Why are we so concerned with fuel prices?

My new answer to brokers who ask “how much will you do it for?”


Speed costs money, how fast you want me to drive?

right now I’m on a 61mph load.

 

Hey there my brother from across the pond how ya doing cobber? Whether or not people will go out of business because of fuel hikes really depends on what their profit margins are. Or if they can ask for an extra fuel surcharge. Driving road trains at present sees us use about 700 lts of diesel per 650 km traveled at a cost of around $1400 aussie $ at $2 per litre. Then they have to pay our wages which is another $600 for 12 hours at $50 per hour they are currently being paid about $27 per tonne an average load is about 130 metric tonnes x $27 = $3510 minus fuel and labour their left with a $1510 profit less any other expenses like tyres and other mechanical breakdowns. Multiply this by 40 gives them a daily profit of around $ 60 400 not bad for a days work huh. So in this case yes the company is still making a good profit despite the increase in diesel prices, unfortunately not every company gets paid a good rate on their loads if this is the case and their operating on a bare minimum profit the extra hike in the fuel price is going to take a good chunk out of their profits. Think this will still hurt the smaller operators more then the larger ones simply because they have the numbers, for instance if Swift have 1000 trucks running per day and only make $100 per load profit that still equates to $100 000 per day profit x 365 = $ 36 500 000 per year.

 

I once booked a load while I still had freight on the deck. Had me worried sick. If I booked a whole month at once, I'd literally burst into flames on the spot.

 

You haven't seen the ones that came in my truck. Took me about 30 mimutes to pry one out. These aren't cheesy little screens, they've got some metal to them and they aren't easy to get out.

 

Do you have a fuel card?
If not check into one like NASTC, you should be getting over a $1 discount

 

I learned this valuable lesson one time as well. I had it all planned out. A run up north, drop in the afternoon, grab another in the morning, run back down, drop that one, grab another, run back up north, and drop again, then bring one home. In my head I had it all worked out. In reality, not so much.

 

I can count on 1 hand I’ve booked another load while on another. I tend to unload, get all my junk sorted and then look for another. Doesn’t mean I haven’t looked already and kind of know what is there and may be available as I almost always quickly check the board for whatever area I am running anytime I stop somewhere for a break or whatever. Every once in a while I book a load in advance if I am near positive it won’t cause a problem. I just refuse to miss a pickup or delivery promise.

Sounds like @Pup97 may have a good deal and nothing wrong with that if it only involves a few players and not 10 different brokers or shippers and receivers to worry about. Whatever works fo his business.

 

I usually always have the load board open always updating if I'm doing OTR.
If I know I’m going to make a load ( like pickup on day and deliver the next day in the morning ) I’ll book a second load for that following day seeing as I’ll have a full day to unload first load.

 

Same Lol. If I know the customer it's no big deal but going to a new place not knowing how long you'll get held up is pretty stressful