Rey Logistics

Hi all!

I'm in the 'Report a BAD Trucking Company Here' forum, so guess why I'm here? Any input? Message me or post please.

Long story short - In my opinion - run away!! Happy to provide my experiences.

 

I'm trying to see how many of us have had the same experience with them. My recent experience below.

I had two trucks leased on with them and I have another O/O who was leased on with them as well, recently. None of us could work for Rey for more than 6 weeks without basically 'owing' them money on paper according to them. They say they take 80% of gross, but if you run under a certain gross per week, they keep 25%. It seemed like everyone was getting dispatched just under that amount, $5,000. So right there you get hit.

Sending drivers on routes with alot of deadhead miles, then charging the driver for the gas used, which seems to be making the gas costs actually charged to the driver terribly high. I ran some math and on some of our settlements, per their numbers, the cost of gas to drivers was averaging almost $7 a gallon (last month). This is a ROUGH estimate, I had to take the total gas charges on a settlement and then divide that by the miles for all the trips on the settlement to get an average cost per mile, then assumed 5 MPG to get to an estimate of the MPG fuel costs. The settlement doesn't list the deadhead miles, so I can't factor those in. I think because the drivers are being charged the fuel for the deadhead miles, but are only paid for the trip miles, the driver seems to be charged way too much for fuel. And those numbers are after their 'discounts'.

I can show you my math if you like, but you can also run your numbers. This will be more accurate if you average this out over a few settlements. Add up all the gas charges over the settlements. Then divide the total gas charges by the total trip miles on those settlements. This gives you an estimate of the 'average gas cost per mile'. Then multiple that 'average gas cost per mile' by what you think you get per gallon. So if you average $1.25 gas cost per mile, and you think you get 5 MPG, multiple $1.25 by 5 to estimate your MPG costs, in this example it would be $1.25 x 5 = $6.25. If you run these numbers yourself and they look way too high, please share!

They have a schedule of fines for different violations. For example, 5 SMS points per their schedule is: 1st offense $75 fine, 2nd offense $150, third offense TBD up to and including termination. One of my drivers had a 5 point violation, should be $75 for first offense right? They imposed a $1,400 fine, without telling us it would be deducted on the next settlement and with no justification for the amount.

They charge O/O trailer miles 5 cents for 3,000 miles on each settlement. Although the trailers don't have odometers and the drivers were not running 3,000 miles.

I am also concerned that their lease has issues regarding the escrow account. I am NOT A LAWYER, so this is not a legal interpretation, opinion or advice! They are allowed to deduct expenses from escrow funds after termination if there is anything due to them, but their lease gives them 90 days to make that final settlement. They call the escrow a 'cash account' in the lease, but on the settlements it is called escrow. The Code of Federal Regulations indicates they are required to specify in the lease that under no circumstances will the escrow account will be returned later than 45 days after termination. That was not in our lease agreement I can guarantee! Again, not a lawyer and I need to get actual opinion on that, but if anyone here can offer any insights on this topic, I would love to hear them!

Every O/O I've talked to that has had this experience is walking away basically broke because they've ran for weeks and have made almost nothing. All of these O/O are behind on bills when they decide to walk away, and once you terminate with Rey, they keep anything due to you for 90 days before issuing a final settlement. And if you've been in this situation with them, your expectation of actually seeing anything come back is about 0%.

So at this point in the Rey experience, an O/O terminates and is already broke and behind. If you are able to lease onto another company FAST, maybe 2 weeks, now you are at least 3-4 weeks out of another paycheck.

There is no way that any one O/O can afford to get any legal advice at that point, you are just trying to survive and not lose your house/car (not a joke!). So I am wondering how many of us had these experiences and maybe we have strength in numbers. I know that alot of people might not want to share stuff like this online, so you are welcome to message me. I would be very happy to hear from you.