Independent owner operator: costs of business in the year of 2021

85016 miles.
Didn’t work last October-December

Period: 01/01/2021 - 12/31/2021
Fuel $36,405.12
ALR $179.27
Cell phone $780
FHUT $1100
Factoring Fee $110.79
Insurance $16,435.89
Parts $2104.02
Permits $96.70
Scale Tickets $12.50
Southland Loads $19,023.13
Tires $5,424.73
Truck & Trl payment $25,324.30
Truck Repair $4,795.06
Truck Wash $391.78
WRT Only Fee $1,637.31
Washout $95

(repair includes oil changes)
total $113915.60
So 1.34/mile expenses before driver pay.
(I may have to hire a driver to haul for $1.10/mile, and I’d save money.)

 

I pull a hopper, heavy lot of fuel, but I use mudflap.
Very seldom fuel at majors unless absolutely necessary, then like 50-65 gallon

 

Man those numbers seem high
I base my expenses on an average of 120k miles
I figure the first $1 per mile goes to the truck

My truck and trailer payment is $0.36
Fuel is the same at about $0.36
I figure $0.10 for maintenance
Insurance at $.06

That still leaves almost $15,000 for other expenses and anything over 120,000 miles is all profit as it’s not factored into the equation

 

120 000 mikes is high too. Too much to my liking, anyways.
If I were to add additional 30 000 miles to my work volume, it would dilute my cost per mile too. Therefore, cost per mile, as relative as it is, can be hardly any common denominator.
It is only good when used within the same scope of mileage and even sort of operations
For instance, it may be of little merit to compare what it cost to run a step deck vs dry van.

 

Good points!!!

But. The less miles you run then the better per mile rate it should be
I wouldn’t be running at $2 mile for the short runs
So it all should work out

 

Those maintenance numbers seem rather low to me. Even when the truck was brand new, it was higher than that (counting trailer maintenance). Especially if you add tires in that category. And $0.36 per mile for fuel is low unless you are doing close to 10 mpg.

Lastly, there's a zillion little leaches sucking on that cost ledger, parking, scales, phone, accountants, ELD, consortium, drug test fees, app subscriptions, the list is almost endless. I haven't looked at last year's numbers in depth, mainly because many of those costs co-mingle with the farm expenses, but those little leeches will add up to a staggering amount really fast.

 

Fuel is 7.5 mpg and I was until recently at around $2.50-2.75 per gallon after discount but that might change this year due to fuel costs and I just bought a big bunk but if it does my overall rate per mile has gone up as well

 

Joe, your fuel seems high to me but I haven't added up last year. Considering it was getting high towards the end of the year maybe I'm wrong and mine is close. We ran about the same miles last year.

The number that really blows my mind is your tolls. My tolls were honestly a total of maybe $200 last year. I guess it's just way different running northern states but man, I didn't realize it was that different!

My maintenance on my 2015 has averaged about $20k per year.

You will really like life without that trailer payment. I'm waiting on a new one and will be in the hole again but it's been reeeeel easy to get used to no equipment payments, even with the added maintenance cost of owning equipment nearing 1 million miles. What year is your trailer, or perhaps better said how long do you think you can run it before replacing?

 

The trailer is 2017 Utility. It was built in 2016 but used in 2017 so it is 5 years. I wanted to trade it for a new but with todays difficulties to find one, I gave up the thought for the time being. It is holding up well I hope I can run it next 3 - 5 years, without too many problems.
Tolls are everywhere if you go eastbound of Chicago. I typically try to avoid them if I can but since the money was good, I decided to indulge on this. That's my record high too.
My fuel mileage was always horrible, that is so common for Cummins ISX, that's all I can say. It will be hurting more, when the prices are reaching 4 dol per gal and above, even after discounts.

 

My average price in 2021 was $3.08 per gal. If the current trend won't let up and it continues to increase above 4 dol per gal towards 5 dol per gal in 2022 - with discounts I am not quite there yet - as of this month maybe $3.75 - but if it does, it is easy to predict my fuel cost will be higher by at least $10 000 , if not $15 000 by the end of 2022. That's a hell of a change in 1 year to expect! Hopefully, the rates will adjust accordingly...However, if the rates tank, and the fuel prices will stay at the current level, then fuel mileage might be a decisive survival factor for many out there. Something that was hardly an issue for the last decade or so.