Sitting in Laredo, TX
#1
Sitting in Laredo, TX
All loads to Canada from here seem to be heading to Alberta only. They pay between 2 and 3 bucks per mile but then you're stuck in the tundra and will probably have to deadhead 1,000 miles back to US to get something decent heading towards my home in Ontario, Canada. What would you guys do in this situation? I can only move loads from US across the border to Canada and between any points in Canada.
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#2
I have changed the way that I do business somewhat the last year or so. I still won't haul the cheaper loads, but I may take a load that has a long deadhead as long as the rate going in will justify the rate. If you deadhead 1,000 miles and you only get 5 mpg, then you will need to purchase 200 gallons of fuel to get to a decent paying load. At $3/gallon you will need to spend $600 for fuel to get to your next load. Your truck will likely get more than 5 mpg, especially if you are empty, but it easier for me to calculate. If you can make enough going into Alberta and still have enough to have a decent profit after paying the fuel to get out, then it could still work for you. I don't think that you could come out by taking a $2/mile load, but at $3/mile it might work.
#3
I was thinking along the same lines but I used my base cost per mile. During the Orientation we did this exercise and everyone came up with the number that would keep them fed and all the bills paid. Then you use your percentage pay to arrive at the GROSS revenue the load should pay. I think in my case it was 1.85 for gross (only because I'm still paying for the truck). It's 2300 miles from Laredo to Edmonton, Alberta. Plus - let's say - 1,000 miles deadhead. That's 3,200 miles. Times 1.85 equals $5,920 or $2.5 per mile for 2,300 miles. Funny enough that's what many of these agents offer to pay. If I use your method (fuel only for 1,000 miles; or $600 extra) than going to Alberta makes even more sense
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#5
Until the last year or so I decided which loads that I would take based upon the average rate including deadhead. If it met my minimum haul rate then I would take the load. If not, then I would pass.
We all know that our actual cost of operations is more than the cost of fuel, but fuel is your major cost with most owner operators. If you can get $3/mile for 2,300 miles you will still have a decent week, even with the 1,000 deadhead miles. That still comes out to $6,900 for 3,300 miles with the deadhead added in. Granted, your mileage pay will suffer, but you will still make money. It will cost you a couple of days driving time for the deadhead, but you may find something with a shorter deadhead or get lucky in Alberta and find something that will get you out. Not likely, but it is always possible. In a situation such as that I feel that if I can luck up on a fairly decent paying load out of a dead area then I am ahead of the game. But knowing that I am going to a dead area I will get enough to make a decent profit going in because I know the odds of finding something to get out is slim to none. It would not make sense for me to take a load like that for $2/mile without something guaranteed coming out with a decent rate, but at $3/mile I would probably take it.
#6
I don't know what happened but this thread locked too. I unlocked it. Will report it to to brass.
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#7
This is beginning to get annoying. Thanks for unlocking the thread, Ridge.
#8
Board Regular
Join Date: Dec 2004
Posts: 314
Tracer, it seems to me that you would be making a good trip if you could get that $1.85 per mile for the entire 3200 miles. Then if you were to get lucky and get a load with less than the 1000 mile deadhead, your just that much ahead of the game. To me, that's not really even a gamble since you know your going to make your minimum pay per mile for the entire 3200 miles. So, yeah, I would be looking for one of those loads for $6k. Negotiate as much as you can above that, then load, drive, smile .
Your not in the best situation anyway since you HAVE to have a load that delivers in Canada. So, yeah, I would jump on it and run.
#9
I'll second that! Let tomorrow take care of itself!
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#10
OR: there's a VAN load that goes from here back to Ontario, Canada. I"m going to call them Monday and see if it might fit on my step. It pays just above my minimum $1.85/mi but it'd get me right next to my home.
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