Freight Rates and Loads

I hear ya.

I've owned my truck for nearly 2 years and plan on having it paid off here within the next couple months. It has 545k on the clock. That will free up about $1500 a month. I did purchase a new flatbed trailer back in June paid cash for it with profits from my first year and a half or so in business which frees up $550 a month on trailer rental fee.

I've been paying myself a small salary as of now just to keep building my business account to make sure I dont fail. My personal bills are almost non existent as prior to making the leap to become an O/O I made sure that everything was paid for. If I had a mortgage, car note, and household bills it would have been tough getting things going for sure.

I think that's one issue that people have is they dont separate the business from personal expenditures and it creates a problem.

I lease my truck onto a flatbed carrier that takes 25% I've been considering running my own numbers in the future just not sure if I wanna make that commitment.

I completely agree about the "lot" of money in trucking comments people make. If you take care of your truck with proper maintenance, fuel, insurance, payroll, taxes, and every other little business expense when it's all said and done the profit margin is thin.

Its certainly no wonder why you see so many junkie ragged out trucks on the road. Luckily this summer was excellent for rates and freight availability i was able to really build a nice nest egg, but that seems to be dying really quick, I certainly took advantage of it and worked my tail off.

 

Im $4mi if i go east . Dont wanna pay it im ok with that to.

 

Im on the fence about own authority. Fuel discounts National tire discounts 65hr shop rate discount parts to me its worth 30% ifta calculated . Run my own ins the reimburse me for that as well. Could i make more on my on aufhority yea probably. But with me having the option to book my own loads i usually hustle the broker for most of that 30% back on somedays others not. Today im on a load 366mi for 1650.00 im more than happy to give 30% back and have the perks

 

I've been getting the best rates going there and despite the tolls that's the best lanes so far. In truth, I've always had reckoning what they were but the sheer fact that all that chunk of revenue is eaten up by those states on the top of Fuel Taxes makes me somewhat bitter, which you don't feel until after you aggregate your numbers towards the end of the quarter. There are ways to avoid the tolls at least partially but then you have to compromise it with uncomfortable riding, including watching out for Amish carts. In addition to the tolls, my yearly parking in Chicago area costs me $2800, which is indeed a lot, when some folks pay as little as $50 a month...so you talking $12K more of an overhead than some folks living in a different area. I am not complaining or anything but giving food for thought that there isn't a universal good rate per mile, it is also so much based on lanes and geographical location. YTD I am averaging 2.22 on all miles (2.83 loaded) and that could be just as much as 2.05 c/mile for someone out of Waco, TX. Actually, the last 4 weeks were pretty good for me. The loads were not booked from DAT though. DAT freight pool has been 2016 deja vu lately. Yesterday, at 1 pm there were only 1250 loads availaible in Chicago (100 mile radius) and over 1500 trucks listed....that's horrible - it was Friday and October, when should we make money, if not this time of the year?

 

Ya, I'm leased onto Mercer so I get to enjoy some of those "perks" as well. We have freight agents here so for the most part there is no hustling to get a better rate... Sometimes I wish that option was available here though. It would be nice to access load boards besides the one we have here to secure outside freight.

 

That's great! Sounds like you had a solid foundation from the beginning. We paid cash for our truck and plan on having the trailer paid off real soon. My 2cents...If you're not already set up as an entity, I would definitely suggest that, since you basically have the equipment paid for. You can also put a lien on your own equipment under a separate entity, just as asset protection.

On another note, 25% to the carrier seems like a lot. I'm assuming they cover finding loads, fuel, insurance, etc...with no charge-backs to you?

 

I'm set up as a LLC. 25% covers all the load findings they have with the numerous agents they have, its basically a point and click type deal on our load board, I get fuel discounts of about .30 off cash price, insurance runs me about $2500 a year, loads are settled with 1-2 hours of sending in paperwork, national tire discounts, tax exempt on any parts I buy in select states along with repairs being tax free in those states... Its not to bad of a deal, like anything else it has its pros and cons.

 

I'm at $2400 running the same areas (except NY). I like to think our rates reflect that lol. What dollar are you averaging per mile. I'm running the numbers as we speak.

 

Be careful setting up corporations and LLCs. By default f you are a single member LLC it is a disregarded entity and becomes a pass through to your personal return. To really take advantage of any corporate structure and all the tax implications you need to be a multi-member LLC. That can still be done with you being the only person involved if you know how to do it.

 

Can’t make or keep one without the other