So you want to "own " your own company

We have inexperienced owner operators and major carriers who destroy rates. I believe that it was Maverick or TMC that was bringing loads out of South Texas for $0.50/mile at one time. That would barely cover their fuel costs. I don't know if that is still the case.

Much of the problems are the owner operators who have no clue when it comes to calculating their operating costs. Many don't want to move the truck without something on the truck. They don't consider that when they take a load for fuel money, they are actually perpetuating the problem and keeping rates low. Many probably don't even care. I usually deadhead out if I can't get a rate that meets my minimum. Most who take these cheap loads will average the rate. They think that they can make more by averaging rates than getting a higher rate going in and deadheading out of a bad area.

 

I work at TMC and I have never seen them hauling a load for anything close to that. Not sure if they use to but they sure dont anymore.

 

TMC hauls tons of bailed cardboard trash from Mass to OH for $.90 cents per mile. One truck after another.

 

Sorry I have just never hauled it nor have I ever seen another TMC truck pulling it. I think that is a load of BS though that they actaully do that. I think that larger companies hauling stuff like that is why its so hard for an O/O to make a living now a days. Sorry meathead I didnt know that. Good to know though and I appreciate the eye opening.

 

Most all the large companies will haul cheap stuff out of a bad area. When all is said and done the overall rate is a lot better then if they dead headed out. Sitting for a day will cause you to lose between $300 and $500 dollars in revenue.

You gotta keep running and keep the door closed. If your sitting your not making a dime.

 

I hear ya on that. If I was an O/O though and if I had a load that paid 1.00 a mile for say 250 miles and I was in a crap area for good freight I would take it. Sorry guys call me what you want but if its going to get me to a better freight area to get something that pays say 1.80 to 2.00 a mile for a 1000 mile trip, I would be all over that freight that is paying for my expenses for that small 250 mile run. Better then deadheading......

 

Or you could deadhead the 250 miles to get that good paying load and be the better part of a day ahead when you deliver it, and get another good paying load to make up for the deadhead, and actually make a profit using the time you saved instead of spinning your wheels for fuel money.

 

Doesn't work that way Josh. I'm assuming you don't have your own authority or you would know this stuff.

250 miles is not going to get you much better. Maybe $.10 cents per mile more. I get about $1.00 per mile where I live. From there I travel 600 miles and then get $2.00 per mile. The rates are on a sliding scale and increase as you approach a better area.

I could head right back to my home town for $2.50 to $3.00 per mile.

 

Yeah then you just turned down 250 bucks and put yourself into a hole. What if your starting off the week? Not a good way to be starting in my eyes.

I do see your point and it is a very good one. I could see doing that if you had a pre planned load to pick up right where your dropping off that 2.00 a mile load and that pre plan being a load that paid 2.00 a mile but you had a small time window to make it there and if you stopped to get that 1.00 a mile load you could not make it. In that case I see your point being totally right and I would do the same. But that is not always the case.

Now the 1.00 a mile is not just fuel money but should be a little over almost anybodies break even point for fuel and all fixed costs that way your not digging a hole to get out of.

 

Fuel mileage loads will cost you money. You spend time hunting for a load, then end up at .75 CPM. You deadhead who knows how many miles to PU the load. You will probably be held up several hours loading, or the load may not load until the next day. Most short loads are scheduled for next day delivery. You next sepend several hours the next day unloading. You start the hunting process all over again, and maybe find a marginally better paying load, that you have to deadhead 100 miles to get, which loads the next day.

Assuming you get loaded the same day you found the first cheap load, you now have at least 2 1/2 days invested in the cheap fuel paying load, which if you count the deadhead miles on both ends, and the reduced fuel mileage hauling said load, you have lost money big time. If the load didn't load until the next day. or you got held up on either end, you have 3 1/2 days invested into grossing $187.50 on a 250 mile load, which with deadhead and short broker miles is closer to 400 miles, or 46 CPM.

Sometimes it cheaper in the long run to sit or DH somewhere else.