New here.. need advice on hauling rates.

Discussion in 'Canadian Truckers Forum' started by Karlgrohms, Jan 4, 2020.

  1. Karlgrohms

    Karlgrohms Bobtail Member

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    Jan 4, 2020
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    Hey, doing a 700 km round trip every second week in a pickup with a small load, needing to upgrade to a diesel soon and so was wanting to see if it’s worth getting a freight liner m2 and a flat deck, and hauling hay or something. Right now trip/delivery costs me 250$ my cost, so was wanting to turn it into a bit of profit cuz I’m doing the drive anyway. So looking for insight on operational cost per km for an m2 and what kind of rates to charge for hauling, doesn’t need to be hay. Located in bc Canada, hauling Okanagan to Fraser valley and back. Thanks
     
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  3. 3noses

    3noses Light Load Member

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    Clearwater, B.C.
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    It's highly unlikely that you will get a response about rates, that is always not information to be shared on a public forum. But to set your Own Rates, make sure you are operating properly, legally, and covering all costs, and still making a profit.
    Consider these factors:
    1. Truck and trailer cost and depreciation.
    2. Maintenance/ repair costs.
    3. NSC registration
    4. ICBC commercial rates for the rig.
    5. Worksafe BC rates for you and any drivers you might hire.
    6. Fuel
    7. C.P.P. contributions for you and any drivers you might hire.
    8. U.I. contributions for any possible driver.
    9. Hourly wage cost for you and any possible driver. (Minimum $25.00 estimated for this size rig in B.C.)

    I almost certainly missed some, like office supplies, accounting, etc., but this list is a start...
    Don't work cheap, or you will soon become known for it, and that is a reputation nobody wants...
     
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  4. not4hire

    not4hire Road Train Member

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    May 16, 2012
    Calgary
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    The rate should be the greater of:

    (a) ALL of your true cost (fixed and variable) of operations (don't forget to include a proper driver's wage even if you're driving yourself), plus reasonable profit, or

    (b) Whatever the competition is charging, or

    (C) Whatever the market will bear.​

    Unfortunately trucking is largely a commodity and most people focus on price only. If your only competitive advantage is price, you're doing it wrong, you've already lost and you'll be out of business soon.
     
    Last edited: Jan 5, 2020
  5. Dave124

    Dave124 Light Load Member

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    Mar 11, 2019
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    Last year I used $8/loaded mile. This year my rate is $10/loaded mile. So if I am coming home empty the total trip is half that rate.
    My hourly rate is $220/hr with a common trailer.
    I won’t turn the key for less, not worth it to me.

    This is for GVW’s of 44,000kg to 63,500kg I should add. Pickup trucks I have no idea what to charge.
     
  6. Marmon110P

    Marmon110P Light Load Member

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    Feb 24, 2019
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    $8/mile for a 6 axle?? How busy were you?
     
  7. Dave124

    Dave124 Light Load Member

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    Mar 11, 2019
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    Running 6 days a week. I should clarify super B (8 axle) to get to 63,500kg.
     
  8. Karlgrohms

    Karlgrohms Bobtail Member

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    Jan 4, 2020
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    Right on, much appreciated, I’ll take the advice and do some math :)
    I’m not really aiming to haul round the clock, moreso can I justify getting a rig for a byweekly run to the coast that is happening anyway, any thoughts on an m2? Thanks
     
  9. DaytonTD

    DaytonTD Light Load Member

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    Jul 14, 2019
    Edmonton, Alberta
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    Do you use a load board or your own contacts? I just bought a Super-B and had guys tell me to work for Star or Pahal. Those rates seem high is that normal for Super-B?
     
  10. Dave124

    Dave124 Light Load Member

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    Mar 11, 2019
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    I don’t know your market, the amounts purchased by your buyers, or the type of bales, but if you can move full truck loads you want to be able to haul as many pounds as you can. The trucking ultimately comes down to $/lb moved at the receiver. They are paying (for example) $0.10/lb for the hay plus transport, so their final cost per bale is cheaper if they can move more because the transport cost is relatively the same regardless of how much you move.
    So with that said, if you have a class 1 DL then I would probably step up to a full size semi and stepdeck (or different trailer depending on your bale type). Most guys I see that get medium duty trucks end up in full size after a year or two. But maybe your buyers do not need full truck loads at a time, I just don’t know your market.
     
  11. Karlgrohms

    Karlgrohms Bobtail Member

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    Jan 4, 2020
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    Thanks for the advice... I’ve been toying with the idea..
     
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