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I would be interested in knowing what others think it costs per mile to operate a truck and how they arrive at that number.
Cost per mile ...
- Thread starter Michael Ludwig
- Start date
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The 3 easy ones are fuel at .70, driver at .60 (inc WSIB etc), mtce at about .18
(.13 tractor .05 trl depending on ratio). That puts you at 1.48 with only 3 variable expenses and no fixed. I would like to know how the two who voted for "less than 1.50" arrived at their amount!!!
I break fixed out at 9000 mi/mo. Thats a 2300/wk average. To get more average miles than that across the fleet you'd better not have a driver get sick, a truck break down, run a log book, etc, etc.
(.13 tractor .05 trl depending on ratio). That puts you at 1.48 with only 3 variable expenses and no fixed. I would like to know how the two who voted for "less than 1.50" arrived at their amount!!!
I break fixed out at 9000 mi/mo. Thats a 2300/wk average. To get more average miles than that across the fleet you'd better not have a driver get sick, a truck break down, run a log book, etc, etc.
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Clarifications ....
I know what my costs are and how to calculate them properly, so I am not looking for advice. I am interested in finding out what others know, calculate, or believe what the costs are to operate a man, tractor, and trailer. Assume the following ... 2,500 miles per week, bunk tractor, and dry van trailer. Use your own fuel mileage calculations, or what you think fuel mileage is.
Loaders; Yes, assume a dry van.
faey06; Is there a difference? If so, why?
bull958; ... and horsesh*t is horsesh*t. What's your point?
Doncan; I like honesty
I know what my costs are and how to calculate them properly, so I am not looking for advice. I am interested in finding out what others know, calculate, or believe what the costs are to operate a man, tractor, and trailer. Assume the following ... 2,500 miles per week, bunk tractor, and dry van trailer. Use your own fuel mileage calculations, or what you think fuel mileage is.
Loaders; Yes, assume a dry van.
faey06; Is there a difference? If so, why?
bull958; ... and horsesh*t is horsesh*t. What's your point?
Doncan; I like honesty
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What I mean't was your cost per mile doesn't change whether you are "Outbound", "Inbound" or "Deadhead". For some reason some people think there is a difference, the only difference I can see would be a slight difference in fuel mileage when you are repositioning empty.
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The 1.50 thats funny and if at all true would love to have your costs, The 2.50 wow you sure run some fancy equipment and pay well.
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Kind of a loaded question ... I don't think that every lane costs the same to run. The variable cost sounds pretty much on the money assuming you're not running an area with road tolls -- you have to add that in when that is the case.
Administrative cost (ie cost of dispatch and administration) is lower per mile on longer trips than it is on shorter runs. There's also the cost of the communication between truck and dispatch (whether it be satelite and/or something else).
Another thing to consider -- if you don't want a revolving door with the drivers, depending where you are running, you may have to top up their pay for mile if the trips they do don't allow them to run at full efficiency.
Also on longer trips, it costs less to use owner-operators, but you have less control over them -- ie making sure the equipment follows a company line, hard to force dispatch on O-O's without the revolving door, etc.
Sorry for the rant ... but it's not a 'one size fits all' question.
Administrative cost (ie cost of dispatch and administration) is lower per mile on longer trips than it is on shorter runs. There's also the cost of the communication between truck and dispatch (whether it be satelite and/or something else).
Another thing to consider -- if you don't want a revolving door with the drivers, depending where you are running, you may have to top up their pay for mile if the trips they do don't allow them to run at full efficiency.
Also on longer trips, it costs less to use owner-operators, but you have less control over them -- ie making sure the equipment follows a company line, hard to force dispatch on O-O's without the revolving door, etc.
Sorry for the rant ... but it's not a 'one size fits all' question.
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Exactly, theman! If you have a low number, then jolly well good for you. If you have a higher number, then....hopefully you're still turning a profit. Perhaps the next poll should be "what is your profit margin".
I can't help but think this whole question will turn into a broker bashing exercise somehow. You know...."no wonder those broker rates are so low, they don't know what it costs to run a truck". As a broker, I don't care or know what it costs to run a truck nor should I. My job is to get rates from quality, dependable carriers who hopefully have a handle on their own costs, and then sell that service to my customers.
I can't help but think this whole question will turn into a broker bashing exercise somehow. You know...."no wonder those broker rates are so low, they don't know what it costs to run a truck". As a broker, I don't care or know what it costs to run a truck nor should I. My job is to get rates from quality, dependable carriers who hopefully have a handle on their own costs, and then sell that service to my customers.
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I agree with "The Man" fully. Try costing New York City at 2.10 per mile.
For all the load brokers out there, keep in mind too people are talking COST. Not Rate.
Nobody has mentioned fixed costs (curious to see my insurance renewal this week), overhead, PROFIT (is that a dirty word), interest on the credit line for people that pay in 65 days...
I figure fixed costs at 300.00 per day, whether the truck runs one mile or 650 in that day
For all the load brokers out there, keep in mind too people are talking COST. Not Rate.
Nobody has mentioned fixed costs (curious to see my insurance renewal this week), overhead, PROFIT (is that a dirty word), interest on the credit line for people that pay in 65 days...
I figure fixed costs at 300.00 per day, whether the truck runs one mile or 650 in that day
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On that point you couldn't be more wrong. Load brokers can only sell by the information they have. The most dangerous competition that a carrier has is another carrier that operates without a clue.
From a carrier perspective, we need load brokers. Any carrier that tells you they don't, is either a private carrier or a liar. Every one of us uses load brokers.
Personally, I am an advocat of load brokers. Always have been.
Freight Rate Index
This could be a perfect thread to ask a question about how relevant the Freight Rate Index website is in your daily quotes? I check it every Monday morning before taking or making calls, and I believe it closely reflects an actual Cost Per Mile in US in Canada for a OTR carrier with a decent reputation in the industry.
For people not familiar with this website here is a link:
Freight Rate Index
This could be a perfect thread to ask a question about how relevant the Freight Rate Index website is in your daily quotes? I check it every Monday morning before taking or making calls, and I believe it closely reflects an actual Cost Per Mile in US in Canada for a OTR carrier with a decent reputation in the industry.
For people not familiar with this website here is a link:
Freight Rate Index
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No pun intended but as a broker this is kind of useless as every lane is different.
Take NJ-ON or MA-QC, not at all the same.
I get that it shows what the cost might actually be, but I doubt a truck cost $2.88/mile to run.
Unless I am not understanding 100% how to use it to my advantage.
I'll keep it as a favorite either way.
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Freight Index - wow not one of those numbers are even close I wish everyone would go by that chart I'd be retired a lot sooner than planned.