Sometime this year a group of teams from R & R ended their contracts and went to work for SLT.  I only know one team that went and did not ask them why they went. 

So, is the move to SLT a good move?

Here's the deal ... they offer a Cents per Mile model instead of a Percentage model.  This takes the line-haul rate out of the equation.  Instead of having to balance miles and rates you only have to worry about miles.

Here's the Deal:

You are paid by the mile.  You are paid for every mile you truck travels (HHM/Short Miles).  You get $1.00 per mile to deadhead to the shipper from the previous consignee.  You get paid for the line-haul using a rate structure that goes up and down according to the national average fuel price.  The rate structure also varies according to the trailer that you use and the type of freight you haul.

As of 5/31/08

Example 1: Flatbed, DOD load.

You deadhead 150 miles to a Flatbed DOD load with 850 line-haul miles.  You will get $150 for your deadhead ($1.00 * 150 miles).  You will get $ 2.52 ($ 1.03+$ .07+$ .70+$ .72) per mile for the line-haul miles of the load which comes to $2,142.  The total settlement for this load would be $ 2,292 or $ 2.29 per mile for all miles.

Example 2: Van, Freight of all kinds load.

You deadhead 150 miles to a Van FAK load with 850 line-haul miles.  You will get $150 for your deadhead ($1.00 * 150 miles).  You will get $ 1.75 ($ 1.03+$ .72) per mile for the line-haul miles of the load which comes to $ 1,487.50.  The total settlement for this load would be $ 1,637.5 or $ 1.63 per mile for all miles.

Those aren't bad rates and you get paid for your deadhead miles.  The question is wether it is better that you can get at R & R?  There is no clear answer to this question because it depends on what is important to you.  If you want to play it safe and get good rates on a steady basis and get compensated when fuel prices go up, then this could be the right choice for you. 

However, you miss out on the "high dollar" loads.  You also have other items of concern such as how much of the freight is van and FAK.  SLT is new to the business and who knows how much DOD freight they will have. 

I setup a profile which assumes a 10% FB, 90% Van, 10% FAK, and %90 DOD freight.  I am tracking all of the loads that I have been assigned this year and will compare the results with the amount that I get paid from R & R.  This can be seen on my blog that tracks the truck/business items by clicking on the Main Journal link on the sidebar of this blog.

I did an exercise that calculated all of the assignments we were given last year using the SLT model.  I went as far as to include the adjusted rate per assignment based upon the national average fuel price and fuel surcharge.  Some assignment we made more and other we made less.  However, the bottom line was that we made $4,920 more in the 5 months we were with R & R.

If you want a steady income and want between $1.63 and $2.29 a mile for all miles on your truck then perhaps SLT is for you.  However, if you want more risk and are willing to haul freight for less then $1.63 sometimes then consider R & R.  Personally, I don't like a position that offers no "upside" and will stay with R & R.  By no "upside" I mean that you don't get paid any more for the "high dollar" loads that you do the other loads.

For now we will stay with the folks at R & R trucking ...

I has been awhile since I posted anything over here.  I am going to make it a point to post here when I have thoughts on things.  Fortunately my wife has been able to take the time to record our journey.  You can find her blog by clicking on the link Her Journal on the side. 

Oh and the last entry before this one is for August 2006 not 2007.