I'm kind of curious. What could happen to you if you stopped your trucks for a week? Fines? Lose customers? I'm for real asking.
Not OP, but in general:
Trucking is a fairly tight margin business. Let's say you have to drive for 25 days a month to break even. And, then the last 5 days are your profit.
So, 1 week isn't too painful. You will lose a bit of money that month and pay your self $0 for the full month. But, likely you will survive.
But, going on 2,3,4 weeks and you layoff your drivers (who will get jobs elsewhere and not return) and you will fall behind on your truck notes. Unless you have deep cash reserves (and let's face it ... most small businesses don't), very difficult to recover from that.
And ... a big part of trucking are the contracts. If Joe's ice cream company expects you to deliver between the factory and the Walmart distribution center once a week ... you will be in default on the contract. Joe goes to a different carrier and you are out of a contract. So ... your 1 week 'vacation' now cost you months of income and you've got to find a replacement contract for that truck. Rinse and repeat ... things get can ugly quick.
Well, I would save on fuel but my drivers get paid 30% of our weekly load (typically between $10,000-$13,000) so they would be pissed! We operate off the spot market (load boards) so no contracts lost. For me, one week is the difference between making a profit or not for that month. Between paying my dispatcher 5% and factoring company 3% Fuel is roughly 25% in addition to the driver's 30% it doesn't leave much. Quick math...5 trucks bring in $50,000 a week give or take Driver's pay= $15,000 Fuel = $ 12,500 Factoring/Dispatch = $4,000 Truck/trailer/Insurance= $8,500 (Rough) weekly expenses = $40,000
Ok. Some get a commission. Did not know that.
There is a spot market for your region or is it a national one?
Do yall do any tricks on fuel economy, mass purchases, or is it while the driver in on the road?
There are several pay models, the most common is .85 per mile. I started hauling frac sand in the oul & gas industry and simply carried over the % model from there. Admittedly, I pay WELL above market but my driver churn is almost non existent. I had one vacancy last year and it took 6 months of paid placement ads 7k a month in equipment cost and $250k in lost production. We do get fuel discounts with our fuel card if we fill up at certain station. My giys have an app to check prices and do their beat to shop around.
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