Overdrive

May 2018

Overdrive Magazine | Trucking Business News & Owner Operator Info

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Voices 8 | Overdrive | May 2018 I don't want to pay for another compa- ny's problems with my lost time or lost income. Nor do you. There has been a growing sentiment that with required use of electronic logging devices for hours accounting, the mode of payment should transi- tion from rate per mile to hourly rates. But how many of us, if asked, could accurately quote what our time is worth, per hour, based on actual and complete data? Until we can do this, it is difficult for us to negotiate optimal payment for the loads we accept. It is difficult for us to even know what we are worth as a unit of time. I recently discussed my income and expense calculations with another owner-operator. In terms of net profit per hour (income above my expenses), I averaged around $45 last year. With market changes this year, I've been hitting around $70. My friend, used to per-mile rates, was shocked: "We can't charge that much! No one would pay it!" I tried to help her see that the reality is we do, and must, charge this much to cover our value as drivers and busi- ness owners. If you begin honestly tracking your time, revenue and costs, you can calculate your true per-hour profit. It will help you when negotiating with customers and when weighing dead- head/empty miles, detention pay per hour and driver assist rates. Without figuring all time spent delivering a load into your per-hour rate, you will have created an inaccuracy that eventually will lead you to devalue yourself. You must remain profitable yet competitive to thrive. What is your time worth? Know your costs, revenue and net profit not just by the mile but also by the hour to get the most out of rate negoti- ations. Find more from Landstar-leased past Owner-Operator of the Year honoree Gary Buchs via the Overdrive Extra blog at OverdriveOnline. com/overdrive-extra. For years, the bread and butter of Fulmer Logistics broker Brian Hardman has been Florida super-nurseries that require reefer trailers with e-tracks and decking. They also need drivers willing to hand-unload and palletize 2,000-plus loose plants to around a dozen or so big-block stores per load, from Florida to as far away as Fairbanks, Alaska. The Fort Pierce, Florida-based agent's business model, for as long as I have known him, has required good relationships with a committed corps of reefer haulers. Long Haul Paul: Have relationships changed in the load-board culture versus the good-ol'-boy-with-a-black- book days? Hardman: Sure! I'm not some col- lege kid coming into a big cubicle farm office. I came in from a driver's seat. To this day, an internet load board is a last resort in my office, as it always has been. Good drivers are like money in the bank, and they know who to call. The load boards are a gamble, both for me and for carriers too, really. I've had load board guys who have been terrific, and I've had some who were rolling nightmares! But my "regulars" are always my focus and priority. There are months in Florida when I could load net-board trucks for 30 or 40 percent less than I pay regulars, but I don't. I think long-range. These boys at some brokerage out- fits think only about this week's money and are always looking for new trucks because they've screwed over the old ones. But I want to keep good drivers. So even when it's slow and trucks aren't tight, my guys still get paid! And that is why they stay my guys. Load boards 'a gamble' for this old-school broker Todd Dills BY GARY BUCHS "How tight are trucks in the ELD economy?" That's what Overdrive contributor/trucker Paul Marhoefer asked Fulmer Logistics broker Brian Hardman (pictured, left, with a longtime friend, the late author and Navy veteran Chief Jim "Patches" Watson). Hardman's answer: "This is the first year I've seen trucks get tight in Florida in February." It was part of an interview with Hardman on brokerage-related topics, including his focus on establishing close relationships with owner-ops. You can find it in full in the March 28 Overdrive Extra blog post. Find it via OverdriveOnline.com/ overdrive-extra. BY PAUL MARHOEFER

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