What Brokers/Shippers Should be Willing to Pay a Trucker Running His Own Authority and Why

Line Haul/Backhaul example

Here is an example of the actual expense of a Trucker that runs his own authority finding loads out “Linehaul” and finding loads back in “Backhaul” This example “fairly” assumes a one week “7 days” visit with the Truckers family since they don’t see him again for the whole month. It further fairly assumes that since he is in business and has the load, unit and business responsibility he should be paid twice what he is able to be paid as a company driver

General Argument: If on a good month a:

Company Driver can net 3,000 a month-Load responsibility

A Lease operator should net 4,500 a month-Unit responsibility

Running Authority should net 6,000 a month-Business responsibility

1 of 2 pages actual monthly expense Authority 23 days out linehaul/backhaul Dry Box

	12,484.33	http://therealdealtrucking.com				The Trucking Calculator
ENTER FIXED EXPENSE AMOUNTS AND WHAT FOR IN THIS SECTION
16.00	ATM fee also your bank charges			120.00	truck/trl wash 2 per month
15.00	Comdata fueling fee 1.50 after 1st use			8.50	SCAC
15.00	Truck Stop charge to cash Comdata check			125.00	phone
12.00	advance "com data fee"			1,500.00	TRUCK PAYMENT
12.00	Comdata charge to cash com check $ 4			650.00	CARGO INSUR
0.00	scale tickets			600.00	Trailer Payment
3.00	rescale			2.29	maps
35.00	bank overdraft charge 35			32.00	TVC driver legal
35.00	Over limit fee (credit card)			35.00	GL.COM
1.00	IFTA sticker 10 a year			25.00	ITS.COM
0.83	New Mexico w & d registration			3,673.61	FUEL $ month
55.00	credit fuel purchase $.04 per gal			961.31	FACTORING
10.00	shower tip			141.00	IRP $/12mo
40.00	dining tip about 2.00 x 5dys x 4			46.00	HHUT $/12mo
40.00	truck wash tip 4 washers 5.00 2/mo			85.00	IFTA $/12mo
10.00	truck repair tip approx 1 repair/mo			200.00	MAINTENANCE
6.00	assistance cell phone charge 1.50 per			200.00	REPAIRS
10.00	Canada calls extra charge			147.89	Advance broker fee
35.00	late fees misc. usually $35.00			200.00	TIRES 18 tire change in 18 mo's
20.00	Kentucky weight and distance tax			750.00	Visa Card fuel purchases/repairs
30.00	Oregon Wght/Dstnc tax 1 visit a yr			175.00	TOLLS
10.00	New York Highway use tax			40.00	printer ink
0.00				0.00	$9 ea. com data charge/load card
0.00				10.00	income tax preparation
2.50	Medical Exam about 60.00 ÷ 24mo			754.69	IDLING
30.00	fuel additives			5.00	mapping programs
5.00	widow washer fluid			2.50	fuel finder books
20.00	tools			15.00	fines/tickets/fees
5.00	load locks/straps/misc. supplies			10.00	hotel while repairs
10.00	stationary			8.50	random drug test about100.00 Annual renewal
10.00	flashlight batteries			0.00
493.33	0.00		0.00	10,523.30	0.00

http://therealdealtrucking.com

2 of 2 pages actual monthly expense Authority 23 days out linehaul/backhaul Dry Box

