Latest / Military Broadcast Radio | MBR Talk / On The Road With TruckerMouth,Trucking the Bottom Line is at the Bottom
Transcript
- 0:00Welcome to Military broadcast radio.
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- 0:21Welcome to Truckamouth, the podcast that gives you real
- 0:25insight into the trucking industry while providing a
- 0:29platform for your voice to be heard.
- 0:32Whether you're behind the wheel, managing logistics, or just
- 0:36passionate about the industry, this is the place to build
- 0:40confidence, share experiences, and stay informed.
- 0:46Join us as we tackle the challenges, celebrate the winds
- 0:51and drive forward. Hello, everybody.
- 0:57Thanks for tuning in. Welcome to my underground
- 0:59studio. I'm trucker mouth and you're on
- 1:01the road show. Oh, man.
- 1:04How's everybody doing? How's everybody doing?
- 1:07Man, I hope better than me I'll get well.
- 1:12I was going to do that later. I'm going to do that now, man.
- 1:18I had a trying week, man. I had, I had, I had a sore in my
- 1:22leg. I was a rat.
- 1:25So I go over to the VA after a while and I said, I'm pretty
- 1:28sure it's, you know, Tina's ringworm.
- 1:30Lo and beholder go over there. He said, yeah.
- 1:32So he gives me, doctor gives me this powder, antifungal powder,
- 1:37this antifungal shampoo to use. OK, so I'm using that.
- 1:42A week or so later, about obviously 2 weeks later, I go
- 1:47back over, call out, make appointment, go back over and
- 1:49see the walk in doctor, same guy, Doctor Mcdonaghue, if I got
- 1:53the name right. So I show him, I think it's, you
- 1:58know, spread to my groin area because this, this, this
- 2:01ringworm is a spread. And he said, yeah, I see that.
- 2:09So he gives me more antifungal powder and cream.
- 2:13Keep using it. All right, keep using that.
- 2:16Two weeks go by, I'm still itching.
- 2:22So I, I called the VA up. They have like a, a care number.
- 2:26You can call it might like an urgent care number.
- 2:29I talked to this guy. I would do a video appointment.
- 2:31He sees it. He sees it down there.
- 2:33He said he sends me, he sends me this cream, this antifungal
- 2:36cream, the same as a powder, but it's cream for him.
- 2:39You put on yourself, OK. And I think they send me shampoo
- 2:48too. Yeah, I think you sent me Sam
- 2:54ships. So So I got antifungal.
- 2:57I got antifungal cream, which is the same as the powder and
- 3:01shampoo again. So another week to buy.
- 3:03Oh fuck, I can't deal with this. I went to urgent care.
- 3:06I'll get down to urgent care. They see me.
- 3:10They're real nice to me and everything.
- 3:11And what did they give me? They gave me topical shampoo and
- 3:17and powder. A different kind of powder, but
- 3:19it's antifungal powder. This is all topical so, so then
- 3:24she gave me something from my back and then something else for
- 3:27I felt something on my nose, very nice to me, but still still
- 3:30topical. So I'd go to the emergency room,
- 3:33you know, hell with all this, you know, I got this stuff on my
- 3:36shit. Obviously the topical stuff's
- 3:38not working. OK, I need an antibiotic.
- 3:41So I go to the emergency room. I finally got an antibiotic,
- 3:45terbinophene. Hopefully it works because this
- 3:47is terrible. Then I got a rash with my back
- 3:50then I had then I had the post pain, post pain postpone an
- 3:53appointment with pain management because they didn't want me
- 3:56there with this, with this, with this ringworm.
- 4:00Now I'm waiting months to get in there.
- 4:02I can hardly walk. I'm 280 now.
- 4:04I'm not bitching on on the up, on the upscale side.
- 4:07On the upside, I had problems with my car and and I was
- 4:16worried about that. It went for making a squealing
- 4:18noise, then we were making a squealing noise to rubbing, you
- 4:25know, full metal overnight. So I was all upset about that.
