"The almighty $2.00 a mile theory"

Discussion in 'Ask An Owner Operator' started by " OPTIMUS PRIME ", Dec 16, 2010.

  1. Working Class Patriot

    Working Class Patriot Road Train Member

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    (Some) Dump truck brokers are the worst of the worst in the trucking industry....

    I have seen where an O/O gets a load and is told to make out a B/L but not put the rate on the B/L....The broker tells them the "rate" but not to notate it.....

    What is happening is that say a broker is getting $80/H for a truck or trucks but the O/O is getting $70/H plus the O/O pays a "Dispatch Fee" on top of that at $20-$30 a day.......

    The broker doesn't want the O/O to know what he or she is getting and they also don't want the contractor or the quarry to know what they are taking off the top.....


    The sad thing is Dump Brokers are not like freight brokers....Most work out of a briefcase; they are not required to have insurance...and in Cali up unto '11...they are not required to be bonded......


    Most pay between 45-60 days.....and some will take 120 days to pay........
     
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  3. jbatmick

    jbatmick Road Train Member

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    My point exactly.
    Different truckers, different deals.
    So, if the load starts off # 2 dollars a mile,and a broker gets his cut of 10%, some drivers will claim they got paid the 2 a mile [ and not mention the 10 % charge ] ,while others will say they got $1.80 a mile.Same freight, same rate at the start.
    The driver who says he got the $2 will show a higher gross per mile, and a higher cost to operate per mile, as he will figure the 10 % as a cost of doing business.
    The driver who says he got the $1.80 will show a lower gross per mile, and a lower cost to operate per mile. No deduction for the brokerage fee.
    Some recorkeeping systems show a fuel surcharge as income. Some show it as a fuel discount. Same idea.
    Ends up being the same, but can be viewed differently. You have to ask how someone arrives at their figures.
    :biggrin_25521::biggrin_25511:
     
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  4. Les2

    Les2 Road Train Member

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    Actually this is becoming more common. I've been seeing alot of shippers here lately wanting to ship loads that are either too heavy to put anything with it or take up to much room for LTL rate.
     
  5. Working Class Patriot

    Working Class Patriot Road Train Member

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    ...And let's see....CHR and Bear won't consider it a load unless it's 48K and 8' drops......:biggrin_2556:
     
  6. producepimp

    producepimp Light Load Member

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    WCP do u ever sleep!?!?
     
  7. " OPTIMUS PRIME "

    " OPTIMUS PRIME " Light Load Member

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    I think it goes both ways depending on the broker, some of them cut the rates tremendously and some just get their 10%. But I really think it has to do with how much the shipper is paying at that time. Because if theirs a 700 mile load and the shipper is paying $3,500, they know that the load can be moved for around $2,700 with ease and everyone will be happy. But he's not going to give you all but the normal 10%.
     
  8. PDX TRUCKING COMPANY

    PDX TRUCKING COMPANY Bobtail Member

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    Ya think...... He'll be up to 35 bucks a mile for half a truck load cause he has to make his private yacht and jet payment..... :biggrin_2559:
     
  9. Working Class Patriot

    Working Class Patriot Road Train Member

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    I'll sleep when I die.....:biggrin_25523:
     
  10. jbatmick

    jbatmick Road Train Member

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    :biggrin_25523:
    Training to be a produce hauler.
     
  11. " OPTIMUS PRIME "

    " OPTIMUS PRIME " Light Load Member

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    Good answer

    It's too much mone$ out here to be made right now to be sleep.
     
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