I have also owned other businesses that are not related to trucking and had a lot of employees. I never had the turnover in any other business as I have had in trucking and I have always paid drivers well. I pay percentage and that offers a higher potential income to a good driver. Some prefer mileage pay. You will hear that low pay is the primary reason for driver turnover, but that is not really the case, at least in most instances. Pay can be a factor, but there are other reasons that seem to be more important. If I were looking for teams I would try to first find a husband and wife team who both had their CDL and several years experience. A couple in a truck will either enjoy the closeness or kill one another. lol. It will be challenging to find a team that is compatible. For instance, if one is a smoker and the other isn't, there could be some serious conflicts. When two people are confined in such a small space for days at a time, it can add a lot of extra stress. Are you only interested in FedEx or have you considered other carriers? What is FedEx offering these days?

 

I'm open to any IC opportunity. I would like to build a small fleet of trucks. I'm following Malaki86's thread and Schneider looks interesting. I understand you're CRST Malone has potential. Like I said, I've made no commitments and am open.

As to FedEx, their program isn't too bad, at least to this uniformed person. For teams, it is $1.285 mileage, 2.5 cent "Mileage Plus", 33.8 cent Fuel surcharge. It works out to $1.648 plus there is a 3.2 cpm safety bonus that is possible. No touch freight, solos are getting 8 cpm less. Truck on the "board" are getting ~2500 miles / week solo and ~5000 miles/week team.

EDIT: Also, diesel is available at the hubs for about $0.30 / gallon less than on the open market. With a 5MPG tractor, that works out to a $0.06 per mile saving. Add that to $1.648 and you're at $1.708 gross.

 

Thank you for the kind words texan59 (and sorry xcarsalesman for not responding. I don't remember but nonetheless I apologize). Honestly you are going to get the best advice from GMAN. You mentioned that it seems the best way to get the drivers is pay more. It doesn't matter how much you pay a guy with a bad attitude in life. It's never enough.

We just had a guy who was fine and happy with the job, but he tried to get over on me claiming I make a lot of money. (He's fired btw). But like GMAN said, there are good ones because another driver commented about the whole thing, "I come here to drink the milk, not count the cows". He has a great attitude and I appreciate him as much as he appreciates the job.

I assume a degree in accounting would help in general in life, but you can budget to the penny and next thing you know a driver ends up on a yellow pole at a truck stop (how we don't know). In my opinion, and I was explaining this to a guy who was fired for log violations but humbled himself extremely and right now is shuttling trucks for me until he earns my trust back (he has) that people think I am the "boss" or I own a business. In truth in my opinion, it's all a delusion. I have to answer to insurance companies, vendors which includes not only the trucks and trailers but even the software in my office. Yes I make a decent living but they have to allow that or nobody would even bother. I am not into conspiracies or politics but more and more these are my thoughts. Buy a 7-11 franchise and you think you own something but they tell you exactly what to do including how many days you have to be in the store.

But I digressed. GMAN was right about the driver shortage. It was a good point. Seems like everyday a new rule pops up. The funny thing is everyone talks about a national shutdown which will never happen, when in truth you just need to boycott someone like Swift (and I have nothing against them and respect Jerry Moyers for becoming a billionaire) but he's running a publicly traded company and HAS to answer to shareholders (you see billionaire that he is, he still needs to keep Wall Street happy). You take them down, you hurt Walmart in the process and then we will see all the rest fall into line rethinking our time is free at the dock or all the other things they get out of drivers and small carriers. You take out the biggest and the rest will fold. Just one publicly traded company. Just 14,000 drivers and more damage will be done than 100,000 drivers shutting down (which will never happen anyway).

Transplace was owned by Swift, Covenant, US Express, I think JB Hunt, but during the downturn they needed to keep their shareholders happy so they sold it.

Anyway, sorry again for the digression. GMAN is right. That team thing is tricky. I have had good luck with it. But there are plenty of stories where drivers were "forgotten" at the truck stop. But you are right about one thing Texan59, you get the right person in place and this can go far. I never managed grown adults that act like kids. I never had people think I was a bank and ask for loans even though I don't even know them (some of the newer drivers). I know how to manage money. I just got 10 new trailers this week and now have over 50. I never thought it would get this far and to be honest I feel I should be farther along.

Like GMAN I pay percentage and at this point I refuse to stop and explain why people aren't deadheading for free if it pays over $2 a mile ALL MILES. Some just wont get it. I'll close by saying right now I'm trying to get health insurance for the drivers, but I can't get all of them to fill out the census. Legally I'm not even obligated to do it right now and I get it free through my wife's work, it's just something I want to do. But I can't because they wont fill out the forms (which by the way takes 15 minutes and can be done on line. ).

Well good luck. Ask away any questions. I am very open and the people on the board here are very helpful.

