Hauling gas

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by Jtmart20, Feb 22, 2023.

  1. Jtmart20

    Jtmart20 Bobtail Member

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    Feb 22, 2023
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    I own 3 small gas station country stores, not much gas sales. Getting gas from the jobber is costly as I have usually small loads. I am thinking about buying a 5k gallon straight truck and haul my own gas as the terminal is local. Is it advisable? Pros n Cons? Insurances and authority complications etc.?
     
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  3. RockinChair

    RockinChair Road Train Member

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    In addition to all the requirements of your state and the federal govt, you would also have to contact the loading rack about their requirements for you to be able to take your equipment and your driver onto their property and load. At a minimum you will have to have your tanker tested for vapor tightness every year, and you'll have to send in that paperwork plus your insurance paperwork to the rack annually. Also, your driver will have to undergo some training there before he is carded (allowed to load by himself).

    Also, they might have a minimum number of gallons you have to purchase every month in order to maintain an account with them.

    If all of that is not economically feasible for you, you might could negotiate a deal to form a co-op with some of your nearby competitors. And to cut down on transportation cost you could always have the hauler deliver a full load and split it betweem your locations, if you're not already doing that.
     
  4. Jtmart20

    Jtmart20 Bobtail Member

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    Feb 22, 2023
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    I spoke to a gas supplier, he said that they use the transporters to get gas to us. He said the store gets gas at rack+1 and plus transportation. At present we are being charged almost 15-20 cents per gallon for transportation. Having a small 5k gallon truck can help us save that and act as our own transport and even serve to other stores.
     
  5. mud23609

    mud23609 Medium Load Member

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    Insurance and compliance costs alone are probably going to make this a no-go for you. That is in addition to buying and maintaining a truck and paying a driver. Seriously give a few insurance companies a call and ask them what it's going to take to insure a new entrant operating authority that specializes in hauling hazmat. Make sure you're sitting down first, though. It's going to be a mind-blowing number.
     
  6. mpd240

    mpd240 Road Train Member

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    I see straight trucks hauling fuel for local gas stations. However, all of those trucks belong to a business that sells bulk fuel. So the owner has a few stations of their own, has trucks do their stations and also other small stations. So they are acting as a supplier to other small businesses. They also do a lot of farms.
    You also need to have someone who will work on gas truck. A lot of shops will not service them due to the vapors and possible fire risk.
     
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  7. Jtmart20

    Jtmart20 Bobtail Member

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    How does becoming an owner operator work with a gas hauling company?
     
  8. gentleroger

    gentleroger Road Train Member

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    How many gallons of fuel do you sell in a year?

    Assuming 400,000 gallons a year and 15- 20 cents per gallon transportation costs, you're looking at $60,000 to $80,000 of potential savings by bringing it in house.

    Assuming 2 days of labor a week at $25 an hour (decent cdl w/hazmat rate), you're looking at $24,000. Add in $12,000 a year for insurance, and another $27,000 In truck aquistion/upkeep a year (holy cow tank trucks are pricey).

    That's $63,000 in back of the napkin costs.

    So it could work out, but will also cause you some major headaches.
     
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  9. Jtmart20

    Jtmart20 Bobtail Member

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    Feb 22, 2023
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    Getting a better gas price helps me keep the prices at pump competitive and attract more traffic in for food etc(Hypothetically). I have my own CDL with Hazmat, but I am just trying to see if it makes sense to use the truck as an owner operator under someone's authority and insurance.
     
  10. Cat sdp

    Cat sdp . .

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    Get in touch with these guys https://www.thekag.com/

    They will cut anyone’s rates. If your paying $1000 for a short haul less than 30 miles one way your overpaying…..
     
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