Trucking: Percentage of load or pay per mile, jaxs, bob stephens

Question
Dear Mr. Stephens,

I've seen in places where O/O can have a percentage of the load or pay per mile. Could you explain more in detail about that. Please correct me if I am wrong but for example using myself if I have a contract with ABC Manufacturing to hall aluminum from Jaxs to Miami twice a week and decide to go percentage of the load. Do I receive a percentage for example of 65% of the load "worth" or "cost" to ship from Jax to Miami. If the load is 10k my fee would be $6500.00 to hall it....correct? If I'm way off base then please educate me...haven't failed me yet. Thank you for your time and have a great weekend.

Manuel

Answer
Hi Manuel,

It would be a percentage of the gross revenue of the load and not the load itself.  Sorry if I misled you.  A company may pay $1.15 per mile or 70% of gross revenue of the load which may be more or less per mile.  $6500 would haul a load coast to coast and back.

Happy Holidays and Merry Christmas!

Bob Stephens