Attention All Non-CPM Drivers

That's about it I believe you got cpm, salary, percentage.......only other way I can think of is by the load like container haulers, dump trailers, etc, or by weight like grain




American Trucker

 

It seems you are going to be doing some comparing apples to oranges here.

You, WitchingHour, Johnday and AT's dad are all getting paid to drive a truck that belongs to someone else.

Ironpony is getting his revenue for operating his truck. Still you are only interested in his revenue, which still has to pay expenses before you can make an equal comparison.

Since drivers wages and benefits make up roughly 20 - 30% of gross, comparing a contractor to a driver will give you 3 - 5 times more money than the driver gets. With an owner/operator whether a lease operator or a carrier (has their authority), you would have to look at operating expense before you could see what their paycheck is.

Here is an example:
Suppose a truck hauls a load that pays $1200 for 520 miles and you deadhead 80 miles to load it. You ran 600 miles for that load so it paid 2.00 CPM to the truck. It was $960 load revenue and $240 FSC. The shipper actually paid $1575 to move the load ($1333 shipping and $242 FSC). We will assume all actual miles to simplify our calculations although this will not be the case. We will also assume that the broker or the company that a truck is leased to take the same amount from what the shipper pays.

Now the company driver paid 0.36 CPM will be paid a gross of $216 (600 * .36).

The driver working for 20% of all revenue will be paid a gross of $240 (1200 * .20). This driver pays 7.65% ($18.36) more for Social Security/Medicare because the employer does not pay a share.

Now the lease operator will get $1200 (1333 * .72 = 960 and 242 * .99 = 240 and 960 + 240 = 1200) since he gets 72% of the gross revenue and 99% of FSC. Now he has Fuel at 32%, Maintenance/Repairs/Tires at 7%, Miscellaneous at 1%, Truck/Trailer Payment at 10%, Insurance/License/Permits/Fuel Tax at 5% and Return on Investment at 4%. Take the $1200 less the $708 in expenses and you will have a gross of $492. This owner pays the additional 7.65 % Social Security/Medicare and is in a higher income tax bracket too so he pays more income tax.

I might add that when I operate my own truck, I would pay myself about $288 wages and benefits on the above load and the rest would go into the business account. That amount would cover health insurance and workmen's comp. The excess would be potential profit once a substantial reserve was built up for unexpected costs. It could then be used for expansion or to reward the owner.

 

As far as company drivers go, when running percentage, they don't get any of the fuel surcharge, as they shouldn't. Linehaul+ accessorials. So if a load payed 2000 total, and that was split up at 1600 lh, 300 fuel, 100 extra stop and your percentage was 28%, you would get paid 1700x.28=$476.

 

I was a company driver and got paid by the hour. My pay started once I went through the gate until I left. Any hours over 10 were time and a half,plus any hours over 40 hours was time and a half. We would only drive a total of 200 miles a day but we would have 6 unloading stops and 6 loading. That's the goal of a local driver to be home every night weekends off and gross $1650 a week.

 

Company.
Paid per miles, deadhead or loaded.
Small additional amounts for load swaps, hazmat loads, detention hourly for everything over 3 hours.
If the company truck breaks, I get breakdown pay. If there are no loads I get detention pay. But if I get a load on friday and it is only 8 hours to delivery, and the appt is not til monday... all I get are the miles.

Mikeeee

 

I hate to complicate things but some companies pay percentage on net not gross. In these cases, you would have to subtract expenses from gross before applying the percentage.

I did a breakdown that compared CPM, gross % and net % in this thread in post 8:

http://www.thetruckersreport.com/tr...r-operator/151655-subcontracting-drivers.html

It also covers another pay method used by many expediters. They pay a bigger percentage and the driver pays fuel from his money.