Truckers on the Move

How Much Do Commercial Truck Cost to Drive?

Running a commercial rig ain’t cheap. Whether you’re an employee at a logistics firm or an independent owner / operator you’ll need to be hyper-aware of the cost of driving and maintaining your truck. Running a logistics operation can be profitable, but if you’re not on top of your costs,runaway expenses can kill a logistics business profitability nearly overnight. In this articles we’ll cover the typical costs involved with running a commercial truck, including fixed and variable costs. We’ll also share some good advice on how to save costs and ways to keep up on book keeping.

Fixed Cost Considerations

Fixed costs represent recurring expenses sustained by simply keeping your rig in service whether it’s driving or not. Typical logistics companies fixed costs include:

  • Insurance
  • Truck Payments
  • Storage
  • Mortgages
  • Ongoing rental costs
  • Licenses / Permits

By totaling these costs on an annualized basis, owners can parse the totals into monthly or weekly increments to determine the break-even point for maintaining the business. For example, it the total annual fixed costs of operation are $32,500 for a commercial rig, it takes $2708 per month or $625 per week of fixed costs to maintain the operation. Owners can then determine the net benefit of any individual run as well as the potential loss due to maintenance shutdowns or holdouts based on a more lucrative job.

Variable Costs

Variable cost will directly fluctuate in accordance with the number of miles driven per truck. That being said, not all variable costs are created equal Many variable costs, like maintenance, will decrease per mile as the total number of driven miles increase. Fuel, on the other hand, will directly coincide with the number of miles driven and the price of fuel on the market. Typical variable costs for the logistics / trucking include:

  • Fuel
  • Fuel Taxes
  • Maintenance
  • Tires
  • Tolls
  • Broker Costs

Let’s take a minute and discuss the “king” of all variable costs – fuel. With all the talk of falling oil prices, fuel costs still reign supreme as the largest expense in commercial trucking, representing a whopping 35% – 40% of the TOTAL costs to operate a commercial truck. This critical cost factor can be a competitive advantage for costing a potential job if you can use more efficient diesel engine or fuels like a bio-fuel mix.
Next on the list of big costs is Maintenance. Typically representing around 7% – 10 % of total costs of operation, maintenance needs to be carefully considered and scheduled every year.

Profits / Salary for Drivers

If you own your rig, you’ll need to pay yourself with any leftover money after expenses. For business owner of logistic companies, driver have to be paid promptly for the work being done. Generally, salaries take up around 20 – 25%% of the expenses one is putting in. For businesses with a large payroll, you’ll need to understand there are multiple levels of experienced driver out there, and each one will have his or her salaries. Seasoned drivers will take more than new ones, but there are benefits in going with the experienced hand. The chances of short-term troubles (i.e. accidents) popping up with an experienced driver can make it worthwhile to foot the bill and pay more.

Top 5 Most Important Uses of Heavy Duty Trucks

car1Heavy-duty trucks are large like the heavy dump trucks and concrete pump trucks and capable of transporting huge weights of cargo. These trucks are a very important leg in the transportation industry as they are movers of large quantities or products or materials no small vehicle can do on land. There are many uses of these trucks including towing and moving houses, delivery and transport and recovery of disabled and stranded vehicles.

Towing: Business owners, companies and government agencies that use a large number of vehicles to operate more often have their own towing services to move vehicles when they get disabled on the road. They are the school bus companies, package couriers, police and fire departments, garbage collectors, taxi companies, bus companies, the automotive industry and the farm industry.

Moving: A heavy duty truck come in-demand when you change your home location and you need to bring everything with you. Large appliances, all pieces of furniture, and all! It can stand all the weight because one is able to transport more than the combined weight of all your home belongings. Moving a tiny house is also easy using a truck.

Hauling: Do you need to pull or transport something heavy over a long distance? You need a heavy duty hauling truck. It is vector-truck-volkswagen-worker-screenshots-1equipped with a heavy-duty hook & chain made for hauling heavy objects. Starting building contractors without owned hauling trucks could find these trucks from Chemomemtum for many of their necessities in construction. You can rely on the truck’s reputation of its ability to lift, pull and load heavy materials.

Delivery/Transport:  Soft drinks & beverages, and liquors & beers are transported by heavy duty trucks contained in long delivery trailers with roll-up doors. They travel long distances and arriving in destinations with products in good condition. Groceries and other products from the manufacturers’ plants are delivered using these trucks also. Animals in cages are loaded in trucks to transport them. In what size of a truck can an elephant fit in or what kind of truck can tow a trailer with this huge animal? It must be a heavy duty truck!

Garbage Collection & Recycling: Garbage trucks or trash trucks are specially built to collect garbage and haul it to a landfill or to a solid waste incineration facility. There are a few types of this truck. The front loader, rear loader and the side loader; well it tells where each would load the waste collected. The catch is – they are heavy duty to be able to do such heavy work continuously.


Heavy Duty Trucks Are Tough

If you use a standard hand truck to move heavy objects, there is possibility that it would break; it would further delay work. Most heavy-duty trucks are built with large engines and strong transmissions because they are meant to do heavy work particularly on job sites. They can load large pieces and pull heavy load of materials. A heavy duty can give assurance that even the toughest job can be carried out without an issue

semi-truck
They Are Time and Cost Effective

Reliability of the truck equates with lesser time and cost to transport. You don’t need many trips because the truck can accommodate that much load without breaking down on the road. Less likely if you use smaller trucks. Work can be accomplished in time or earlier than programmed. Labor cost is minimized. Saving in time, fuel and labor cost is an advantage to a business owner these days that all prices keep skyrocketing.