And another one.........

Yes, OT is paid nationwide. 80k is on the low end and used as an example for a 60 hour week. Depending on the length of trips, those hours can be more but rarely less. I chose to be conservative rather than give you the high end. CA is different in that their OT rates are higher than the federal standard. The hours are based on On Duty and Driving, so anything in the Sleeper/Off Duty isn't calculated.

The industry as a whole is changing. It's losing independents because the rates aren't there anymore. Tied with the ELD mandate many of those guys are starting to go to carriers. Customers are moving away from the pay-per-car model and paying for the truck.

 

Not nationwide, yet. But growing. Most of the western states, midwest region, and southeast.

 

I'm with you that the industry is changing, that is why after 25 years I sold my fleet and switched to consulting in the areas of regulatory compliance, health, safety and environment. Additionally, I sell a few tow trucks and car carriers each year for a few different dealer friends and write for American Towman Media.

I haven't seen the pay per truck model in car haul as of yet, although my Ford contract was a all inclusive rate for up to a specific volume until the last renewal when they wanted to go to a per unit rate which didn't work for me.

Sounds like you work for Hogan in their car haul division, or are you in a different dedicated division? Do they have a limit to your on-duty time that is paid, meaning do they have a book or projected time it should take to load or off-load, search for cars, etc or it is actual time without question? I could see time limits placed on compensation leading to increased damage claims or even wage claims for unfair treatment.

Either way, as stated the compensation seems fair and is easier for the driver to predict vs. a percentage of the load, plus then it is irrelevant what the carrier bids on the freight since the driver's compensation remains level. No more front haul v. back haul differential or loaded v. empty mile differential.

 

Yes, I work for Hogan. Currently no limits on time other than the Hours of Service limitations. As with any company we watch for abuse and will address it as needed. There are labor laws and such you have to abide by, so there isn't any skimming or secret changes. If mistakes were made on the driver daily log (left On Duty at end of shift) those will see changes based on the driver log edits. I'm not pushing for guys to load/unload as fast as possible. I want them to be safe and not cut corners.

Our customer generally gets us in and out pretty quickly, and we have a hub network. Stopping off at random auctions or other places would be rare. Between the customer and network relationships, the drivers already have their cars assigned in most cases and unloaded cars are received quickly.

We do want our drivers to be home on weekends, but keep them busy Monday-Friday with occasional changes to that based on customer needs. Opportunities are there to work up to the 70 but it's not a necessity or common practice. Home time is important.

I've worked with hourly models before in private fleet and there was abuse at times. Auto Hauling is a different animal with things that cause delays in loading/unloading like larger vehicles, rain/lightning, or delays in getting checked in/out. For OTR/Regional work it's definitely different and very few carriers are doing it. I think it works well. Drivers are paid for all their hours worked, including delays at the "shipper/receiver" or traffic. They shouldn't feel the need to rush and work unsafely. There are expectations for production, though. If a driver frequently can't fit 7 cars on a 9 car when it's the norm for others it catches our attention. Obviously we want to keep the truck at capacity since that's how we stay in business.

 

I appreciate your reply and candor. I only know of a handful of other carriers in the car haul segment that pay hourly. I am happy to see someone challenge the usual per mile or percentage model, those days are coming to an end as changes to distribution networks shorten the average length of haul, technology improves routing and more clients switch to dedicated transportation models. Not to mention the changes in how RFPs are answered and bids completed today.

As more carriers enter the car haul segment and the technology catches up to the rest of the freight world, mostly broker boards and 3PLs with public facing sides - which were unusual in car haul just a few short years ago - we will see a dramatic shift in rates and compensation packages. I hope it is for the better as employee drivers are concerned, I know it will put a squeeze on the independent owner/operator model except for the few that have found their niche that big fleets can't provide or those that have leased onto large carriers.

With improvements in load planning and equipment design it has become easier to load and deliver cars without damage which had led to lowering of the bar to entry for car haulers, years ago it took a special skill set - not saying it still doesn't but the skills are less today.

 

The old OTR models are dead or dying. 3PL and regional dedicated is pretty much what all carriers are trying to do now, turning into "logistics" companies. It's just not worth it to have millions in equipment assets sitting in a truckstop somewhere in New Mexico hoping to find freight that pays enough just to get out of the state.

Auto hauling is different than the food and retail/grocery business I've done for years, but at the end of the day it's the same. A widget is a widget, even if it's a car. It's still moving from A to B and has to be there by X date. It's all about who can move it for the best price with exceptional service while keeping operational costs low and keeping your employees happy to retain them for the long haul.