Are O/O A Dying Breed

Which States have the Best Rates for Truck Insurance - Trucking Blogs

Info is a little dated, from 2016.

*These rates were based on a 40 year old driver with clean MVR and median insurance credit score, an 8 year old $40K tractor and $22K trailer with $1 Million Primary Liability and $1,000 deductibles for Comp and Collision.

 

Is there any freight in Miss.? If so, that's where you want to be. LOL

 

Is that based upon where you run, where you buy your truck or where you incorporate your business?

 

I think the people who you think are the future of O/Os are the ones who are killing it. They’re the ones who don’t mind living in their truck. Forever. The ones who will haul .90c/mile freight because it’s better than living in a mud hut in Butfukistan. Then they’ll go out of business when they can’t pay their truck loan, some other similar outfit will take their place, and life will go on.

I’m willing to bet that the percentage of O/Os are as high as it’s ever been. When an O/O is successful he winds up with several trucks and drivers. He no longer has to be on the road himself which is a good thing. That’s the American Dream at work. My dream is to have several employees under me, and I can sit in an office answering phones while drinking scotch in the early afternoon. It’s certainly not living in a Volvo wearing sweat pants while delivering pillows to Walmart.

 

How often would you say the case of a succesful O/O launching their own fleet happens? Is it a common site in the industry?

 

Yes I feel a successful O/O turns into a fleet often. This of course takes many years. That’s usually the end goal of an O/O. As is the goal of a guy with a fruit cart wants to become a chain of supermarkets. Or a person who builds a computer wants to become Microsoft.

 

Why many years? Only thing needed to start one up is the savings for 2 more trucks as well as other business overheads? Let's say around 200k. Is 4 years realistic for the O/O to start a fleet?

 

The experience is imperative. A person could probably expand into a multi truck fleet with four years of ownership under their belt if they had years of trucking before that. Ten years total would be my guess. At that point they’ll either be a successful owner, or a company lifer. This is just based on personal relationships with guys who’s succeeded in the business. The O/Os by that time have found their niche, and expanded into it. The others have just bounced from company to company chasing the dollars. Each one “better” than the last.

 

It would be on where the business is located.

 

Great post, Sir!