August 2018

Overdrive Magazine | Trucking Business News & Owner Operator Info

Issue link: http://read.dmtmag.com/i/1009508

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bUSINESS 24 | Overdrive | August 2018 Net income for leased owner-oper- ators and independents in the first three months of 2018 continued to march upward. Operators across all segments took home more in 2018's first quarter on average than the same time a year ago, according to ATBS, the nation's largest owner-op- erator financial services firm. Continuing the trend seen in 2017, flatbedders were the highest earners, averaging net income of $17,328 in 2018's first quarter. They will earn almost $70,000 this year if that rate is sustained. The first-quarter earnings are a $2,100 gain from a year ago, though a slight dip from the $18,875 from the final three months of 2017. "One of the strongest parts of the economy is the development around oil and gas projects, whether it's new pipelines, expanded refineries or using the byproducts to produce plastics," says Mark Montague, a rates analyst for DAT. "Flatbed rates took off first, turning the corner in the second half of 2016 and then leading the charge in 2017, until joined by increases in van and refrigerated freight." Revenue for flatbed operators was up more than $5,000 from 2017's first quarter to $41,421. Higher fuel expenditures cut into their bottom line, however. Mileage (22,498 in the first quarter) was flat compared to 2017's first and fourth quarters. Dry van operators earned $15,195 in 2018's first quarter — an increase of almost $1,000 from the same quarter a year ago but slightly down from 2017's fourth quarter. Revenue ($38,299) also was up from 2017's first quarter but down a few hundred dollars from 2017's fourth quarter. Mileage was flat at 29,924. Independent owner-operators across all segments earned $15,586 in the quarter on $38,628 in revenue. Their income grew by just more than $1,000 from 2017's first quarter and also was up a few hundred dollars from 2017's fourth quarter. Mileage was flat at 24,333. Reefer haulers took home $12,671 in net income in 2018's first quarter. That's an increase of $1,100 from the same quarter a year ago and flat compared to 2017's fourth quarter. Revenue ($39,713) also was mostly flat from the fourth quarter but up $3,300 from 2017's first quarter. – James Jaillet Flatbed leads broader gains in net income Flatbed operators continued to see their net income trend above their reefer and van counterparts in 2018's first quarter. Only with complete records can you track the work done on your truck and, when necessary, prove that required maintenance has been done. Log dates for every visit, and keep a schedule of future work to be done. The Partners in Business pro- gram is sponsored by TBS Factoring Service and produced by Overdrive with financial services provider ATBS. Four free seminars will be held Aug. 24-25 at the Great American Trucking Show in Dallas. Want more Partners in Business tips and information on how to run your small trucking busi- ness more profitably? Visit OverdriveOnline.com/pib-pod- casts to find 20-minute pod- casts on topics such as manag- ing time, budgeting money and controlling fuel costs. PARTNERS IN BUSINESS TIP: LOG MAINTENANCE RECORDS

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