The trucking world can be confusing at times and no where else is this more obvious than the trucking world’s use of the term mile.
Since the default pricing variable for trucking is the mile, it has always been in the carrier’s best interest to line up their expenses (or inputs) to match this variable. The largest expense for trucking companies is driver compensation. For those people outside of trucking, it would be natural to assume that:
1) Driver picks up load; and
2) Drives X miles to deliver load; and
3) Gets paid for all of those miles. The end.
Here is where it gets confusing, a ‘mile’ at one company does not necessarily equal a ‘mile’ at another. In fact, there are three main types of mileage calculations utilized by trucking companies, and the differences between them, depending on origin and destination can be significant. This has long been a point of frustration with drivers, making it difficult to not only understand what they will be paid, but it also makes it difficult to compare compensation amounts between companies.
Source: SONAR – MILTR.VCFOO, MILTR.RCFOO, MILTR.FCFOO
Let’s start with the most accurate mileage type first – Hub miles. The way to think of Hub miles is simply the total miles the truck is driven in the process of delivering a load. The word ‘hub’ is a reference to the hubodometer, a measurement device which was installed on a truck’s axle back when odometers were not considered reliable instruments. Today, that’s not the case, and the odometer is considered the source of truth for reporting hub miles. The miles travelled are stored in the tractor’s ECM and transmitted to various databases used by trucking companies via various wireless and manual methods. In recent years, there has been a growing trend of companies starting to pay drivers based on hub miles, as the competition for experienced, professional drivers has increased.
The next type of mile on the spectrum of accuracy, are Practical Miles. The starting point in the calculation of practical miles is locating the nearest U.S. Post Office for both your origin and destination locations. Using the base information, services such as PC Miler (Trimble) or Intelliroute (Rand McNally) calculate the most likely (or practical) mileage based on truck-specific/designated routes. Practical mile calculations place a higher priority on interstate highway routes over toll and secondary highways. Progressive fleets have been using practical miles for decades, for the purposes of calculating driver compensation. Using practical miles as opposed to hub miles, allows carriers to establish a benchmark target or standard for each load, and a natural incentive not to deviate from that target.
The final and oldest mileage type (for the purposes of freight hauling) are Short Miles. Short miles, otherwise known as HHG (Household Goods) miles are still used today by some carriers, even though the mileage deviation from hub miles can be as much as 15%. HHG miles were originally developed by the Department of Defense, as a way of establishing an upper limit on the cost of moving servicemen and women across the country. Short miles are similar to practical miles in that the base calculation starts with the distance between the nearest post offices within each zip code area. However, this is where the similarities end. With short miles, the calculation to determine mileage does not take into account the most efficient (interstate highways) route for getting from origin to destination. It simply provides a low-end benchmark for the least number of driveable miles between two points, regardless of infrastructure or typical congestion.
Since driver payroll is a multi-variable calculation, it is possible for a driver to make more money, while being paid based on short miles. Likewise, it is possible that a driver could get paid less with hub miles, relative to other carriers on the same routes. Drivers must understand their base rate per mile, the mileage type, plus any bonuses, per diem pay, and benefits to truly evaluate or benchmark their compensation with other carriers. Conversely, it is in the carrier’s best interest to educate their drivers on their ‘effective’ compensation rate per mile.
Bob
The companies depend on your ignorance and your lack of willing to organize. Until the day comes when y’all decide to organize and show the strength of uniformity… You need to stay quiet. Or get a get union job… Oh wait.. Y’all ran them into the ground. LMBO!
Richard M Gaskill
You mean organize like thousands of DHL workers did about 10 years ago? Within 3 months DHL shut down the domestic division and they are all out of jobs.
Organize and go to court to be classified as employees instead of contractors like FedEx Ground contractors did? Yes, they won their case. Then FedEx eliminated all single truck contracts. Contractors had to be incorporated and contract multiple trucks. And just like that the former employees became employers.
Ray Westbrook
It is interesting that the FMCSA, will beat the hos side of the trucking equation to death, but will never address this side, nor will they tackle detention.
With the technology available today, through multiple sources, freight should be doorstep to doorstep. Companies and drivers should be able to bid lanes precisely, drivers should be able to be paid precisely. The primary problem is that issue doesn’t check enough boxes in the media, so it will be ignored!
