Issue link: http://read.dmtmag.com/i/42794
Mileage pay This year Barr-Nunn raised rates in its Pure Pay program, where the contractor pays for his license plates and permits, to $1 per loaded mile from 97 cents, and 80 cents per empty mile from 70 cents. Its Band Pay program, which is based on length of haul and where the company covers cost of plates and permits, lifted pay 2 cents a mile. ACT boosted its top pay for an operator with a hazardous materials endorsement to 98 cents under load and 90 cents empty. Without hazmat, the pay increased to 94 cents loaded and 90 cents empty. "Our higher rates account for the operator paying for plates, permits and getting more pay," Kretsinger says. "They can buy their own plates or buy it through us at cost." On May 1, Marten increased its mileage rates by 4 cents so that it ranges from 88 cents to $1 a mile based on length of haul. For hauls up to 150 miles, the carrier pays 50 percent of the load's net revenue, the only instance where it pays a percentage, says Tim Norlin, director of recruiting. In August Christenson Transportation hiked its per- mile pay and differentiated between driving on the East Coast and elsewhere. Now the all-owner-operator Springfield, Mo.-based carrier pays 96 cents a mile in the East and 91 cents elsewhere, up from a flat 88 cents before. For empty miles, a graduated pay scale begins at 50 percent of the loaded rate on the first 100 miles, another 25 percent on the second 100 miles and the rest of the rate on the next 100 miles, says Vice President Barry McGowen. Schneider National this year increased its van contractors' pay 5 cents a mile to 95 cents, with up to $1.65 a mile for short haul premiums. Boyd Bros.' recent 1 cent-a-mile increase to 95 cents was the fourth hike of the year. Bonus money One of the biggest bonuses is offered by all-owner- operator RoadRunner Transportation. It offers $10,000 to operators with at least one year of experience. "The competition is more aggressive in recruitment than it was a year ago when everyone was in the doldrums," says Mark Pluff, director of linehaul development. Panther Expedited extended its sign-on bonuses through August. The extra money ranged from $4,000 for a solo operator to $8,000 for a team with hazmat endorsements and Canadian access. Jeff Garra, manager of capacity development, says the bonus is paid over six months. A $500 fuel card is provided when Revenue per mile $1.29 per mile by trailer type Dry van Flatbed Reefer $1.52 per mile $1.24 per mile Large and medium-sized carriers surveyed by the National Transportation Institute report these average pay rates to owner-operators for the 12 months ending in June 2011. Average annual pay and mileage: dry van, $150,630, 116,000 miles; flatbed, $159,834; 104,603 miles; and reefer, $159,030, 127,693 miles. Some large fleets are introducing strong detention pay programs to ensure fair compensation for owner-operator time. the owner-operator completes orientation. Christenson offers a $3,500 bonus, McGowen says, paid by reducing contractor lease payments. Jacobson Companies raised its sign-on bonus to $2,500 from $1,000, paid over 90 days, while also lifting its mileage rate to 95 cents. "We're talking with people whose miles have fallen off a bit," says Joe Santone, vice president of carrier services. The company also introduced a program to attract contractors with their own authority, who will get Jacobson's fuel optimization and fuel discount benefits. Barr-Nunn offered a sign-on bonus of $1,500 through Aug. 26, and its Band Pay contractors receive a performance bonus of $800 or $975 every 30,000 miles. Marten doesn't believe in bonuses, Norlin says. "We would rather take that money and put it in their weekly settlement than use it as a gimmick." Detention payments More carriers are compensating owner-operators for time lost at the docks. For several years, ACT has been paying contractors for wait time after two hours for most customers or four hours with some, says Kretsinger. The detention rate is $35 an hour, with a $350 maximum over 24 hours. Beginning July 1, Marten made detention pay 28 OVERDRIVE OCTOBER 2011 Pay day Max Kvidera