Load Percentage

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by Bozwik, May 22, 2022.

  1. Bozwik

    Bozwik Light Load Member

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    Titusville, FL
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    I don't remember hearing about this when I drove years ago. What is load percentage? I have an idea, that you're paid a percentage of the load but from what? The trucking company charges a certified amount to make delivery, do you get 85% of what they're paid, maybe plus miles?
     
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  3. blairandgretchen

    blairandgretchen Road Train Member

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    Let's say - you own truck Bozwik trucking.

    You lease on to Mikes Transport, and run under his DOT authority.

    Mike books a load for $1,000 through a broker.

    Your agreement with Mike is "85% of the load"

    Mike gives you $8,500.
     
  4. Bozwik

    Bozwik Light Load Member

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    Mar 28, 2022
    Titusville, FL
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    So these are lease deals? Lots of these ads state $3,000+ per week after taxes.
     
  5. blairandgretchen

    blairandgretchen Road Train Member

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    They might be - can you offer an example of what you're looking at?

    Something like "No money down - lease purchase - we pay 85% of the load?"

    Others offer mileage - "No money down - lease purchase - we pay O/O $1.30/ mile plus FSC"
     
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  6. blairandgretchen

    blairandgretchen Road Train Member

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    Most of these offers that I've looked at offer figures that can only be substantiated by open book perusals of operators actually doing it.

    In most cases, I've found that you make more money for your time and risk - as a company driver at a higher paying carrier.

    If they're wanting to pay on a 1099 basis, but controlling both how and where you run their equipment that they're financing to you, well the 'deal' loses even more luster. Hope this helps.
     
  7. 062

    062 Road Train Member

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    Say what!!!!
    The batteries die in your calculator... if not, then I need this mike dudes phone number o_O
     
  8. kranky1

    kranky1 Road Train Member

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    Percentage of gross revenue. My drivers are paid %. It’s the only way to pay drivers that’s fair to both parties, but it can be manipulated to your disadvantage if you’re dealing with a bottom feeder. The industry is full of those. Doesn’t matter if you’re a company driver, lease-op or independent, you’re being mercilessly screwed on percentage pay in a lot of cases. Think about this, I’m the white Volvo guy from Chicago with lease-ops and drivers, or XYZ you’re going to get rich freight brokerage. I book a $5000 load through a number company, take $2500 off it and pass it to my operating company. Then it goes on one of my trucks and I pay the driver 30% of $2500 to haul it, or better yet, post it on the big money load board and get someone to tow it up the road for 85% of $2500, and pay all the bills out of that. There’s a lot of money to be made in this business for next to no investment or risk if you’re a little light on morals and conscience.
     
  9. pumpkinishere

    pumpkinishere Medium Load Member

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    Ya looks like he put an extra 0 in there. Lol. I was going to say the same thing I need mikes transport phone number.
     
  10. blairandgretchen

    blairandgretchen Road Train Member

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    Blair is an idiot.

    Oops.

    In my case scenario - NOBODY gets Mike’s number:)
     
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  11. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    I'll let you in on a little secret. The amount the carrier agrees to haul the load for can be very much manipulated. Most common phrases are "gross' and "net". As an example, the carrier agrees to haul load for $8500. So, the shipper will pay the carrier $8500 at delivery. I'm talking about a direct carrier, no brokers involved. Out of the $8500 it's the carriers responsibility to pay his fuel, driver pay, etc. So, a carrier can say to the driver thet he had certain expenses and his portion (%) 85% will be AFTER the co's expenses. Here's where the manipulation comes in. The truck co can neglect to tell the driver that they are claiming expenses above the direct expense to haul the load, which should be just fuel. They can post any figure and the driver will never know. They can say we pay 85% of "net" so, the driver has to trust the truck co is honest. Net is after expenses. The honest way would be paying % of gross, that's before expenses.
     
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