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?

 

Good luck averaging $2.93 all miles on 2800 miles weekly in this market

 

You have to pay the full amount of Social Security tax because you are self employed.

 

You’re putting nothing back for equipment replacement that I see. You can’t just get a truck and run it without planning for what happens when it’s time for a new one.

I don’t know if these threads are serious or not, but buying a truck might not be a good idea if your main goal is to pay yourself a high wage. I saw the other thread you figured 50 weeks a year, and now 46 weeks. The best part of owning your truck is working when you want, not pounding the pavement to meet your personal income goals based on what you can make driving for someone. If your goal is $100k+ then I’d say just go get a job that pays that.

 

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.

 

Lumper fees are reimbursed.
How much did you allow for reefer maintenance?

 

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?

 

That is correct

 

The issues I see with your numbers are:

1. They don't take into consideration the current market rates, which are terrible.
2. Trucking is not consistent week to week, unless you are doing something dedicated.
3. So I am sorry to say that you numbers are unrealistic.