What percentage does fuel constitute?

Discussion in 'Ask An Owner Operator' started by JBS-PA89, Mar 26, 2020.

  1. JBS-PA89

    JBS-PA89 Bobtail Member

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    I am wondering if I could get some ballpark numbers from some experienced o/o's. Roughly, what percent is fuel of total revenue? So if a load pays $1000, what percent should I estimate for fuel? I appreciate any feedback. Thanks
     
  2. x1Heavy

    x1Heavy Road Train Member

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    Never mind what the load pays. Never mind the percentage.

    Fuel is second biggest expense behind truck and trailer payment.

    You burn a certain amount by mile. IN mountain country on grades steep enough you can burn 30 gallons a hour. Which would be about 100 dollars or so ballpark.
     
  3. Opus

    Opus Road Train Member

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    About 30.
    Unless you're like @blairandgretchen. But for us troglodyte dry van guys, about 30.
     
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  4. Cat sdp

    Cat sdp . .

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    30 is the max anything less is preferred
     
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  5. blairandgretchen

    blairandgretchen Road Train Member

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    Awww - you’re too kind.

    Yes, I’m not much help here. It’s been about 7% this year.
     
  6. Rideandrepair

    Rideandrepair Road Train Member

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    That’s a tricky one. 25% in a normal environment seems about right. Add high fuel costs, and surcharges, it gets trickier. One would have to minus fuel surcharge, use a base cost to get an accurate %. Too often rates stay the same, surcharge goes up. All too often, Brokers will keep a % of a surcharge, booking freight at an all in price. Combine that with a bad economy, and % as high as 50% is possible on lousy paying loads. I saw a lot of that, when fuel hit $5.00 a gallon, along with dropping freight tonnage. It was a disaster.
     
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  7. lester

    lester Heavy Load Member

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    Seems like an odd way to figure fuel cost to me or maybe I'm missing something. But if a load pays a 1000$ you only have half the information. That could be a $1000 on 50 miles or 400 miles or more. There would obviously be a large difference in your fuel cost there.
     
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  8. Old Man

    Old Man Road Train Member

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    I need to run the numbers too see if I can beat Blair
     
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  9. Opus

    Opus Road Train Member

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    don't.....I already did.....he's not lying
     
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  10. Tug Toy

    Tug Toy Road Train Member

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    I think fuel is a hard cost and shouldn’t be looked at on a % of sales. Fuel cost is a hard number based on fuel price and miles run. It is irrelevant to % of sales unless your not charging enough. If it was %30 of my gross I’d jump out a window.
     
    Last edited: Mar 26, 2020
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