Load One
- Thread starter JENNANDDUSTY
- Start date
Question I have is...is it unheard of to get the 60/40 split at Load One? After much research (and our own figures from driving) this is what we want to do. But it seems that everyone wants to do 50/50.
The fuel is split Dave. But running our number against this, we come up between $250 & 567 a week short instead of our 60% not to mention, this fleet owner asks us to pay half of his expenses as well.
Also, we really like the FSC at L1. We averaged around .44 there before.
Tennesseahawk
Veteran Expediter
My experience, and I'm sure there are others too, is that the owners do not want to give up that big, fat fuel surcharge. It equals 30% of the truck's take, which is WAY above industry standards. How do they make up for that, you ask? Only one other place... linehaul.
Now I'm not knocking Load One for their system. I'm knocking owners for taking advantage of the drivers, who end up with 40%, and ultimately, less than other drivers who take the same percentage with other companies. 40% w Panther is .45/mi. Under a 40/60, a driver at Load One makes around .42. Even at my old company, where I was making 35% of linehaul and FSC combined, I was getting .48. How did I come up with .42 for Load One? I estimated that the average run was 1.50, 70% of which is 1.05 - linehaul. 40% of that is .42. Now sometimes it'll be a bit more, and sometimes less, because of the rate being percentage.
As a team, I would say Load One is among the best, as far as weekly take home. The short time I teamed there last year, we got some great income. The owner of that truck, who also drove, asked for 1.50 ALL MILES, and I think we didn't get it once. Now Load One doesn't usually have a lot of dh miles to begin with, but it helped when there were.
Now, looking at the 50/50 scenario, let's figure out some numbers. First off, is that 50/50 of the entire tariff? If so, that's garbage. 50/50 of the linehaul is 52.5, using my numbers above. That, added to the FSC, which is .45, comes to 97.5/mi. If I were you, I'd ask to be paid a flat mileage, plus FSC. 60% of 1.05 is .63... a far cry from the 52.5 they're asking you to take. IMO, you should negotiate a nice .60/mi linehaul, and ALL of the FSC. The thing is, they'll let you take 40% no problem. But when the shoe is on the other foot... And here's the kicker... TELL THEM THE FSC IS TO HELP PAY FOR FUEL, and not to be used as part of the linehaul, where the owner gets his cut. Don't let them combine the two entities; and that's exactly what they're doing with the 50/50. Also keep dh separate, unless you negotiate for all miles.
Tennesseahawk
Veteran Expediter
Don't ever count on the FSC staying the same. That's why a flat mileage, negotiated w the owner, is in the best interest in this case.
I like the way I do it better so no one is upside down. Because of how they pay, I do a 60/40 but benchmark the line haul. A fleet owner could set that at 1.20 to 1.30 which would be a industry average line haul rate. If a load pays great, everyone wins. But from a fleet owner prospective, if a team or driver accepts a load with a .50 FSC, and the line haul is 1.00, that is a problem. From my prospective, I have no interest in running a 150k truck at .40 cents a mile, and pretty much zero (some exceptions) for DH. Any steady diet at that rate and I will show you a sinking ship. Can't run that kind of truck on a van rate.
I think with the 50/50 they are taking advantage of the rate structure but a true 60/40 plan would only work under the right balance. Also, with this 50/50 thing, I have no idea how the idea that the driver splits truck expenses. Amazing.
I am paying way too much. lol
There's my penny in the pond.
I think with the 50/50 they are taking advantage of the rate structure but a true 60/40 plan would only work under the right balance. Also, with this 50/50 thing, I have no idea how the idea that the driver splits truck expenses. Amazing.
I am paying way too much. lol
There's my penny in the pond.
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Absolutely agree with you both. Thanks for the input. We'll keep looking until we find a good balance.
Tennesseahawk
Veteran Expediter
I like the way I do it better so no one is upside down. Because of how they pay, I do a 60/40 but benchmark the line haul. A fleet owner could set that at 1.20 to 1.30 which would be a industry average line haul rate. If a load pays great, everyone wins. But from a fleet owner prospective, if a team or driver accepts a load with a .50 FSC, and the line haul is 1.00, that is a problem. From my prospective, I have no interest in running a 150k truck at .40 cents a mile, and pretty much zero (some exceptions) for DH. Any steady diet at that rate and I will show you a sinking ship. Can't run that kind of truck on a van rate.
