O/O Pay

peanuts

 

90 cents to a $1.00 a mile plus surcharge (might be anywhere from 10 to 25 cpm) is what dry van carriers pay o/o leased to them on flat mileage rates. They normally pay for everything except fuel and provide trailers. Running CA to GA with a dry van they're competing with railroads the only service advantage they offer is they can get it there quicker. So they're not making a lot off the guys they are paying a buck + surcharge. They have spot market competition keeping them in check and those guys will take on all the added expenses of tags, trailer, permits, insurance, etc and run for not much more than $1.20 a mile themselves. Real competitors lol. Long haul trucking with a dry van trailer is a fast track to the poor house. Leasing on under a flat mileage rate isn't much better.

 

Amen. You run an outfit at 1.25 a mile, u will last about a year.

 

If you get on a percentage pay plan you can make a lot more than the $.99 + fuel surcharge that most companies pay. But it usually requires you to dispatch & plan yourself instead of having a dispatcher telling you where to go. With that being said, if you're not good at learning lanes & markets percentage pay may not work out for you. I'm leased to a mega that pays percentage & I'm doing about $1.45-$1.50 for ALL miles my truck runs. Rates are down but money is still out there.

 

Funny you mentioned "lasting about a year" because Swift runs loads for well under 1.25 and they have been in the game since 1969 not to mention Swift is one of the most successful motor carriers in the US.

 

Apples and oranges. You can't compare Swift to the O/O's. Their purchasing power is so great, combined with volume, they can afford the lower rates and still make money because their cost per mile is so much lower than ours.

To answer the OP, rates are in the dumps right now. The previous posts by 'Coal and Stewart are about as accurate as it gets for rates. Unless you have a SIGNIFICANT cash reserve to float you through the lean times, you are better off being a company driver. Even leasing on with the star or others isn't much of a bet.
I recently looked into giving up my authority and leasing. The only reason? Insurance. I still would have to pay for the plates (about $1800), ifta, etc. Still have my truck payment and pay repairs and maint. The big savings for me would be in the difference in insurance. I'd save a grand a month using their insurance.

I am one of those crazy idiots who started up last year and I am constantly circling the drain. Pay? What's that? Haven't seen a paycheck all year. Eat? I ate yesterday. The truck needs fuel today, that's where the lunch money is going.

 

You running dry van? What are you averaging all miles? How much do you gross each week? How many miles average each week? What area do you run?

 

I pull their trailers. They pay for liability & cargo insurance. The rest is on me since it's my truck.