Both years were good. I run 60% off the load board, open deck. I expect the same in 2020.
Merry Christmas to all and Happy New Year
Page 2 of 6
We're a small company, twenty five power units, 40+ trailers, and we run local and regional.
The good news is our gross will be up just over 12 percent from last year.
The bad news is our absolute net will be up only 8 percent in the same time period.
This is an ongoing trend and has been for the last several years. The difference between net and gross gets a little wider every year with more movement on the net side.
Out of my three years as own authority, 2019 has been the worst. I run 96K miles, already 13K more than 2018, and cleared 25K less than the last year. 2017 was on par with 2019 but the most important difference was that last quarter of that year was excellent with the upward trend into 2018.
1. The 2018 was good but way over touted, with encouragement of mass media including Facebook, TV and Radio shows, reputable newspapers, alluring a lot of newcomers from outside the industry...retired people who hoped for an easy investment return.
2. The over euphoria got to many regular company drivers who were under impression that they were missing a party and entered owner - operatorship in haste, underfunded.
3. Rapid expansion of many existing small carriers. For example, someone who owned three trucks at the end of 2017 got 6 more brand new Cascadias and brand new reefers. I think that this is the main source of increased capacity.
I am afraid that this is not the end of it yet. We need to be beaten even further for the rates to be corrected so that they make sense to stay in this business. My revenue as of 12/23/19 is $163 000 and the costs reached over $100K. This does not make sense in the long run, does it? I made more as a company driver in 2001 - 2014. My extra savings from previous years were bitten quite a chunk too. All these these bloodthirsty sharks everywhere: Tollways, Repair Shops, Insurance, Fed and State Governments.... I feel like that fisherman Santiago in Hemingway's novel, who caught a big fish but by the time he sailed back to shore, it was all bones. Well, despite all that, one lousy year cannot break us! I am catching winds in my sails in 2020!
Marry Christmas to everyone.Last edited: Dec 23, 2019
Reason for edit: forgot about Insurance! A shark like that cannot be omitted.
Since I've just completed my first year as an O/O I don't really have any historic data to compare it to. My very 1st load was 11/15/18, and I've put just over 100,000 miles on my new truck since then. Salary wise I would have made more working as a company driver, but for my own piece of mind it was much nicer working for myself. I don't use load boards and have a couple contract clients and get the rest off of Convoy and Uber which I enjoy using. So if this was a bad year as everybody is saying and I survived it, I have nowhere to go but up.
Tall Joe mentioned insurance.
I have not only "Truck insurance" for Towing, but also what they call "on hook" coverage,
even tho there is no actual hook, and it's 4 point securement, w/a safety chain, on a deck.
My policy went up 15 percent last year; I thought that strange, as I have had no claims since 1983.
I called them to find out why the dramatic increase.
Got the boilerplate answer about "rates being increased across the entire industry."
I thought monopoly's were illegal? Isn't that collusion? Price fixing?
Mafia bosses setting around a table fixing prices is the new norm?
Bottom line is, They know - you just have to pay.Rideandrepair Thanks this.
You mean like old bummer and his affordable care act?
I feel like I'm being swindled at every turn.
I'm an honest guy just trying to make it - like everyone else,
and the only one making any money is the Fuel companies, and Insurance industry.
I would have turned a cartwheel if I wasn't so old and fat!!!!
Last year was an exceptional year for me and I'll probably never duplicate it but I also never said no to any work, never took a vacation and hardly even took a day off for that matter. Was it worth it? Not in my opinion but Uncle Sam may think so. This year I am down significantly but all in all not bad and would be happy if 2020 turns out to be the same.
Page 2 of 6