I think with the 50/50 they are taking advantage of the rate structure but a true 60/40 plan would only work under the right balance. Also, with this 50/50 thing, I have no idea how the idea that the driver splits truck expenses. Amazing.
I am paying way too much. lol
There's my penny in the pond.
40% of 1.20 is .48. Ahh... my mistake in my calculations above. Panther isn't .45, but .48. That means my other carrier I mentioned was .50. Makes that .42 look rather anemic. With the .60 I recommended they barter for, that leaves .45 for the owner. Not unfair, IMO. The miles will more than make up for it.
Panther is generally I believe 1.30. So that would be .52 at .40 percent. My lowest linehaul rate there is 1.35. so it would be .54 respectively. A DOD truck would be 1.43 for all loaded miles without the FSC. That would be for any load. So that would be .57 for a DOD truck at .40 percent.
Looks to be about a 6 to 9 cent difference that the fleet owner would make. As it sits right now, I do make more money off the Panther trucks just because the total rate is higher. Same with the drivers. They also are making DH and relocation money as well. Hard to gauge that on L1 because it is sporadic and not generally paid on a typical load. Bonus money is hard to gauge as we get quite a bit from Panther and is lined out separately. Load One is really hard to tell on this unless they list it separately.
I do get your point. I think that is why ES and a few others pays .35 percent and the fuel. The driver in that case would get .47 if the rate was 1.35.
Looks to be about a 6 to 9 cent difference that the fleet owner would make. As it sits right now, I do make more money off the Panther trucks just because the total rate is higher. Same with the drivers. They also are making DH and relocation money as well. Hard to gauge that on L1 because it is sporadic and not generally paid on a typical load. Bonus money is hard to gauge as we get quite a bit from Panther and is lined out separately. Load One is really hard to tell on this unless they list it separately.
I do get your point. I think that is why ES and a few others pays .35 percent and the fuel. The driver in that case would get .47 if the rate was 1.35.
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Tennesseahawk
Veteran Expediter
Someone mentioned on another trucking site - not expedite - that their company gives you the choice of flat or percentage. Percentage, he says, benefits the truck in good economies, flat in bad. He switches accordingly. Everything I've seen, over the years, makes me agree with him.
Well in fairness comparing DOD units isn't really apples to apples. You would have to compare surface fleet. The other thing is comparing one unit doesn't always give the se numbers as a bunch over there averaged out. IMHO.
Very true on the DOD. That is really for my own comparison. I use the 1.35 (surface fleet) non lift gate because I see that over numerous trucks where with Load One I don't have that same comparison to work with.
Outside of that, I take an all miles review and compare that. That counts all parts of revenue/costs against the total miles the truck ran.
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We are one of those fleet owners who take advantage of our drivers and only pay them 40%. I dont know about others but our drivers are happy and they are making more then .42 a mile. we pay a little more than others. We have a different layover plan and the drivers benefit from that. As far as benefiting from the FSC, thats a bunch of bs. When it all works out, the fuel bill washes even. With all the expenses of running the truck the 60% pays for those and puts money in the bank to keep the business healthy and profitable. Being a fleet owner is no different than any other business. It has to make money or there will be no business. I just cant understand why that is not understood. It is always that someone is being taken. I do agree that some are taken advantage of, but that is not the owners fault, it is the fault of the one who let it happen. all they have to do is say no. Then, you wont have owners who are doing this. On most any normal split, the drivers are doing ok provided they know how to run their own business. Not mine, but theirs. Cause what they are doing is a business also. Drivers can make good money on either standard split if they do what they should. The only difference is who is gonna pay for what. It all works out in the end. The real thing is to treat your drivers well, fix your trucks when they break, pay them on time and correctly and have a respect for what they do for you. Lastly, Have a mutual understanding of needs and each party striving to meet those needs.
