Am I missing the boat here?

Discussion in 'Ask An Owner Operator' started by U-Turn69, Oct 3, 2012.

  1. U-Turn69

    U-Turn69 Bobtail Member

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    Feb 18, 2012
    Niles, Ohio
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    Ok first about me. 15+ years experience. Leased 3 trucks , 2 from miserable companies. Both out of business (M.S. Carriers and Priority Transportation.) got away from the industry for 3 years and was talked into getting my own numbers and again leasing a truck for a local company. (Glutton for punishment I guess). So now I am buying my own through a private owner and am leased to a small 5 truck company. I am happy for the most part with my decision to buy the truck and have my own numbers, however I run under his authority so mine is in limbo for now.
    I am home every day to every other and off every weekend and do no holidays. I gross approx $3000-$3500 or more per week. I get dispatched from Internet Truck Stop loads primarily but the owner has tons of contacts which certainly helps.
    Now when he gets loads they at primarily Broker loads which he makes sure to average close to $2 per mile for all miles. The loads say that the fuel charge is "included" into the rate. I get 77% of the revenue generated. I use his trailers at no cost to me. I pay my own general insurance (he pays for carrier insurance) and provides a fuel card which all fuel is deducted weekly.
    Here comes the big question and please be gentle but blunt. If I had my own trailer and went "loadboard shopping" would I generate considerably more money? Consider I pay him 23% yes but his trailer and he covers maintenance for it and carrier insurance and provides a fuel card and deals with the pay and other operational ends. Am I missing out on the bigger picture? Is there one? Also I don't really want to be out there for days at a time but will do what it takes.
     
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  3. BigBadBill

    BigBadBill Bullishly Optimistic

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    Oct 2, 2010
    Chattanooga, TN
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    On the low end you are paying him $700 per week for what he is providing or about $36000 a year. Trailer expense and maintenance is not that much. Biggest expense is going to be your insurance. But still not at the levels that we are looking at here. So after getting a quote on insurance you need to look to see if the difference is worth it to you for what he is providing? And if you think that you can negotiate the rates that he is getting. Even 10% lower makes it a wash when you consider all the factors.

    However, with only 5 trucks he not getting access to some of the better freight. So it is likely that you are going to be able to build to similar rates on your own.

    Rough math would put you at about $10-$15K what you are paying for dispatch, office and safety. And if you can't do as well has he does that number goes down.
     
    SurfingTrucker Thanks this.
  4. silenteagle

    silenteagle Road Train Member

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    Oct 23, 2011
    Ozark, MO
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    Those freight contacts are worth alot.
     
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