- 4:27On top of all this. Well, I got a hold of a guy here
- 4:29in town. I met him near a day for an
- 4:33issue and sounded Guyman Brothers Automotive there on No
- 4:40St. in Columbia, formerly Guyman Family Automotive, but the boys
- 4:43took over. They lost their father,
- 4:45unfortunately. I went down there.
- 4:49He told me, come on, Dad can come down.
- 4:51He didn't have nothing going in right away, You know, I told him
- 4:54what I had to work with. His name was Ricky, you know,
- 4:59he, he, he did me good. He, he put the brakes on.
- 5:01I had the brakes already. I had to borrow money from my
- 5:04mother to, to, to, to get it fixed.
- 5:05But you know, I only got 1 car and that's what we need for
- 5:08everything. So I couldn't let it go.
- 5:11And he got me in there. I told him what I had to work
- 5:13with, you know, and he he even left me money because I ain't
- 5:17going to think I'll leave you money for a case of beer.
- 5:20And that's the trucker Mount Dick if he was stressed out.
- 5:22But if you if you're in the Columbia or well around in and
- 5:26around the Columbia, PA area, you got York and Lancaster
- 5:28counties or just looking for a good mechanic.
- 5:32It's still under Google gunman family automotive.
- 5:36It's gunman brother's automotive, but it's still under
- 5:38gunman family automotive. Got good people, good work and
- 5:41very reasonable. I thank you Ricky, if you did me
- 5:44a good job and I hope he's doing good.
- 5:47Thank you. All right, so let's get to the
- 5:54let's get to the topic of the day here.
- 5:58Topic of the day is trucker's bottom line.
- 6:02You know what what what's your owner operator is mostly geared
- 6:04toward your owner operator. What's your owner operator, you
- 6:06know, brings home after, after everything.
- 6:09And he's got a whole bunch of stuff that he's got to shell out
- 6:12before, before he can. What is bring home is and it's
- 6:18mind boggling. Now, I know other other, you
- 6:22know, other other companies or other yeah, the things in other,
- 6:35other areas, they have a lot of overhead too.
- 6:37But this here is really, I mean, it's mind boggling.
- 6:43So these are prices right now or averaging NO553540 gallon
- 6:50nationwide, no gallon and these cats are filling up 500 gallon.
- 6:55Sometimes the time keep out from that one.
- 6:58So they said it's going to be 5 at least five hours a gallon
- 7:05until, until it beginning next year or until they get that
- 7:10asshole straightened out over just straight to her moose,
- 7:14which I can't believe when I say it's every show, they're letting
- 7:16that one area, you know, control the whole world's economy and
- 7:21mess people shit up. So they say by the by the end of
- 7:26the third quarter, the EIA, the Energy Information
- 7:32Administration, which I know we had one of them said it should
- 7:34be below $5 a gallon by the third quarter 2027.
- 7:39That's a whole long, long time for these people.
- 7:43That's a long time for these people.
- 7:46Shelling out fuel totals 50 to $85,000 a year for truck
- 7:50drivers. You're over a truck driver if
- 7:53you're if you're buying your own fuel fifty $85,000 a year,
- 7:56average of $45,000 a year. OK.
- 8:00So that's that's your necessity right off the bat.
- 8:04And man, that's just a whole lot to to keep back.
- 8:09And now I guess your leasefill company have a fuel surcharge,
- 8:13which, which a full a fuel surcharge is something that I
- 8:18guess the government mandates and you get it back or, or, or
- 8:23you can put it, I guess you get that back at the end of the year
- 8:26or, or, or it's, or it's taking off right away with the company.
- 8:29I'm I'm not sure how it works. I never, I never was in a rock
- 8:31barrier before. I always wanted to be as a
- 8:33little boy seeing the trucks on the Turnpike.
- 8:36I always wanted to be that cowboy trucker out there.
- 8:38You know, especially in the 70s, you know, in the 70s when the
- 8:41big truck and boom was all your truck and movies were coming out
- 8:44convoy and all of them, you know, everybody wanted to be
- 8:47your cowboy trucker out there. What's your cowboy trucker?