 

The pay is about what I expected at FedEx. Discounts on fuel also helps the bottom line. I don't know if you have been able to look at your potential operating costs, but that would be a good place to start planning. OOIDA has a spreadsheet that you can download from their website Owner Operator Independent Drivers Association (www.ooida.com). The letters stand for "Owner Operator Independent Driver Association." It is the closest thing drivers, owner operators and fleet owners have to a trade association. They are a good resource. Membership is $45/year and only $25/year towards the end of the year and at the trucking shows. I don't think you have to be a member to access the spreadsheet. It isn't perfect, but is a good basis to use. The spreadsheet will allow you to plug in your own numbers and play with them. It can be helpful to look at the numbers in black and white. It could help you build some pro forma's for your own business model.

I would suggest you ask FedEx or any other carrier to whom you plan to lease on how they calculate their mileage pay. Most pay practical, hub or household miles. Few pay hub miles. I prefer practical. How they calculate miles can make a difference of 8-15% and that can make the difference between being profitable or losing your shirt. As someone who has owned trucks for some years, I can tell you that you will have times when part of your fleet will be sitting due to not having a driver. It is something that should be included in any business plan, but few take that into consideration. Merrick or any other truck owner will tell you the same thing. It would be great if we never had a vacancy or lost a good driver, but that isn't the way things go in this business. You can make good money in trucking and as a fleet owner. It takes a lot of time and effort to keep things running smoothly. I think it is a great idea for you to get your CDL and to be a relief driver. That could be very important if you lose a driver and have a critical load on the truck.

CRST Malone used to be a good company. Talking to a few of their current owner operators, most seem to still be happy with them. I think the last time I spoke with one of their recruiters they told me their trucks were averaging around $2/mile. But, pulling flats will require more of an investment for tarps, chains and other securement equipment and you will need to rent or purchase a flatbed trailer. They have them available for a weekly rental fee or you can get your own. They pay percentage, so the owner operator can earn more than most who run mileage. Running percentage can involve more of your time to find the better paying loads, but I think it is well worth the extra effort.

There are several fleet owners and small carrier owners who post on this forum. Merrick is one of our older posters who own multiple trucks. I think you will find that any of us are willing to share our experiences with you. Feel free to ask anything you wish. Once you get your post count up a little more, you can send a pm to any one of them or continue to post on the open forum.

 

Texan this is from a former Team driver so take it for what it is worth I ran Team in 97-98 and again 99-00 so I have a bit of an idea of what Teams might want. First off is a LARGE Bunk. I am not talking a 144 inch Sleeper but get the Largest Factory Sleeper Truck you can. 2nd have it Equipped with Extra Sound Insulation plus a High quality Memory Foam Mattress and a Very good Drivers Seat. Next Long Range Tanks Minimum 130 gallon on each Side the worst thing a team truck needs to do is be stopping for fuel every freaking 8 hours. Now equip that sucker with a Fridge Microwave and pay them Well and your going to get that Experienced Team you want to drive for you. Last thing give them the option to run at least 70 MPH why that fast so they can make time during the night and also pass about every Fleet truck out there.

 

Little off topic. But as far a driver shortage. I do believe it all comes down to pay. The only job I had where I was gone for a week at a time is when I worked on tugboats. I know it's two different industry but both jobs you are away from home. When I was a deck hand with no experience I started at 225 a day. The tug company paid for all your meals. Alot of the maritime industry is union. All I'm trying to say is. Them guys are away for weeks on end. Some even months. They had no where near the turn over as trucking does.

If you don't think it's pay, then what else could it be? ?

 

I don't know anything about tugboats, but I use to talk to people from Fall River and New Bedford Mass who were fisherman. That was hard work from what they said. Also very dangerous if I recall. You need work ethic for stuff like that and unfortunately that is missing in today's trucking. Also Fall River and New Bedford aren't the nicest of areas (or they weren't when I was up there), a lot of drugs etc, but people weren't going on those fishing boats with needles in their arms of that I can be assured. They would have been killed.

Also, people need fish or want fish to eat. This whole trucking system is against truckers. So much regulation, shippers and brokers and receivers that if they don't need the product will let you sit hours on end. Why should it be incumbent on the trucking companies to have to pay for their drivers and trucks to be sitting idle (unless they are actually being paid detention). Also we get detention, but we can't get the driver's to call in for it so we can get the process going. Also in truth sometimes they probably don't because they are lying down and sleeping.

To be honest, this thread might be coming to an end. I've had enough. I make money but I don't want to live my life and say I "made money". Everyday more I can't stand this business. I was smart, I didn't spend; I saved. I'm 43 with a brain in my head, I'll figure something out. I live way below my means so I have time to figure things out.

 

Oh I know what your saying. I wouldn't want no parts of owning a OTR trucking company. More power to ya

 

Now someone tells me I shouldn't have done this. Where were you a few years ago

 

The driver turnover would be the biggest reason why. Plus I like my trucks to come back to the barn everyday. So I can do repairs and maintenance on them. And stay on top of them. Just my 2 cents. Lol