Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/232692
n boss respondents indicated that regulatory and economic pressures were such that profitability was extremely difficult to achieve. Another 10 percent cited the new norm of slow economic growth as a prime limiting factor in obtaining new freight contracts with shippers. In the decades since deregulation, owner-operators able to secure shipper-direct freight serving a particular niche typically have been the most profitable. That's where Cody Blankenship's 4B Transportation reaped rewards when he returned to trucking after years fighting fires in San Marcos, Texas. In 2006, Blankenship reinstated interstate authority he'd obtained in 2000 when he ran dump It can be a hard road, but with careful planning and a little luck, getting your own authority can be a plus for operational freedom and income. By Todd Dills trucks as Blankenship Construction, then pulling open-deck loads with an 1980s 359. He learned a friend's dad had been hauling as an independent for Allen's Inc. – best known for its Popeye spinach brand – working harvests and running the vegetables to Allen's canning operations. He got back into operation with a 2003 Kenworth W900 and a Cornhusker convertible ag trailer. "Whenever you're getting $3.50 to $4 a mile, you think you've hit the Holy Grail," he says. Those rates mostly have been high and stable over many years because operators in demand often bobtail straight back to the harvest site after unloading, though harvest hiccups and other factors What's the best part of having your own operating authority? Sense of true business and personal freedom Better income, particularly with direct customers Greater control yields greater opportunity for cost reduction Flexibility to move between leased operations, brokers and customers Adding trucks as the need arises can yield further income 9% 8% 5% 5% 1% 70% All of the above Other 2% Among other benefits of having your authority, Jim Stewart commented under this OverdriveOnline.com poll: "No more guessing if I am being paid the correct percentage of what I'm told was the actual rate. There are too many unscrupulous companies out here pocketing a lot more than what they claim to have collected." Bryce Champagne sees a mixed bag in today's regulatory environment: "The freedom to have a say in whom I work for and when I'm off – if and only if I have made enough money to do so. But the DOT enforcement and its rules are probably going to push me out of the business because … they hinder efficiency way too much to justify my personal time spent on the road and at work away from my family and friends." have forced Blankenship to diversify. In addition to the convertible hopper bottom he pulls, today he also owns a reefer $5,500 $5,000 AVERAGE MONTHLY INCOME $4,500 $4,000 $3,500 4Q'12 1Q'13 Independent Dry van (leased) 2Q'13 3Q'13 Reefer (leased) Flatbed (leased) Weighing the payoff A leased operator who moves into running under his own authority often can expect higher earnings, assuming a healthy economy and sound operating practices. Independents with their own authority saw the biggest gain ($5,813) in average net income during 2012, to $55,994, for clients of owner-operator financial services firm ATBS. That income was $4,000 higher than the $52,000 yearly average for all ATBS clients, including leased operators. Data from the four quarters ending in September show that independents consistently earned more than leased dry van and reefer haulers. While independents have more potential for extra earnings, they often also are the first hurt by a sudden downturn. If one or more customers go out of business or reduce shipping dramatically, it can be difficult to replace that business, especially when the economy already is suffering. January 2014 | Overdrive | 23 Going independent cover story_0114.indd 23 12/20/13 3:11 PM