Examining the Challenges of Being a Trucking Owner Operator

Comments Off on Examining the Challenges of Being a Trucking Owner Operator 02 August 2011

Eventually some truckers contemplate becoming an owner operator. For numerous new and also experienced drivers the allure concerning having a business oftentimes leads these types of buy a truck. But prior to taking the plunge there are certain things that all drivers ought to know pertaining to becoming an owner operator. This write-up is going to take a short look at a lot of the potential risks connected with becoming an owner operator.

Why Truckers Elect to Become Owner Operators Many reasons exist for as to why truckers wish to purchase a truck and turned into owner operators. Here is a list of several typical reasons: They think they will have more control over how much time they are usually home They feel money will improve being a O/O They wish to have much better equipment They don’t want to run particular regions of america They strive to be in the position to refuse virtually any load that they do not wish to haul They intend to make decisions on a self-employed basis rather then having a dispatcher make decisions for them. Inevitably what truck drivers try to get is a lot more control of things. They really feel that calling their very own shots may make them happier plus much more successful. Yet, sadly I must say, this may not be actually typically the situation.

Risks Associated with Becoming an Owner Operator There’s quite a few risks to take into account while deciding to become an owner operator. Buying a truck is really a huge investment. The expense could very well be well over $100,000. Along with the truck comes the expense of gasoline, auto insurance, not to mention maintenance. It can often be difficult to break even because of all these operating costs. And when you add the cost of a freight claim, or possibly a breakdown it can cause the numbers to never add together. Another feature to consider is definitely the dedication that this normally takes. When a driver buys an actual truck they lose flexibility. Company drivers can merely quit their particular company or end driving all in all. If a company drivers quits and wishes to return into trucking there will always be businesses that will take them back. An owner operator with all the costs doesn’t always have this choice. They need to keep the wheels rolling most of the time merely to break even.

Maintaining Freight Additionally there is the trouble of competing with large trucking companies pertaining to freight. In quite a few ways the freight industry is considered to be a commodity. Often shippers stick with whoever will be able to transport their freight the cheapest. Large companies possess services coupled with resources that each owner operators don’t. Large companies may very well drop a trailer, move freight more quickly by employing a team, and obtain discounts on goods like fuel, tires, parts, and maintenance brought about by buying massive quantities. They can also utilize a lane as a backhaul, meaning that they got paid well in one leg of the move and just need to get their driver home and may ask for significantly less for the backhaul. Another feature to consider would be the cyclical nature connected with the freight industry. In a standard year, freight levels adjust depending on the time of the year. Generally freight is always strong throughout the spring and summer after which it tapers off in the late fall. The months of December through February is usually quite slow. In the current economic downturn, the usually hectic months were unpredictable. Large trucking companies have savings to keep them going during the challenging times. Large pools of financing and investment allow these companies to operate at a loss during recessions. This ensures that they can price their services below cost which keeps freight on their trucks. Owner operators lack this kind of luxury.

Ambitious drivers will usually think about entering into business on their own and many will certainly do well. But there are particular issues to take into account before obligating yourself to numerous years of the lifestyle associated with the owner operator. Higher costs, substantially less flexibility, as well as competing with huge trucking companies are some of these concerns. For a company driver it is important to perform some research before you buy a truck.

For career advice from trucking industry experts join us at at Drivers Wanted Headquarters. To get a better trucking position visit us at Drivers Wanted Headquarters today!

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