Check My Numbers V.2

Following up version one here, updated numbers below for a reefer owner operator, courtesy of rigbooks.com calculator.

The updates-

• Assume 46 weeks worked, with 2 weeks breakdown and 4 weeks vacation
• 2800 miles driven per week, 10%DH. 128800 miles/year.
• MPG changed to 7.5 instead of 8.0
• Truck is $150k, 20% down, 15% interest over 60 months.
• Trailer is $60k, 20% down, 15% interest over 60 months.
• Repairs, PMs, Supplies, and tires costs calculated separately
• Repairs assume $15k annually with another $15k in lost revenue (total $30k)
• Tires are Bridgestones- R213s on steers, M726 drives, and R196A on trailer, no recaps, medium price of google search.
• Toll costs have been brought down based on prior assumption being too high
• Miscellaneous includes lumper fees, $350 average multiplied by 48 loads, plus $5k in ??? misc. expenses
• Taxes are .153/mile. I know 7.65% has to be paid to Social Security and Medicare, as a portion of revenue less expenses except principal paid to truck/trailer, and driver wage. Is that correct?

The $1/mile paid to the driver has become the benchmark to meet. Nice round number, and a good jump above what most company drivers would make. Using these assumptions, to achieve $1/mi paid to driver, then reefer rates would have to average $2.93 or better.

If a truck were bought and paid for, rates would only have to average $2.66.
With a trailer paid for, $2.55.

If one were buying a brand new truck and trailer for $285k with zero down at 18% interest, rates would have to average $3.23.

Let me know if any assumptions seem too high or too low. Is $16,800/year reasonable for lumpers?

 

Right but you'd pay 7.65% on your income taxes as a company driver. The only additional taxes an O/O is responsible is the carrier's half, right? That's what I'm trying to capture here.

 

The point of the exercises is to dial into the rate where a $1/mi wage becomes viable.

I agree the replacement fund is missing and should be included as a cost. Maybe in a version 3.

 

Nothing. What's a reasonable number?