Questions for fleet owners/drivers

osumike33 · Mar 15, 2011

I'll try this here as I didn't get any response in the newbie section - just looking for general info, thoughts, not so much specifics - I know those need to be worked out with the company, whichever one I choose.

I was in trucking nearly 20 years ago (cargo van with CTX plus several tractors with non-expeditors), am strongly considering getting back into it as a fleet owner to supplement my income (plus, I like it and miss it). I am sure a lot of things have changed and just wanted to pick some brains on things like straight truck vs. cargo or sprinter vans or tractor; fair pay to offer drivers (% vs. mileage), and anything else that may come to your mind to suggest. I want to pay well to get and keep good drivers, but also need to come out ahead at the end of the year. Right now I would not drive, but it's a possibility in a couple of years. Thanks for any input/suggestions.

paullud · Mar 16, 2011

A 60/40 split with the driver getting 100% of FSC and paying for fuel is normal.

xiggi · Mar 16, 2011

A few people make it as fleet owners with vans or sprinters but the majority of successes are probably straight truck owners. Just hard to make enough profit to keep two parties happy with vans.

Wolfeman68 · Mar 16, 2011

paullud said:
A 60/40 split with the driver getting 100% of FSC and paying for fuel is normal.

You will have trouble keeping drivers using a 60/40 split. The FSC rarely covers the fuel costs, especially with the cost of fuel now, and any deadhead miles will come out of the drivers pocket since most carriers don't pay much for DH miles. 40/60 is pretty much the standard.

xiggi said:
A few people make it as fleet owners with vans or sprinters but the majority of successes are probably straight truck owners. Just hard to make enough profit to keep two parties happy with vans.

In cargo vans or sprinters, those making a profit drive it themselves. Those who own more than one with drivers in them can succeed, but it's very tight. Xiggi is right, straight trucks are the money makers. You will need to find the carrier right for you based on whether or not you want solo or team drivers. Right now, the emphasis is on teams, but there are a few solo oriented carriers left out there.

ecs_ocean · Mar 16, 2011

I posted something simiar in newbee forum. I want to pay per mile with a performance bonus that starts at 5k miles per month. Double loads = double miles and paid approved deadhead as well. Any thoughts from drivers or fleet operators on this will help. The van will be a sprinter with a sleeper

Wolfeman68 · Mar 16, 2011

ecs_ocean said:
I posted something simiar in newbee forum. I want to pay per mile with a performance bonus that starts at 5k miles per month. Double loads = double miles and paid approved deadhead as well. Any thoughts from drivers or fleet operators on this will help. The van will be a sprinter with a sleeper

I don't know of any fleet owners that pay drivers per mile. The standard is either a 40/60% split or 40% of the load revenue to the driver and 60% to the owner who pays the fuel and keeps 100% of the FSC, or a 60/40% split which is just the reverse. The reason being that rates per loaded mile fluctuate quite a bit.

A performance bonus is doable, but again, most fleet owners don't do it. If you're only running one sprinter with a driver your revenue minus expenses may not support a bonus. Not to mention that 5k loaded miles a month with a sprinter can sometimes be a tall order. As far as double loads go, nothing to count on. In 5 years I've had it happen twice.

DH miles are a dead loss. For example, most carriers pay $.10 mi after the first 100 miles for DH. If the truck goes 200 miles, your revenue is $10. Sprinter average mileage is say 19 mpg. Fuel cost would be $40.74. If you paid the driver that same $.10 per mi. for the full 200 miles, that's $20. So paying the driver your loss is $50.74, $30.74 if you don't.

If the sleeper you mention is a module like the Midway sleeper, recruiters will tell you not to do it. They want sprinters able to take 3 skids which is 12 feet of cargo space. The Midway will limit the cargo space to 9 feet or two skids. It will also reduce the weight you can haul.

Hope this info helps. It is based on my 5 years of experience running 3 sprinters. I don't recommend that you do it with only one sprinter as I've seen quite a few owners fail, but if you do, you need to be very diligent on what your fixed and variable costs per mile are.

Good luck with whatever you decide.

ecs_ocean · Mar 16, 2011

Wolfeman thank you for the input. I have some scenarios I have put together.. Would you mind looking at them to see if im on the right track

Wolfeman68 · Mar 16, 2011

ecs_ocean said:
Wolfeman thank you for the input. I have some scenarios I have put together.. Would you mind looking at them to see if im on the right track

Sure. Probably be best if you sent them in a PM.

davekc · Mar 16, 2011

Think your right on trying to double load a sprinter with a sleeper. Seems to be a very tall order. May be doable with the ones that have no sleeper and can haul four pallets.
Double dipping is much easier with a straight or tractor.

teamjdw · Mar 16, 2011

In expediting it's not about the miles,it's about the money! We could easily run 5000 miles,but if the loads are paying less(per mile) than what it costs to profitably run the truck,how long would the owner stay afloat? The drivers would make money,while owner slowly goes under.

osumike33 · Mar 16, 2011

Thanks for all of your help. I was thinking straight truck from the start but wanted some reinforcement. I'll save the sprinter or cargo van when/if I ever decide to drive again...talking to Panther tomorrow so curious to see what they say.

ecs_ocean · Mar 16, 2011

Good input on here- thanks!
By starting with 1 van I am simply looking to supplement my income, not make an exclusive living from it. I work full time and will continue to do so. I understand the importance of a reliable driver that will stay in service and want that person to have financial incentive to stay busy. It seems that a 60/40 split pays less than .40/mile on average if fleet owner keeps fsc. Correct me if I'm wrong. I want my driver to be able to make a good living if he stays in service and accepts loads

Regarding the van- I will go with a 05-06 sprinter 2500 140wb high top. I can build a lightweight sleeper, have room for 3 skids and be able to carry the 3k lbs that my carrier requires. A straight truck may be a future option, but I don't want to log and the start up and operating costs jump exponentially. Maybe once I am out of rookie status

I ran numbers based on $1/mile gross including fsc, $5/gal diesel and 20mpg. Paying my driver .40/mile with volume bonus nets the following:

2k miles: driver $800 me ($180) loss
4k miles: driver $1600 me $520
6k miles: driver $2700 me $920
8k miles: driver $3800 me $1320
10k miles: driver $4900 me $1720

Driver would be 1099 and my numbers are before taxes but after truck payment, insurance, fuel, maintenance at$200/mo, and qualcom. My carrier has agreed to pay tolls.

I know that the higher miles are a stretch but it looks like people are doing it, and with the right driver we can be at top tier.

Fleet owners and drivers what do you think?