Breakeven

$1.35 plus fsc is ok I guess... but not what I'd want to make... I made more than that on most loads 9 years ago...

 

The only definition of "cheap freight" is you hauling freight that doesn't cover your expenses. If you breakeven or profit a little, then your initial goal has been met. Ofcourse we all are greedy & want to make more.... But money doesn't make the world go around.

 

Money may not make the world go round, but it will grease it up so it turns alot better.. Money does make truck wheels go round though, and freight rates are highly variable according to location and many other factors..

If the OP is based in Panama City, that ain't a good spot for decent FB rates.. You're not gonna be able to figure any accurate estimates for breakeven cpm or get an average idea of load board rates on here or anywhere else.. Those figures will change up more often than most drivers change underwear for sure.. You can figure the basic expenses sure,
but you won't be able to figure when "Murphy" decides to kick you in the sack..

You might be doing big in this buisness one minute and bankruptcy broke and going to jail the next..
Just based on what expenses most people figure breakeven cpm I wouldn't want to be in over a $1 mile, especially right before winter..

About running gypsy style depending on load boards for freight.. It's kinda like deer hunting.. The deer has the better odds for success until you figure out where he's at or what he's gonna be doing later..

There is one thing you can count on though.. In a couple more months brokered flatbed freight will be at it's worst till next spring..

 

Is that including pay for yourself? My break even just for the equipment not including pay or health insurance is $1/mi

 

.....................

 

why not buy a used trailer and a used truck and cut those break even prices down a little bit?
with new equipment i think your sweet spot would be even higher than the 1.96
you can good used trucks out there with drive train warrenty
its nice to have a new truck---but keep in mind #### near every new truck i have seen or driven is a piece of crap for the first few months---until everything the factory screwed up is fixed--and your fuel mileage also will suck for the first while---actually it will suck forever but the first 6 months should be the worst

 

my breakeven is approximately 1.25; which includes fuel, fuel taxes when/where applicable; ny hut, 2290, minimum of $500 a week net as pay, bobtail ins + phys damage, $18,000 a year set aside for repair/parts, at 20% deadhead on a truck i own outright on a total est mileage of 105k a year. plus all income taxes. honestly if i see 1.35 as Redd said; i'd pull it if was next to me...but wouldn't go far to get it at that rate.

 

The costs you quoted in your first post seem low. My model for break even includes all costs including my pay. Since average rates vary depending on freight lane you can't really make a blanket statement. We constantly evaluate costs vs profit and modify our cost per mile quarterly. Quarterly provides enough data to make strategic decisions concerning the direction for the next quarter. It's a dance as is any business. You need to constantly keep an eye on profit to know if you are making the right decisions. You're in competition with every other company out there. Know what your costs are and bid accordingly. There are no hard and fast rules. I work with my owner ops to know their costs and bid loads for them accordingly. I pay them 85% of gross. We monitor their chosen freight lane for averages and bounce that against their average. If their average is better than the freight lane average we are doing them a good job. If not, we need to work harder for them. If the freight lane won't support their income desires we might recommend a different lane where the income possibilities are better. It's kind of like herding cats.