Paying City O/O
- Thread starter chauhan12
- Start date
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Igor Galanter
Well-Known Member
20
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Would you send out one of your trucks for 38 bucks an hour? This is going to sound rude but if you would please get out of the business so the rest of us can make money.
I can remember years back (I'm old like dirt) having 3 trailers, 1 power unit and 2 drivers (day and afternoon shift) on at a Tier 1 automotive supplier to shunt from one plant to another and we were only billing $38/hr. We lost it because someone came in at $35/hr .....
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As an O/O doing local at Barry Moore and at Clarke Road back in the early 90's we were getting $38.00 BUT they paid for plates, Ins, etc. We only had to provide a driver, truck and fuel.
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Years ago we bid on a local store delivery for Loblaws it was only maybe 30 miles total and we really wanted to see if we wanted to possibly do more runs so we really went after it knowing that we would not make money on this run. We got down to $37 per store and did not get the run, thank God, when we asked a VP how they got people to do it he said VOLUME what an ass. Volume so you loose more money? So long story short not sure how you would make money at $38 per hour.
Igor Galanter
Well-Known Member
20
I will give you a hint.
Take a look, how much carriers pay to their leased O/O for a wait time. ( Truck news, etc...)
And go from that amount only UP!
GTA is very cheap in Power only work, going rate is btw $35- $40 per hour but there are good old companies who know the worth of truck is paying $45 per hour. For me with all expenses on the truck owner, should be $45 per hour.
QC per hour is $70.
BC-AB per hour rate is $50-$55
QC per hour is $70.
BC-AB per hour rate is $50-$55
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Seriously? And yet dump trucks are commanding $60 - $75/hour - and getting it! WHY is it that transport drivers should get anything less?
It has always been a topic of mine through the years, how can a truck and an operator with all the expenses only be worth $40.00 per hr.? If it was my day cab I would not work for under $50.00 per hour, if I couldn't get it I would knock on shippers doors directly to see if they require a full time local truck until I found one.
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Given that driver wages alone in the GTA are $20.00/hr plus now it is hard to justify paying an o/o with a truck just $12.00 bucks an hour more. I remember paying o/o in Toronto $30.00/hr 25 years ago, and even then it was a hard sell.. $60.00 an hour is more reasonable, but as with everything else its the market that determines the rate.
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A driver, truck, fuel, insurance, etc., etc. should command a minimum of $500 - $600 for an 8 hour day, local work. Anything less and maintenance will suffer, to say nothing of the pitiful hourly rate the driver is getting.
Hi Rob I never said anywhere in my post that I will be paying $ 38 to the truck this was a question since many companies are offering that if you look at some of the ads running and which to me looked on very low side that's why I posted the question. I would probably offer some where in the range of $ 42 but will pay for Insurance under my fleet. No offense taken. And my question is legit looking at today's market as to how companies are low balling drivers and owner operators.
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My city shunters a few years ago were flat rated for the day, $525 a day. If they went to the extreme west (Tillsonburg/Stratford etc) we would pay them an extra $50 a turn. These were for 17 hour shunts but for the most part they did small local jobs and ended up sitting probably 50+% of the time with nothing to do. When they were busy though, they were busy and it all worked out in the wash. So much so, had guys wanting to put on more trucks for the shunting gig.
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Note to all ... Read all of this before you comment.
My original answer was this ...
"Doesn't sound rude at all brother. I happen to agree with you, and I suspect most others do as well. And, the more I thought about the OP, the more it pissed me off ...
@chauhan12 either $38.00 or $42.00 an hour is an insult. If you're going to offer that to an O/O, I would certainly hope you're going to kick him in the nuts and shag his old lady too just to make the humiliation complete.
What companies are low balling drivers and owner-operators? The ones you find in this forum under the headings "Report a Non Paying Freight Broker" and "Double Broker List" ??? That statement doesn't even make sense when related to an industry that doesn't have enough of either drivers or owner-operators. I will concede that you could very well be talking to, or about, a very small segment of the industry that is neither qualified, nor safe enough, to be on the road. A segment that is, shall we say, less than honourable.
I would disagree that your question is legit. Your question is bullshit. You know it, and everyone else here knows it. It smacks of arrogant condescension, and if that is not a correct observation, then the alternative is ignorance and stupidity. To ponder that your question could actually be legit, raises a number of questions as to what you would actually do to get money. What immediately comes to mind is the seedier things in life. You know, things like selling drugs near school yards, pimping out 14 year olds, things of that nature. Please, tell me I am wrong."
But then I reread the entire thread, decided to give the OP the benefit of the doubt, and take a higher road ...
$38.00 an hour is quite low. That would be a rate reminiscent of 25 or 30 years ago. There maybe those O/O's out there that would accept that, the desperate ones, but do you think it really fair to ask them to do so? The reality is that it takes about $900.00 per shift to operate a truck and driver, with its own accreditation, in a local environment. Frankly, if you have a customer asking you to supply at that rate level, you would do well to seriously consider their motives, as they would probably spell disaster for you in the end. Keep in mind "If it sounds too good (or incredulous) to be true, it probably is". Personally, I would be quite circumspect of such deals. If you were offering say $65.00 to $75.00 an hour and paying for 24 hours/day, regardless of movement, then you might be in the wheelhouse. However, if the deal is strictly $38.00 per hour worked, i would be wary. Caveat Emptor.
Strictly my humble two cents worth.
Agreed Micheal
Mine was just a question from what I read in the local postings not in this forum. I'm not low balling any O/O since I was one of them at one time so I do know expenses that come with the truck weather you drive it your self or put driver on it. I was paying my drivers 0.60 mile for OTR. They worked hard and kept our trucks clean with on time picks and drops. None of my drivers complained. But know days new companies are low bidding most of the freight and how are they going to afford paying drivers or O/O decent money when companies them self are hand to mouth. No wonder most of the new outfits close there doors or file for bankruptcy in a year of starting the business. This was the point of my question. 38 bucks and hour is reasonable if company pays for everything e:g plates, insurance and trucks run under there authorities.
Mine was just a question from what I read in the local postings not in this forum. I'm not low balling any O/O since I was one of them at one time so I do know expenses that come with the truck weather you drive it your self or put driver on it. I was paying my drivers 0.60 mile for OTR. They worked hard and kept our trucks clean with on time picks and drops. None of my drivers complained. But know days new companies are low bidding most of the freight and how are they going to afford paying drivers or O/O decent money when companies them self are hand to mouth. No wonder most of the new outfits close there doors or file for bankruptcy in a year of starting the business. This was the point of my question. 38 bucks and hour is reasonable if company pays for everything e:g plates, insurance and trucks run under there authorities.
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$38.00 an hour is not reasonable at anytime. Plates and insurance only cost about $40.00 a day. The rest is fuel, labour, equipment, maintenance, and back office cost. You just can't keep good, safe road-able equipment, and pay drivers a fair wage at that rate.
And, you're right ... companies that work for rates like that do close their doors rather quickly ... usually leaving a hefty trail of unpaid debts in their wake.
And, you're right ... companies that work for rates like that do close their doors rather quickly ... usually leaving a hefty trail of unpaid debts in their wake.