Tennesseahawk
Veteran Expediter
Oh, I understand it perfectly. I also know math. So you're saying the 20% and FSC together pays for fuel, or just the FSC pays for it? If it's just the FSC, which I figured does completely pay for fuel, and if it hasn't changed from the format when I was there, there is a chunk of change extra, then I wonder why an owner would have to pay his/her drivers only .42. There's plenty there. If you're paying extra, then kudos to you. If drivers aren't questioning the math, then they're complacent, and don't want to rock the boat, as I did.
By stating there are some people who take advantage completely counters your comment of there is always someone being taken advantage of. In this case, there is.
"The real thing is to treat your drivers well, fix your trucks when they break, pay them on time and correctly and have a respect for what they do for you. Lastly, Have a mutual understanding of needs and each party striving to meet those needs."
First thing I ask, is 'how much do you pay?' Treating me well means pay me a comparable rate, above all else. .42 is below par any way I look at it. To me, it is comparable to the craigslist ads where the company pays that wage, BUT on a 1099, when the rest of the industry pays benefits. I'm guessing you don't do those. If your drivers are happy, which you blame in your post, and you can sleep at night, then good on you. To say you're not taking advantage of the FSC by not using some of it, as bloated as it is, to cover the difference between their 40%, and the industry standard 40%, is what I call bs. Owners are letting things be 'just as they are' because it is the almighty 40/60 split, IMO. Like I said before, IF the shoe were on the other foot, the mass of owners would gladly break apart the FSC 'to make things more fair.' In fact, w the 50/50 split being asked of the OP, that pretty much confirms it. Even .45 would've gone a long way towards bridging that gap, in my case. Each driver would have to make their own decision on that.
By stating there are some people who take advantage completely counters your comment of there is always someone being taken advantage of. In this case, there is.
"The real thing is to treat your drivers well, fix your trucks when they break, pay them on time and correctly and have a respect for what they do for you. Lastly, Have a mutual understanding of needs and each party striving to meet those needs."
First thing I ask, is 'how much do you pay?' Treating me well means pay me a comparable rate, above all else. .42 is below par any way I look at it. To me, it is comparable to the craigslist ads where the company pays that wage, BUT on a 1099, when the rest of the industry pays benefits. I'm guessing you don't do those. If your drivers are happy, which you blame in your post, and you can sleep at night, then good on you. To say you're not taking advantage of the FSC by not using some of it, as bloated as it is, to cover the difference between their 40%, and the industry standard 40%, is what I call bs. Owners are letting things be 'just as they are' because it is the almighty 40/60 split, IMO. Like I said before, IF the shoe were on the other foot, the mass of owners would gladly break apart the FSC 'to make things more fair.' In fact, w the 50/50 split being asked of the OP, that pretty much confirms it. Even .45 would've gone a long way towards bridging that gap, in my case. Each driver would have to make their own decision on that.
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Tennesseahawk
Veteran Expediter
Oh, Dynamite, one reason the drivers might not ask for a higher rate, is because they are going by the good ol' 40/60 split, and not know about the killer FSC when they sign on with the owner. Do you think not disclosing that little fact is or isn't lying by omission, and thus taking advantage?
No, the fsc does not pay the fuel bill in full with some left over. Some loads are good and some are bad. We are 0 to 100 bucks per week per truck that we take out of our % to pay for fuel on top of the fsc. The most we ever made off of fsc was 87 bucks one week. Yes, we sleep very well each night and we are not taking advantage. All of our drivers are very experienced and intelligent and know their math. 2 of them dont want any part of paying for fuel and 1 would do either. The drivers are averaging .46 to .48 per mile plus they get 67% of all the layover pay. Dont know where you get the idea that all fleet owners make a mint on their trucks cause you dont. Do we make a profit, sure we do. Its a business !! You think the 60% we take is all profit and it would be if it wasnt for those pesky bills that have to be paid every month. Then when it is all profit it goes in the bank so in a year or so you can replace the truck and the cycle starts all over again. If you think its a win fall then go buy some trucks and and make a million. Jump on in "the water is warm"
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