Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/127433
Voices Long live the owner-operator! T he challenges in today's market for owner-operators were on full display after Overdrive Editorial Director Max Heine asked this somewhat loaded question on the Overdrive Extra blog in March: "Is the owner-operator a dying breed?" A grain-hauling owner-op running local/regional routes broke down his 2012 financial picture: revenue of "$110,000 last year on paper. But after miscellaneous taxes, truck and trailer payments, fuel, tires, insurance, repairs and other expenses, we had a profit of approximately $11,000 to support a family of four. That's rough." Indeed it is, and most others verbally pumped fists to decry conditions for owner-operators. "There is no money in trucking today," wrote Delbert Vaughn. Longtime owner-operator Leanne Pooler: "With high fuel prices, new regulations and shippers not willing to raise rates, we are beginning to wonder why we are still struggling to stay in this business." The few commenters who shared success stories indicated that niche short-haul is where the onetruck independent business retains substantial profitability, depending on the operation. Take the example of this fuel-additives-hauling operator, who after taxes and expenses netted about $50,000 in 2012, which he considered a fairly good year. And get this: He was "out overnight" only 58 days MY TAKE-HOME INCOME OVER THE PAST YEAR IS: OverdriveOnline.com poll A lot less 50% A little more 10% A lot more 5% About the same, on fewer miles 3% Not About the same 8% sure 3% A little less 21% A sizable majority of Overdrive readers reported lower earnings in April versus the same time last year. Is the owner-operator a dying breed? The question launched a wide-ranging discussion among readers on the Overdrive Extra blog. To read the comments or add your own, scan the QR, or search the question on OverdriveOnline.com. and "ran a total of 47,000 miles with a dry van," he said, yielding a profit-per-mile of more than a dollar. "Each trip, I have anywhere from 10 to 30 hours of waiting time before I can bring the empty tote tanks back," he explained. "Sometimes they pump them out while they are in the van – other times I pallet-jack them to the back of the trailer, when they have to be taken out to a ship at anchor to be pumped out. All my loads are hazmat," and he charges $50 per hour for use of the truck. "This goes to show there is money to be made," he added. "You just have to find a niche." "I am doing way better! I moved to a different company – a smaller one – that is more focused on drivers." Roy Poteete Company driver, National Carriers St. Louis "I'm doing really well this year because I moved from a bad company to a good one." Jack Humberger Company driver Thomas Keller Trucking | Garrett, Ind. "I'm not doing a lot better. They keep tightening regulations to where it's harder to make payday. I used to be an owneroperator but have gone to company driving. Conglomerate companies play the 'small freight' game, and company drivers like me wind up with fewer hours and lower rates." Joey Hopper Company driver, Swift Transportation Casper, Wyo. 2 | Overdrive | May 2013 Voices_0513.indd 2 4/30/13 10:33 PM