Question about current freight rates for O/O

Could you go into a bit more detail on that?

 

I run out of Oregon and I'm out for 12 days at a time. I rarely leave Oregon for less than $2.00/mi. and usually go as far as I can in that 12 days. My recent monthly averages for ALL miles (that includes empty miles) was $1.85 for October; $1.76 for September; and $1.87 for August. I don't go less than $2.00/mi. out west if I can help it. I recently ran a few weeks of somewhat local and came home every weekend, which paid very well by the mile, but you don't get as many miles out here doing that. I was averaging $3.50ish/mi. going up and down I-5 in Oregon and Washington, but I was also loading and unloading every day which cuts down on the miles. If you go out west you can get out back toward the east for $2.00+/mi., you just have to hunt around a bit. Lumber pays like crap but it always moves. Don't worry so much when it comes to the rates, they are what they are, and they fluctuate with weather, fuel prices, demand, stuff like that. The big numbers you want to look at is your overall cost per mile. My cost per mile for all expenses for August through October (this includes fuel too) is right at 93.6 cents per mile. That means anything above that number is profit. That is the number you want to keep as low as possible, then the rate fluctuations won't really matter as much. Hope this helps a bit. I just started out as an O/O back in March, so I hope I'm not giving bad advice, just what works for me.

 

93.6 cpm for what?

 

All expenses related to the truck. Payments, insurance, fuel, maintenance, repairs, etc. Basically everything it costs to run the business, not including food.

 

96cpmile? So you sometimes drive truck for 20 cpm? Oregon alone charges 16cpm road tax, plus pay your self 45cpm. fuel alone is 70cpm and repairs, ensurance. put many away for new truck. the real cost is around 130cpm to run a truck.

 

Well said! Base your figures off of $1.85 and you will do fine. If your a go getter instead of a slacker you will do even better.

 

Actually, no. I don't drive my truck for .20cpm. I lease my truck back to another company and pay them 15% of the gross. I run like an independent, but a friend owns the company I'm leased to and he helped me get out on my own. Included in this 15% is use of their authority, they pay for plates, IFTA, Oregon PUC, HVUT, they pay for a majority of insurance (I pay $260/mo. for add'l insurance), and I use them to find all my loads. Not a bad deal. I do put money away for repairs and maintenance, which is included in the 93.6cpm I previously mentioned. I don't put money away for a new truck because I have a good solid '06 Pete that I am not going to replace anytime soon. So your cost may be $1.30/mile to run, but not mine. If I were running for anything over $1.20/mi. in actual costs I'd rethink the business because to me, that doesn't seem like enough of a profit margin to be worth it. If that's how you run your outfit and you can make money doing that, more power to ya.

 

Your costs seem a little low to me. You may not have payments, but at some point you will have major repairs, such as an engine, transmission, etc., Those replacement costs should be factored into your costs. I know some don't consider driver pay as part of their breakeven, but I prefer to include driver pay since it will give you a better idea of costs. If you didn't drive your truck then you would need to pay someone to drive it for you or sell the equipment.

 

Wow! Nice Truck! Do you have windows on both sides of the sleeper? What's the motor?

 

Ya, windows on both sides but just small ones at the top and one picture window. It's a Detroit 500hp