Wanting to transition from company driver to O/O

Greetings all and thanks in advance for any and all replies.

I’ve been driving for 2 years. In my 5th truck. All have been auto transmissions, but I’m not restricted to auto only. I’ve also got an X endorsement.

I’ve been pulling refers for the same company since I started and have a clean MVR.

Last year my before tax salary was about $85,000. Due to a freight shortage in our primary lane I spent too many days short hauling or waiting at a truck stop for a load. As a result I may hit $70,000 this year.

I’m in my 50’s and due to a somewhat nomadic lifestyle I didn’t save for retirement. As a result I’m left with two choices. Die in my truck when I’m in my 70’s or try to increase my income and bank some money so I can retire before I’m 65. I’m thinking option 2 is the best choice.

I’ve done quite a bit of research and have come to the conclusion that I can purchase a 2020 truck (I prefer KW’s) with a 4 year 400,000 mile extended warranty for $75,000.

Taking into account the note, insurance, maintenance, permits and licensing as well as fuel it will cost around $200,000 a year to operate.

This brings me to my problem that I’m seeking advice to help solve. I need to gross at least $350,000 a year to make this worthwhile. On average I spend 44 weeks a year on the road. So to reach my goal I need to gross an average of $8000 a week.

For what it’s worth I’m not limiting my options to reefer or dry van. I’m open to anything including cement powder, fracking fluid, you name it. Don’t really care what. Since I live in Louisiana I’d prefer to run within a 600 mile radius but that’s not a deal breaker. My main concern is income.

As I said earlier I welcome any comments or suggestions. Thanks everyone.

 

Good read. I’ve actually been keeping abreast of this. I’m fact, I read an article yesterday from CH Robinson which actually broke down historic LTR ratios vs current ones. It dovetails with that article.

In fact that further proved to me that I have been correct to continue to take a wait and see approach. It also proves that when I do buy a truck I want to look outside the box and away from hauling consumer goods because it seems that’s where the biggest over supply of trucks and drivers exist.

 

Thanks for the reply.

The first question that came to mind when I read your reply was, are you a company driver, an O/O under a purchase agreement with the company he drives for or are you an independent O/O? I don’t mean to be rude in any way at all, but unless you’re the later it leaves me wondering if you have first hand knowledge of the information I’m seeking.

That said for me, 70k is nowhere near enough for me to prepare to ride much less justify being away from home 44 weeks out of the year. Otherwise, I would have accepted a position with a local petroleum distributor whose front door is less than 1/4 mile from my home. $70,000 was the salary they offered me as a local driver working 12 of 14 days and being home every day.

From what I’ve be able gather by talking with other O/O’s, reading numerous industry articles that discuss costs associated with owning a truck as well as a couple people who I know that either manage fleet maintenance operations or own repair shops specializing in heavy duty trucks my costs are not unreasonable. For the record my budget includes $30,000 earmarked strictly for maintenance.

On the other hand taking a look at industry reports regarding current freight rates times the number of mikes I drive in a better than average week an $8000 gross isn’t impossible.
As such I’m not willing to be content driving for 70k a year.

 

That is the direction I’m considering. Groyendyke has a terminal about 30 minutes from my front door. I’ve already spoken to them. Pay is similar in terms of per mile.

I’m planning to go talk to the terminal manager when I’m off over the holidays.

Also planning to hit some of the truck stops along the Mississippi River near the chemical plants in hopes of getting some names of forwarders and see what the require for independent O/O’s to sign on and pull their loads.

at the end of the thou I suspect if I want to haul HAZMAT I’ll have to have at least a year before I can go it as an independent. But, that certainly is an option I’ve considered if the rates are high enough.

 

Yep. I think a lot has to do with the steady influx of foreign drivers here on visas willing to work for lower wages which allows the companies that hire them to push rates down making it harder for the big companies to turn a profit. That plus more and more community colleges are adding CDL courses to their curriculum essentially has created a glut of drivers. Hence the reason why I’m trying to get away from that sector.