Podcast: Play in new window | Download
Subscribe: RSS
Important Info For Truckers. If you are an Owner Operator or a Lease Purchase Driver, this podcast is for you. Right now most owners are suffering from the high cost of fuel and declining freight rates.
Freight rates have been plummeting for the last 5 weeks and it is not showing signs of recovery. With the influx of drivers in the industry the demand for carriers to haul freight has made rates more competitive. The bargaining power has shifted from carrier to shipper.
The price of fuel has also effected the trucking industry in a bad way. Between the dropping rates and the high cost of fuel, it has created a perfect storm if you will. The question is, how can we combat this situation?
If you are not getting a surcharge then you are getting ripped off. Here is how a surcharge works. The DOE (Department of Energy has set the mark at $1.20 per gallon a long time ago. What this means is, for every .06 cent above $1.20 a driver is suppose to get .01cpm surcharge. For example, the average gallon of fuel is about $6.00. If you subtract $1.20 from 6.00 you have $4.80 left. You then .06 into 4.80 and you get .80cpm surcharge. Which means if a driver ran 3000 miles, he should get an additional $2400 for a surcharge check. This should be separate from his pay.
The bottom line, if you are not getting a surcharge that you are able to see, you are being ripped off. Without a surcharge, it is very hard to make big profits.