Noble1
California , New Jersey , and New York have tackled the issue . Misclassification claims are all over the media !
However , the FMSCA is a “safety” agency , not a rate regulator . State labour codes are .
Quote:
“The Federal Motor Carrier Safety Administration (FMCSA) is an agency in the United States Department of Transportation that regulates the trucking industry in the United States. The primary mission of the FMCSA is to reduce crashes, injuries and fatalities involving large trucks and buses. ”
Main functions
In carrying out its safety mandate to reduce crashes, injuries, and fatalities involving large trucks and buses, FMCSA:
Develops and enforces data-driven regulations that balance motor carrier (truck and bus companies) safety with efficiency;
Harnesses safety information systems to focus on higher risk carriers in enforcing the safety regulations;
Targets educational messages to carriers, commercial drivers, and the public; and
Partners with stakeholders including Federal, State, and local enforcement agencies, the motor carrier industry, safety groups, and organized labor on efforts to reduce bus and truck-related crashes.”
End quote .
Furthermore , they can’t directly “regulate wages” in the trucking industry due to the FAAAA BS misinterpretation . States and trucking associations are fighting like mad in courts while using the “FAAAA you can’t touch” us card due to regulations contradicting the deregulation Act which could have an impact on prices, routes, and services !
These clowns think they have carte blanche ! The FAAAA needs to be redrafted and or ABOLISHED ! It’s being used abusively and misinterpreted .
The Third Circuit Court interpreted it very well in my opinion .
Anyways , this just goes to show why a Truck Driver “Alliance” is extremely important to create . It will overcome all the BS !
In my humble opinion …………
Scott Lynn Parsons
It doesn’t really matter what you call it. Everything you touch came off a truck. You better treat them good. Dam good. If they keep getting ripped off they may decide to stay home with their families. Then you would starve. The country would come to a halt.
Noble1
Staying home will simply get you replaced and or engender regulations that we can do without .
We can do much more than simply walk away . We can remove their “power” . We can displace them . They too are dispensable .
In my humble opinion …………
Richard M Gaskill
So tired of hearing this bs. If they are so valuable why do they have to work 60 hours a week to earn what the average worker makes in 40. A truck driver is just a link in the chain. If warehouse workers didn’t load the truck he wouldn’t have a load. If consumers didn’t buy products there would be no need to haul roads. If highway workers didn’t maintain roads the truckers wouldn’t be able to deliver loads.
Noble1
The difference between the LABOURERS you mentioned in comparison , is that compared to truck drivers those EMPLOYEES in your example aren’t paid by piece work ! The majority of truck drivers are paid by the mile and overworked . The MAJORITY of truck drivers ARE NOT paid for all hours on duty . The majority of truck drivers used to make up for being screwed by extending their driving time . They can no longer do that now .
You appear to talk a lot but don’t appear to quite grasp the industry . Have you ever driven a truck ? Have you long hauled ?
Furthermore , if that “just a link in the chain” were to show us the proverbial middle finger for a couple weeks , you would be killing yourselves over toilet paper that would be going for $30 a roll due scarcity ! You can take a look at what occurred in Brazil . They took that country to its knees in just two weeks . We don’t need that kind of hardship here !
If consumers didn’t buy products ???? LOL ! You’re being constantly manipulated to BUY BUY BUY ! , CONsume CONsume CONsume . Do you think “CHRIST-MASS” was created for your enjoyment ? And why does “Santa Clause” wear a red suit ?
Marketing , Advertising, and PR must simply be hocus pocus right ? LOL !
Good luck bud , I’m done
IMHO
Richard M Gaskill
If dock workers gave the truck drivers the middle finger and didn’t load or unload them or if workers at fuel stops turned the pumps off nobody would get toilet paper then either. Those people are as essential as truck drivers.
Noble1
LOL !
You see my dear Richard , some dock workers do give the proverbial middle finger through an ORGANIZED LABOUR UNION when the employer doesn’t want to treat them reasonably !
However , most truck drivers aren’t UNIONIZED !
Furthermore , many dock workers and or their companies GIVE many drivers the finger through DETENTION !
The point in the prior comment is that many truckers are speaking about a COLLECTIVE shut down , not just one area , or as in your example concerning one company .
