does anyone else think rates had better come up sooner than later because with fuel at 3. plus along with weak fuelsurcharges its making a difficult situation an imposible one. not complaining about anyone co. or another but brokers better start working harder for better rates or there wont be trucks to haul the freight.
the breakdown so to speak rates virses cost to do
- Thread starter luvboats
- Start date
RE: the breakdown so to speak rates virses cost to
The tarrifs are lower than they should be, but the FSC sure takes the sting out of the high cost of fuel. A 6 mpg truck will pay 50 cents per mile at the $3.00 per gallon price. FedEx Custom Critical, for example, charges its full tarrif customers a 19% fsc. That's $19 for every $100 the customer pays. At 58% of tarrif, a truck gets $58 + $19 of that $119 paid.
A straight truck averaging $1.75 per revenue mile will travel 33 miles to earn that $58. 33 miles will cost $16.50 for fuel. Add to this a 1/3 deadhead factor and you'll travel 44 miles for that $19. 44 miles at 6 mpg and $3 per gallon will cost $22 or an effective cost of only $3.00 to travel 44 miles. That's 6.8 cents per mile or diesel fuel cost out of pocket of 41 cents per gallon. Have a deadhead percentage like the Colonel enjoys and your fuel is almost free.
Having said all this, the tarrifs still have not kept pace with inflation nor the typical owner/operators cost of doing business.
The tarrifs are lower than they should be, but the FSC sure takes the sting out of the high cost of fuel. A 6 mpg truck will pay 50 cents per mile at the $3.00 per gallon price. FedEx Custom Critical, for example, charges its full tarrif customers a 19% fsc. That's $19 for every $100 the customer pays. At 58% of tarrif, a truck gets $58 + $19 of that $119 paid.
A straight truck averaging $1.75 per revenue mile will travel 33 miles to earn that $58. 33 miles will cost $16.50 for fuel. Add to this a 1/3 deadhead factor and you'll travel 44 miles for that $19. 44 miles at 6 mpg and $3 per gallon will cost $22 or an effective cost of only $3.00 to travel 44 miles. That's 6.8 cents per mile or diesel fuel cost out of pocket of 41 cents per gallon. Have a deadhead percentage like the Colonel enjoys and your fuel is almost free.
Having said all this, the tarrifs still have not kept pace with inflation nor the typical owner/operators cost of doing business.
Broompilot
Veteran Expediter
RE: the breakdown so to speak rates virses cost to
Let this be a WARNING to those of you entering this industry. Even those of you who just want to have a Truck instead of a Motorhome. This a business, not a hobby. But those who have entered this as a hobby are keeping the rates down for the rest of us who want to make a living out of it.
Rates will not be rising anytime soon, the glut of competition will see to this, so this had better be in ones business model (NO INCREASES ANYTIME IN THE FORESABLE FUTURE).
Let this be a WARNING to those of you entering this industry. Even those of you who just want to have a Truck instead of a Motorhome. This a business, not a hobby. But those who have entered this as a hobby are keeping the rates down for the rest of us who want to make a living out of it.
Rates will not be rising anytime soon, the glut of competition will see to this, so this had better be in ones business model (NO INCREASES ANYTIME IN THE FORESABLE FUTURE).
RE: the breakdown so to speak rates virses cost to
how many trucks do you own broompilot? what are your act. cost per mile? i have mine figured at >.35 for fuel .36 for driver not even calculating insurance etc. lets say another .30 =1.01 for my str. my big truck > .60 fuel .44 driver say additional .50 = 1.54 this is not exact on the money but iam sure its real close and i havent even began to factor driver getting lost from time to time if they need to d.h. home for a break lots of variables. times are tough surely we dont have to wait until competion dies off. brokers should be asking more for fuel which they are iam sure. iam not saying its all bad heck iam buying 2 more strs. this week. but it is very very tough right now but we are hanging in. you are right this is a business we all expect to make money and i suppose when we dont it will be time to get out also. like in all biz. sometimes there is risk but we are taking advantage of lower trk prices (used) and expanding our fleet to help adjust our bottom line hopefully it will work for us. p.s. i havent even adj. act cost per mile for those bad drivers we get from time to time that realy wreck actual cost. and we are always on the hunt for the good drivers. signed scott fleet owner 9021 and 5291 and hopefull by the end of the week 2 more str.'s
how many trucks do you own broompilot? what are your act. cost per mile? i have mine figured at >.35 for fuel .36 for driver not even calculating insurance etc. lets say another .30 =1.01 for my str. my big truck > .60 fuel .44 driver say additional .50 = 1.54 this is not exact on the money but iam sure its real close and i havent even began to factor driver getting lost from time to time if they need to d.h. home for a break lots of variables. times are tough surely we dont have to wait until competion dies off. brokers should be asking more for fuel which they are iam sure. iam not saying its all bad heck iam buying 2 more strs. this week. but it is very very tough right now but we are hanging in. you are right this is a business we all expect to make money and i suppose when we dont it will be time to get out also. like in all biz. sometimes there is risk but we are taking advantage of lower trk prices (used) and expanding our fleet to help adjust our bottom line hopefully it will work for us. p.s. i havent even adj. act cost per mile for those bad drivers we get from time to time that realy wreck actual cost. and we are always on the hunt for the good drivers. signed scott fleet owner 9021 and 5291 and hopefull by the end of the week 2 more str.'s
RE: the breakdown so to speak rates virses cost to
p.s. on the lighter side iam glad our trucks get better mpg than our boat man ole man wouldnt even want to figure those acpm fuel over 4. at the marina, beer ,hot dogs, ice, sun block etc. time spent with the grandkids umm PRICELESS!!!! i dont know about the rest of you all but isnt it funny if you have been in this biz. for awhile i'll catch myself factoring how much cpm it took for the mustard for the hotdogs that a grandchild just threw overboard. lol
p.s. on the lighter side iam glad our trucks get better mpg than our boat man ole man wouldnt even want to figure those acpm fuel over 4. at the marina, beer ,hot dogs, ice, sun block etc. time spent with the grandkids umm PRICELESS!!!! i dont know about the rest of you all but isnt it funny if you have been in this biz. for awhile i'll catch myself factoring how much cpm it took for the mustard for the hotdogs that a grandchild just threw overboard. lol