Go figure...

That's why you have to know you're break even point driver. If you have a huge truck/trailer payment then no getting 90 cpm and the fsc isn't gonna do you much good. But if you don't have sizable payments and the company is paying for other intangibles you can "make it " on that. Every situation is different

 

.90 + fsc equals out to about $1.15 +/- per mile or 1990 rates. You're right you can make better money as a company driver on those rates.

If you don't get the fsc, your going broke in a very slow, painful and lonely way. Even with the fsc, .90 a mile aint worth it IMO.


.................. Jim

 

I belive this is what you call taking an owner/opperator and turning them into an over glorified company driver that goes through all the effort and expense of providing and maintaing a truck the company will run ragged until it is wore out or the driver goes broke which ever comes first.

 

Really, right now, if someone's going to go the O/O route and, plans on running it like a business, there just aren't very many opportunities. Unless you have your own trailer insurance and authority, then it's still slim pickings.

Leasing just puts you in the "bought a job" category. Right now anyway.

Most O/Os that lease on to a carrier end up working for wages, always making a truck payment, and using the equity in their truck to get a new truck. Instead of getting paid enough to cover depreciation and amortization of equipment. Not to mention maintenance, repair and, miscellaneous expenses.

I used to manage a very small fleet and our cost of operation was $1.75 per mile, cost, profit and overhead expenses inclusive.

I'd say that right now, if you can find a carrier that will keep you busy, in the kind of work you want and, get you $1.25 per mile or better (with or without fsc), you'd be doing pretty good.

.............. Jim

 

I will also say, dont look for an outfit that pays you by the mile, look for an outfit that pays about 76% of what the load pays, and they cover the insurance, billing and everything else.

I know many van companies do the by the mile thing, it is a losing game.

 

Well ... either way it is what it is... it all pays a set fee, percentage or milage.

The bottom line is - you take the load from point A to point B for "X" dollars. It's up to you to find the best rate for getting it there.

The milage rate does give the impression that you are somehow just getting paid to drive "miles" when in reality you are getting paid to move freight. Your truck has a definite cost per mile to operate though. So if your getting paid percentage you would still have to be sharp enough to break it down to milage, just to track expenses and profitability.

I'm really not a big fan of the FSC either. It's a variable. I know what it costs to run a truck. Don't feed me the FSC variable baloney. The rate is what it is. At least it should be anyway. That way, I get to play like the carriers do - when fuel expense goes down, I make more.

I suppose though it's more of a what you want to do thing. Some guys are happy just having their own tractor and making a living at the same time.



............. Jim

 

Look at it this way. I was pulling for .92 CPM in 2000 with a truck and tag that was paid for. It wasn't easy then. How much more does fuel, oil changes, which was $99.99 at that time at Speedco, cost of living, and everything else, cost today.

Also, back in 1976 brokers were almost all stuck on .50 CPM for freight, and fuel was around .55 CPG. You could buy a NEW cabover for around $28K. Looking at the cost of everything associated with running a truck, and with everyday living expenses, .90 CPM doesn't look to be too good of a deal.