Nobody is suggesting that one labourer is “better” and or more important than another . You need to stop trying to twist things around .
So again , if such a thing were to occur among truck driver such as it did in BRAZIL , you wouldn’t even be able to fabricate your toilet paper ! DO YOU UNDERSTAND ?
This what needs to be prevented by treating them BETTER ! We wouldn’t want such chaos to occur .
If you think it wouldn’t be possible , nor did the politicians in BRAZIL !
In my humble opinion ………..
Jeffey Roberts
You forgot the railroad mile which a lot of companies used when I started trucking, it was a straight line drawn across the map from point A to point B.
Bob simons
You guys are the new breed of truckers, big Sissy’s.
Noble1
You got that backwards , it’s the other way around .
What’s your angle Bob ? You fear change ? You find “comfort” in getting screwed ? Or are you one that screws ?
-It takes courage to take a stand , cowards won’t and will bend
-It take courage to stop abuse , cowards won’t and will allow another to walk all over them and others
-It takes courage to commit and create a change , cowards won’t even try due to fear of the unknown
-It takes courage to try something new , cowards won’t and will settle for the old
-It takes courage to lead , cowards won’t and they’ll simply follow the herd
-It takes courage to say enough is enough and we won’t take anymore, a coward won’t and will remain submissive
-It takes courage to defend the weak , a coward won’t and will join them
-It takes courage to think out of the box , a coward won’t and will settle for conventional wisdom
-It takes courage to speak up , a coward won’t and will remain silent
-It takes courage to right a wrong , a coward won’t and will justify the wrong
-It takes courage to say no to authority , a coward won’t and will yield to authority
Quote:
The manipulation of the American mind: Edward Bernays and the birth of public relations
“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are molded, our tastes formed, and our ideas suggested, largely by men we have never heard of…. It is they who pull the wires that control the public mind.”
Do you realize just how “brainwashed & manipulated” you have been and are ?
If your “opinion” has been intelligently manipulated into being , do you really have one of your own ?
Welcome to the land of zombies(unconscious and being controlled by someone else)
Untamed spirits aka the “uncontrollable” ones are the “hope” of the future !
In my humble opinion ………….
Richard M Gaskill
It takes brains to not work for a low paying carrier. There are plenty of carriers out there that pay well, set reasonable schedules, and pay detention pay.
As long as fools accept low wages and accept tight schedules carriers will continue to exploit them.
I am so tired of hearing drivers saying an ELD “makes them” have to rush. The majority of carriers have drivers making on time deliveries without coming close to reaching the limits of HOS.
Noble1
Agreed .
If you can find such a carrier and they compensate you well for your time ,and the runs are well coordinated , and you like what you’re doing , and they treat you well , then you got it made ! There’s nothing to complain about .
However, I wouldn’t say, quote :
“The majority of carriers have drivers making on time deliveries without coming close to reaching the limits of HOS.”
That’s not accurate . Unless you haven’t been reading what drivers are saying in regards to their actual experiences .
IMHO .
Richard M Gaskill
I stand by my statement. Just because whiners post complaints and satisfied drivers comment far less doesn’t mean the majority have problems.
Driver abuse is self abuse. If a driver works for a low paying carrier that sets tight schedules that force him to rush through a day without breaks, and the driver stays with that carrier he only has himself to blame.
There aren’t that many drop and hook jobs that you suggest but I had something close to that before retiring. I pulled a chemical tanker. Shippers didn’t want to risk contamination from carrying other chemicals in the tank so they paid for exclusive use of the tank. They paid for the empty miles returning the tank empty. Loading and unloading was by appointment with detention pay after 2 hours. Loading usually took less than an hour and in some cases a local driver would preload the tank.
Most of my loads were 2 or 3 day trips. Two day trips generally required less than 9 hours driving each day. On 3 day trips I would typically drive 9 or 10 hours the first day and stop 4 or 5 hours from the receiver. The second day I would drive 4 or 5 hours to deliver and in less than 2 hours be unloaded and drive 4 or 5 hours toward home then finish the trip home the third day.
After retiring I worked seasonally pulling a hopper bottom for a local farm that had contracts with Tyson and Perdue. I was paid by the hour and got time and a half after 40 hours. I generally worked around 65 hours a week and was home every night. A Tyson feed mill had JB Hunt dedicated drivers delivery feed to chicken farms.
mike
pay us by the hr and x1/2 next 30!
