Is using the Spot Market Ideal For Entry Into The Trucking Business

Good day, Let me begin by expressing many thanks to all. It's great that you guys are willing to answer questions and give advice to us new guys.


My mother just got a divorce and is now the owner of a 99 FreightLiner that up to four months ago was operational as a lease for Apex I believe. The only reason it's sitting is because her ex did't pay the insurance on it or something to that extent. The truck has always been under her name and the USDOT number is as well.

She has asked me to look into getting the truck operational and start a Trucking business. I have been doing my research and considering entering the biz through the Spot Market....

I'm beginning to work on my CPM and have a Fixed Cost of .786 which includes a salary of 52,000.00

Is that high for the Fixed cost aspect of calculating the CPM??

It seems that when a do the estimated numbers for the Variable based on 100.000 miles my total CPM comes out to 2.08 per mile. Seems to be high for the spot market as the average rate index for a reefer has it around 1.50 base on Trancore data.

Also I'm not sure is that rate includes a Fuel surcharge. Non the less its not enough to support my CPM... Am I doing something wrong? I used the excel sheet that OOIDA has on there website and is based on 100,000 miles annually. I'm not sure what the trucks MPG is but I'm using worst case # 4MPG.....


What is the most common way of calculating your cost per mile?-- Annually then broken down quarterly?

If I put a bid in is it ok to add the Variable cost for that run to my fixed cost?

I know I'm new but please no discouraging comments-----


thanks

 

Fixed CPM is .786 if I and the V it's 2.08

 

Thanks guys----- The deal comes down to being that I don't and can't get a CDL. My DL has been revoke till 2015. I do plan on riding shot gun on all trips. As far as the truck... From what I'm gathering its not the best. its a FL120... Please express your opinions on the truck.

As far as what I mean by spot market. Its the segment of the market that does not have contract terms-- Running off load boards--

 

Yeah it's kind of a plain truck---- Any advice on how I should go about it..
I've been chatting with some dispatchers and willing to hire the truck for some runs.