Truck driver shortage, other troubles could push up prices for consumers

Part of that 90% operating margin includes labor cost. An owner op would get to keep the labor portion of the operating margin(25-30%) plus the 5-10% profit margin, before taxes.

With average revenue per unit at $220k, and driver pay at 30% of gross, that gives $66000/yr in driver pay. This is very doable and still make a normal profit for the company. That can be easily increased a bit more into the $80k pay range with some reshuffling of priorities within that 90% operating margin. Don't forget this is based on annual per unit revenue of $212k annually. Many carriers do a lot better than that. Like oilfield, LTL, heavy haul, and team expedited freight. These high revenue operations can afford to pay over $100k/yr and a few do. Very few.

 

Agreed, article states some of the more regional carriers like motor fuel jobbers are pushing 270k gross. Carriers trying a mixed bag do less. Makes a very valid point to me, do what your good at and keep it close. Numbers don't lie.

One challenge a carrier faces is customer demands. If he wants to trade with XYZ chemical he has to take the good with the bad...I don't. I run the edge of political correctness and select most of my freight. I do take some beans with my steak but I balance it carefully.

My O/R runs in the low 50's because I run old iron with high maintenance and I don't have a brick and mortar office or a co. car. I could get that number lower with better management but I choose not too.

JMO

 

How can you operate in low 50's with high maintenance? Somebody covering your maintenance? Or buying your fuel?

 

I was wondering that myself.

Heck, just my fuel is more than his total O/R.
100000milesX0.63/mi fuel=$63000.

 

On these 'how much do you make" threads, company drivers on here throw around some big numbers.

Some claim they are making as much as 100K or more, as company drivers.

Personally I don't buy the high wage stories.

 

you can make close to 100k or over, but as a company driver it usually comes with a u card and a LOT of seniority. a buddy of mine made over 83k a year ago where i work, he had 17 years in and they might as well have printed the overtime sign up sheet with his name on it. most guys just get about 65k average. he found an even higher paying job though, driving for linde, and he doesnt have to hurt his back anymore for just as much money..

btw, upsf is up to .72cpm at the end of their contract, with seniority and a good run, thats grossing close to that..

 

Our OTR team drivers start at 80k. The senior ones can easily make 100K if they want but they'd have stay out on the road longer than the normal 5 days on 2 days off.

 

yep, I have heard that Praxair, air products, and linde all pay a LOT for qualified chemical tanker drivers.

 

When it comes to OTR I highly doubt it will get better. Actually I look for over 90% of OTR to be fazed out by the end of the next decade. If you look around now OTR freight is now being converted to intermodal freight and intermodal drivers are home nightly and we make a good bit more then OTR drivers while having having nights or days off only working 5 days a week. Now before anyone starts bashing intermodal saying we are stealing jobs I got to ask if you really view this as a bad thing? You get paid more...hey this October I will get my 8th raise in 2 years only 2 of which were normally scheduled. We have more free time, we get personal time off and not just vacation time, we have set shifts, etc. Unless you really love OTR I don't view this shift as a bad thing...I personally believe it's preferable. Not trying to start a fight just throwing this out there as food for thought.

 

In 2010 the going rate at the Savannah port was $1.37/mile and I doubt it has gone up very much. What area are you in? Is it train only?