On your way out of business?

Maybe he gets it now, although with all considered, it is a tad more than 12 grand a year for authority, insurance has went up considerably,

 

Not necessarily, I just got a quote for $8300, that includes insuring my truck for $142,000. That is a paid in full quote, no payments.

 

$6600/yr although my truck is only insured for $50k for both truck /trailer. One could also get a healthy discount through someone like landstar, although it would require having to pull some of there loads from time to time. I think the main benefit of being leased to someone right now would be volume of contract freight.

 

The $1.15 is plus FSC, right now I'm at $1.45 FSC in. But insurance, plates, hut, ifta, all tolls ect are covered. I looked at it a couple times and by the time I add all the above in I need to gross almost $2.00 a mile to be even. And then I have to find negotiate, invoice and chase for my money or give a factoring company a percentage. I have LOTS of drop and hook freight here. I rarely bump a dock and I'm home most weekends.
It's all what's important to you. There are some days my lanes bore me, but, TO ME, home time is more important. There are some days I still think I'd like to get my own authority, just don't think I would made as much.

 

Are you saying your carrier pays all insurance, including physical damage? the norm is cargo and liability, never heard of one paying physical damage/uninsured motorist/theft/fire etc.

However I certainly don't think those small costs like plates and tolls are worth giving up how much you do on the linehaul rate.

 

They pay ALL insurance.

 

Every decent owner operator company pays the big liability and cargo insurance. the typical owner operator leased on only has to pay for bobtail and physical damage. my bobtail is twenty bucks a month. Not worth giving up 50 cpm or more for.

 

You proved my point. You said that your average is just under $2.00 all miles which is less than he gets. The load is paying the truck $2,00 per mile for all miles. How much clearer can I get. The guy he is hauling for does not take his percentage out of that. He has been in business over 10 years and his insurance runs him around $6,000 per year not 12k as @Skateboard stated and he has a great fuel card with NASTC so he gets some of the same discounts that you do. You do not have to lease onto a carrier to get discounts if you know where to look.

He does not have to run load boards because he knows where the next load is coming from. Yes his expenses are probably a little higher than yours but not that much and if it ever slows down, he can grab his step deck and haul for someone else. But these other loads are inconsistent and only pay one direction. Although they pay good for one way, he still makes more pulling the van. The reason being is that these loads are pretty much local (within the state) and there are very few backhauls.

So it is not the same as someone leasing on at $1.50 a mile as was first stated.

Are there better paying loads out there? Sure there are. But they are not consistent and that is what a business needs to stay afloat. Sometimes consistency is better than spotty high dollar loads. He does not have to factor at all or work off of load boards. As a matter of fact, turn in the invoices by Wednesday and a check is cut on Friday. He does most of his own wrench turning and the truck is paid for. Yep, paid cash for a 2014 T800. Now, depending on where your home is, your household expenses may be much higher than his and that may be the reason that you think this is not a good deal, I don't know. I do know that he is very frugal with his money so it does go a long way.

What happens to most people is that they see all this money and live beyond their means and do not save for a rainy day. This kills more trucking companies than anything else.

The other truck that leases on to him was down for 3 months. Engine and transmission rebuilds. Actually the transmission was changed from an autoshift to a 13 speed. That driver had no issues because she had saved up her rainy day fund and did not have to struggle during this time.

To be able to survive that amount of down time is a testament to how they both handle their money.

The freight that he is hauling, you or anyone else will never have the opportunity to move because it never makes it to the load boards. The guy he hauls for moves all the product for this direct shipper and has been since 1994. Pretty good track record if you ask me. The guy he hauls for moves nothing else as he has all he can handle and then some.

 

That is just a feel good that they pay the insurance. YOU are really paying for it with the lower rate you are getting paid.

 

This we absolutely agree on.