Noble1
That would be a simple solution . However, one reason they don’t want to do it is due to it increasing their costs in long haul .
Why long haul ? Due to not being able to replace the driver when far away from the terminal . In short haul they could do it by replacing the driver with another once a driver hits the 40 hour mark too keep employment costs lower .
Canadian labour code forces them to do it after 60 hours in a regular work week without statutory holidays . If there is a statutory holiday within the work week then they are obligated to pay time and a half after 50 hours , plus overtime if you worked on that statutory holiday . Most truck drivers are unaware of this .
If paid by the mile , they use your average and convert it to hourly wage . Example : If you’re paid .55 cents per mile , they look at your average miles per day and miles ran per hour . So if your average is 53 miles per hour multiplied by .55 cents per mile , it equals to $29.15 per hour . Multiplied by time and a half equals to $43.75 per hour overtime . They base themselves on your log book . This is why it’s extremely important not to manipulate your paper log book . Otherwise you’re “cheating” yourself if you need to collect an unscrupulous employer through a government revenue agency . The only set back is that it takes time to collect . But collected it will be .
Furthermore , they will do the same for all your hours logged ON DUTY ! You’re employer that pays you by the mile won’t , but Revenue Canada will collect them for those amounts owed if reported and unpaid .
That log book is your proof ! That log book is considered to be the same as if you were in court and under oath ! Cheating it is considered perjury while under oath !
I’ve been through the process . I wanted to test revenue Canada and I wanted to teach a carrier employer a lesson . I told him straight out , you won’t f*** me , I’ll throw the “book” at you , and I did . LOL ! It took 9 months to collect though every single penny owed for HOS , fuel time , inspection time , and dock/detention time .
I had warned him that I was quite well read with the laws concerning this matter . I got the last laugh . This was 2 years ago . Meanwhile he’s still has ads up looking for drivers . Take a wild guess why . LOL !
In my humble opinion ………..
Richard M Gaskill
Driver turnover is close to 100% because drivers find out they can’t survive working over 60 hours a week and you want them to shut down at 40 hours.
Noble1
You are obviously misinterpreting what I wrote . Reread .
How can drivers not survive working over 60 hours a week ? You need to elaborate a little more . Does that driver own the truck ? What sort of run, what is being hauled etc ?
If the driver owns the truck , is the O/O under contract directly with a shipper ? Leased on ?
However, working over 40 hours a week isn’t healthy nor is it considered safe . Injuries tend to increase over 40 hours per week and over 8 hours per day all depending upon the trade . If you’re sitting behind a desk , or behind the wheel , circulation issues , back issues arise etc.
Pick your poison .
IMHO
Richard M Gaskill
The pay rate for beginning drivers may be $.30 a mile or less. I have heard of drivers getting less than 2,000 miles a week. Drivers are told to have the guts to say no to unreasonable dispatch demands but refusing a load from some dispatchers will result in waiting 2 or 3 days for the next load.
Noble1
Richard , you need to scout .
Then debate based on facts . Sure you will find some that are unscrupulous , and you’ll find some that are not .
You need to know what you like and what you want . Example you can find a drop & hook truck driver opportunity where you would always be going to the same place and back , such as in a yard to yard haul then switch trailers .
In this example you will know what to expect in regards to mileage on a weekly bases . You’ll be able to figure an average earning wage per week .
There are all kinds of people out there in this trade and all kinds of opportunities .
If you like to sleep at home every night and want security with benefits and paid overtime after 10 hours of work , and paid by the hour , and don’t mind doing physical labour along with driving , you can apply for a Pepsi or Coca Cola delivery job . Typically you won’t go passed 40 hours per week .
Then again you can get a flatbed run offering .80 cents per mile . You need to search and try things out . If a “dispatcher” lies to you once or forces you to do things that you didn’t pre-agree to , quit and on to the next ! That’s the easy solution to put an end to BS . They need YOU more than you need them .
If you’re starting out , I would look for a drop & hook yard to yard run . Or you can hop around until you find something you really enjoy doing .
