Issue link: http://read.dmtmag.com/i/42794
Talking about pay Get in-depth information about the current state of owner-operator compensation by listening to a recent webinar presented by Gordon Klemp, president of National Transportation Institute. Download the free, one-hour presentation at TruckerWebinars.com. Among NTI's Carriers are offering bonuses as high as $10,000 to attract the best owner-operators. Band Pay program. Klemp says that while some carrier lease-purchase programs have earned a black mark for conditions that heavily favor the company, in some cases leading to lawsuits, he sees the environment changing. "Carriers are recognizing the value of owner- operators and are putting together mutually beneficial contracts for lease-purchase," he says, listing as good examples Barr-Nunn and Anderson Trucking Service, which recently announced reduced weekly lease rates. Other options While Prime prefers paying a percentage of revenue, it reinforced that model by adding a compensation guarantee. The carrier retained its 72 percent share for contractors but raised its guarantee per mile to $1.02 for most, $1.15 for tank haulers. That is, if you drive 100,000 miles a year, you'll receive at least $102,000 for all miles. "I believe a percentage split of revenue is the best model," Hancock says. "If the freight rate moves up, the operator receives the benefit of that movement. If the rate goes the opposite way, the contractor would probably not choose to haul it," putting pressure on the shipper that wants to cut the price. Kretsinger sees it differently. Percentage pay "adds a lot of complication," he says. "We are known for good customer service and by paying every mile the same. top-ranked carriers • American Central Transport – Liberty, Mo. • Barr-Nunn – Granger, Iowa • Crete Carrier – Lincoln, Neb. • Heartland Express – North Liberty, Iowa • Hunt Transportation – Omaha, Neb. • Marten Transport - Mondovi, Wis. • Millis Transfer – Black River Falls, Wis. • Roehl Transport – Marshfield, Wis. • Shaffer Trucking – New Kingstown, Pa • Schneider National – Green Bay, Wis. • Transport America – Egan, Minn. • USA Truck – Fort Smith, Ark. The National Transportation Institute ranks these dozen carriers, listed here alphabetically, among the highest in overall compensation for over-the-road and regional owner-operators. Carriers come from about 300 companies of all sizes that provide detailed information to NTI and are ranked against competitors of similar size, with weighted results. All rank highly in pay, benefits and stability, based on mea- surements such as Dun & Bradstreet rating and driver turnover. Gordon Klemp The owner-operator is less likely to get choosy in turning down freight." Schneider and J.B. Hunt offer both, Klemp notes. The contractor is able to switch between per-mile and percentage. Christenson's higher pay for East Coast routes is an example of carrier regional pay plans. Klemp estimates the number of carriers offering regional pay has risen 48 percent in the last 12 months. RoadRunner pays by geographic origin, ranging from $1-$1.05 a mile up to $1.80-$1.90, plus fuel surcharge, Pluff says. Marten has recast its operating model from primarily long-haul to a mix of 40 percent long-haul and 60 percent regional. It now operates with 10 regions and an average length of haul of 630 miles, Norlin says. 32 OVERDRIVE OCTOBER 2011 Ov er driv e Pay day Max Kvidera