Truck Load Rates Halt 8 Week Slide 2.0

As many seasoned vets on TTR who been through a few cycles have pointed out, trucking rates go up and down.

Boom and bust are potentially right around the corner.

Having been a new home builder for many years, I know firsthand this is the case in any business operation.

 

Okay, here's a snapshot of my 5 year operating costs as an owner operator. For prying eyes and those that just want to compare the size of their wiener with someone else's.

I have included all operating costs for 5 years, including variable expenses over the past 5 years on the truck & trailer purchased new, and what I expect for the next 3 years. I have not included any wages or benefits.

As with everything in life, things are subject to change. Heck, I don't even know what's going to happen tomorrow, let alone the next 3 years LOL. However, the first 5 year plan I had in place, pretty much lined up with my expectations.

I've decided to hold onto the truck (per @DUNE-T nudging) and see if I can squeeze an 8 year life-cycle of 700k miles out of the truck & trailer.

Two things I'd like to point out:
1) the line item for the IRP/IFTA/OR PUC are most likely higher than they would be for someone not operating out of Oregon like I do. Primarily because of our excessive road tax. Can't really do anything about that because this where I live and due to the fact that I like to stay as close to home as I can, it's the price I pay. No offense sir, it's just business

2) As you can see, I increased the the actual 5 year Repairs CPM line item from $0.04 to $0.20 for the next 3 years. That gives me a cushion of $47,485 allowance for the next 3 years, which should be adequate.

Since I already have about $25,000 set aside in my maintenance escrow account, in addition to having all of my fixed expenses paid forward for 2021, I already have a good running start for the next 3 years, so long as my health holds out and the the work is there, it's all systems go.

 

An add-on, as I said in another thread, I know where the line is, if the truck goes bonkers on me, I'll dump it.

 

My age is a factor. The uncertainty of this next administration is a factor. What I have witnessed in this recent political election cycle with the brazen lawlessness, etc, has dampened my willingness to stick my neck out any farther than is necessary right now.

If the truck goes completely downhill and starts costing me too much down time, I have the means to move into a short-term 2 or 3 year full maintenance lease.

If worse comes to worse, I'll just go to work for you

 

Someone might ask why I even take the time to post this data. It's because I think it really might help someone who is considering jumping into the owner operator arena as an independent with their own authority.

I hope someone benefits from my personal experience. I have nothing to gain from sharing it.

 

It's true. If I were a younger man, I'd go the route you have chosen in this industry. You have a good knack for business and balanced disposition, most of the time anyways