What Rate is considered Cheap Freight?

0% waiting for mud season to dry up......

 

Ya seasonal work between winter/ summer I take a break....

sorry couldn't resist being a wise guy....

when i work it's 30-35%. But I'm the opposite of you. 107k every load , short haul and lots of pto time.
I have run the numbers and I would have to get 8 mpg to justify a new truck. With what I do no truck is going to do that......

Plus no payments is priceless .

 

Operating at a 20%-23% fuel expense ratio is amazing! I know it also depends on what kind of rates you run for. I would be happy to be in 30s range but I also ran heavy like Cat sdp.

 

I would Consider Cheap Freight to be my Net after Fuel expense and Malone's 25%, to Earn less than $1.00 per mile, if i run a load i pocket the same as what the miles for the load are, but i run long very little regional, for ex, monday im picking up a load to CA, 2,700 miles anything less than $2,700 to me after Expenses i wouldn't haul

 

So based on 6 mpgs and $4 per gallon you would be at 40%

 

cheap freight may very depending on your actual cost per mile, cheap for one may not be cheap for someone else. when i dispatched produce had all o/o so kind of knew about what there cost per was so kept a eye on what the load payed. that way i was not stuck with a load no one would take. if you were going to run broker freight i think the shorter the better and try to load into a better paying load. be safe out there

 

My MPG for the last 30 days has been 7.02, the last 90 at 6.80 so we'll go with 6.8

I Pay for the Month of March $3.631 per gallon

I ran 9,026 Miles for the month

I Profited $8,269.78 ($0.92cpm)

thats with a Lease Purchase Truck, to me i consider this to be a good month

 

CRST makes a good analogy....

Let me simplify it even more for the folks wont need a calculator.....


heres mine..

I try and average $2.15 per mile..ALL MILES...

I picked up a Load in Chicago...Its Going to Youngstown,Oh... 393 miles. Im Getting $950.00 It Will Cost me $65 in tolls...And $275 in Fuel... So there.

$950 rate, minus $340 in fuel-tolls equals $610 for that move... Then, You need to Pay yourself, Take out for maintenance,Insurance,taxes etc.....


Botttom Line is...........If you are Spending MORE than 35% weekly for Fuel......Its a Slow Decline and a Business failure in the future...You are 1 Major Repair away from Suicide!

When you folks Book freight...Make Sure you KNOW your costs...Too many of you guys are just taking whatever you get..Without any negotiation whatsoever...Which in turn screws up the Market and Others trying to Make a Good living.