Shipper cost to run with no driver or the cost of fuel
For this math problem I will give you the answers up front:
Here is the conditions, the shipper will have the following:
New Tractor
New Hopper
Office overhead
Office personal
Insurance
Taxes
Tags
Maint Cost
Misc Cost
Total cost per mile with no driver cost or fuel cost (and we all know that equipment does not move without either of those)
There is no difference between whether the truck is loaded or not. When they expect you to eat the deadhead for free, expect you to drive the truck for free, expect your equipment to be able to run on air, and you allow them to get by with it. These prices do not even reflect the dollar amounts that they would incur from lawsuits by exposing themselves to the public. Most of you are not realizing what you are truly worth.
Here is what the average cost per hour for them to sit those same trucks not running down the road: $49.97 per hour
This is why supply and demand is not the same in trucking vs other widgets. We have seen lots of drivers sitting at truckstops waiting on their magic loads out of a bad area. If there is a glut of trucks in that area and not enough freight, simply fire the truck up and go to where the freight is. We charge enough money to go to the crap holes that have no freight out that we can bounce all the way back home if need be. I for one am tired of seeing my rates degraded by those that continue to run their kingdoms based upon their cost per mile vs. the shippers cost per mile. You are degrading the marketplace by doing so, even those that work at McDonald's can not go below minimum wage.
Why are you guys running your equipment for free or lower than what the shipper can do it for themselves?
Here is the conditions, the shipper will have the following:
New Tractor
New Hopper
Office overhead
Office personal
Insurance
Taxes
Tags
Maint Cost
Misc Cost
Total cost per mile with no driver cost or fuel cost (and we all know that equipment does not move without either of those)
-
100,000 miles per year: $1.58 per mile
-
75,000 miles per year: $2.10 per mile
-
50,000 miles per year: $3.15 per mile
-
25,000 miles per year: $6.30 per mile
There is no difference between whether the truck is loaded or not. When they expect you to eat the deadhead for free, expect you to drive the truck for free, expect your equipment to be able to run on air, and you allow them to get by with it. These prices do not even reflect the dollar amounts that they would incur from lawsuits by exposing themselves to the public. Most of you are not realizing what you are truly worth.
Here is what the average cost per hour for them to sit those same trucks not running down the road: $49.97 per hour
This is why supply and demand is not the same in trucking vs other widgets. We have seen lots of drivers sitting at truckstops waiting on their magic loads out of a bad area. If there is a glut of trucks in that area and not enough freight, simply fire the truck up and go to where the freight is. We charge enough money to go to the crap holes that have no freight out that we can bounce all the way back home if need be. I for one am tired of seeing my rates degraded by those that continue to run their kingdoms based upon their cost per mile vs. the shippers cost per mile. You are degrading the marketplace by doing so, even those that work at McDonald's can not go below minimum wage.
Why are you guys running your equipment for free or lower than what the shipper can do it for themselves?