						0.029	Medicare	0
						0.124	Social Security	0
	this section deleted intentionally					0.153	6,002.45	918.38
							Total Taxes	0
							918
	Input Prcnt of Runs You Factor			Misc Variable Expense		Per Ttl Miles	Enter %	0
	0.80			pilot vehicle		8,951	0.00	0.00
	For Un-Factored Income			pay co on outside loads		8,951	0.00	0.00
	Enter 1 Below			etc.		8,951	0.00	0.00
	0					Total	0.00	0
	% of Advanced per mo			Misc Variable Expense		Amount of		0
	0.20					Enter # of times	Amount/day	0
	Unfactored income			trailer washouts		1	30.00	30.00
	is calculated with			scale tickets		4	8.50	34.00
	An Advance Fee			Total			38.50	0
	of 4%, If you don't take			Variable expns per Ld		Loads	Price	0
	Advances, Add it back in			Trippak/Express mail		15	16.00	245.33
				Load FuelCard		20	9.00	180.00
				Total			25.00	0
				Connection Card		more fixed expens→		60.00
						fixed expens→		0.00
						fixed expens→		0.00
						fixed expens→		0.00
						fixed expens→		0.00
	Hours Idling per month times 1.25 gal per hour					10.5	Hrs	0
	i.e. 7hrs x 25days out=175 X 1.25 X fuel rate=cost per mo					23	Days	0
						1.25	Gal. Per Hr	0
				adjust fuel rate in the setting		2.50	Fuel Rate	0
						754.69	Idling cost	0
				Refer Fuel per mo		Total Avg Hours	Gal Per Hour	0
				Refer Fuel		0	0.75	0.00
	0.00			0.00		0.00	0.00	1,468
						Total Monthly Expense		12,484.33
	The Trucking Calculator Part III Setting
THE TRUCKING CALCULATOR http://therealdealtrucking.com							Set Fuel Surcharge (Fixed)
Activate Lease $ all mi's		0			18,484		Leased On $ on All Miles
Total Expense		12,484.33			2,939		Fuel Surcharge Amount Ld mi
Expected Income		6,000.00			15,545		1.76
Ttl Expns + Exptd $ Goal		18,484.33			2,939		0.00
% of Income Factored		0.80			2,939
% Advanced		0.20			25,673		Leased On Paid Percent
Current Fuel Price		2.50			3.64		Booked Rate
Activate leased on by %		0			18,484
Your Avgerage MPG		6.00			2,939		Fuel Surcharge Amount Ld mi
Days Per Month on Road		23			15,545
1 days Run + Delays		1.50
.= # of Runs		15.33					3.04
Per Run Avg. Loaded mi's		460.00			2,939		0.00
Percent of loaded mi DH		0.20			2,939
Activate Base Rate+DH		0			18,484		DH Less than Base Rate
Per Run Avg. DH mi's		115.00			2,939		Fuel Surcharge Amount Ld mi
Per Run Avg. Total mi's		575.00			0		Amount Paid on DH
Loaded Miles		7,053.33			2,939		Fuel Surcharge Plus DH Pay
DH Miles			1,763.33		15,545		2.20
Miles Back		0.00			2,939		0.00
Total Miles		8,816.67			2,938.89
					3,056.96		Company Driver after taxes .45cpm
Activate Authority = 1		1			18,484		Line Haul/Backhaul
Deactivate Authority = 0		!!!					2.62
Linehaul/Backhaul Runs					18,487		2.62
					6,002.45		Line Haul/Backhaul Net
Activate Roundtrip = 1		0			18,484		2.62
Deactivate Roundtrip = 0					0		0.00
% mi back DH Rnd Trip		0.88			0.00		Round Trip

In this example it shows that if the Trucker running his own authority averages 2.62 per mile on all miles he will net an amount of $6,002.45 having run a total mile of 8,817. The trucker takes one week off to spend time with his family.

The example below shows the same Trucking operation being paid an average rate of 1.80 which even in an average market is more than the average trucker’s rate. This example illustrates the maximum average rate brokers are generally willing to pay to a trucker. This trucker only take about 3 day off a month to see his family

1 of 2 pages actual monthly expense Authority 27 days out linehaul/backhaul Dry Box

