Questions for O/O's

I don't and won't strike for fuel price to come down simply because I raise my rates to cover my expenses. You will find many on here won't charge more to haul freight but will want to strike until Mr. Oilman decides to drop the prices (won't ever happen).

 

The first load of freight I hauled as an owner driver paid 49 cents a mile but the fuel costs were 24 cents a gallon..LOL ( 3.1 MPG freightliner COE with a "shiny" 290 cummins 13 speed...LOL)

These days my freight rates are a little higher. ( average $1.83 a mile) but you cannot compare apples and oranges..

The old miles were HHG...on the pay, expenses of course were for all miles traveled.. now I use actual hub miles at completion of trip for calculating both pay and costs... apples and apples.

We had a strike when fuel approached 45 cents a gallon ( my average cost in the south east mostly so lower than some. My truck still averaged 3.1 MPG ( same truck). MY revenue back then was 49 cents a mile HHG loaded only

We had another strike when fuel costs approached 70 cents a gallon. My truck now averaged 4.1 MPG my revenue was then 73 cents a mile HHG loaded only

We had a few other strikes I remember, but I did not bother to take part. Instead I took my trucks to another country and worked there for 3 years, I charged by the hour of operation or sometimes 24/7. My trucks life span was severely shortened and mileage was awful because 90 percent of the time I was operating on dirt roads with 12 percent grades. We don't even want to talk about tire wear and maintenance costs..LOL BUT I MADE MONEY because I PRICED THESE IN.

Since returning to the states, I worked many years as a company driver before deciding to own a truck again. There were a few more strikes and even one drive 55 day ( I took part on that and was arrested in Paul Valley Oklahoma for obstructing traffic..LOL)

I remember buying a w-900l in 1998 and using 1 dollar a gallon as worst case fuel cost in my business plan, at the time my average fuel cost was 72 cents a gallon.. ( wow was I wrong it had a 4 year note LOL)

I charge this week 52 cents a mile on all loaded or paid deadhead miles for fuel surcharge. I averaged 7.28 miles a gallon this week, my average fuel cost was $4.11 cents a gallon because I had to buy 84 gallons in Pennsylvania.

52 times 7.28 means my surcharge paid me $3.78 and a half cents toward each gallon of fuel I bought. from the line haul, lay over pay and 200$ deadhead charge for 200 deadhead miles I have to pay the other 33 cents a gallon.

I actually am being paid more than I was at any other time compared to my fuel costs...

You asked!

 

second answer

Your question makes O/O seem monolithic, But in fact there are many variations of O/O.

Rent to own or lease purchase drivers pay fuel costs, but normally have absolutely no power to demand better paying freight.. Some do work on percentages, but most are on mileage CONTRACTS that like all contracts can be terminated but seldom forced into higher pay.

Many owners lease their trucks under similar contracts where they are captive to one company for rates and freight.

Among the few that are left you find those who find their own freight.

Here you really find the fit hitting the shan.. Some of these independently dispatched people have no actual customers, they have lived off a few ( or many) load boards and brokers each load is a separate contract made final by a sheet known in the trade as a rate confirmation.

Many owner drivers accept rates from brokers who send a rate confirmation to them, most do not send back a confirmation of terms stating things like demanded fuel surcharge, delay in transit costs, unforeseen charges ( waiting time, unload pay etc) and have that signed by the broker. The reason most of them do not do this is because either they do not know how to do it, or they do not have the POWER to demand this from the broker.. ( my favorite words are " I gotta have that truck")

The real issue for most truckers who are going broke is bad business practices resulting from decades of growth in the trucking industry and in shipments. The smaller issue of contractor hampered locals haulers( dump trucks etc paid by the hour or mile) who cannot renegotiate, and the now apparent to all shrinking freight picture as the economy shrinks.

These will none of them be addressed by a shut down other than by the removal of equipment easing the overage of power situation...LOL

 

Yoda.....Its nice to read posts from someone that actually knows what he is talking about instead of all the whining and BS most people post.Its nice to know that there are still some guys out there that have it figured out.Good posts,both of them!!

 

Aw shucks guy.....LOL I have seen several other people on this forum who also understand both independent and union drivers... All is not lost, now we have to hope those frustrated people who have decided to strike ( or overthrow the government) or force the government to appease them because of their perceived trucker power are in fact as powerless and clueless as they appear here!

 

i would like to see how many loads you would get at $4/mile and how many customers would actually tell you that your smokin crack! ...its all about the market and supply on demand!...if theres 2000 empty trucks in NJ sitting and only 10 loads going your way what makes you think they will pay you $4/mile??..sure you can say no to cheap freight and sit all you want theres plenty of other trucks that would take a load at $2/ mile and wouldnt think twice...on the other hand if your in the are where theres 2000 loads sitting and only 10 trucks empty...then you can negotiate the rate more easier.