What do you think?

JustAddRubber · Jun 6, 2004

I was looking at the Carrier Profile of Transportation Logistics on EO front page and wondered what there driver average for all mile? I see they pay $1.30 for D truck, with 25% dead head and 70% on backhaul.

GJ

silverdollar · Jun 6, 2004

What do they call a backhaul? is it something that is in no hurry that you can deliver whenever you get there? or is it just another name for cheap freight?

JustAddRubber · Jun 6, 2004

More than likely cheap freight!!!!!!!!!

davekc · Jun 6, 2004

According to them they operate in a regional area. I think you are right in asking what their definition is of a backhaul. Is that everything outside of that region? 70 percent of what? (70 percent of nothing is still nothing) It would be to their advantage to list some realistic numbers. I think it helps as well to provide driver references if they are a smaller company. You can always find drivers for the larger carriers in truck stops ect. Not very often on the smaller ones. $1.30 per mile is a good rate, however there is no mention of fuel surcharge averages, and how often you are running at that rate. The other large component that is missing, is whether they pay anything for empty or deadhead miles. Take my word for it, if one puts all their cards on the table and they are good ones, the drivers will find you.
On a side note, recently we have seen LTL backhauls coming out of the west for 200 to 400 dollars on 1,000 miles. You will need several of these loads on a return trip just to cover costs. Most of the LTL loads were 2 to 4 pallets. 70 percent of those numbers are pretty scary.

terryandrene · Jun 6, 2004

A mumber of years back, Roberts Express had a similar sounding program whereas we got 62% of the customers tariff for any load going farther from home than the pickup. We then received 46% for any backhaul going closer to home than the pickup. In practice, we'd get a nice load from St Louis to Boston at 62%; then, a backhaul from Boston to NYC,thence another backhaul from NYC to harrisburg, Harrisburg to charlotte etc, etc, etc. We could travel several hundreds of miles farther on numerous backhauls, all at 46%. Not as good a deal for the contractor as for the carrier. We later went to a fixed percentage where the perception of grossing more money was more palatable.

If your example is the same, you would be getting 70% of $1.30 or $.91 for how many backhauls? Also, how often can they assure a backhaul? How much money for that 25% deadhead? Does it mean 25% of the time you'll be deadheading home, or your total miles will be 75% revenue and 25% on you.

silverdollar · Jun 7, 2004

What I meant is that there is no such thing as a backhaul. Does your fuel cost less if you are on a backhaul? your food? wear and tear on the truck? do you still have to run legal? in other words,if you are loaded,what is the difference,witch way you are going?

davekc · Jun 7, 2004

These backhauls that they are referring to are probably broker based loads. There "regular" loads are probably through a logistic company or their own accounts. If for example, if you wind up in a area that a load can't be located through the above two examples, they are going to a broker or a third party. In the majority of cases, it is cheap freight to begin with, and the broker or third party is taking a percentage. If one is at 70 percent of the final number, you are not talking too much income. That is why I indicated that you would need a full truckload of many LTL loads just to cover costs.
I hope that makes sense

Davekc

copdsux · Jun 7, 2004

Finally, I'll quit "lurking" & respond to a post: Silverdollar's com
ments, regarding "backhauls", are dead on. There ain't no such animal!!

TJ959 · Jun 10, 2004

I drive for them. Be glad to give you any infomation you want. E-mail me at [email protected]

JohnMueller · Jun 10, 2004

In response to message #0

In Response to "Just Add Rubber" on EO Profile of Premium Transportation Logistics

Last quarter, after doing fuel tax reports, the "D" units averaged 94.7 cents per mile, all miles. Take into account though that we allow our contractors to deadhead home or whereever, if they wish. Those miles are included in the reports. On the back hauls, we do publish 70% pay, but many (most)times find "full rate" loads for the trucks, if we do indeed obtain a backhaul. "Backhaul" can be defined in numerous ways so the best answer is our D trucks average 94.7 cents a mile, all miles (last quarter - Jan through March).

My definition of a "Backhaul" - the driver wants or needs to get back to his home. We look to other carriers, brokers, everywhere to find a load that will fit in his truck (usually smaller than a tractor-trailer) to get the driver back home. Usually these loads obviously pay much less than $1.30 a loaded mile because 1). the load is a partial and 2). we are attempting in any way to help get the driver back home. Any $$$ is better than hauling air!
If it is a tractor trailer driver who needs to get home, we simply find his typical, full rate, $1.10 per mile load (with ease) and get him home.