1.80 per mile average Fixed Expense

		12,527.42	http://therealdealtrucking.com			The Trucking Calculator
ENTER FIXED EXPENSE AMOUNTS AND WHAT FOR IN THIS SECTION
16.00	ATM fee also your bank charges				120.00	truck/trl wash 2 per month
15.00	Comdata fueling fee 1.50 after 1st use				8.50	SCAC
15.00	Truck Stop charge to cash Comdata check				125.00	phone
12.00	advance "com data fee"				1,500.00	TRUCK PAYMENT
12.00	Comdata charge to cash com check $ 4				650.00	CARGO INSUR
0.00	scale tickets				600.00	Trailer Payment
3.00	rescale				2.29	maps
35.00	bank overdraft charge 35				32.00	TVC drv legal
35.00	overlimit fee (credit card)				35.00	GL.COM
1.00	IFTA sticker 10 ayear				25.00	ITS.COM
0.83	New Mexico w & d registration				4,312.50	FUEL $ month
55.00	credit fuel purchase $.04 per gal				775.01	FACTORING
10.00	shower tip				141.00	IRP $/12mo
40.00	dining tip about 2.00 x 5dys x 4				46.00	HHUT $/12mo
40.00	truck wash tip 4 washers 5.00 2/mo				85.00	IFTA $/12mo
10.00	truck repair tip approx 1 repair/mo				200.00	MAINTENANCE
6.00	assistance cell phone charge 1.50 per				200.00	REPAIRS
10.00	Canada calls extra charge				119.23	Advance broker fee
35.00	late fees misc. usually $35.00				200.00	TIRES 18 tire change in 18 mo's
20.00	Kentucy weight and distance tax				750.00	Visa Card fuel purchases/repairs
30.00	Oregon Wght/Dstnc tax 1 visit a yr				175.00	TOLLS
10.00	New York Highway use tax				40.00	printer ink
0.00					0.00	$9 ea. com data charge/load card
0.00					10.00	income tax preparation
2.50	Medical Exam about 60.00 ÷ 24mo				885.94	IDLING
30.00	fuel additives				5.00	mapping programs
5.00	widow washer fluid				2.50	fuel finder books
20.00	tools				15.00	fines/tickets/fees
5.00	load locks/straps/misc. supplies				10.00	hotel while repairs
10.00	stationary				8.50	random drug test about100.00 Annual renewal
10.00	flashlight batteries				0.00
493.33	0.00			0.00	11,078.47	0.00

Variable Expense

2 of 2 pages actual monthly expense Authority 27 days out linehaul/backhaul Dry Box

1.80 per mile average

http://therealdealtrucking.com
		0.029	Medicare	0
		0.124	Soc. Sec	0
this section deleted intentionally		0.153	2,376.58	363.62
			Total Taxes	0
			364
Input Prcnt of Runs You Factor	Misc Variable Expense	Per Ttl Miles	Enter %	0
0.80	pilot vehicle	8,951	0.00	0.00
For Un-Factored Income	pay co on outside loads	8,951	0.00	0.00
Enter 1 Below	etc.	8,951	0.00	0.00
0		Total	0.00	0
% of Advanced per mo	Misc Variable Expense	Amount of		0
0.20		Enter # of times	Amount/day	0
Unfactored income	trailer washouts	1	30.00	30.00
is calculated with	scale tickets	4	8.50	34.00
an Advance Fee	Total		38.50	0
of 4%, If you don't take	Variable expns per Ld	Loads	Price	0
Advances, Add it back in	Trippak/Express mail	18	16.00	288.00
	Load FuelCard	20	9.00	180.00
	Total		25.00	0
	Connection Card	more fixed expens→		60.00
		fixed expens→		0.00
		fixed expens→		0.00
		fixed expens→		0.00
		fixed expens→		0.00
Hours Idling per month times 1.25 gal per hour		10.5	Hrs	0
i.e. 7hrs x 25days out=175 X 1.25 X fuel rate=cost per mo		27	Days	0
		1.25	Gal. Per Hr	0
	adjust fuel rate in the setting	2.50	Fuel Rate	0
		885.94	Idling cost	0
	Refer Fuel per mo	Total Avg Hours	Gal Per Hour	0
	Refer Fuel	0	0.75	0.00
0.00	0.00	0.00	0.00	956
		Total Monthly Expense		12,527.42

