I'd be a first time O/O, 25yr company driver, looking at leasing to UPS.
Pay seems low at $1.15 all practical miles. Mostly terminal to terminal 100% no touch. But they pay base plate, permits, fuel and road taxes, fuel surcharge and reimbursed for tolls and scales.
I havent looked at the rest of the paperwork for other extras.
The trucks I'm looking at would be about $1000/mo, mostly 14/15s that will include 1yr/100k warranty for mechanical and aftertreatment.
At 3000-3500 miles/wk, without having all the numbers for fixed costs, best guess leaves about 2k to the truck. I planned on paying myself 900-1000 net and banking the rest.
Does what's included make up for the lower rate?
Run some numbers by you... leasing on with UPS.
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Too skinny to be worth it. You might make the same per mile as you do now being paid by someone else. When you have repairs, that money has to come from somewhere. It will come from driver pay. Lots of people work this way and never realize they are working harder for less money at the end of the day than someone else would be willing to pay them. Insurance was not mentioned. It is not cheap, who pays insurance?
I have noticed this seems to happen more when things are slowing down. Companies start saying they don't hire employees (expensive) and instead hire lease operators. No payroll tax. Know their cost to move the shipment. No liability of engine blowing up or other costly repair. Add drivers who don't know better and are happy to be working and can somehow figure they're further ahead, they buy into this garbage only to make the same as before (most of the time they make less than they did before).
Insurance, not medical, is one of the things that's probably in some of the stuff they sent me. I'll get a chance to look at it later and will update.
Right now I'm hourly LTL. It's not a bad gig but theres no room, union, to do better.
If I can't clear 2K weekly after expenses it doesnt make sense. Only looking at trucks with a warranty should give me a cushion from big repairs.
@Oscar the KW
The only experience I have running a truck was in 08 i started doing hotshot stuff with a van. That worked great because the economy tanked a few months after i started.
I have no experience working load boards, but I run a hobby leather shop so I know what can go into a bottom line number. If you had to put a number what would things like plates and fuel/taxes be? Best guess?
3,000 Miles X $1.15 = $3,450.00
$3,450 - $1,625.00 Fuel = $1,825.00 Based on 6.0 mpg fuel @$3.25 Per gallon
$1,825 - $250 Weekly Truck Note = $1,575.00
$1,575 - $1,000.00 Driver Pay = $575.00 Balance
$575 X 4 weeks = $2,300.00 Remaining For Monthly Fixed Costs
Maintenance & Repair Fund
Fuel taxes $200 year
Permits $200 year
These are just rough average numbers. Base those on 100,000 miles a year and you’re looking at .024cents per mile. It’s a joke, nothing more than a really poor sales pitch.
Best when figuring miles to underestimate. So if 2800 a week is available, use 2300 paid miles as a template. Hopefully you’re actual average will be more, than 2300. Realistically even if you run 2800 a week, throw in a 2 week vacation, 2-4 slow weeks, and holidays, actual average for the year will be less. Meanwhile all the bills still come in monthly. 3000-3500 miles a week forever is unrealistic. Everyone needs a break, work to live, don’t live to work. Not worth it. $1.15 ? Must be a fuel surcharge on top of that. Anything less than .30 cpm will be tough to make It $1.45 all miles, you might make a decent paycheck from, but probably be working harder, with more risks and stress, than a Company Driver.Look around some more. UPS, FedEx, and all the megas out there are paying way too little. All the discounts and paid plates etc can’t compesate for revenue.
All of the megas are paying like that. JB Hunt Power Only pays 1.30 all miles + FS that is 1.55 give or take. This is your own MC# and insurance and in addition to that they want to dispatch you.
For them, it is a very good deal.
Find a company paying 1.50 for all hub miles and still pays all of those things you mentioned. You won’t mKe it at those low low levels of pay and it’s not realistic to get 3000 miles every week.
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