Solo o/os. Do the rates suck? What's your contingency plan?

Discussion in 'Ask An Owner Operator' started by TallJoe, Jan 16, 2022.

  1. TallJoe

    TallJoe Road Train Member

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    Is it not true that you can be blindfolded to pick a load off a load board list and make good money on it?

    We are in the 6th consecutive quarter where the rates are attractive enough to allure new investments into the small trucking business, perhaps the biggest that has ever been experienced. As a consequence, combined with the pandemic-related inadequate truck and trailer production output, we are also experiencing an unprecedented scarcity of trucks, trailers, and parts which in turn creates a worrisome situation, at least for some of us. Have you asked yourself:
    What happens if your truck or trailer are totaled?
    What happens if you can't find your overhaul kits?
    What happens if you can't find your fuel pump or turbocharger...? Heck, I heard that oil filters are hard to come by lately too.
    Are you going to be out of business, even though there is 6 digit figure on your business account?

    Because of the fact that we live in the biggest free-market economy in the world - where still demand and supply is its driving force, this phenomenon is quite interesting: you got money but you can't buy anything...or rather, you ALWAYS can but you need to pay exorbitantly more from what is considered reasonable. What's reasonable...? "Reasonable" is not a word that can be found in the equation of supply and demand, right?!

    Well, in the spirit of the free market, the price is always justified by the supply and demand, we have no choice but to accept things as they are...So, you want to stay in the game?!
    Then pay 250 000 for the new truck!
    Pay 120 000 for the new reefer!
    Pay $130 000 for that chewed-up Cascadia!
    Can't afford to pay as much?! Me neither...why is that?!
    Because the rates suck! - we need more than 5 dols per loaded mile, we need more than $300 000 gross per year...
    I propose to face the reality and adjust the rates to reflect the current situation! Anyone hauling for less than $10 per mile is hauling cheap!
    Do you concur?
     
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  3. God prefers Diesels

    God prefers Diesels Road Train Member

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    A long forced break would put me out of business. Contingency plan is go back to the oilfield until the truck is fixed.
     
  4. TallJoe

    TallJoe Road Train Member

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    I have a similar line of thinking.
    "Long" is relative. I could wait some...but the question is; wait for what? For the prices to go down, the rates to go down?
    No way in the World, I'll be paying more than a quarter-million for a new truck and trailer. On the other hand, I am spoiled enough and wholeheartedly dread going back to work for someone too.
     
  5. blairandgretchen

    blairandgretchen Road Train Member

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    Your point of "loss of truck/trailer" does bother me somewhat. I'm sure I'd find something to see me through.

    I've always stressed the point of being debt free or close to it, it's a better insurance policy.

    I'll find a way to keep food on the table no matter what. I see stepped over opportunity every day in this fine country that is lower revenue/time than what I currently do, but would certainly pursue if the need arose.
     
  6. Siinman

    Siinman Road Train Member

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    I could easily go back to being a manager for a factory making 75 plus. I have enough tools to do side jobs if I wanted to hustle and could make good money as well. Would come back with another truck at some point in time if I had to order a new one and wait would be fine. I love what I do and get better quality home time.
     
  7. Opus

    Opus Road Train Member

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    Choice 'B', sell your truck and go back company driver. That's what I did.
    But even when I had my truck, I never put myself in a financial situation that I couldn't bear a couple of bad weeks......much like what @blairandgretchen said.
     
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  8. blairandgretchen

    blairandgretchen Road Train Member

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    I'd argue solo O/O possess a skill set that excess the average citizen, and we'll find a way to make lemonade either way - if not trade them lemons for chocolate chip cookies.
     
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  9. 401-Alex

    401-Alex Light Load Member

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    i lost my truck in the beginning of December it was paid for it was totaled by a pickup truck that ran a stop. this is ongoing currently. got 20k for my truck sorry for you loss is is the response for my truck age to value and market and availability to replace a turn key truck . nobody cares about you business and it truly is your problem as I have learned personally. a new to me used truck on the list of overpriced low dollar used crap trucks on the market is a risk. do you want to take it? are you willing to restart? will you go back to being an employee? hard decisions I've contemplated
     
  10. Opus

    Opus Road Train Member

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    he might have done you a favor
    Fuel in Albany Ga $3.56 on 12-31
    $3.86 on 01-14
    Trucks that went for $70k last year are now $100.
    I just don't need the aggravation.
     
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