Authority 27 days out linehaul/backhaul Setting Dry Box

1.80 per mile Calculator Settings Section

THE TRUCKING CALCULATOR http://therealdealtrucking.com				Set Fuel Surcharge (Fixed)
Activate Lease $ all mi's	0		18,527	Leased On $ on All Miles
Total Expense	12,527.42		3,450	Fuel Surcharge Amount Ld mi
Expected Income	6,000.00		15,077	1.46
Ttl Expns + Exptd $ Goal	18,527.42		3,450	0.00
% of Income Factored	0.80		3,450.00	Leased On $ on All Miles Net
% Advanced	0.20		25,733	Leased On Paid Percent
Current Fuel Price	2.50		3.11	Booked Rate
Activate leased on by %	0		18,527
Your Avgerage MPG	6.00		3,450	Fuel Surcharge Amount Ld mi
Days Per Month on Road	27		15,077
1 days Run + Delays	1.50
.= # of Runs	18.00			2.65
Per Run Avg. Loaded mi's	460.00		3,450	0.00
Percent of loaded mi DH	0.20		3,450.00	Leased On Paid Percent Net
Activate Base Rate+DH	0		18,527	DH Less than Base Rate
Per Run Avg. DH mi's	115.00		3,450	Fuel Surcharge Amount Ld mi
Per Run Avg. Total mi's	575.00		0	Amount Paid on DH
Loaded Miles	8,280.00		3,450	Fuel Surcharge Plus DH Pay
DH Miles		2,070.00	15,077	1.82
Miles Back	0.00		3,450	0.00
Total Miles (limit)13,500	10,350.00		3,450.00	DH Less than Base Rate Net
Don' exceed monthly mi	↑Keep it real↑		3,588.60	Company Driver after taxes .45cpm
Activate Authority = 1	1		18,527	Line Haul/BackHaul
Deactivate Authority = 0	!!!			2.24
Linehaul/Backhaul Runs			14,904	1.80
			2,376.58	Line Haul/BackHaul Net
Activate Roundtrip = 1	0		18,527	2.24
Deactivate Roundtrip = 0			0	0.00
% mi back DH Rnd Trip	0.88		0.00	Round Trip

http://therealdealtrucking.com

The desperation most Truckers live with and are eventually forced out of business or losing their family; is at the end of the month they can barely realize an average rate of 1.80 a mile on all miles in fact in many cases this is a relatively high average. Besides all that, he’s out longer, and his monthly expense increase, which makes it harder for him to net any more by working longer. He doesn’t deserve to make less than the company driver. At this rate he’s making .23 cpm Most stay out longer but the results are very similar. Some people working minimum wage is making more.

Many of the brokers expect to make at very least 10,000 a month after a time in the business, and their sitting behind a desk, the Trucker actually does the work. If you expect to make $6,000 month running your own authority in the eyes of some brokers you are seen as the absolute low down dirtiest kind of stinking filth in the industry, in their eyes your kind don’t even deserve to draw breath from the same good earth as regular people, they can’t find enough curse words to describe your type. That’s the only best way to describe to you the attitude of many of those that find the loads toward those that actually go out and do the work.

Of course it should not matter how many trucks are in an area, a Trucker should be treated and paid with respect to the value of their work, but in a market based system all fair expectation are looked upon as the absolute greatest foolishness conceivable. Let’s face it, what’s done is wrong, but complaining is a total absolute waste of breath, they feel you need to go somewhere else to do your whining, grow up, get smart and compete with the rest; you’re a grown up now, and when it comes to money I won’t just rip you off I’ll kill you; maybe not physically but in every other since of the word the message is clear. As a Trucker if you don’t figure out how to use the market to work for you, I’m sorry the attitude will not change there will not be anybody that is going to feel sorry for you, there is nobody that’s going to have any sympathy for you, your family, your life, nothing, just nothing. So you better toughen up, and get smart. Are they going to scorn you for getting enough to return from a weak area and still average your rate, yes they are, are they going to curse your name for running round trip, probably. Are they going to falsely blame you for a reason they pay cheap rates to the ignorant Truckers that don’t know their business, you bet they will. But here’s what they never will do, they’ll never feel bad about ripping the Truckers for as much as possible, they’ll never look in the mirror and feel bad for taking so much money out of a load, they’ll never feel bad about hanging up on you for asking your rate. To put it simply, you are not going to change this industry, I don’t care how many of you band together and stop driving, the only one you can change is You, You, You, You, You. You are the only one that can change, but thanks be to God, You can change You.