Freight Rates and Loads

Yes, I personally think that many solo owner operators who are struggling to survive on their own are finding solace and security in leasing on with bigger companies that provide a measure of security to them because they have steady, contract freight.

However, it's often a two-edged sword.

 

Even with this it can be just as easy for someone to go belly up as someone running their own numbers.

 

Guy I know that restarted his numbers last year. Running a dodge 3500. He kept telling me how much money he was making. He sold that in April and bought a 2007 big house W900. Clutch started slipping a couple weeks ago and doesn’t have the money for a clutch. So the truck and trIler is parked while he begs the bank for a loan to fix his truck.

WTF?

So maybe it dose happen that quick?

 

Banks are stupid too, giving loans so easy. That's why buying a truck is easy. Should be much harder than getting a mortgage imo.

 

Yeah, that's true. I've seen it happen just recently to someone I know.

Bought his used 2012 truck 3 years ago and leased it on. The truck nickeled, dimed & dollared him to death. It was 3 years of futility for him. He called the lending company and told them to come and get the truck.

He's now back as a company driver making 0.40 a mile...

This was his second go round in 10 plus years, he also had a truck leased on to Landstar and the bottom dropped out, fuel prices went through the roof and he bankrupted.

Good thing for him you can bankrupt every 7 plus years if needed, because that's where he's headed...again.

 

I’m amazed at how many are jumping in right now. Mostly New to industry. Those who went through 5 yrs of freight tonnage decline as Company Drivers aren’t falling for the lease purchases. Mostly newer Drivers. Its funny to me how every Truckdriver has a plan Including Myself (typical). More talk of getting Own Authority than I ever recall.Some of them are very Tech savvy. They have a head full of all the “expert” Talk show tips on running a Truck. I don’t think many have any idea how to survive when it’s hard to survive. Waiting for the first round of repo 1 or 2 yr old dry vans to hit the Market Lol

 

I think they up’d it to 10 yrs. I can’t afford that, I would ruin credit for my last good earning years. Debt is slavery been there. I like to be free.

 

Well, he's at the 10 year redo then.

 

Lot of people try something and it doesn’t work, so they do it again a few more times, apparently just to be sure it doesn’t work.

Your example there is different but has the same makings of what I think of when I say that most guys with their own authority would be more financially solvent/be more successful if they were leased to a carrier. OTOH poor money habits don’t tend to break either, so maybe I’m the fool to think people could learn from their own mistakes.

 

I figure that the most important thing about the survival mode is to have enough cash stashed aside and only cherry pick loads in the bad times. I can't see any smarter ways around it, especially for a solo owner op, tbh.