I am wondering if I could get some ballpark numbers from some experienced o/o's. Roughly, what percent is fuel of total revenue? So if a load pays $1000, what percent should I estimate for fuel? I appreciate any feedback. Thanks
What percentage does fuel constitute?
Discussion in 'Ask An Owner Operator' started by JBS-PA89, Mar 26, 2020.
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Never mind what the load pays. Never mind the percentage.
Fuel is second biggest expense behind truck and trailer payment.
You burn a certain amount by mile. IN mountain country on grades steep enough you can burn 30 gallons a hour. Which would be about 100 dollars or so ballpark. -
About 30.
Unless you're like @blairandgretchen. But for us troglodyte dry van guys, about 30. -
30 is the max anything less is preferred
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Yes, I’m not much help here. It’s been about 7% this year. -
That’s a tricky one. 25% in a normal environment seems about right. Add high fuel costs, and surcharges, it gets trickier. One would have to minus fuel surcharge, use a base cost to get an accurate %. Too often rates stay the same, surcharge goes up. All too often, Brokers will keep a % of a surcharge, booking freight at an all in price. Combine that with a bad economy, and % as high as 50% is possible on lousy paying loads. I saw a lot of that, when fuel hit $5.00 a gallon, along with dropping freight tonnage. It was a disaster.
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I need to run the numbers too see if I can beat Blair
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I think fuel is a hard cost and shouldn’t be looked at on a % of sales. Fuel cost is a hard number based on fuel price and miles run. It is irrelevant to % of sales unless your not charging enough. If it was %30 of my gross I’d jump out a window.
Last edited: Mar 26, 2020
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