and blankets soon. Might even get a lift gate.
If we run 13,000 miles a month we will gross $11,700 after fuel. Deduct Work Accident Insurance, QC Fees, Bobtail Insurance and our maintenance fund and we will net before taxes a little over $10,500. Put away 10% for taxes and we bring home $9450 a month or $113,400 per year.
Our bills and monthly expenses total less than half of that.
I think we will be OK.
We are going to be purchasing a pallet jack and blankets soon. Might even get a lift gate.
Yes, perhaps I asked the question wrong. I was asking how the percentage-based contractor's 'pay' on the same 'example load' as mentioned, would compare to the flat-rate-based contractor's 'pay' for all miles. I meant for someone to chime in as to how that would compare on the same load with the same deadhead, but with the different compensation calculation. I realize that deadhead is paid out as well, at a different rate, for the percentage contractor, and that the rate changes with each load that a percentage contractor does... but say on average, how is that flat rate looking in comparison on that example load mentioned? And what happens with the flat-rate contractors when those other things happen, ie hours of wait time, load cancellation, etc. Do they also get compensated for that just as a percentage contractor would?
I appreciate your and other people's willingness to discuss details. It helps me and others understand exactly how viable (or nonviable) the flat rate program is. I am wondering if we can carry the specifics further through?
Actually, I'm going to start a new thread about this. "Building Your Business Plan Spreadsheet." Perhaps we can converse about this in a way that will help many people build their spreadsheets and help newbies understand the realities of this business.
Last edited:
That would be a good idea. OOIDA has a good Costs of Operations spreadsheet that you might be able to use as a starting point.
I prefer to use real-world numbers from real-world expediters since it is expediters we are talking about. The new thread has been started. See this.
moose
Veteran Expediter
they will also provide the new bumper sticker to be used by FedEx drivers :
" say yes to cheap freight "
Something I may have failed to mention.
If we or any other contractor that switches to the flat rate program are unhappy we are allowed to switch back to the percentage rate contract. (Last I heard only 2 had switched back)
But then we can not go back to flat rate again.
If we or any other contractor that switches to the flat rate program are unhappy we are allowed to switch back to the percentage rate contract. (Last I heard only 2 had switched back)
But then we can not go back to flat rate again.
So not only flat rate but the company tells you where to layover as well?
I am sure it will be much more efficient for the fed, having all their trucks just where they want/need them.
If they keep all their trucks spread out where they need them it allows them to do three things.
1) provide quicker response times due to increased availability
of equipment as well as less turndowns by the contractor.
2) go after business in a certain area knowing that they will
have the trucks for coverage if they can keep them spread
out how they like.
3) As a result of 1 & 2, there will also be less need to broker
the loads to partner carriers.
It will unfortunately also remove all of your business making decisions for you, save for truck maintenance.
You will no longer have to think about layovers or wether to turn down a load or not. Your mind will slowly numb and you will turn into a gorilla ( or if you were really smart to begin with, maybe a chimpanzee or orangutan).
Yes you can still turn down loads if you want (for now), but it will be for personal reasons only, as the profitability equation that would have previously guided your good sense of business judgement as to acceptance or rejection has now been removed.
Oh yes, and how many do you think you will turn down before your contract is terminated? Betcha it won't be as many as it would have been when you were on percentage.
Sorry if your are offended by this, but in my books, you are no longer a business person, you are a truck driver, plain and simple.
Let's even say that the flat rate produces more revenue and let's even go so far as to say that your bottom line is greater at the end of the year. Some would argue that if that does indeed end up being the case (not likely), that they were the ones who made the smart "business" decision to adopt the flat rate contract and therefore are indeed shrewd business people.
To that I say:
In my opinion, losing the ability to make the day to day decisions about wether to accept or reject, move or stay etc, could never be overshadowed by the perceived revenue increase, I don't care how much of a difference it would make.
For me at least, having the ability to make those decisions, and being rewarded accordingly are the most important part of this crazy industry, and if the satisfaction I would derive from that was taken away, then I'm sure I would lose my "business" skills and love for that business real quick.
I think a few people on here who consider themselves business people, will be changing carriers in the near future.