- 8:52It your, your, your lone trucker who's who's, who's going to load
- 9:00boards, getting their own freight and all that with their
- 9:03own truck, not least to a company.
- 9:05Yeah, that's, that's almost unheard of nowadays.
- 9:09That's almost unheard of nowadays, man.
- 9:13Everybody's everybody got their own trucks.
- 9:15But they, they released the companies.
- 9:16So yeah, then you got your truck payment or lease, which is 1500
- 9:24to $3000 on the average a month. So you got that a month, you
- 9:32know, unless you have your truck paid off or something.
- 9:37That's right there. So then you got your insurance
- 9:38and maintenance cost. That's 10 to $20,000 insurance
- 9:48and maintenance costs. Yeah, 10 to 20,000 a year
- 9:57insurance and maintenance cost, higher rates for new
- 10:00authorities. So if you're just starting out,
- 10:02your insurance is going to be higher, just like if you're a
- 10:04new driver. If you're a new driver, your
- 10:06your insurance rates going to be higher than than, you know, if
- 10:12you've been driving for a while. Mine are finally coming down.
- 10:15It's not having a whole car or a license for seven years.
- 10:19Truck them out. That's how I can truck them out,
- 10:21throw it off the road and give me a lifetime suspension for
- 10:23Duis. Well, traffic stops resulting in
- 10:26a DUI. And.
- 10:30Yeah, and that about killed me. You know, not not only took my
- 10:36license from me, but they took my trade from me.
- 10:39And when you take your trade from me, you can't you can't do
- 10:42your trade no more. It's terrible.
- 10:44It almost killed me. Let me tell you.
- 10:45I was thinking about bad thoughts.
- 10:50So then you got tolls and permits.
- 10:51You got all kind of permits. You got to have to drive these
- 10:54trucks If you're on an operator, it's it's just wow, the taxes
- 11:02and fuels. No, you got quarterly.
- 11:05If the if the tax got to pay that quarterly, it's an
- 11:08international fuel tax agreement.
- 11:10Got to pay that quarterly. I'm already I'm already out.
- 11:18Ain't no way I can do it. I couldn't do it.
- 11:22I guess a lot of these guys have garage or something due to books
- 11:26and how I don't or something I couldn't do what I'm on meals
- 11:29and lodging, so I only a couple only meals for sure.
- 11:35That's a big one out there. If you're a company drive right,
- 11:37your biggest expenses, your meals and sometimes you know, if
- 11:42you're parked somewhere overnight and there's I was on a
- 11:50the Home Depot account and a lot of times I'm Home depots.
- 11:52The only thing around was the Ruby Tuesdays, but that was like
- 11:57you had a Home Depot and a Ruby Tuesdays always seem to be in
- 11:59the same park as them, same strip mall as them, whatever we
- 12:05call it. There's a lot of Ruby Tuesdays
- 12:07there ain't cheap. But then you end up going in.
- 12:11OK, I can see AI can see a Hardee's or something about 1/2
- 12:16mile down the road. I'm drinking beer.
- 12:17But no, no, you know, you end up drinking there and you got to
- 12:20beat there. Oh, I already got a steak at one
- 12:25place, small steak because I was trying to save money.
- 12:27That one and all. That's it.
- 12:29I'm getting a big steak. So I end up spending $80.00 that
- 12:32day on on that steak meals and drinking.
- 12:37So I basically drove that drove that day for nothing.
- 12:41I drove all day long to sit in a bar for three hours, get a steak
- 12:45dinner and drink and drink beer. So I probably, I probably lost
- 12:48money that day. Oh yeah.
- 12:52Well, your transportation per diem is $80 a day now for
- 12:55another operator. And that's the way the
- 12:58government allows you, allows you for being away from your,
- 13:02you know, from home and working out the road.
- 13:04And they can claim by the end of the year, right.
- 13:06That's that's now they I heard that they took that away from
- 13:10company drivers for a while there.
- 13:12And if you worked for a company you weren't getting you weren't
- 13:17getting your per diem. The company paid.
- 13:21This company is supposed to give it to you and your checkers.
