Pay trends, part 1: Near-term forecast mixed

| October 15, 2012

In addition, after taking a pay cut during the depths of the recession with a move to household goods miles from practical miles, Nussbaum-leased owner-operator Homer Kaiser says pay is back to a practical miles basis. And, Kaiser adds, equipment changes paid for by the carrier have yielded what amounts to a further pay increase with a boost in fuel mileage.

“I’m gaining at least a mile a gallon from what I was running,” says the owner-operator, who’s been leased there for seven years, with the addition of side skirts and trailer tails (pictured) to company-owned dry vans fleetwide. Today, Kaiser is up to a 7-7.25 mpg average in his 2006 Volvo, powered by a Cummins ISX15. That boost in fuel mileage for an owner-operator running 120,000 miles a year amounts to saving $11,400 a year, with diesel at $4 a gallon.

Nussbaum says “driver pay is up about 9 percent” from early 2011, well above the national average increase for vans.

At once, it can’t be said that all is rosy around the trucking world with regard to pay. While analysts continue to note mostly upward trends in owner-operator pay over the last few years, the following OverdriveOnline.com poll’s results suggested otherwise, with nearly 80 percent of operators reporting either no increase or negative pay movement within the last year.

Has your carrier increased any aspect of pay within the past year?
Yes, substantially  3%
Yes, minimally  10%
I’m paid percentage, rates are up  4%

No  64%
I’m paid percentage, rates are down or flat  15%

Not sure  4%

 

Tune in Wednesday for Part 2 in our pay series, with a look at 

  • heavyfr8hauler

    I don’t see it in the guys hauling containers. Pay for the carriers went up over the past two years but very little money made it’s way to the O/O’s. It’s like the agents could care less if these guys go out of business expecting a new bunch to replace them as in the past but those days are coming to an end.There’s less drivers interested in working the ports and as the ocean cargo rebounds the shippers will experience a true driver shortage by next holiday season this time. I hope the new laws squeeze the money out of the carriers along with their customers searching for good drivers to replace the dwindling population behind the wheel….

  • http://www.facebook.com/john.m.baxter.5 John M. Baxter

    Great article. It’s really good news that fleets are putting aero devices on their trailers and saving owner operators money. If they do oil analysis, the increase in fuel mileage will also translate into slightly extended oil changes and save them more!

  • MarsRiver

    I didn’t see a thing in this article about aero devices, John. By chance are you a salesman for aero devices?! Try paying for space in the magazine.
    heavyfr8hauler, you nailed it. Up one for you!

  • Greek

    Any O/O working by the mile is a sucker ! because rates are going up way faster than drivers mileage rates . That said , any one cheating a O/O on percentage should be charged with a felony and what the shipper is charged should be on the paper work

  • Greek

    Here in Houston If you Speak English you can’t haul containers , I would burn my truck before i hauled containers !

  • Greek

    Try getting one of them clown vans over a levy on the Mississippi and see how long them stupid skirts last , And yes i pull a van 53 ft over the levy between Baton Rouge And New orleans .

  • http://www.facebook.com/channel19todd Todd Dills

    Mars, Maybe you missed “page 2″ of the story. There is an anecdote there about a couple carriers installing side skirts/talis fleetwide, helping operator fuel mileage.

  • http://www.facebook.com/channel19todd Todd Dills

    Heavy, I’ve heard a couple anecdotes from carriers serving Chicago rail yards in intermodal about some increasing in various aspects of pay, and I know J.B. Hunt’s intermodal division has increased per-mile pay rates for containers in the last couple of years. Generally, though, I hear what you’re saying.

  • MarsRiver

    Thank you for pointing out page 2 to me, Todd. However, it isn’t anecdotal. The overall cost, maintenance, and added weight, do not add up to the savings touted from what I’ve been able to gather outside of articles of promotion. What is being discovered is a change in driver behavior with respect to “how” they drive.

  • http://www.facebook.com/channel19todd Todd Dills

    Thanks for the thoughts. Clealry some of the operators and fleets out there are seeing a benefit from these aero devices, though, no?

  • MarsRiver

    You’re welcome. Clearly some “believe” what they wish to believe. Todd, there are just too many variables in this equation so it’s easy to attribute some minor change to one thing or another. Weight of the load, driving style, road conditions, weather conditions, maintenance of the equipment, terrain, and the list goes on, are a significant part of that equation. The overall fuel mpg hasn’t changed greatly over the past several decades and the cost of those EPA mandates has resulted in lost jobs (Caterpillar), more expensive maintenance, the added expense of Urea accompanied by the high price of diesel, etc. What has had the greatest impact has been tractor design with lighter weight material in construction along side lighter yet stronger engines. The right equipment doing the right job is a must more so now than ever.

OverdriveOnline.com strives to maintain an open forum for reader opinions. Click here to read our comment policy.