layover what do you charge?
- Thread starter Paul S
- Start date
30
Look at your revenues acquired to run a truck per day. Take your year revenue, divide by your number of trucks and divide by the number of days that the truck is running in the year. There are 260 business days in a year, some fleets can get a bit more operating days than that so lets say 260-300.
If your revenue number is not between 800-1000 per day than you're kidding yourself; look real close at your numbers. On a 12 hour day it calculates to $66 - $83 per hour. Anything less than those numbers, you will need to make up your revenue on the back of some other freight - not fair for those customers who did everything right.
Folks, its not cheap to operate equipment and its getting more expensive day by day. If you are not billing those individuals who have the capacity to keep the equipment making revenue, than you're exasperating the problem for the rest of us. If the shipper/consignee cannot effectively communicate what day/time to show up and is not penalized in some manner the inaccurate data will continue to happen.
Its time to get real in our industry in regards to charging those individuals who create the problems. Waiting time, layovers, order cancellations at the last minute, improper paperwork, customs brokers not providing proper service, re-direction of freight should be charged accordingly and properly. At the very least it is a metric that can be calculated and reviewed to see what needs to be changed.
Remember, it is not meant to be a cost re-capture. Accessorial fees are supposed to be a revenue stream in lieu of lost revenue. We are not paid to relocate trucks, trailers and drivers to other locations to wait around; they are meant to move freight.
I start our discussions at $100/hr and try to settle around $75/hr, billable in 15min increments with a 24 hour maximum (layover) of $800.
If your revenue number is not between 800-1000 per day than you're kidding yourself; look real close at your numbers. On a 12 hour day it calculates to $66 - $83 per hour. Anything less than those numbers, you will need to make up your revenue on the back of some other freight - not fair for those customers who did everything right.
Folks, its not cheap to operate equipment and its getting more expensive day by day. If you are not billing those individuals who have the capacity to keep the equipment making revenue, than you're exasperating the problem for the rest of us. If the shipper/consignee cannot effectively communicate what day/time to show up and is not penalized in some manner the inaccurate data will continue to happen.
Its time to get real in our industry in regards to charging those individuals who create the problems. Waiting time, layovers, order cancellations at the last minute, improper paperwork, customs brokers not providing proper service, re-direction of freight should be charged accordingly and properly. At the very least it is a metric that can be calculated and reviewed to see what needs to be changed.
Remember, it is not meant to be a cost re-capture. Accessorial fees are supposed to be a revenue stream in lieu of lost revenue. We are not paid to relocate trucks, trailers and drivers to other locations to wait around; they are meant to move freight.
I start our discussions at $100/hr and try to settle around $75/hr, billable in 15min increments with a 24 hour maximum (layover) of $800.
30
I find that customers normally have a standard for waiting time and detention. It's normally around $60 per hour or so with a daily maximum of the layover charge, which is usually $250.
If it's an exception rather than the rule, we live with it.
If it's an exception rather than the rule, we live with it.
30
20
20
We never get what it costs us Michael because people don't want to pay for something that they personally would not accept. Monday to Friday 9 to 5ers have a very difficult time understanding how we put up with all the sh*t. FMSCA has been trying to turn the industry into a 9 to 5 Monday to Friday gig for several years now. Best example is the two sleep periods between 1 and 5 a.m. in the 36 hrs...