- 13:24I don't know. It was a big RIP off for the
- 13:26company drivers. And finally, I think they went
- 13:27back there. You can get you can get per diem
- 13:29now that's holding our show. All right, so and you got cost
- 13:38per mile of an under operator? No one cost per mile of an under
- 13:42operator. All in cost is about 226 a mile
- 13:46because that's what you're paying per mile to go down the
- 13:48road. Your break even cost is a dollar
- 13:52$30.80 a mile before paying yourself.
- 14:00Yeah, I wrote this. I just see my notes, but I'm
- 14:01not, I'm not so sure your break even costs $1.30 or $1.88 a mile
- 14:07before paying yourself. OK.
- 14:13Your average owner operator makes 50 to $1.20 per mile
- 14:19average net profit, $0.50 to $1.20 a mile net profit.
- 14:28An average owner operator driving 100,000 miles to 110,000
- 14:32miles a year. But that's low.
- 14:33That's like 2000. You ain't going to have an
- 14:35interoperator only driving 2000 dollars, 2000 dollars, 2000
- 14:39miles a week. He ain't going to make it.
- 14:42Ain't no way. So an average owner operator
- 14:46driving 100,000 miles to 110,000 miles a year, which is low, I
- 14:51said, netting an netting an average salary of 64,500 to
- 14:56$71,000 annually. So that's what they bring home.
- 15:00Sixty $70,000 breaks down the clearing, 607060 to $0.70 per
- 15:05mile. Where are we at here?
- 15:20I got to look back. See what?
- 15:22OK, there it is. All right.
- 15:25Then you got other hardships, other hardships out there like
- 15:28truck parking. I think I read or seen there's
- 15:32only one truck slot for every big truck out there on the road
- 15:37for parking, overnight parking or during the day parking.
- 15:42One in 11, one truck spot for 11 trucks out on the road.
- 15:47And then you got your detention time.
- 15:48You got put up with broker issues, you know, not brokers
- 15:52not paying you. Some of these brokers won't pay
- 15:54you or they're not paying you the whole rate emission regs,
- 15:59you know, buying death. There's an error thing now
- 16:01they're supposed to be doing away with supposedly.
- 16:04I've seen it. I read in in Trucker magazine
- 16:08that they're going to do away with with these emission
- 16:12controls with buying death. OK, I don't know what else.
- 16:16They're still going to be highly regulated on the emissions, but
- 16:19they're going to get away with the death or something.
- 16:20That's a good thing. There's an error.
- 16:22There's an error cause for for drivers.
- 16:25You got to worry about cargo theft and your safety out there.
- 16:28Cargo theft's a big thing, big time thing nowadays, especially
- 16:33out in California. Oh yeah, throwing up.
- 16:36It's big. That's big down here, too,
- 16:38everywhere. You got to watch it.
- 16:40You got to watch it nowadays. And then people are great at
- 16:42doing anything. And you got, you know, road
- 16:46construction, natural disasters, you know, fires, floods, you
- 16:54know, closing of interstates. If you're, you're out out West
- 16:58already, they close the Interstate down because of big
- 17:00fire, which we have every year. You know, you have to go an
- 17:03hour, 2 hour of your way to get to the same place you were going
- 17:05to go before because they got that Interstate closed down.
- 17:10Now, Yeah, you can't win, man. I'm telling you, a tire blows.
- 17:14A steer's $1000. A steer tire's $1000.
- 17:18I think drive tires are like 7-8 hundred.
- 17:22The steers are grand. Now steers don't blow much.
- 17:25I haven't seen many steers blow, but they do already go bad.
- 17:32The freight, the freight it is growing at a a fast rate, the
- 17:36fastest rate in four years. Manufacturing is up and the
- 17:41freight is growing at manufacturing is growing around
- 17:46growing at fastest rate in four years.
- 17:48OK, come on now. Yeah, So manufacturing is up, so
- 17:54trucking loads are up. And so where truck, truck rates,
- 17:58truck rates are up too on the price of freights are up, which
- 18:02is good for the, you know, good for the driver.
- 18:04But they were, they were way down for a while there.
- 18:06Now they're starting to come up again.
