Unprofitable O/O - Canadian

Discussion in 'Freight Broker Forum' started by haider99, Mar 19, 2014.

  1. haider99

    haider99 Medium Load Member

    685
    108
    Mar 19, 2014
    0
    Sorry everyone... i was not too well for past couple week and had to visit my doctors a few times. The financial stress from business has made it worse now, and i wont be able to driver for another 6-8 months :(.

    My son and I have been trying our best to see what is happening, my son has spoken with few owner operators and mechanics and they all said, its very hard to average the fuel in winter since trucks consume way too much. With the warmer weather, things are getting slightly better, but i have not making enough to cover the maintenance yet. (My trucks are average 440-450 Litres/ 700 miles). We are making the drivers record the amount of fuel they purchased at what miles. I have pasted sample settlement for one truck. Also, we are looking for a driver to run U.S for one of the trucks, because the rate is somewhat better then hauling containers to Montreal. I am in talks with Transcore to see what is the procedure for taking own loads, i know i will have to buy a trailer. However, just thinking about finding a driver who can compromise with no experience in picking own loads is whats stopping me from proceeding.

    Any suggestions will be greatly appreciated.

    [TABLE="width: 100%"]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1]CD ORDER D# SQ DATE FROM ST TO ST REVENUE % AMT MILE RATE MILE RATE PAY [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1]------------------------------------------------------------------------------------------------------------------------------------[/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 0326 HUNT REFRIGE ION Loaded rate 25.00 I 25.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] 0326 Markham ON Montreal PQ 340 1.200 1.000 I 408.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1]0324 REEFER CONTA R 25.00 I 25.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] 0324 Markham ON Montreal PQ 340 1.200 1.000 I 408.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 0324 HUNT REFRIGE ION 25.00 I 25.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] 0324 Montreal PQ Markham ON 340 1.200 1.000 I 408.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 0325 REEFER CONTA R 25.00 I 25.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] 0325 Montreal PQ Markham ON 340 1.200 1.000 I 408.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 0327 REEFER CONTA R 25.00 I 25.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1]0327 Montreal PQ Markham ON 340 1.200 1.000 I 408.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1]0327 Markham ON Montreal PQ 3401.000 I 340.00 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] ** TOTAL REVENUE 1700 340 125.00 2,505.00 --> Loaded miles 1700, Empty mile 340 Total - 2040miles[/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] EXPENSE PLUS EXP[/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] DATE DESCRIPTION REIMBURSED GSTAMT [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1]----------------------------------------------------------------------------------------------------------------------------------[/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] 3/26 Fuel 0.3594 122.20 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 3/24 Fuel 0.3594 122.20 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] 3/24 Fuel 0.3594 122.20 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 3/25 Fuel 0.3594 122.20 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1]4 3/27 Fuel 0.3594 122.20 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 3/27 Fuel 0.3594 122.20 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] ** TOTAL FUEL COMPENSATION 733.20 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1] DATE DESCRIPTION BALANCE DEDUCTED GSTAMT [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1]----------------------------------------------------------------------------------------------------------------------------------[/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1]12/13 HOLDBACK 1,400.00 100.00 I [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] 3/24 PETRO WOODBIN FUEL 0608.0 LTRS 683.44 O 88.85 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][SIZE=-1]3/25 ESSO FUEL 0855.0 LTRS 947.56 O 123.18 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1]12/13 INSURANCE 6.00% 150.30 O 19.54 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] ** TOTAL CHARGES 1,881.30 231.57 [/SIZE][/TD]
    [/TR]
    [TR="bgcolor: #ffffff"]
    [TD="width: 100%"][/TD]
    [/TR]
    [TR="bgcolor: #00ffff"]
    [TD="width: 100%"][SIZE=-1] **** TOTAL AMOUNT DUE OWNER 1,125.33 [/SIZE][/TD]
    [/TR]
    [/TABLE]
     
    Last edited: Apr 9, 2014
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  3. Foxcover

    Foxcover Medium Load Member

    413
    217
    Nov 22, 2011
    Dallas, TX
    0
  4. dude6710

    dude6710 Road Train Member

    2,162
    622
    Mar 26, 2010
    MN
    0
    Here's my mpg pulling cans in Minnesota with air mile work. I didn't do much better than him this winter. Just too cold.
     

    Attached Files:

  5. Richter

    Richter Road Train Member

    4,090
    1,696
    Feb 13, 2012
    Philadelphia Pa
    0
    whyd oes consuming more fuel make it harder to average. You need to know the milage of each truck to know how to run your business.
     
  6. haider99

    haider99 Medium Load Member

    685
    108
    Mar 19, 2014
    0
    I meant to Say. Its harder to keep track of fuel when there are big fluctuations due to bad weather. You can get average but its hard to compare to other weeks.
     
  7. Richter

    Richter Road Train Member

    4,090
    1,696
    Feb 13, 2012
    Philadelphia Pa
    0
    Thats why you need a 30, 90 and 365 day average. You can also use short term results to atleast see if one truck/driver is doing way worse. You can also look as weather reports, projected route etc to make educated guesses. he should be keeping accurate mpg records for all trucks. If he doesn't start looking at them individually today he will never have the data he needs. He should also do spot analysis on random trips to see what it should be getting. (lookign at weather, hills, etc) Event he mega carriers know the mpg of each truck and and can tell if it is trending up or down. Yes, in the winter mpg goes downa nd the weather makes it fluctuate more. BUT, if one truck is constantly getting lower mpg after 3 or 4 fill ups, you may want to see if somthing is wrong.
     
  8. rollin coal

    rollin coal Road Train Member

    12,529
    23,860
    Mar 29, 2008
    TN
    0
    You need to be very cautious about hiring a driver, having them pick loads from transcorr, with expectations it will turn a profit. They'll end up doing the dumbest things going to the dumbest places, cause they wanted to go there, never mind it didn't cover costs - paying expenses for the truck is your problem they expect a paycheck on Friday. With extremely rare exception company drivers as a rule should always be told what to haul and where to go.
     
  9. FLATBED

    FLATBED Road Train Member

    The company the OP works for had offered a FUEL MILEAGE INCENTIVE to increase their trucks efficiency not sure if its still in effect but it added up to some decent $ based on 120,000 miles / year
    MPG Bonus:
    Units that achieve a minimum 5% improvement in year over year quarterly Fuel Tax
    MPG will qualify for a 0.5 cents per mile bonus on the total paid miles for the qualifying
    quarter.
     
  10. haider99

    haider99 Medium Load Member

    685
    108
    Mar 19, 2014
    0
    ^ never heard about that. I believe they no longer offer that program, but i will double check.

    I did MPG calculation on all 3 trucks, since i told them too (3 weeks) and the average MPG (U.S) i am getting is... 5.95. Each truck is getting this milage.
    Still pretty bad.
     
  11. Sly Fox

    Sly Fox Road Train Member

    1,016
    694
    Oct 29, 2009
    0
    I averaged 6.78mpg last year, with a lot of deadhead. If your container work is 50/50 loaded to empty, then 5.95 is low. But, I don't idle. That can drag down at least 1mpg if not more. Sounds like your freight just isn't paying enough to cover the ups and (mostly) downs of this business.
     
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