Thank you for the inquiry. I hope this clarifies that backhaul issue.

JM

davekc · Jun 10, 2004

As a starting point I think you provided some good information.
To help in your recruiting efforts it would help you to probably mention what miles a team and or singles do weekly, and what part of that is empty miles. Do you pay for empty miles? What is your average fuel surcharge, and is it charged to all customers or only some. How are milage rates caculated? I could go on further, but throw as much information out there as you can. Don't be afraid to throw all your cards on the table.

JohnMueller · Jun 11, 2004

DaveKC;
"Ask the Recruiter", to the best of my knowledge, was not intended to be a place for the four of us to recruit drivers. In fact, if I recall, the idea was to remain annonymous (as far as which company we work for) and simply answer "general" type recruiting questions.
Since it is now known who we work for I'll continue on.

When we began PTL, on the recruiting brochure we put together, we listed the 70% figure because we utilize the vehicles of all sizes, and it was intended to be a guideline on backhauls. The information from the brochure was utilized to produce the carrier profile. Again, probably 95% of our return loads are full rate, and the 70% figure is used to get drivers home when they decide they want to go home. Keep in mind that everyone has a different definition of the word "backhaul" and who knows which is the correct definition. Many times we end up offering "D" trucks "C" or "B" freight to get them home. The idea is to keep the wheels moving and profitable.

We do not pay any deadhead. We do not ask drivers to sit for days waiting for loads in a "dead" area. Most of our drivers are based in OH, MI or IN. We operate very strongly in the regional Midwest - these states and those that immediately surround. If we don't have something for them when they are empty most will wait only a few hours before putting it into the wind and heading home. Most of our drivers are thus gone overnight perhaps 2 to 4 nights a week and do not stay out for weeks at a time. This is THEIR choice.

Laying more of my cards on the table, with a poker face I might add, we do pay fuel surcharge to cargo vans and straight trucks in addition to their mile rate. 100% of the surcharge we charge to our customers is passed to the contractors on their settlements. Each tuesday we check the national average price of fuel to adjust the surcharge. Presently (6/11/2004) the fuel surcharge is 9%. This surcharge is accurate for all of our customers. If we take a load from a "partner" carrier, we can only pay the surcharge that they pay. On tractors, we negotiate the price fuel into the load charges to the customer. Our tractors run anywhere from 95 cpm to well over $1.75 a mile with slightly over $1.10 being average. Their deadhead miles are nil.

If any owner operators have any specific recruiting questions about Premium Transportation Logistics please visit our website at www.PTLLLC.com or call 1-800-661-3166. I would like to address individual questions on an individaul basis. I also suggest speaking with one of our drivers who I'm sure will inform you that we are a good group of guys who really do try to take care of our contractors.

Thanks,
JM - HotFr8Recruiter

silverdollar · Jun 11, 2004

"Any $$$ is better than hauling air!"

This is just not true.that kind of thinking is what causes cheap frieght,and will make you go broke.

ATeam · Jun 11, 2004

JM a/k/a hotfr8recruiter,

Outstanding post! Thank you for sharing the detail you did. As FedEx CC drivers my wife and I get to chat almost daily with other FedEx CC drivers we meet on the road. It's a rare treat to visit and compare notes with drivers from other carriers. The info you provided about a regional operation is facinating. Most of the people we meet are on the road weeks at a time. I really appreciate hearing about some that get home much more often and how they run. It helps illustrate that there are many niches in the expediting industry and many ways to run a successful business.

More! More! More!

davekc · Jun 11, 2004

You are correct that the recruiter section started as a basic Q & A forum. But it has evolved over time with one knowing what companies are represented by whom.
With that being said;
I think your follow up post gives a much more detailed description of what your company is about.
I commend you for following through. In more cases than not, only certain criteria is revealed to new or prospective owner operators.
With providing as much information as you can, you will find greater successes in recruiting folks.
Also works well when both parties walk into a partnership with the correct expectations.
There are hundreds of posts in here that have shown that those expectations were not always the same. 100% turnover rate in the trucking industry isn't happening by accident.
It is companies like yourself, "who will put there cards on the table", will retain and hire the better drivers.
By the way........good job in the recruiter section

Davekc