- 18:09That's a good thing for the owner operator and the company
- 18:12drivers too, because makes their company more money, so they get
- 18:17more money. CS Rollins expects truckload
- 18:20price to continue to rise faster than intermobile.
- 18:24So intermobile is your intermobile is your rail.
- 18:30You see, you see the trains with all the, the, the, the vans on
- 18:37them, you know 20 of them in a row.
- 18:40They're taking them, you know, from point to point.
- 18:42Then the truck drivers are picking them up in the yards or
- 18:47or the seagoing containers, you know, coming over on the
- 18:50freight. But all that freight or or by or
- 18:54by sea, that's all in their mobile.
- 18:57But Robbins expects truckload pricing to continue to grow
- 19:00faster than intermobile. Everybody wants to marry a
- 19:03dream. Everybody wants to be in their
- 19:05own company would would be an owner operator.
- 19:07I know I did as a little boy. I still do, but I'm out.
- 19:10I'm out and I'll be, I'll be 60 this year not long from now on.
- 19:13Everybody wants the American dream.
- 19:15After all that. Class A truck sales are up.
- 19:18Class A truck sales are up, man, even if they're all out.
- 19:24So when we come back, we'll take a little break here.
- 19:28We'll go compare trucking with another with another with
- 19:37hospitality, and we'll compare things and how they stack up
- 19:44against each other. When we come back tongue tied,
- 19:50had the damn time here, I'll know we're going to go with.
- 23:07too many. The station where our veterans
- 23:10voices are heard. MBR talk.
- 23:13Hey, thanks for supporting our channel by watching and
- 23:16listening. Find us on the.
- 23:17Web at NB Radio dot Hello everybody.
- 23:23Welcome back to the Roadshow with Trucker Mouth.
- 23:27And today we're talking about the bottom line of trucking and
- 23:32all the, a lot of the, a lot of the things that that I touched
- 23:34on that the, the the owner Opera had to pay out to run this
- 23:39business. Now I'm going to compare
- 23:41trucking within their industry, compare it with the hospitality
- 23:45industry, the bar and restaurant business.
- 23:47And that's their animal. I don't know about getting that
- 23:52here, but all right. So I'm comparing, I'm comparing
- 23:55that trucking to the hospitality industry.
- 23:58Both of them are low margin industries.
- 24:01They're both low margin industries, OK, low margin
- 24:10industries. Trucking net margins, we'll go
- 24:15to trucking first. Trucking net margins and what
- 24:18they bring home. Profit is 2 to 6%, OK, 2 to 6%
- 24:25for trucking and maybe if Martin's strong, seven to 10%.
- 24:30No, it ain't. You ain't going to see 7 to 1077
- 24:32to 10% net profit. I'd like to see it for the
- 24:35truckers, but that's not what I'm hearing.
- 24:41But in Downsight with many carriers may break even or lose.
- 24:45So if you had some bad times when the freight, the freight
- 24:49prices are way down and all that.
- 24:50Now these companies aren't looking to break even or he
- 24:53might even lose. So now the restaurant can vary
- 25:00your full service spots. For our restaurants, their
- 25:05probably margin is 3 to 6%. So trucking's 2 to 6% and
- 25:10hospitality is 3 to 6% now, while fast food now their
- 25:17probably margins are 6 to 10% if run well.
- 25:20So that's, that's an eye over there.
- 25:25Your fast food's probably more than higher than your, your full
- 25:28service bar restaurants are now. If you have a restaurant, you
- 25:35need to be able to serve alcohol.
- 25:37If you have a restaurant, you got to have a liquor license,
- 25:40you got to have a bar in it because these guys people want
- 25:43to go out, they want to eat, you know, drink a little bit only.
- 25:46I mean, I'm saying I know people in the in the hospitality
- 25:49business, you got to have a be able to serve outlaw at the at
- 25:57the restaurant. Yeah, you ain't going to make
- 25:59it. There is no way.
- 26:03That's why that's why most of them do.
- 26:04And the ones that don't are are known in their area.
