freight rates

Not to pick on you, but how is that sustainable running your own numbers? I can see it leased to a carrier, but not on your own.

 

Well that all depends pscar all rates are relative for all miles light freight 3000 miles a week ok heavy freight 1800 miles a week not so much buti,m sure you knew that allready

 

Unfortunately...Thats all freight is paying, This industry is very competitive these days

I have some freight going to the east coast paying $2.85 per mile..But then coming back its around $1.30 per mile

It all balances out to around $2.00 per mile.......

Leasing your truck to a carrier chops off nearly 25% of your earnings.....Cant do that.


Now if your in the Reefer business or Heavy haul/oversize business, You can make more

 

operating cost around $1.20/mile, maybe less if you make good decisions, maybe more. @ $1.95 he makes 0.75/mile. company drivers make around $0.40, it's doable. I was making as high as $2.36/mile for awhile. But I wasn't getting a lot of miles. Now I'm working on plans to go for $2.10-$2.25/mile all miles but do it repeatably and reliably. I guess the benefit of own authority is I can repeat that on two or three trucks or more if I want, but it's easier said than done. and freedom.

what's that thing they say ? freedom isn't free ? (-:

 

I just think that for myself, if I was to go back on my own that I would have to be north of the $2.50 per mile mark to justify it, that's all miles. I should add that would be hauling legal freight, not what I am doing now.

 

Well, I guess that means you're in a good spot then ! I agree, but now that I'm into my own authority I see the light at the end of the tunnel and it's tough to make the switch. All I can say is that when you have your own authority it's more about building something and opportunity. It's also a many are called and few are chosen situation. For the last two years and the upcoming year I would be the same or better to be leased on, hands down. But what if I build something that provides income for me and my family for decades after I retire ? It's possible.

When you say "I would need $2.50/mile or more all miles to go owner/op" you are just talking about year to year income on one truck. But the real power of your own authority is the options it gives you that you can't get with a lease deal. I could come across an opportunity at any time that, handled correctly, could yield unlimited profits. You can only make money for your employer and perhaps recieve a few extra shillings for your efforts above and beyond.

 

Sure its possible, and I think that you are quite possibly on the right track to build something that can do that for you.

Yes, I don't have the patience to deal with adding trucks and or drivers to build a fleet.

 

It's a tough call, I was considering leasing on myself and if I don't see a positive trend in my organizational ability this year I may lease on next ! But by the same token, I think I have a skill set that allows me to go into any shipper and identify if they have needs the average shipper cannot meet. And if I can determine ways to meet those needs I want to have the opportunity to do so.

 

Ahh, you added this while I was quoting you earlier. I see how you can say that, I have often thought the same way myself at times. But I look at it differently now, sure the company I am leased to makes money off everything that I do, but at the same time, I save money because of the things that they do. There is value on both sides of this, but I think that a person just has to decide for themselves which one has the greater value for what their long term goals are.

 

yep, I wasn't trying to be tricky, I just posted and then thought of a few extra things. I was just telling another guy earlier I thought the beauty of leasing on would be allowing me to do what I do well, and allowing the carrier to do the things I struggle with.

But the bottom line is I do things right, I don't find ways to undercut and drive rates down, I find ways to provide better service and drive rates up. And I think that's important while many bean-counters can only find a way to shave a few cents off of shipping costs and hide the losses to their customers. I feel obligated to do it. Even if it is only one truck.