Sign a contract?

Just go through the contract line by line. Do all of the math as to what it will cost you to operate, and if that leaves you an acceptable profit, do it if you want. Just be sure that everything that they have told you is written into the contract. Don't just take their word for it. Make sure their are also provisions in that contract to cover unforeseen things like excessive detention, cancelled loads, etc.

As for the truck having 630k miles on it....That is just getting broke in. I run three trucks over the road in my fleet. Two of them have more miles than that one, one of which has almost 2 million on it. That truck still runs 11-13,000 miles monthly and makes me a decent profit. Yes, it takes a little more money to maintain it properly, but not as much more as you might think. Besides that, not having any payments sure pays for a crapload of maintenance work.

 

A Ryder or Penske account can be a good safety in case your truck or trailer needs to go into a shop but you have loads to move anyway. Yeah, you're gonna pay for it, but you also come through for the customer and they tend to appreciate that.

 

Sounds like this company foresees a truck shortage AND wants a cheap contract. My math came out to $1.44/mile and there is no FSC built in. I dont see diesel going nuts like it did two years ago, but still one never knows. I do think it will only go up from here though.

117,000 miles/year.......$168,000 year = $1.44/mile

The M-F gig sounds sweet, assuming you live on one end of the run, but they money isnt there imo.

 

Hear that. I'd be REALLY hesitant to sign a contract. Magnum made some good points up above.

 

I would be VERY hesitant to accept that account unless your operating expenses were VERY low. That seems to be at most ~$1.50/mile
I'd definitely make them a counter offer substantially higher, lol

As far as Penske or Ryder, there rates right now are about $800/wk & 16c/mile(Penske) and 21c/mile(ryder).
If you've been in business for a little bit and have some money in the business account and good credit, you could get a new lease from Peterbilt,International,Freightshaker,etc for about $450-500wk and 7-9c/mile possibly.
But at that proposed pay amount, you'll might be broke in no time with any rental/lease.

 

Yep, you're MUCH better off not being tied to a contract like that. $1.35 per mile and you were a high bidder? That's nuts.

 

Not a driver but obviously love semis......even have a rig of my own that I haul my horses with.
Anyway, I did the same math as above and the numbers are not there. As for some guys willing to take the job at $1.35/mile, I run into this in the manufacturing world all of the time. Guys get hungry enough, does not matter that they do for living, they are willing to take jobs on that just don't make sense in order to stay busy. Short term mentality that will, not if, but will catch up to them. It may be ok to take a load or two like this but to sign up for a year.......no way driver!

 

It may be a steady gig, but how does it compare to running the load boards? A to B every day is nice but it also gets rag time after a while. You are really getting the professional vote on this, not including me, so I would seriously listen to the input. Good Luck to you whatever your call.