MTO Fees

B

buzzy

Member
Nov 23, 2009
140
5
18
Cambridge, ON
2
My local fleet registration is rising $20,000 from the rate in 2012 if they are completed before December 1. Add another $18000 after December 1. No vehicle additions. And people wonder why we bitch about needing rates to increase.
 
That is substantially higher than my 10% increase for my Jeep...

The difference between the MTO increasing prices and you and I increasing our prices to our customers is simple: they have a monopoly.

Unfortunately we have no choice, even though I have moved closer to work (and subsequently some family is closer to me now) resulting in my driving an expected 17% less KM's in a year I've still got to pay the 10% increase. Kinda sucks.

Looks like you need $2 per day (per truck) for 38000 Kg and $3 per day (per truck) for 65000 Kg. assuming they are on the road 2/3rds of the year. I think you could push this through without your customers dropping you. I wouldn't.

Keep well,

Mike
 
That and the IRP fees, Fuel, insurance, wages... rates got to go up or there will only be 3 carriers left in Canada, and Mikky dees is going to have an influx of employees.
 
Buzzy, the license fees give you sticker shock, but you can plan for it at about 15 bucks a day. And we knew it was coming. Its the insidious ones that get you. NYHUT is 4.6 cents a mile, New mexico is a ton-mile thing so I have no idea what it costs. Oregon and their little money making scheme. 15.00 for parking at some places, a 300.00 tire costing 600.00 on the road somewhere. Ambassador bridge double billing. It goes on and on. A truck goes out for a week and turns in his ppwk, and there is always some sneakly little charge dipping into your wallet and unless you pay someone to fine tooth comb it (which also costs $$), you pay fees for nothing.
Oh, and lets not forget your truck payment doesn't stop because that fancy new truck is in the shop 20% of the time. What IS the rate per mile you make when its in the shop?
You try and nail your expenses when you work a rate for a customer, but you can guarantee they are always at least 5 percent higher when its done than what you planned.
Our business sucks money, and a lot of good brokers realize it. Unfortunately, even some of the ones that should KNOW the costs (CH ROBINSON???) still lowball you.
Keep yer chin up. When there are only 3 carriers left, they will still need a good manager, or at least someone to go fetch MickeyD's at lunchtime. :)
 
We've been saying that for a long time. We small time O/O don't get Subsidy after subsidy like the big companies do. we cannot auto-insure so we've been paying for every catastrophic event that has been handed out over the past years. Then there is the cost of fuel and, by God, please don't let us have a major repair that we can't handle on our own. Not only will we pay the garage to get it fixed, you can be sure we'll have to have the job re-done a second time on the road.
Then there are the Bridges who want more money the Tolls also want more (I think that if i hear one more load broker say ''What Toll'' I'm going to ram the toll booth either up something or down something.)
Then to top this all off, the load that you have been hauling for months, well the broker says that you'll have to do it for $700 less or you'll loose it. So ... we lost it. Why are our out bounds being considered as back hauls all of a sudden... Things are getting crazy out there.
 
My personal favourite is the government pushing pollution control on trucks. The added cost to carriers is so large, I don't even know how to calculate it. All the unpaid down time...mechanics that don't even know what the exact problem is or how to go about fixing it. And don't forget that I am positive you get less mile per gallon with the EGR valve than without. I'm all for saving the environment, but it's no wonder people are remanning old pre-egr engines instead of buying new. I don't think brokers/customers would be very happy if we said "I need more money in the rate to make up for the $10 000 we just spent on a mystery pollution control problem that nobody knew how to fix".
Oh, sorry for the rant! ;)
 
I believe you may be correct chica123. We also have a new truck with egr valve and we are doing much less than what the sales person told us we would. just an extra hassle and more money per mile to roll
 
It's simple math an Ole Boy told me back in the 70's if your going to make money trucking what ever FUEL COST PER GALLON that's your RATE PER MILE. It's large carriers and large brokers screwing everything up.
 
chica123 said:
My personal favourite is the government pushing pollution control on trucks. The added cost to carriers is so large, I don't even know how to calculate it. All the unpaid down time...mechanics that don't even know what the exact problem is or how to go about fixing it. And don't forget that I am positive you get less mile per gallon with the EGR valve than without. I'm all for saving the environment, but it's no wonder people are remanning old pre-egr engines instead of buying new. I don't think brokers/customers would be very happy if we said "I need more money in the rate to make up for the $10 000 we just spent on a mystery pollution control problem that nobody knew how to fix".
Oh, sorry for the rant! ;)
Click to expand...
- We have had to Volvo trucks just recently that had EGR problems. OMG $7,000 - $10,000 to repair? INSANE! And I agree the Gouv't pushing all these new emissions and new engine regulations to save our planet (agreed its important) but with extra operating costs that we cant retrieve from our clients is a blow to our industry! OH wait, then there are the operators/carriers that get away with illegal operations so they can always undercut us......I voiced it to Mr. Murray, our Minister of Transport - will it get corrected-NO!
 
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