What you think about this deal

im at 63% and average for all miles is 2.05 a mile I pay fuel tax bobtail ins and plates. tolls loaded are paid for and all scales are paid for. I pull chemicals. unfortunately we are slow right now so gross revenue is down right now but pay per mile hasn't really gone down for me. most weeks im right around 2 a mile but then some weeks im at 2.75-3 a mile and then some weeks im as low as a 1.80-1.85. I cant see myself ever doing a mileage contract ever but it depends on the individual and what they are happy with as to whats a good deal or not. whats good for me may not be good for you and vice versa.

 

This sounds like a pretty good deal. I would look at average length of haul and the lanes of freight traffic. If the length of haul is lets say 600 miles average, your going to have to haul twice the loads of a company that has a average haul length of 1000 to 1200 to make any money. Also, if they have a lot of grocery warehouses or large distribution centers as customers, than your going to lose potential lots that are pre-planned based upon you dropping a load due to getting held up somewhere. Most companies that have 600 mile hauls are regional companies usually. There is nothing bad about short hauls as filler hauls to get you close to a larger load that makes you some money.

 

How can anyone say that is a good rate and that it sounds good if nobody knows what this potential applicants operating costs are? Nobody knows what his truck pmt, maintenance, fuel costs etc. per mile are....so more info is needed I'd say to make a proper informed decision here...

 

How can they say that fuel tax is paid? Are they paying any amount owing or are they actually reimbursing the contractor for all tax paid at the pump or are they just paying it ( the amount owing if any) on the contractors behalf and taking it out of the settlement?

 

Is he going to be solo, does he have a truck payment and insurance on it for when he is pulling a load (or is this the same as bobtail ins). I'd figure the mileage at 6mpg and see how much fuel he would need for say 2500 miles and see how much he would made after all that.

 

Drop and hook or live load/unload?

 

Nice questions here, It sounds like a good deal, But coming from a company driver I am not in the know! I'm learning from these threads!

 

If they fund it, I suspect they just file as a fleet and pay any amount owing when they should instead reconcile every truck's fuel tax bill in house.

A careful operator will fuel based in the base price ( pump price minus IFTA) to get the best deal. Doing this usually creates a surplus ( read- refund) of tax paid and at the pump which the operator is entitled to And here they're saying " they'll pay it ."