Practical Miles Vs. Hub Vs. Shortest

The Company I am looking to get my start with pays based on PC Miler Short Mileage. I think I understand how it works but would like some clarification just to be sure. Would someone help me correctly understand how this works just so I am clear. Obviously, I would think Hub miles is just that, actual miles. Thanks in advance.

 

Distance Calculation Overview : PC*MILER

 

That means you will never be paid for the miles driven, in some cases up to 20% short.

 

The truth is most drivers will not get paid actual trip miles. Big companies use the PC method because they steal some 3% of miles off of drivers. When you have a fleet of over a thousand drivers, the money quickly adds up. It’s a scam big carriers still continue to pull off. We currently have the tech to quickly find actual truck route miles to pay drivers fairly for what they have actually driven.

 

Correct me if I am wrong. I was told that they basically route you in miles, to the closest city (miles wise), I don’t know if that’s major city, local city etc. but wouldn’t that work both ways, some route I would get shorted and some I would be paid more?
I understand that I will be a newb and will take a few hits along the way but just want to be well informed going in.
One of you stated most drivers wil not be paid actual mile, Is this method a common practice?

 

Yes, and then they will pay you 200 miles less for going through a park that's a several thousand dollar fine to go through in a truck.

It is common practice, not as a common as it use to be but not far off

 

I remember keeping track of how accurate the paid miles were to actual miles, and to no surprise—almost every single time the miles was in favor of the mega company. Concidence? I don’t think so.

3% of 120,000 miles = 3,600 miles
$0.35 cpm x 3,600 miles = $1,260 per year
1,000 drivers = $1,260,000 per year

Mega companies ain’t gonna change how they determine pay miles. I haven’t checked how other mega companies determine miles, but it wouldn’t surprise me that most companies use this method.

 

You are going to find Carriers get loads based on contracts with brokers or logistics companies, In fact, some brokers ARE logistic company's. The carrier gets a load from point a to point b and the load pays only so much. The logistics company pays by the milage as based on the zip code to zip code miles. What this means is the driver gets paid these miles X the drivers CPM rate. In this day and age HUB's are very rarely used to pay. In fact I would be almost willing to wager 60 to 70 % of all OTR tractors don't even have one.

 

Shippers aren’t going to allow carriers to charge for more miles than is practical so shippers and carriers have come to an agreement on distances and rate computations. A driver paid by the mile will never be paid more miles than the rate sheet calls for. However some better carriers will authorize and pay for additional miles to go around road closures or bad weather event.

But yes, some carriers use methods (computer systems) that screw drivers more than at other carriers. When you consider what it actually costs every mile a truck runs, you will begin to understand why carriers are hesitant to give drivers Carte Blanche to determine routing and be paid on the their chosen route.

 

Ok Thanks guys, I believe this answers my questions ,I appreciate the help. By the way, this isn't a mega. Its a local outfit with about 150 trucks so I just wanted get some real world takes on it. Like I said I'm trying to go in with a prepared for anything and expecting nothing attitude as to not be too disappointed but also without being screwed over for being new to OTR. (regional)