In my humble opinion …………
Brian Monnerjahn
I like the hr, deal but every hr spent in truck when logged in. Any down time period, driver should be paid. All expenses, like trans, flo faxes, weight tickets, and expenses related to truck. Basically a credit card strictly for business use.
Noble1
Every period that you’re “on duty” should be paid . Whether that be in a break down , detained at a scale or shipper/receiver , lay over due to being “available for work” etc. If you’re not , you need to report it to the revenue agency in your country . They really do look after your best interest . They also want their taxes , LOL !
A lot of “employers” will play on your ignorance, it’s business , nothing personal , LOL . It’s your job to be well versed with what concerns you . If you’re a member of an organized labour union then they are suppose to look after your best interests . There again , you need to look into what they can, cannot, and what they should do . Some unions break laws . They can put you in harms way . In other words , we can’t allow ourselves to be simple “followers” . Most will depend on what an employer and or union delegate says and take it as truth .
The new recruits in trucking are the most vulnerable . They generally fear “authority” . They’ll bend to a dispatchers unethical desires under threat that they will lose their job if they don’t bend . Managers can be very manipulative .
While in an interview you don’t want to tell them too much either . You’ll scare them and they may view you as a potential trouble maker . You need to be a better manipulator than they are , it’s nothing personal , just business , LOL !
Then when the time comes to confront them you need to have gathered your proof which they can’t deny . You’re allowed to record a conversation between yourself and another party without their permission and without them knowing . You just need to be personally involved in that conversation with the other party .
Agreed , drivers shouldn’t be held responsible for the lack of responsibility of an employer . Be strict on your inspections , mark those defects . Don’t allow yourself to be manipulated if they attempt to suggest ” it’s not that bad” . If it’s a major defect , it’s a ‘major” defect . The employer even though you’re paid by the mile has to pay you for being on duty and that’s a fact . An employer is not allowed to entice you into violating a law . Once you know what they can and cannot do , as well as what they should do , you become “authority” .
Unscrupulous employers fear employees who are knowledgeable and ethical .
Unfortunately a lot of these guys(employers) in the trucking industry are clueless clowns . However , some are straight and go by the book . Misclassification is a major problem . They’ll use it to render you liable for damages you normally wouldn’t be as an employee . A lot of misclassified employees get screwed real bad into paying for things they shouldn’t within the normal course of their duties within their jobs .
In my humble opinion ………….
Richard M Gaskill
If all hours were paid it would be close to minimum wage. Now think about every hour you want to be paid being on duty. Driving miles should pay better but the miles you are paid sitting will run you to your weekly limit quicker. More drivers will likely be running out of hours away from home.
The thing is to not work for carriers that require you to have a lot of unpaid hours.
Noble1
Quote :
“If all hours were paid it would be close to minimum wage. ”
ROTFLMAO ! Not quite .
Quote :
“Driving miles should pay better but the miles you are paid sitting will run you to your weekly limit quicker. More drivers will likely be running out of hours away from home.”
On duty time is part of the HOS regulation ! If you’re “sitting” aka detention , you’re on duty and should be paid in full , period . If lack of good management at the shipper and or receiver adds to running out of hours to make it back to the terminal , then don’t haul for that shipper nor go to that receiver , period . All HOS are to be logged and compensated for , and certainly not at minimum wage .
Check freightwaves article titled :
Canadian trucker XTL says hourly driver pay program is paying off
03/26/2019
Quote:
“Drivers receive their hourly pay for all on-duty time, which includes meal and rest breaks. ”
The Teamsters are at XTL !
Personally , I charged my ex employer on duty time not driving at the same rate as driving . So did a revenue agency when they collected another employer on my behalf who didn’t pay all HOS .
IMHO ………..
Jason
I actually like how Amazon is paying it’s carriers these days using time blocks instead of miles. I feel like it doesn’t make much sense to pay carriers this way but I like the idea in general in terms of driver compensation. Pay a driver for time blocks instead of miles driven so that drivers don’t get short changed by low mileage routes or end up driving tired trying to squeeze in more miles.
William carrigan
Then work for a company that pays HUB MILES. Companies generally pay the same miles THAT THEY BILL THE CUSTOMER! I have been on the desk side of trucking for 27 years, I do not own a company, but I know enough to understand that not all companies are evil and most care about their drivers. Do your homework folks, do not assume that it is “us against them”.