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Thread: Trucking's Operational Costs Continue to Rise

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    Trucking's Operational Costs Continue to Rise

    Expediter 2003-2013. Straight truck. The husband half of a husband/wife team.

  2. YOU decide your loads, your schedule, your home time with Landstar
    Landstar Express America
    As a "Business Capacity Owner" or BCO with Landstar, you control your business the way YOU want. You select the freight. You set your schedule. You decide on home time. At Landstar, owner/operators are compensated based on a fixed percentage of the revenue generated from the freight they haul. As rates increase, so does your compensation. Landstar is hiring Owner/Operators... Apply now!
     

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    Senior Member Humble2drive's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    Did you order the full report?


    Looks like this is for Carriers.

    " Fuel and driver wages (excluding benefits) continued to be the largest cost centers for carriers, together constituting 62 percent of the average operating cost in 2011."

    Is this relevant to Independent Contractors who do not pay drivers wages and who receive FSC from their carrier?

    Just asking before ordering the full report and subjecting my inbox to more spam.


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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by Humble2drive View Post
    Did you order the full report?
    Yes, I ordered the full report.
    Expediter 2003-2013. Straight truck. The husband half of a husband/wife team.

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    Moderator Dynamite 1's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    as an o/o, you dont consider what you pay yourself as an operational cost of your business ?
    T N T
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    18K Member OntarioVanMan's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    you have to pay for a report to tell you this?.....just look around...everything is going up....BUT is your pay in proportion?....are you having to run more just to compensate?
    Drive less...Make more...$$$...

    It's not how much you run,
    It's how much you run for... $$$

    I never considered a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend.
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    Senior Member highway star's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    Is this news? Or...

    Costs have been rising for decades and I suspect that will continue.
    OntarioVanMan likes this.


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    Senior Member skyraider's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    The average marginal cost per mile for 2011 was $1.71, the highest of the four years studied. After a sharp decline in fuel prices resulted in decreased industry costs between 2008 and 2009, industry costs have risen steadily through 2010 and 2011. Fuel and driver wages (excluding benefits) continued to be the largest cost centers for carriers, together constituting 62 percent of the average operating cost in 2011.

    ------------------------------------------------------------------------------------------------------------------




    Big rigs are expensive when you start running east to west and back on a regular basis.......wow
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by highway star View Post
    Is this news? Or...

    Costs have been rising for decades and I suspect that will continue.
    Yes....we all know that however based on the current rates of some carriers, they are pretending those increases don't exit.

    I will say, even taking wages and fuel costs out of it, regulations, higher truck prices and maintenance costs are steadily climbing.
    fleet owner
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    Panther & Load One


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    Senior Member Humble2drive's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by Dynamite 1 View Post
    as an o/o, you dont consider what you pay yourself as an operational cost of your business ?



    Of course; however, that cost is different from a Carrier who must pay their drivers a promised wage and benefits and also make their profit goal and pay themselves.
    I just pay me, myself and I and since I am non union I have had good success negotiating favorable pay rates during tough times.
    Also, as an o/o I am in a better position to control certain operating costs like maintenance and repairs by hiring myself at slave labor rates.
    purgoose10 likes this.


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  20. #10
    Senior Member highway star's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by davekc View Post

    I will say, even taking wages and fuel costs out of it, regulations, higher truck prices and maintenance costs are steadily climbing.
    Yup... Instead of a muffler worth $150, we now have a "system" that's something like $15,000 or some such a crazy figure.

    We need some hope and change!! I really hope that will change, but...


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  22. #11
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by Humble2drive View Post
    Of course; however, that cost is different from a Carrier who must pay their drivers a promised wage and benefits and also make their profit goal and pay themselves.
    I just pay me, myself and I and since I am non union I have had good success negotiating favorable pay rates during tough times.
    Also, as an o/o I am in a better position to control certain operating costs like maintenance and repairs by hiring myself at slave labor rates.
    no, its not any different. you pay yourself a set wage per week. if you are smart, your business pays for your health ins. also, your business has to make a profit. granted, you can control some maint. cost by doing work yourself but your business pretty much operates the same only on a smaller scale.
    T N T
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    Trk. #3060, #3160, #3180, #3185


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  24. #12
    Senior Member Humble2drive's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by Dynamite 1 View Post
    no, its not any different. you pay yourself a set wage per week. if you are smart, your business pays for your health ins. also, your business has to make a profit. granted, you can control some maint. cost by doing work yourself but your business pretty much operates the same only on a smaller scale.
    By using statements like "no, it's not" and "if you are smart" it appears that you believe that you have it all figured out. All of what you stated are business 101 options but not rules and different business owners have different goals.
    I do not need to pay myself a "set" wage, and I don't care to show a profit.
    Carriers don't often have those options. Especially if they are union, they are competing to attract more seasoned drivers or if they need to please stock holders.
    Why don't you just order the report instead of looking to school someone on your way of doing business?


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  26. #13
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by Humble2drive View Post
    Also, as an o/o I am in a better position to control certain operating costs like maintenance and repairs by hiring myself at slave labor rates.
    Driving out of New York City today, Diane and I saw a Werner big rig company truck stranded on the right shoulder of I-95, and pulled up as close to the tall brick wall as one could get it. There was no more than an inch between the left side of the truck and the right hand traffic lane.

    Soon, a police officer would be along and he or she would likely order a tow truck to have that big rig removed.

    It costs thousands of dollars when such a tow truck comes and drivers are not given a choice or time to find a better deal. Because the team in the truck were company drivers, their pay will not be affected. Had they been owner-operators, a good portion of the year's profits would be towed away with the truck.

    When margins are getting tighter, the company driving option becomes more attractive.
    Expediter 2003-2013. Straight truck. The husband half of a husband/wife team.

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  28. #14
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    Re: Trucking's Operational Costs Continue to Rise

    wasnt trying to school anyone on my way of doing business. i have never claimed to have it all figured out. spent the last 12 yrs. learning and will spend the next 10 doing the same. just making a simple observation on the way business in general is run and pointing out that the differences arent that far apart. i was simply making my statements on the fact you said you paid yourself. hence, leading me to think you paid yourself a set wage. my mistake, no harm intended.
    T N T
    Finally, home again
    Load One
    Trk. #3060, #3160, #3180, #3185


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  30. #15
    Senior Moderator davekc's Avatar
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    Re: Trucking's Operational Costs Continue to Rise

    Quote Originally Posted by ATeam View Post
    Driving out of New York City today, Diane and I saw a Werner big rig company truck stranded on the right shoulder of I-95, and pulled up as close to the tall brick wall as one could get it. There was no more than an inch between the left side of the truck and the right hand traffic lane.

    Soon, a police officer would be along and he or she would likely order a tow truck to have that big rig removed.

    It costs thousands of dollars when such a tow truck comes and drivers are not given a choice or time to find a better deal. Because the team in the truck were company drivers, their pay will not be affected. Had they been owner-operators, a good portion of the year's profits would be towed away with the truck.

    When margins are getting tighter, the company driving option becomes more attractive.
    I would tend agree. Even more so when looking at our fleet. The majority are all former truck owners. The upside is they have a very good working knowledge of what the operating costs are.
    Makes my job so much easier.
    fleet owner
    29 years
    Panther & Load One


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