Swift O/O and L/O - How much do they make?

So full of T/S misinformation ... first, Swift does not pay of the the trucks. They don't buy them. Swift leases thier units through the manufactures leasing company. Then re-lease them to the drivers. The exception are the program trucks that they sell out right - used to be the Columbias, but now Volvos.

Second, do some math. Swift pays for the trucks in 8 months? Really??? 8 months x 4.5 weeks per month x $550 pers week = $19800. Do actually believe that - even if Swift was puschasing a the trucks - that Swift is getting the trucks for less the $20K each???

Now for the FSC ... there is no set rate on FSC to get a % of. FSC exists only on a negotiated contract, is on per contract basis, varying accordingly. Unless you are privy to a specific contract for a specific account you would have no way of knowing what the FSC is.

As far as the rate that your mentor was hauling for, unless he was on percentage pay - and Swift does have those - his knowkedge of how much the load was paying is no more viable than his knowledge of how and the cost Swift aquires truck for or his knowledge of the FSC.

 

Fuel surcharge varies from week to week. Landstar offers discounts at different places. That varies too. So when you add in FSC+the discount? Sometimes fuel is offered on cost+XX. Do you get discounts at TA or Petro? Probably not. When you are getting $.30 or more off the pump price+ FSC? Call me. Jerry is screwing you 6 ways from Sunday.

I'll get some info on how FSC is set and negotiated.

BTW who owns the leasing company? Do you think your lease payment is a dollar for dollar exchange? Someone is making a profit in there. When the truck is averaging over $2.50 or more a mile it gets paid quick.

"unless you are privy to a specific contract for a specific account you have no way of knowing what the FSC is." So you have no idea what percentage of the FSC you are actually getting. (you have said nothing, and flaunted your ignorance of how it works) Jerry is making money there too.

I am not saying LS is giving 100% of the FSC either! And their O/O's don't know the actual amount.

http://www.selectscg.com/fuel-surcharge/index.aspx

http://www.fwccinc.com/surcharge.html

 

More math ... from Swifts annual report ... revenue per truck $2997 per week divided by $2.50 (your number)per truck = an average of 1198 miles per truck per week ... Anybody here believe that Swifts trucks are only running running 1200 miles per week.

I can tell you that the average mile per week is posted at my home terminal ... roughly 2100 mile ... so the revenue per mile is more like a $1.42 ... I can also tell you that my gross revenue for all miles on my odometer is $1.34. So maybe Swift is keeping a dime to quarter for each mile driven, before overhead expenses.

You appearently don't grasp the concept of how equipment leasing works, since you insist that Swift "pays off" the trucks. So pointing out to you, that I did indeed tell you who the leasing company was - the manaufacturer - listing PACCAR, Navistar and Freightliner is pointless. As well as the fact that IEL is the secondary lessor and who the primary lessor are is clearly stated in the O/O lease contract. IEL has payment every month/week on every truck.

Since you spouted off thet Swift is skimming the FSC, then mabe once you "get some info on FSC is set and negotaited"... then you will understand that it isn't a specific standard, but an individual price item that is used for pricing purposes. How much it is and how much is actaully passed on - again - unless looking at the specific contract for a specfic load you have no way of knowing how much of the FSC is or is not being passed on. The O/O lease contract a has formula for calculating Swifts pay out to O/Os. Sometimes that maybe less than what Swifts gets, somtimes it maybe more.

As far as the fuel discount. Again Swift is clear in the contract, they keep any discounts they may get. That said, I have seen prices as low as $.40 under market at the terminals as well as $.20 over market. Also Swift has no restriction on using their fuel card or where you fuel. A Swift O/O is free to get an OOIDA, NASTC or CRE fuel card and the discount accorded there of.

Last who said anything about Landstar. I can't speak to what they do or don't do. The only information I have is the same as yours - the internet, Landstar published info and hearsey from other drivers ... in other words mostly drivel.

 

I worked for a company long time ago, and the FSC was based on the contract with the customer. I saw some loads where the FSC would be almost .40/mi and some that the FSC would be close to .20/mi. These FSC's where also based on the DOE. I think that it was JC Penny that had the lowest, and some chemical and battery loads, they had the highest. The first of every week, the company would send a email to all of the L/O and tell them what all of the customers where paying for FSC that week. that helped us.

 

So accepting that as a contract condition IMO is a bad business decision. $.30 a gallon on pump fuel when there is no terminal that is convenient? 150gal is $45. ####! Can you really afford to throw away that kind of money?

The deck is stacked against you.

Too bad you can't set pricing limits and get load alerts on where you are, or you are going. You know book your own loads. Via automated phone and on a load board. My tax man is a Landstar O/O we have been friends since 1980. Right now his load alert is set at $2.45 a mile. Lots of loads! He took one a couple of weeks ago that he deadheaded from Manchester TN to Louisville KY. Took the load to Chicago Heights IL. With his empty miles it paid over $4 a mile to the truck

If "wanna be" O/O's save their money, get their insurance money, permit money, starter "running" money+their down payment money they would be $$$$ ahead. But that would require them to be able to handle their own personal finances in a business like manner.

