Driver Rate

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by casio, Jun 7, 2019.

  1. casio

    casio Bobtail Member

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    Oct 19, 2018
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    I've been in talks with a car hauler with his own setup to drive under my authority. His truck and trailer. I do back office stuff. What's fair?

    Thank you in advance for any and all responses.
     
  2. Eddiec

    Eddiec Medium Load Member

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    Feb 2, 2015
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    85% of the line haul + 100% of the fuel surcharge
     
    casio Thanks this.
  3. brian991219

    brian991219 Road Train Member

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    That is an open question, meaning what exactly is "back office stuff"?

    If you are dispatching, invoicing/collecting and paying the truck owner promptly, such as weekly or at least bi-weekly, that is worth more than if the owner operator still has to find and schedule their own loads.

    Also, what about insurance? As the motor carrier you are liable for all insurance except the physical damage for the owner/operator's rig. Are you charging back any insurance, base plates, IFTA and other legals, or is that all included in your cut?

    All these variables make a huge difference, 70% of the line haul seems low unless you (the motor carrier) are paying everything and providing fuel/toll/parts discounts. Same thing could be said about 85%, that may be low if the owner operator has to provide their own base plates, pay insurance and schedule their own work, etc.

    So, to give you a proper answer, what exactly are you providing for the owner operator and what costs will they still be responsible for? Do you offer fuel discounts, toll transponders, IFTA filing, base plates?

    Is this a true lease-on situation or are you offering lease purchase, or just using the terms "lease" and "owner operator" to get around paying employees on the books?
     
    TROOPER to TRUCKER Thanks this.
  4. casio

    casio Bobtail Member

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    Oct 19, 2018
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    1. If you are dispatching, invoicing/collecting and paying the truck owner promptly, such as weekly or at least bi-weekly, that is worth more than if the owner operator still has to find and schedule their own loads.
    Yes, I would be doing this.

    2. Also, what about insurance? As the motor carrier you are liable for all insurance except the physical damage for the owner/operator's rig. Are you charging back any insurance, base plates, IFTA and other legals, or is that all included in your cut?
    Ideally, this would be included in my cut.

    3. So, to give you a proper answer, what exactly are you providing for the owner operator and what costs will they still be responsible for? Do you offer fuel discounts, toll transponders, IFTA filing, base plates?
    Yes to fuel discounts, toll transponder, IFTA filing and base plates.
     
  5. brian991219

    brian991219 Road Train Member

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    Lords Valley, PA
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    Based on your answers, I would say 70-75% off gross to truck, you keep the rest with 100% of the fuel surcharge and any collected demurge, special handling or other unusual fees going to the truck.

    Your answer about insurance concerns me as a compliance consultant, "ideallly this would be included in my cut" is not a good answer. Bottom line, by regulation you are responsible for the insurance, although you may charge some of that back to the owner operator if it is clearly spelled out in the lease agreement.

    Sounds like you are trying to offer a good deal and be professional about it, best wishes for success.
     
  6. casio

    casio Bobtail Member

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    Oct 19, 2018
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    I should've elaborated some more. What I meant was that I would handle insurance so it's not something the driver would have to worry about. I'm not interested in getting into the dynamics of charge backs.

    Your help is much appreciated. Thank you
     
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