The Effect of Fuel Prices?

Some guys come out ahead, but most don't. A true FSC isnt designed to build extra money into the rate and or profit, rather to break even on the extra cost.

There are so so so many variables on this and the math involved to equate it, that it makes it difficult to answer.

If you want to get more specific with FSC questions, I'll try again.

 

You can make money with high fuel prices. If your FSC is based on 6 mpg and you are getting 7 mpg, you come out ahead. And the higher the price of fuel, the better you make out. What really helps out if leased to a carrier, is if they have pretty decent discounts negotiated below the cash pump price. In my case, my FSC is based on 6 mpg, my year round average mpg is 7, and discounts at pump average between .10 and .20 a gallon off the cash pump price.

 

So true, Mr Allow Me.

Staying out 50 weeks a year may not be as bad as it seems on the surface. I stay out 50 weeks a year, but am home every weekend. Do better than I ever did running all 48 and staying out weeks at a time and actually have a life outside of trucking including being on a local bowling league. The shorter hauls often have better rates than the long hauls and sit time is less. Key to doing it this way is you have to be in an area that has pretty consistent regional freight and with a carrier that caters to that market or a group of your own dedicated customers. The maintenance thing is dead on. I save substantial money doing my own services and minor repairs. Not up to speed on what an oil change and lube costs at the quick places, but I can do the entire thing for a little over $100 dollars cost and usually quicker than the lube places and I do a better job of inspecting everything underneath than all but the most dedicated mechanics. I buy a synthetic blend oil in bulk 55 drums for around $9 a gallon (delivered to my door for $5) and get my filters from a wholesale supplier. Tubes of grease and a good grease gun is darn cheap. Agree totaly on keeping the truck payment down low. Best if one can just buy outright. No need to buy that decorated, chromed out large car lit up like a casino. A truck is a tool to get a job done. Plain and simple. In this market, there are a LOT of good buys on used trucks that would work just fine and not cause severe financial hardship. You've got to be more of a bean counter than even the most hard core shirt and tie dude in that corporate office and you have to run those spreadsheets to know where your business stands.

That is enough to cause anyone to take a second look before becoming an O/O.

 

If you do get to the point of running a spread sheet make sure you run the fuel prices in $0.05 per gal increments up to $4.00 per gal or so. This way you have an idea of what your operating cost will be based on fuel price changes or just simply a change of location in the country.

After running numbers ourselves, fuel is the big problem facing trucking companies and O/O and sadly the freight rates just do not seem to reflect increased fuel cost. The truck will be operating just above a profit.

Just to also add to the above... if you want to run your own truck, one should have a good set of tools and no problem turning a wrench. You'd be amazed at all the little things that come up.

 

First let me say it takes a good 3 months of going lots of places to get the things that you need to start your own company with your authority. But I bought everything from the truck and trailer the down payment on the insurance and the aportioned plate for about 20 grand for which i paid cash. The bank gave me around 30k line of credit because i put the truck up against it. Then I just find freight on free load boards, and yeah i guess i am the problem, I make a pretty good profit running at 1.40 a mile, and I dont go out for more than 2 nights home every weekend, and I am still making over 1k a week after diesel and before taxes. I fix my truck and where i keep my truck there are a bunch of drivers who try and help each other out with fixing trucks. Anyway yes you can make money and yes you can have a way better life. I was a company driver for years mostly local and this is a way better life. No more 2 am starts no more 12 hour saturdays.

 

Starts slow making money then look back after 4 years. ( if you work with the right people or animal <---some brokers)


Chief