Feb 04, 2025 at 11:44 AM CST
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Posted by a private BulkLoads.com member.
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Posted by a private BulkLoads.com member.
Hi everyone, I work for a shipper operating out of New York and Michigan, contracting a dedicated fleet of 34 CNG trailers. They currently pay for variable operating costs, S&G, and equipment costs, with all-in rates ranging from $15 to $30 per mile when amortized over the year. These rates are based on round-trip pricing. I understand there are many variables that influence costs, such as utilization, specialty services, and equipment factors, but these numbers seem higher than expected for a dedicated setup. In my experience, I’ve typically seen $5-$7 per mile in dedicated fleet operations. I’d love to hear from others—do these rates seem reasonable for a contract/dedicated environment when moving CNG on 50-200 mile routes? Any insight or comparisons would be greatly appreciated! Thanks in advance. |
Replied on Wed, Feb 05, 2025 at 09:49 AM CST
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Posted by a private BulkLoads.com member.
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Posted by a private BulkLoads.com member.
What type of freight are you seeing the $5-$7 rates in?
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Replied on Wed, Feb 05, 2025 at 10:35 AM CST
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Posted by a private BulkLoads.com member.
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Posted by a private BulkLoads.com member.
Are your calcuating those rates per mile on 1 way miles or round trip miles? Short trips always have very high rpm, and I would ignore it. Calculate the rate per hour and use that as a better guide. I am curious to know what that value is and can provide better insight with it. |
Replied on Wed, Feb 12, 2025 at 01:18 PM CST
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Posted by a private BulkLoads.com member.
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Posted by a private BulkLoads.com member.
You are working with highly specialized, very expensive equipment - and it's hazmat. $30/mile seems excessive, but I don't know all the specifics of your lanes.
You can't just pick up the phone and call any Tom, Dick, or Harry to move that kind of product, let alone do it reliably. |
Replied on Wed, Feb 12, 2025 at 02:37 PM CST
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Posted by a private BulkLoads.com member.
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Posted by a private BulkLoads.com member.
Quote: "You are working with highly specialized, very expensive equipment - and it's hazmat. $30/mile seems excessive, but I don't know all the specifics of your lanes.
You can't just pick up the phone and call any Tom, Dick, or Harry to move that kind of product, let alone do it reliably. "
Exactly this - also calculating rate per mile is only appropriate with longer hauls. If they're 100-200 mile one way (or less) then a RPM calculation is not at all representative of the load. |