how can an o/o make it today on .98cpm when thats what a trucking company advertises on there website.
This has been hashed out here before. It is not a poverty rate by a long shot if all else is considered. Ok... one more time. that .98 does not include fuel surcharge, reduced price on fuel at pumps, reduced pricing on insurance, additional revenue like extra stops and bonuses, etc. My rate is between .95 and 1.10 (based on length of haul). My NET last year was over $60,000 (yes, after all expenses, truck payment, health insurance, fuel, etc). Home every weekend, by the house a couple of times a week, off every holiday, two weeks off. So it is feasible. If it continues to be like my first quarter net, I will break well over $70,000 net this year. Maybe that is chump change in some areas of the country, but that is a darn good living in Iowa.
.98cpm is the base rate, then add the .35-.45cpm for FSC, then the fact they pay reduced prices on INS and other things. They get paid that .98 for ALL miles, loaded and empty plus FSC on all those miles. So the 2800 miles they drive is compenstated at say $1.28 per mile, and then add the reduced prices and acc pay as cowpie stated, and these guys are making about $1.35 a mile, they have no trailer expenses and are getting those miles every week. On the downside, most have to go where they are told to go and do as they are told, but it's not as bad as you think..... now 98cpm for a guy with his own authority with all the overhead is just plain stupid!
Your working harder not smarter. Miles, Miles, Miles, Give me Miles and your getting paid on computer miles. These companies mark up the price on the insurance then give you a discount. Yes you get a good fuel discount is the only thing I see that is a difference. I have my own account at a national tire dealer and at MHC Kenworth. I get the same cost as Landstar owner operator would on their discount. You can set up accounts at vendors depending on your credit and get good pricing just like the big boys. When I worked on mileage pay with a large carrier I would run about 300 miles a week extra then what was paid and I haven't found a carrier yet that paid hub miles. Who can make a living and put money back at $1.35? Their are a lot of owner operators that are making less then company drivers, you have to do more then just make enough to pay the bills.
I have keep asking the same question. Some, or a few, make a good living leasing on. But what I have learned is that very few are able to do what some here are doing. It seems from all the conversations that I have had it comes down to time with the company. You learn the good lanes, get a good dispatcher, get onto dedicated account, .... And you start to get the life you want. What I hear when pushed is "it tood time". I will clear 60k this year, my first year, and run 1/3 less miles than most do. Now that was not part of my business plan. I expected to run 2,700-3,000 miles a week. Found I can run less and make more.
I'd have to agree. It took me 7yrs but I finally got onto a dedicated gig that pays extreemely well and I get FRI-SAT-SUN off each week. I did do well tho when I was running mileage pay tho with SNI. But I knew how to run a business. My truck was paid for with cash in hand, my house payment is less than most pay in rent (and it is a brand new house) and I have no credit card debt. Honestly, it is amazing how easy life can be when you have no bills, and how enjoyable trucking can be when your not working to pay the truck note each month
Let's see... computer miles? My average out of route for the entire year is just under 4% (including bobtailing to house, going and getting a bite to eat, etc) I get options on loads available, so not into that forced dispatch thing. Mark up my insurance then give me a discount? My entire physical damage and bobtail is about $90 a month. They must not be marking it up much. I get my OCC/ACC ins thru them for $136 a month. Still not too bad compared to a lot of places. I am getting an average of around .99 a mile and .48 fuel surcharge. Getting an average of around .15 off the pump cash price (some places considerably more). And since I am averaging at or above 7 mpg, fuel is only costing me two ro three cents a mile above what the fuel surcharge is paying. Only other fee I get hit for is $10 a week for the qualcomm. I also have my own deals for tires, oil, etc from my local supplier. Not too many have a high quality 50% synthetic blend oil delivered to their house for a total cost of $9 a gallon (of course it is in a 55 drum). Based on the amount of time I actually have to work vs the time at home and the Net income I am making, not working harder instead of smarter as you claim. True there are many who are in the boat you describe, but not if they set up and run their deal as a business. Leasing on with a carrier is not a one size fits all proposition. For me, when I consider the amount of extra work the carrier does that I don't have to, and other things, it works for me. My total revenue may not be near the top, but compared to many in this game, my NET is nothing to sneeze at either.
I havent talked Numbers with Our O/O's but I can Tell you This our O/O's Are quite happy, most have been with W/S for a very long time and have been driving for LONG before they came to W/S. AND with the number you see above can afford to drive NICE NEW Large cars..... now we do have some that drive volvas and other crap but allot of them do have Big heavy exspenive not so aerodynamic trucks and STILL make good money from what I hear...And I dont see 20+ yr exp O/O's staying with W/S if they were not at least makeing decent money...Right? NOTE our Website is out of date so those numbers are from 2007 so they might be higher now.... American Trucker
Not bad, but what if any fees are there and what about insurance (phys damage, bobtail, etc) rates and any other stuff that usually is not mentioned in recruiting ads? On the surface it looks ok for someone wanting to run that area of the country. they would have to pay a little better considering the terrain of that operation. I get pretty close to that same deal but stay primarily in the Midwest so I don't have to chain up, crawl big, long hills, etc. In other words, I will get better fuel mileage overall and less wear and tear on my equipment. That has to factor into any choice of operation. Beautiful area of the country, been there done that and got the worn out t-shirt, but I like to not have to work so hard. Just my age catching up with me, I guess. The customer base tells a lot of whether the money is good or not. Another factor on whether it would be worth it. I hardly ever deal with grocery or big box DC's. A lot of plant to plant bulk freight, with about 40% of it drop and hook. Not dedicated, but just about as good as it gets for irregular route, varying customers, no touch, type of running. I guess if you are into large, big nose cars, then your point is well made. I would rather have something a little more on the aero side of the equation, only because then the big money you mention would be even better as my net would be better. I will side with you regarding the volvo's. Never have cared for them. Just me. And, after all, it is the NET income that really tells the story, not what the rate per mile and other stuff says. Nothing against W/S. Never dealt with them or their drivers. I am sure they are content where they are. And that's cool. That's the cool thing about America..... there is a little something for everyone. The only real difficulty is striking up that business deal that really works well for your situation and desires.
I've been with WS 11yrs now.You posted your deal in an earlier post and ours mirrors yours on ins,fuel,fsc and mileage pay.WS is an LTL carrier,mainly furniture and carpet with terminals all over the US.It works good for me with a terminal here in MS 10 miles from home.Last yr my non pay miles were 2.8%.I try to run about 110000 miles a yr and spend the rest of the time enjoying the family.
