Thinkin about changing careers

Not trying to be discouraging or anything, but there is no way even with the experience I have I would even consider being an owner operator much less just starting out as one in this current economic environment. The trucking industry is hurting. The company I work for, we haul our own product out. They use broker loads to bring me back to cut the cost down not even to try and make a profit. And most of these backhaul loads they’re barely breaking, even or even losing money on most of them. Sometimes I have to sit for a day to wait until they can even find a load. It’ll be some 2400 Mile load for example, that might pay about $3500. You start deducting all the expenses and they’re not even going to break even on that backhaul load. What are you going to do as an owner operator? Not pay yourself? Because that’s the only way you’re gonna make any kind of money to just sustain your business right now. Yeah, it really is that bad.

Just get in with the company and collect a paycheck like the rest of us do and when things turn back around, then you should consider being an owner operator.

 

OK you won't like what I have to tell you.

The truck is the easy part, there is a lot more to it.

No it isn't. You may gross 120k if you are lucky but more like 70 to 80k due to a lack of experience.

Yes the failure rate is above 95%, it is normally between 75 and 85%.

Like I said, 70 to 80k.

There is but not inexperienced ones, those are all over the place and actually hurt the entire industry.

You bring up a great point, come to Detroit, see how many ads there are for these scum lawyers who claim they make you millions if you are involved with a truck in an accident. We have many who think "oh they won't go after my house" but they do. We are the most sued industry in the history of the world, nothing comes close.

 

I don't see any reason why someone can't start into trucking, today, and be successful. Yes, rates are down (way down from the Covidiocy highs, but still fairly low by historical standards).

Would I buy a truck and start an OTR business and run loads off the boards today? Oh, heck NO! Would I consider talking to customers who need specialized service about long term arrangements and then start a business? Sure. Nothing much has changed there.

Many here are OTR truckers that are dependent on the spot market, and they judge the entire industry through that lens. But the "trucking industry" is so much more than the truckload spot rate racket. There is always demand for outstanding LTL service in a number of industries and regions, for example. Construction related work. Some of the live stock and similar transports. Dedicated transport for manufacturers and distributors to retailers. Back in the day I worked at a fish processor, the LTL carrier we used generated $3 and more per mile -- when the truck load rate was just over a buck. It wasn't easy, it wasn't no-touch, but it was consistent and it PAID. Still does, from what I hear.

In order to be successful, you have to work ON your business before you start working IN your business. If you go do what everybody else does but with less experience, you'll get, at BEST, the results everybody else gets. Right now, those results are awful. But, BUT, the spot freight market is HIGHLY cyclical. So, even if times were still great, if you start a business that is dependent on the spot market for freight, the next downturn will get you, and get you good. So unless you want to just get yours while the getting is good, I'd avoid being dependent on spot freight as much as I could.

First step is to learn the part of the industry where you think you're going to have a competitive advantage. Second is to get some experience on someone else's dime, which will also make you insurable once you start.

 

I keep seeing on this forum people offering this suggestion for new o/o. Find your own customer who needs a specialized service and not do spot market freight.
This is 99.99% unrealistic nowadays unless the shipping manager is your best childhood friend or something like that.

 

You are shooting too high. Find a smaller company to work with/for, a mom and pop type company, and if you can keep them happy, they won’t even consider hiring anyone else. Best companies to work with are small enough they don’t need a shipping manager. Not saying there are no decent businesses that have a shipping manager, just my opinion I’d rather work with a company that I can call the owners cell phone if I have a question or a problem.

 

if you have enough pad already to buy your own rig but want a taster first, do Schneider Choice. it's 15k down for a new truck but if you have that much cash on hand starting out you don't need a new truck, you can lease a nice $50k truck and have really low payments. if you already have enough $$$ on hand to pad breakdowns and repairs, that will give you the opportunity to learn how the pickup/transit/delivery process works, and as things on the truck need attention you'll learn the maintenance side, the more stuff breaks the more you learn. unless you're dead set on sticking with it, get a used truck, that way right out of the gate you'll be dealing with breakdowns and repairs, on a new truck there's always little things but you won't be dealing with major repairs until ~400k miles. if you have a breakdown with Schneider they are really helpful, they'll set up load recovery and leave you to take care of repairs. they have a Fleet One number for OOs you can call to use their nationwide network of approved repair vendors to come to you, you still pay for it but at least you know it's a good vendor on their list.

Schneider Choice has the load board, you pick your own loads and run as much as you want, only where you want. you can park it for a week or two whenever you want. you can make your truck payment bigger than minimum and they will hold the extra $ in your account, after a few months you can park it for two weeks and they can use the extra $ to cover truck payments. when you make the last payment they mail you the title. insurance and fuel and truck payment comes directly out of the weekly settlement, all you have to do is make deliveries and keep your truck fixed. Running the load board for a year or two will give you time to learn how to run, where to run, and when to run to be able to gross enough over a week and not get stuck somewhere dumb at the end of the week without a load out.

Schneider has big maintenance facilities, you can get big stuff fixed a lot of times same day at an operating center, compared to week long wait times at a dealer. if you want to DIY later, after a year or two with Schneider Choice you'll have 2 out of 4 trucking infinity stones, how to drive/fix and how to money. if you want to DIY all of it later you just have to learn how to get customers/loads and how to insurance/permits. you can make good money with Schneider Choice once you figure out what works for you, the real value imnho is that it's zero risk while you're figuring it out, due to the way they have it set up. for you already having enough to blow on a 2023 peterbilt it's already zero risk. being completely green I think you just need 6 months company time safe driving to start the choice program. they have a company driver thing called jet set where they fly you out to places and you drive for a bit, stay in hotels, then fly you back. that sounds kinda fun. they also have local hourly pay, dedicated lanes, over the road. if you're planning on OTR as an owner definitely do company OTR first, when you start choice it will literally be the same job, same trucks, trailers, customers, emergency maintenance number, same ELD tablet, same systems, same OCs, just a shift in how much responsibility/liability you're hauling and the increased compensation you receive for it.

 

Best advice you got so far was you better find out if you even like trucking by driving as an employee for some amount of time so you can get a feel for the gritty, thankless work it is. There's not another industry where people put up with half the #### that truckers do with a lot of it being unpaid and you're expected to just do it. Sound like fun? If you're drawn to it by some fantasy of of quick or easy money you're in for a rude awakening. It would be a shame to burn a bunch of cash on a new trucking business only to find out the truth and realize it ain't for you.

 

And if you do go buy a truck, don’t just buy a truck because it’s cheap, buy one that’s nice enough others will want it too, that way if you have to bail out, it won’t be hard to sell. Not saying you would fail, but there are health issues that can pop up, family things that need settled, etc. etc

 

another huge perk of Schneider Choice, if you want out you just give the truck back and keep all the experience

 

How much experience does a driver need for Schneider Choice?