Truck driver pay is all over the board, but as far as I know the top pay is for LTL type carriers and some other specialized types of trucking.
We’re talking big trucks here, and the lowest pay is for general long haul, and I am referring primarily to company drivers, not owner operators.
The last job I had before going out sick with cancer was for an LTL operator and I was making something like 53 cents per mile, plus hourly pay that was more than $20 per hour (I was paid for miles of the run, and for any additional work I did I received the hourly rate. I was not at the top of the pay scale yet).
LTL means less than a load. LTL carriers usually pull doubles (triples where legal) and often divide their drivers into pickup and delivery (or P&D) and line haul. Freight is picked up locally and consolidated at a terminal and then hauled by line drivers between terminals. Drivers are usually paid by the hour or a combination of hours and miles. And drivers are usually paid for each minute on the job, as opposed to long haul where it is quite possible to put in many hours of work (which might include simply being with the truck) and not be paid for it.
But I looked into going back to work, and there was none available at my last employer, so I checked out my previous long haul employer. I was only offered 30 cents per mile, the same pay rate I was receiving some four years ago when I left them for a better paying job after putting in almost a decade with them. When I started with them in 1996 experienced drivers for other companies said they were making as much as 30 cents per mile or more and they said I should be making that too. I stuck with my company, and it took me several years to work up to 30 cents per mile.
Why did I stay with that company so long? Lots of reasons. The pay was dependable. I lived near the terminal so I could park my work car and come back to it after my road trips. And for long haul, the working conditions were relatively good. And the people were easy to work for, even if all the customers were not.
(I think customer abuse of truck drivers would be worth a separate essay.)
Recently I have seen long haul companies advertise as much as 44 cents (and I imagine someone out there is quoting more).
But jobs are hard to come by now. And you have to remember that just quoting per mile pay is highly misleading. You have no idea how many miles you will get. In the current economic climate, you are not likely to get anywhere near as many as you would have, say about two or three years ago. Don’t believe recruiters or dispatchers or other company reps about mileage. They often stretch the truth. They primarily want available drivers for when they do have freight.
And for those not familiar with long haul, in good times drivers often go at least 3,000 miles per week. You have to average at least 2,500 miles to even make it pay and the reality usually is that you’re out there six or seven days per week. Many coast-to-coast drivers stay out three weeks at a time and more.
The most I ever made per year in long haul was somewhere in the neighborhood of $30,000, maybe slightly more.
Some companies, including the long haul outfit I worked for, take 10 cents of that mileage pay and call it per diem. The good part is that you do not pay income taxes on that per diem. The bad part is come Social Security time all that per diem pay does not count as wages earned, so your check may be smaller than someone who was not paid a per diem.
In LTL, I was up to $65,000 per year and had I not got sick, I was going for $70,000 or more. And I had Sunday and Monday off most weeks. If not, I just made more money – cha ching (the sound of a cash register).
Many owner-operators have told me they make as much as $100,000 to $200,000 per year, but many do not seem to differentiate between gross and net. An owner-operator, of course, has to pay truck expenses, often including hefty truck payments. I knew one single guy who threw his gains into getting his truck paid for as quickly as he could. Then he was in position to make a lot more on his net. And he saved money by not buying a brand new truck.
With all the new environmental requirements the feds are putting on trucks, it has to be tough for those who own their own rigs. Don’t feel too sorry for the companies, though. Many are getting federal tax breaks or other incentives to upgrade their vehicles. But then that may be a good thing for God’s Earth.
But back to company driver pay: a funny or not-so-funny thing happened while I was doing the high-paid LTL work. I got cancer, but for those who were still on the job, many got laid off and some took pay cuts, due to the economic disaster you may have heard about. Freight levels have fallen drastically.
Much of the freight I ever hauled was tied to the consumer-driven economy. When consumers don’t have money because they lost their jobs and their homes and their life savings (if they had any) and their confidence, they don’t spend money at stores any more than they have to or can and the stores don’t order nearly as much freight.
Another thing I learned. When I was doing long haul I carried refrigerated food products (mostly produce) more than anything else. I always thought since I was hauling food I was hauling something that the economists would say had an inelastic demand. People have to eat, so they would tend to have to have the same amount of stuff. Wrong! People cut back in eating during times like these. So there are fewer loads (fewer miles for drivers/fewer drivers needed). Also they don’t eat as expensively as they did so the loads do not pay as much. The more expensive the product, the more the load pays. That means that trucking companies are not going to be as generous with their pay.
And I almost forgot, I’ve known two different truckers working for different companies, small ones, who paid them a percentage of the load, even though they were company drivers, not owner-operators. I don’t think they got other benefits. And really, when you think about it, that is just a variation on mileage pay. In mileage pay you get a percentage of the load, just a small one.
Having said all of this, a lot of people are happy to just have a job these days. No one says a driver has to stay at a poor pay outfit once times are better.
My advice for anyone getting into trucking is to get your experience where you can and decide what type you would really like to do and then go for it.
In bad times and good, those who like what they do and are good at it are the most likely to be employed at good wages.
P.s.
I didn’t address union work. Union work in trucking is confined primarily to some LTL terminals and some auto haulers and some other specialized types of trucking. Long haul is not unionized. I was not union when I did LTL, but I was paid at basically the same rate as union drivers at other terminals in my own company.