I don't remember hearing about this when I drove years ago. What is load percentage? I have an idea, that you're paid a percentage of the load but from what? The trucking company charges a certified amount to make delivery, do you get 85% of what they're paid, maybe plus miles?
Load Percentage
Discussion in 'Motor Carrier Questions - The Inside Scoop' started by Bozwik, May 22, 2022.
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Let's say - you own truck Bozwik trucking.
You lease on to Mikes Transport, and run under his DOT authority.
Mike books a load for $1,000 through a broker.
Your agreement with Mike is "85% of the load"
Mike gives you $8,500.cke, Another Canadian driver, Banker and 1 other person Thank this. -
So these are lease deals? Lots of these ads state $3,000+ per week after taxes.
Another Canadian driver and blairandgretchen Thank this. -
They might be - can you offer an example of what you're looking at?
Something like "No money down - lease purchase - we pay 85% of the load?"
Others offer mileage - "No money down - lease purchase - we pay O/O $1.30/ mile plus FSC"cke Thanks this. -
Most of these offers that I've looked at offer figures that can only be substantiated by open book perusals of operators actually doing it.
In most cases, I've found that you make more money for your time and risk - as a company driver at a higher paying carrier.
If they're wanting to pay on a 1099 basis, but controlling both how and where you run their equipment that they're financing to you, well the 'deal' loses even more luster. Hope this helps.cke, Another Canadian driver and exhausted379 Thank this. -
Another Canadian driver and blairandgretchen Thank this.
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Another Canadian driver and blairandgretchen Thank this.
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Oops.
In my case scenario - NOBODY gets Mike’s number -
I'll let you in on a little secret. The amount the carrier agrees to haul the load for can be very much manipulated. Most common phrases are "gross' and "net". As an example, the carrier agrees to haul load for $8500. So, the shipper will pay the carrier $8500 at delivery. I'm talking about a direct carrier, no brokers involved. Out of the $8500 it's the carriers responsibility to pay his fuel, driver pay, etc. So, a carrier can say to the driver thet he had certain expenses and his portion (%) 85% will be AFTER the co's expenses. Here's where the manipulation comes in. The truck co can neglect to tell the driver that they are claiming expenses above the direct expense to haul the load, which should be just fuel. They can post any figure and the driver will never know. They can say we pay 85% of "net" so, the driver has to trust the truck co is honest. Net is after expenses. The honest way would be paying % of gross, that's before expenses.
Another Canadian driver and Bozwik Thank this.
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