Good luck to all!
I am sure it will be much more efficient for the fed, having all their trucks just where they want/need them.
If they keep all their trucks spread out where they need them it allows them to do three things.
1) provide quicker response times due to increased availability
of equipment as well as less turndowns by the contractor.
2) go after business in a certain area knowing that they will
have the trucks for coverage if they can keep them spread
out how they like.
3) As a result of 1 & 2, there will also be less need to broker
the loads to partner carriers.
It will unfortunately also remove all of your business making decisions for you, save for truck maintenance.
You will no longer have to think about layovers or wether to turn down a load or not. Your mind will slowly numb and you will turn into a gorilla ( or if you were really smart to begin with, maybe a chimpanzee or orangutan).
Yes you can still turn down loads if you want (for now), but it will be for personal reasons only, as the profitability equation that would have previously guided your good sense of business judgement as to acceptance or rejection has now been removed.
Oh yes, and how many do you think you will turn down before your contract is terminated? Betcha it won't be as many as it would have been when you were on percentage.
Sorry if your are offended by this, but in my books, you are no longer a business person, you are a truck driver, plain and simple.
Let's even say that the flat rate produces more revenue and let's even go so far as to say that your bottom line is greater at the end of the year. Some would argue that if that does indeed end up being the case (not likely), that they were the ones who made the smart "business" decision to adopt the flat rate contract and therefore are indeed shrewd business people.
To that I say:
In my opinion, losing the ability to make the day to day decisions about wether to accept or reject, move or stay etc, could never be overshadowed by the perceived revenue increase, I don't care how much of a difference it would make.
For me at least, having the ability to make those decisions, and being rewarded accordingly are the most important part of this crazy industry, and if the satisfaction I would derive from that was taken away, then I'm sure I would lose my "business" skills and love for that business real quick.
I think a few people on here who consider themselves business people, will be changing carriers in the near future.
Good luck to all!
Last edited:
60MPH
Expert Expediter
Oh my .90 a mile after fuel in a D-unit?? Before truck expenses and health insurance. NO-NO!!
Those that are on the flat rate are selling them self short..what a shame. People the rates have really not gone down that much and some of them have risen in the last quarter. I have seen the fed changing the last 3 years and as other partners have stated they want to haggle more on the rates then before. I wounder if they have dropped some of there rates to match there freight division.
I see it becoming harder for those that choose to remain on % at the Fed. I believe that the A-Team bailed out at the right time. Though with there size unit they may find it a little difficult at first. I think if they get there own authority and a handful of well paying customers that they can provide excellent "custom" transportation solutions for and use Landstar as a back-up they have a even brighter future then they would ever have at the Fed.
Phil saw where FedEx was going and pulled out as he did not want to lower himself to that level. Way to go Phil, those with supertrucks on with the Fed should be forming a exit plan unless you are willing to run for what a surface truck runs for . There are trucking companies out there (not in the expedite arena) that haul the stuff WG hauls/used to haul and are always looking for well qualified professional teams with unique well maintained units. You just have to do some digging, but it is well worth it.
Remain safe and profitable at every mile!!
Those that are on the flat rate are selling them self short..what a shame. People the rates have really not gone down that much and some of them have risen in the last quarter. I have seen the fed changing the last 3 years and as other partners have stated they want to haggle more on the rates then before. I wounder if they have dropped some of there rates to match there freight division.
I see it becoming harder for those that choose to remain on % at the Fed. I believe that the A-Team bailed out at the right time. Though with there size unit they may find it a little difficult at first. I think if they get there own authority and a handful of well paying customers that they can provide excellent "custom" transportation solutions for and use Landstar as a back-up they have a even brighter future then they would ever have at the Fed.
Phil saw where FedEx was going and pulled out as he did not want to lower himself to that level. Way to go Phil, those with supertrucks on with the Fed should be forming a exit plan unless you are willing to run for what a surface truck runs for
. There are trucking companies out there (not in the expedite arena) that haul the stuff WG hauls/used to haul and are always looking for well qualified professional teams with unique well maintained units. You just have to do some digging, but it is well worth it.Remain safe and profitable at every mile!!