- 26:07They have the same, you know, the same clients all the time
- 26:10and not clients, but yeah, same customers all the time and this
- 26:17and that. And then they're probably only
- 26:18open, you know, certain hours. Oh yeah.
- 26:21If you have a restaurant, you're going, you know, you're going to
- 26:23need a bar in there to be able to serve alcohol on point.
- 26:28Most times won't make it and then and then.
- 26:31But if you do have that, then in your state now, now the
- 26:35restaurant, the house town history, you're going to have to
- 26:37deal with the liquor rule, liquor license rules and regs to
- 26:40that state. Now, I know here in
- 26:42Pennsylvania, the Liquor Control Board, there's a whole lot of
- 26:45that. I mean, a whole lot of
- 26:47stipulations, like I said, that's the whole net animal
- 26:51there with this hospitality industry that rules of that
- 26:58state. So they got a lot of headaches
- 27:02on their own. You know, they got to, they got
- 27:04to, they got to buy their, they have to buy their their food all
- 27:11the time to keep replacing their food that their alcohol.
- 27:14I mean everything not because everything people use they got
- 27:17to keep replenishing so your turnover rates OK, your turnover
- 27:26rates for trucking is 20 to 40% in trucks company drivers.
- 27:33Now we get to the road it's a lot higher than that it's a
- 27:35whole lot higher than that when you get to the road drivers and
- 27:38your long haul drivers are 59% sometimes over 100.
- 27:42Hey, right here you have it. Your long haul drivers is 59%,
- 27:46sometimes over 100 because the the it's not what it looks like.
- 27:50It's a whole lot harder what it looks like and a whole lot more
- 27:53to it. Then not everybody can do that.
- 27:56OK, so the hospitality restaurant turnover rate is 70
- 28:02to 100% or more annually. You're always seeing new
- 28:05waitresses or new bartenders or someone new cooks at a
- 28:09restaurant bar always not now there is some places that keep
- 28:13concerned on like their own family working well, generally,
- 28:17you know, you go to your your tgis or something like anywhere
- 28:21like that, you're going to see new people all the freaking
- 28:23time. And that's just the turnover
- 28:28rate 70 to 100% for for hot down industry.
- 28:31Both come with thin margins of and risks are different, OK.
- 28:36Both come with with profit margins that are thin and and
- 28:40put different risks. Restaurant cost for restaurant.
- 28:43You got cost and labor, OK, hospitality more.
- 28:48You got competition with, you know, acts are very competitive.
- 28:52You know, the bar, restaurant business, the food industry, the
- 28:55hospitality industry are very competitive as it's as
- 28:58competitive as trucking. I guarantee you that, if not
- 29:02more. And then the big thing about the
- 29:07big thing about the hospitality industry is it's a cash, a cash
- 29:11business. You got to have honest people
- 29:15you have to or you're still in your blind, you're still in your
- 29:18blind. And then trucking, you got
- 29:24competitive through rate competition, through freight
- 29:28rates and reliability. So the trucking there's a lot of
- 29:34competition between you know the rates are charging and then the
- 29:37reliability of getting there and getting their products
- 29:39delivered. So truck company start-ups,
- 29:46capital costs steep. OK, truck company start-ups,
- 29:50here's what they got to do just to get started up costs are
- 29:53steep. Full service or steep the
- 29:57capital. The start of a truck company,
- 29:59the capital costs are steep. And then for the full service
- 30:02bar, restaurant or hospitality, you got more upfront costs and
- 30:09huge because you got the upfront costs are huge for start from a
- 30:13bar, restaurant, the building and everything and stock in the
- 30:16place and then and then the furniture, everything like that.
- 30:20If you're starting it up, you got to buy kitchen equipment,
- 30:23you get a staff and you got your lease for the building if you're
- 30:26leasing it and barriers to entry different.
- 30:34So there's two different industries and both of them are
- 30:38are are doggy dog with a whole lot of competition and may the
- 30:44best man win. You got to have a ninja on
- 30:46things. So OK, everybody, thanks for
- 30:52coming along on the road. We're truck around.
- 30:59All right, so better, I thought for this damn week.
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