Start up carrier company need your advice

Not sure I'm understanding the "credit on fuel" thing. Also, I'm not too sure how many are going to want to look at an average of $1.20 loaded mile especially in high toll regions. That on top of eating untold empty miles costs doesn't leave much. What about when fuel spikes 80 cents in a week or two? Will your minimum ("average") still remain where it was before the spike? if an owner operator is not motivated to work, don't worry about him and trying to keep him motivated with bonuses. Bonuses are better suited to motivate company drivers IMO

You don't want to attract only those with the very wore out equipment and no understanding of future trade up realities and that it takes substantial CPM to operate a truck LONG TERM in today's environment (high new[er] truck costs, CA regs, freight claims, etc) If you have a fleet of 15 year old trucks operated by guys who hope they make it through the week and keep them running with duct tape and prayers, you're asking for failure out of the gate.

 

You need to keep any agreement simple. Unless you have experience in this industry, I would caution you about starting a motor carrier company.

 

only the crap nobody wants to haul shows up on those load boards, with very few exceptions. if you don't have 50 percent direct freight you can't pay enough to attract quality truck owners. could you get me 1.90 to the truck on all miles? I'm talking hub miles, not shortened computer miles. can I get bobtail and physical damage through you for under 100 bucks/month? can you get me fuel discounts of 30-50 cents a gallon? (Just filled up in Maryland last night for 3.49/gallon. pump price was 4.04) can you get me a new set of michelin xza3's for 470 mounted, balanced and out the door? that's what it's going to take just to match what I'm my current carrier is doing for me. you can't do that on dat load board freight.

 

As an O/O I'd get 75% of $1.65?


Uh, no thank you. May as well go book my own $1.23 a mile freight for that price.

 

I think he meant 75% of the load pays? Which would be ideal-ish. The 1,000$ fuel i assume loads a card to $1,000 you use it, and if you need more you spend your own money, kinda like a fsc. Someone had said will it still be 1000$ when fuel goes up .80c which is a good question.
It looks like the guy has little to no experience in the industry judging on the way he asked.
Theres a thread on here "so you want to own your own company" check it out it has aLOT of good info

 

Also, if my math is correct I dont think it even possible to have a revenue of just under 19,000$ A MONTH on one truck especially off load boards. 1) thats quite a few miles for a solo to drive in one month. 2)am i right or am i right? Please be careful getting into this business alotta ppl fail without thoroughly thinking things out.

 

I wonder if he knows it can take 30 days for the carrier to be paid,( and sometimes 60 or even 90, and then the occasional that never pays) yet he has to pay the truck within 15 days. the fact that he thinks he can run s company using one brokerage firm alternated with load boards tells me he either doesn't know enough about the industry, out thinks a guy should be happy making 1.25.

 

If anyone is leased to you it is normal to show the original confirmation on the load showing total payment of the load if paid by percentage.

 

I hope he doesnt think were blasting or hating on him, im just telling it the way it is.. Theres alot of things to take into concideration..again ROY check out that thread before jumping in.