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Trucking/Payment of hotshot drivers

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Question
Hi Jim,

Is there a general practice as to whether or not hotshot drivers are typically paid for their return trip mileage? Or does it vary depending on the agreement between the driver and the carrier?

If a driver's contract with the carrier stated that the driver would be paid 75% of line haul revenue, would that driver be getting paid for their return trip mileage?

Thanks!

Answer
You can contract up front for empty miles, but typically if you are paid a percentage of line haul revenue, that's a fixed dollar amount to include the pickup and delivery.  You need to make sure there is enough to cover your expenses including the empty miles on the front or back end.
If the "linehaul revenue" is expressed as an amount per mile you need to clarify what miles and by whose calculation.  There are multiple ways to calculate miles so it's better to get a flat dollar amount and avoid the confusion.

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Jim Bowers

Expertise

Expertise in U.S. Trucking Industry, Solution Development, Pricing issues, Bid process, Negotiations, Costing and Pricing information systems.

Experience

30 years. LTL, TL, and Dedicated Pricing programs, Activity Based Costing, Cost modeling.

Organizations
Council of Supply Chain Management Professionals, Past Board Member, Treasurer, Secretary of Central Florida Roundtable.

Education/Credentials
BA Marketing, University of South Florida.

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