retmil46 wrote:
Cowpie, what's the word in the OTR world on the effect these prices are having? I'm hearing of more and more owners parking their rigs because it's not worth their time anymore, and seeing more and more independent rigs delivering goods at Freightliner with "For Sale By Owner" signs attached to them. Since it directly affects my livelihood (building OTR rigs), I'm definitely interested in what's going on.
It depends on a lot of factors. Part of freight rate negotiation is also to get a fuel surcharge. A lot of the large carriers are not passing on the true fuel surcharge to the truck owners. For instance, Schneider is only passing on mid 30 cents per mile fuel surcharge. However, if calculated correctly (i.e. based on 5.5-6 mpg and a base fuel cost of 1.20/gal), the current fuel surcharge should be around .45/mile and going up weekly.
What the crop of steering wheel holders need to understand is that if they are getting the proper fuel surcharge, and if they get 1 mpg average better than the base line, they will in fact NET an extra $10K a year at current prices. They can in fact make more money the higher the fuel cost goes! I know it sounds crazy, but spreadsheets don't lie. So in a nut shell, for the owner/ops that want to play poll position at Daytona, they will go broke. For those that manage their time and speed, they will in fact net more per mile. The national stats are what they are...... there are many owner ops that are making more on less miles than last year or year before.
I average near 7 mpg with my semi (little less in winter months) which is almost 1.5 mpg better than the 5.5 mpg baseline that our fuel surcharge is calculated on. Therefore.... I will NET $10K - $15K more. From this standpoint, I say "let the fuel cost continue to go up". From a personal standpoint, it bothers me that the costs are rising so high. It only hurts everyone, not only in the fuel tank, but with everything they buy.