I was just wanting some feedback on what some owner operators think it cost them per mile to operate there truck. I have come up with .72cpm and thats before I ad my wages.

 

Depends on how much stuff my helpers break. D'oh!








.72cpm? OMGREMINDMENOTTOLETYOUBECOMEBUSINESSPARTNERSWITHME !!

 

Now that fuel is down some, it's around $1.20 (incl 50cpm driver wages).

 

You must have a truck with no payment, and have a deal with the devil that it doesn't break down............ever. :lol:



I am at $291 per day, and $0.71 per mile. That factors in salary, but does not factor in "trip specific" charges, such as labor and tolls.

 

I'm estimating mine, between $0.70-80, depending on a fuel cost.
That's include everything, before wages, and benefits.
I own tractor only, with company paid plates, permits, and fuel taxes(no charge back).

Since i don't have truck payments, i've estimated "truck depreciation", at $0.15 a mile.
Maintenance, also is estimated, since the truck is relatively "new", and don't need much for now, but it will later...! :sad: :wink:

 

I figure a buck a mile. If my rental is $767 (w/ 1500 miles) and the fuel it uses, its somewhere around that.

767/1500= 51cpm (tractor rental- mileage/taxes inc)

1500mi/6mpg=250gal x ($2.70/gal) = $675/1500 mi= .45cpm

Inusrance/Workman's comp- $760/mo/6000 miles= 13cpm

All in all I am at $1.09 per mile for a truck I don't own, never have to pay amintenace on, and never have to worry about being without a truck if I breakdown.

On the bad side, If it costs 1.09/mi to run, I need to run 703 miles to break even, or pay $767 if the truck doesn't even do a mile in a week. :cry:

 

Fixed Costs
$115,000 truck with a 5 year life expectancy = $23,000/year
$50,000 trailer with a 10 year life expectancy = $5,000/year.
Truck maitenance = $10,000/year
Trailer maitenenance = $5,000/year
Liabilty insurance = $13,000/year
Cargo insurance = $2,000/year
Enless permits etc etc etc = $1,000/year
Fines & tickets = $0
Idling time = $0
Showers & meals = $0
Finance charges = $0
Collision/comprehensive Insurance = $0
Tolls = $0
Employment insurance - $0
Pension Plan = $0
Health care benefits = $0

$59,000/year in fixed costs.

This truck and trailer (it's one of three such combinations) runs about 100,000 miles per year so it's fixed costs are $.59 mile if you want to figure it that way. But half of those 100,000 miles are dead (because there's no such thing as a cheap freight backhaul LOL***) so maybe someone can tell me how to calculate CPM based on that.

Operating Costs:
Fuel prices are running about $.52 per mile
The hired driver gets $.33 per mile when he drives.

Figure about $1.44 CDN per mile.

The REAL numbers are this: Cost per load is $2600. Revenue per load is $3000. 100 loads per year (840 miles return) gets me $40,000 before tax.

It gets better. There are three trucks and trailers and they don't all do 100,000 miles so their CPM....and the average CPM of the trucking operation goes waaayy up.

***By the way....if there's no such thing as a cheap freight backhaul, who takes all those "$2-per-mile-flatbed-with-tarp-warehouse-it-over-the weekend" loads off the load boards?

I keep "setting the rate" at $3 per mile for these loads and they keep laughing at me. I guess my numbers must be off.

Later.
looks like snow and freezing rain.
Gotta go tarp a 13'6" load.

 

I can see 10K a yr for tractor maintenace, but I can't see $5000 in trailer maintenance.

 

Yeah you're right.

There's other stuff that probably should be factored in too.........I didn't allow for Worker's Compensation Insurance, the depreciated value (limited though it may be) of the truck and trailer at the end of the 10 and 5 year period, scales, cell phone, faxes, internet, corporation fees.......

 

I noticed you had some stuff under "Fixed Costs" that shouldn't be there.

Fixed costs are costs that occur NO MATTER WHAT - even if the truck isn't moving.

Items such as:

Truck maitenance = $10,000/year
Trailer maitenenance = $5,000/year
Fines & tickets = $0
Idling time = $0
Showers & meals = $0
Tolls = $0

are VARIABLE COSTS, not FIXED COSTS.

Also, your maintainance is quite high on what is obviously a new truck. My maintainance runs me about $500 per month at the most. Everything else is covered under warranty. Unless, of course, you are talking about a "maintainance account".

Why is your liability insurance so high? My liability/physical damage only runs me about $315 per month on a $107,000 truck.

Also, what sort of taxes are you required to withhold as an employer in Canada? Here in the states, the employer is responsible for paying some of the taxes. I also noticed that you aren't factoring in any taxes. If you are planning on turning a profit, you better change that.