I've been speaking to a shipper and have a proposal they've offered for dedicated lanes. They're proposing that I offer 5 trucks/5 dry vans on a 3 year contract. Will pay $1.65/mile plus fuel with a guarantee of a minimum of 2200 miles per week on all miles including deadhead. Year 2 and year 3 include a 2% rate increase. If the trucks run short of the 2200 miles they'll pay the difference. They provide all of the routing for headhaul and backhaul. The trucks will be running between the midwest and northeast.
Any feedback?
Would you take this deal?
Discussion in 'Ask An Owner Operator' started by Jbro99, Jul 8, 2015.
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Hard to pass up a guaranteed paycheck.
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I would without doubt.
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taking fuel out of the cost per mile equation, you could do well in that scenario...
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Not going to go into the rate but make sure you can switch off trucks to keep it at 5. Or you may not be able to get the drivers home anywhere near on time.
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In the proposal they provide home time every 2 weeks so that's worked into the 5 trucks required.
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Still nice to be able to switch off with other trucks. Dedicated a few trucks on this type of deal and the only way it worked out. Make sure there is no charge back for breakdown or any reason for the truck not available.
Jbro99 Thanks this. -
2200 mls a week is kind of low.
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The 2200 is just a guarantee. More of a safetynet. On average the trucks run 2400-2600 miles per week.
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There is always a loadboard
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