per mile or %

Per mile is a ripoff. % is always better. Of course, it will have to be a good %.

 

Read your contract very carefully. Are fuel surcharges lumped in the total invoice or are they kept separate? (100% of the fuel surcharge is much better than 80% unless it is a reefer trailer owned by the company where you are leasing on.) With every settlement should come a copy of the invoice that was sent out. If they will not show you the actual freight contract or the invoice, do not go to work for them. What about wait time? Will that be passed directly to you or will you only get 80%? (Food for thought easily found percentage rates spread from 78% to 81%) Do they have a shop where you can enjoy their buying power on tires etc...what about fuel, will they cover it and they take it out of the settlement or are you responsible for all the up front costs. Plates..............insurance....cargo insurance....bobtail insurance.....workman's comp insurance.......health and dental insurance.......? Lots of expenses to running your own truck, you just need to find out who is responsible for what. Again, if you are not a member of OOIDA, go join and then go to their O/O course. They have been there, done that, let them help you be successful.

 

I can only speak for chemical hauling/tanker and we are better off being paid %. The % rate can vary depending on what you haul but 60-65% is pretty much the norm in chemicals. I wouldn't even consider mileage. With heavy haul, for instance, you could get as much as 80%.
In addition some carriers will even pay you empty miles but with the co I'm leased onto the deadhead miles are on my dime. Luckily I don't have to do all that many DH miles. It wouldn't break the bank.
The FSC is based on the gross rate with our co and I feel I'm being treated fairly by them. I've talked with a few guys and they suspect that the co is withholding some of the FSC.
just because it says 100% FSC in your contract, doesn't mean you're going to get it all.
And because you're paid % and you're working with a decent and honest dispatcher, he will be able to tell you what the gross rate is before you take the load and what cut you will receive.
But like most things YMMV. Check the fine print for any "gotchas" in the agreement.
Good luck.

 

I wouldn't work for a company by the mile because I want fewer miles and more money. I get 85% of gross. The company pays IFTA and you pay everything else. But with that being said it wouldn't matter if they paid 99% if they don't have good freight. Some companies take 20 % or more and they may provide a little more like tags or insurance and bigger companies normally get bigger discounts for tire and equipment. They may or may not have better paying freight. If all a company does is finds loads on a load board I personally wouldn't lease on to them. I could get my own authority and do that. I would want to lease to a company that has good paying freight, and mostly direct. And then sometimes or on your return trip you may have to look on the boards. A few on here like Rollin Coal work off of the load boards and do very well. But most are just trying to run more miles for whatever is being offered. Before I leased on to anyone I would want to talk to several of the owner ops and also see what kind of equipment they have. If most of them have ragged wore out equipment there could be a reason for it.

 

One final thought, per mile may not be a rip off IF they pay for ALL dispatched miles. That means if they send you up the road 300 miles dead head, it is paid for at the per mile rate as it was dispatched. BUT, you will need to put a pencil to it and find out which pay package will be the better. $1.05 per mile, all miles paid, base plate paid, company insurances at their rates, $50 per hour shop rate, their buying power on fuel and tires....you would be dollars ahead over a percentage of 80%. Before you sign on, ask about average trip length and average rate. If they can't or won't answer those questions....keep looking.

 

Hi mobee I was just reading the ooida website, and I wanted to ask are they as good and legite as they sound? I am going to go into o/o but thinking about leasing on to a carrier before going total authority I just wanted to know if OOIDA is really a good organization thanks

 

Miles ahead on the way to bankruptcy.