Originally published at: What the Latest Rate Dip Means for Small Carriers Part 2 - FreightWaves
Small carriers pay attention: the dip in rates is consequential for you.
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Want the truth? My operating costs are $1.79 a mile. Anything below that I end up paying the shipper and that’s just STUPID for ANY business. Anything below $2.00 a mile is unsustainable and ruins my financial situations. If rates dip below 2.10, I’m outta here. 2.10 a mile is minimum wage profit. And no way I’m missing my wife for a couple weeks at a time, eating crap food and not having a normal life for minimum wage. It’s hard to stomach anything below 2k a week profit and I refuse to do this BS for 800 a week profit.
Couldn’t agree more. Hard costs like fuel, truck payments, and insurance are just a piece of the total price paid with being on the road. Is being away from family and friends, dangerous work conditions and long hours, and neglecting your health worth it if you’re making $.20-.40/mi profit? I’m not too sure.
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