Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/141405
Business Net income and credit improving By Max Heine Institutional investors are looking for places to put their money, which is good news for owner-operators who've been hamstrung by tight credit since the recession. So observed Matt Amen, vice president of ATBS, the nation's largest owner-operator financial services provider. He spoke to operators last month at the Partners in Business seminar at the Great West Truck Show in Las Vegas. The Overdrive-ATBS program is sponsored by Firestone, Ryder and Shell Rotella. During 2012, ATBS clients saw net income rise 8.6 percent to almost $52,000, Amen said. Clients drove 2,500 fewer miles on average than in 2011, but higher rates made up the difference. Independents with their own authority saw the biggest gain, as average income rose to $55,994. ATBS clients in dry van, reefer and flatbed all ran slightly fewer miles in 2012 compared to 2011, though independents' miles fell 8 percent. One reason is the trend toward shorter average length of haul, Amen said, adding that it will continue. He offered these tips: MANAGE COSTS. It's easier to improve your bottom line by cutting costs, notably for fuel, than by increasing miles. The factors that most affect fuel economy are within an owner-operator's control: driving habits (speed, braking, etc.), maintenance, aerodynamics, gearing and application. CHECK TRAILER AIR PRESSURE. At 65 mph, rolling resistance accounts for 35 percent of fuel consumption. For that third due to rolling resistance, 42 percent is from trailer tires, which should be checked every time you hook to a new trailer. MANAGE TIME WELL. Use smartphone apps and other resources to plan around congestion, road construction and slow docks. Gauges Reefer, van rates up in May Spot market rates for reefer and dry van loads jumped dramatically in May. Reefer rates hit an all-time high and have risen 53 cents since February, boosted heavily by May's 29-cent spike. In the same span, per-mile van rates have risen 32 cents, with about half of that growth coming in May. Flatbed rates rose another 2 cents and have climbed 13 cents since February. DRY VAN FLATBED REEFER $2.50 $2.25 Internet Truckstop ATBS clients ran fewer miles in 2012, but netted higher income, thanks to good rates. $2.00 $1.75 $1.50 May 2011 May 2012 May 2013 $322 million That's the net miscalculation by the Federal Motor Carrier Safety Administration of the yearly financial impact of the revised hours of service regulations, according to the American Transportation Research Institute, an arm of the American Trucking Associations. FMCSA says the industry will see a benefit of $133 million a year resulting from the new regulations implemented this month. ATRI says the changes instead will cost the industry $189 million, due largely to lost driver productivity. FMCSA did not respond to the ATRI claim. Fleets expect uptick More than four in 10 executives surveyed in May in the monthly Randall-Reilly MarketPulse report said business improved over the last 12 months. More than half expect expect business conditions to be better in How did Same six months, 30% business while 42 perin April Worse Better cent said they compare 28% 37% thought conditions would to April be about the 2012? Much better 5% same. 22 | Overdrive | July 2013 Business_Lead_0713.indd 22 6/27/13 11:52 AM