Fuel cost is High, Does rates goes Up

He said he was "THINKING" about becoming an ower op. Judging by his question I assume. He is in the gathering info stage. Also judging by his question. I say he is a long, loong, looong, loooong, way from being ready.

 

Only thing is the Megas are paying higher wages. They will not come down too much because they will not be able to lower wages. In the past wages stayed the same for the most part. This is a different animal in its own right.

 

Not necessarily, pay was pushing .40 cpm and higher in 1999. In 2000-2001, pay dropped at a lot of Carriers. as much as 10%. In 2008 avg. pay dropped also. It doesn’t need to drop, at 7.5% inflation rate in 12 mos. If Drivers wages stay the same, it’s equivalent to a 7.5% pay cut in one year. That’s what happened to wages during the late 70’s and early 80’s. They went up, sure, but not as much as the inflation rate.

 

Will prices really drop that much or will it be the inflation that makes it worse? I think the inflation is gonna be the real issue coming to us all. They will raise all the min wage to $15 an hour and the dollar will be worth nothing.

 

The minimum wage isn’t the problem, if anything it’s the solution. It’s the only thing that drives up wages nowadays. Only thing that keeps all the wages from falling lower. The people working for minimum wage spend every dime they make just to live. Everyone wants to make the big bucks. Not everyone can be a Truckdriver. Lol. If someone can gross $1050 a week working 60 hrs. at minimum wage. Trucking companies have to pay more than that. Everyone should be making more, screw inflation. If it’s partly due to higher wages, at least we’re getting paid first, and inflation follows. What’s worse is normal inflation, and stagnant wages, losing buying power, and chasing higher cost of living, with little or no increase in wages.

 

Don't. Wrong time to start. Go company drive at $1 a mile.

 

The op edited the original thread .
When I answered they said they were ALREADY an owner operator.

 

Who’s paying that to drive a company truck?

 

Rates go off of supply and demand. Want more money operate where theres a shortage of trucks. Want less money operate where the excess is. Other than providing a service outside of the norm in what your trailer provides, there you have it.
Fuel surcharges are usually the norm for customers that are not brokers that you haul for and have a pre negotiated rate. Other wise, you correct your costs by your negotiating skill in the spot market. Again you need leverage, too many trucks in the area and you loose a bit.

 

Good catch! I only saw the edited post. Where it looked liked you jumped the gun on responding.
Either way judging by the op's question. Id say he made a mistake, and if not close to being ready.