Chances are anyone that says they don't have the cash to buy a truck and set themselves up in business? Probably ought to stay company.

 

You wanna make money here at Swift forget about leasing a truck and become a company Mentor. All the money is yours no fuel, truck payments no bull (well strike the last one ) just lots of green $100 bills.. The only thing a lease driver has over me is a different color truck and that's it. I still decline loads like I could if I leased not owned a truck ! Oh and they have a few other little items that I already do

Sure they can have a pet but sometimes I get students who act like animals. Why waste your money on something that Swift can take at anytime plus all the lease trucks look about the same. Me I would buy mine from an outside source then lease it to Forwardair

 

My friend with Landstar said Schneider had a good deal for O/O's too. One O/O he does taxes for does very good. I didn't say L/O!!

The deck is stacked against you. They hold all the cards. You are an employee without benefits.

Wait 'til Swift starts an employee leasing program. Many companies are doing that.

 

I had a truck like that once, the trick I used was to leave it in gear til the truck was complete stopped then it will go out of and into any other gear. Oftentimes you can push the clutch all the way in and line up the stick to the gear you want and gently let out the clutch a little-- in and out and it will find the hole. I hear so many trucks grinding into first gear- usually older owner operator trucks too. ...

There is a big section in the contract where they stipulate what the fuel surcharge will be based on the Dept of Energy's mean diesel price for the week. There is a bottom price of fuel where the fuel surcharge would be zero, it's like $1.50 or something, don't have the numbers in front of me at the moment and goes up to close to $10 bucks a gallon.

Let's just say we're getting $0.40 cents per gallon for fsc right now and fuel is $3.80 (just an example) one would have to achieve 9.5 miles per gallon for the fsc to pay for all the fuel. Otherwise, fewer miles per gallon, and the leased operator is paying for the fuel out of some of the line haul pay ($0.92). If the leased operator can find fuel cheaper at the terminal by $0.20 cents ($0.3.60) then they only need to achieve 9 miles per gallon. Still that is difficult to do.

A lot of owner operators with their own authority just start off with a base fuel economy and calculate from there what the compensation needs to be for the load in order to be profitable-- usually in the more realistic realm of 6 miles per gallon= $0.63 cents per mile based on $3.80 for the fsc.


RugTrucker-- Swift probably is not getting $2.50 a mile in all markets. They might do better than that in some markets but much worse in others. They are so large they can afford to deadhead drivers out of poor freight areas or take very low mileage rates which support cheap freight which in turn raises the ire of owner operators everywhere.

I have gotten $8 bucks a mile too before, I had a 30 mile run to a grocery place, sat there on the dock for 10 hours and was paid $240 in detention pay.

As far as Landstar's or any of those slick truck stop magazines' promise of "100%" fuel surcharge goes, 100% of what? Whatever the shipper says it is? Just like Swift. 100% is just a 'feel good' phrase. Would the owner operator feel just as good knowing the fsc is just $0.10 a mile but gosh golly gee whiz he's gettin' 100% shill boy howdy!

Yes Landstar BCO's earn more, but they pay more too. Directly and indirectly. With Swift's system I get a trailer for free. Qualcomm costs $20 bucks a week, tax deductible but invaluable in my book. I don't have to call/fax/track down/do the leg work/confirm/wait to be paid etc etc, there is a whole support staff whose job it is is to keep my truck moving under loads. If my truck breaks down the qualcomm is a lifesaver/business saver. Swift will cover the breakdown expense and withdraw it back from my maintenance account and/or settlement the following week. As an independent, if you don't have the ready cash you're flat busted.

More indirect compensation comes in the form of free trailers too. Conservatively at $600 a month indirect compensation for such at 11,000 miles a month works out to an extra $0.05 cents per mile line haul pay or perhaps fuel surcharge if you wanted to apply it there.

 

Scooty I don't have time right now but my LS friend has been doing the math and pulling a LS trailer only doing live loads. They don't charge for a trailer. You just get paid less. He has a couple grand in the bank and is going to buy his won trailer. The math works out much better.

He has no need for a Qualcom. Books his own loads. So what you are saying either you can't afford to save up for an emergency fund, or you lack the discipline? The support staff at Swift is a joke. Even as a company driver they are lost finding you an empty for hours and hours (more than 24 in my case) Weekend and evening staff are worthless.

You did see where you get fuel discounts as a LS O/O? Can you do the math on that? Yes, he has a Comdata card.

LS doesn't pay 100% FSC. I never said that.


For loads? He is in Lavergne TN right now getting loaded. He is already getting load alerts on his phone for freight coming out of Iowa where he finals. BTW his minimum is set at $2.45 right now. No alerts if they don't meet his minimum. He won't take a load until he checks his lap top for rates and freight volume going out of the area he's going to.

The emperor isn't wearing any clothes.

 

BTW LS makes their guys do annual inspections 4 times a year. LS pays for that. They want safe trucks and drivers. They keep a close eye on logs just like Swift. They don't play.