What are we doing wrong?! This is long but the backstory is necessary :)

The silver lining here is at least it’s operating at a loss so taxes won’t be an issue.
Seriously though, many single truck operators are struggling right now while driving the truck themselves and barely paying themselves a wage. Expecting to have a single truck and pay a driver and pay a dispatcher and everyone else and make a profit while you work your job and don’t input anything into the truck other than money isn’t realistic.

The guys I know with multiple trucks all kept driving one themselves while dispatching their other trucks until they had enough trucks to support themselves enough to step out and go into the office. To put it bluntly, your company is basically a hobby that is costing you money. The dispatcher doesn’t care about your money so they will simply keep your truck moving no matter what. Your driver will be happy as long as the truck is moving and they’re getting paid. Taking a hands off approach to truck ownership is a horrible idea. During Covid when the market was hot maybe, but definitely not now. Cut your losses, realize you’re wasting money, and move on. Take the money from your jobs and invest in something that actually affords you a return on your investment.

 

Everyone will have a different reply to that. Some large companies can operate at a loss quarter after quarter and recover once the market turns. Some like one we just saw call it quits immediately after losing significant contracts.

I am a one truck guy who is leased to a carrier and I wouldn’t operate at a loss. I realize it’s different because I don’t have authority and I can take my truck to a different company if I want, but it’s sort of the same idea. If I operate at a loss then that means I have bills that won’t get paid because I don’t have anyone to float my truck expenses with their income.

You’re saying your costs are $2.39. What all is included in that? If that doesn’t include anything for maintenance or truck/trailer replacement then your losing 17 cents per mile in addition to not having any money set back for the future.

 

Does it account for setting $$ aside for the truck? If you are operAting at a loss and can't afford to dump $$ into the truck if it goes down on the road I would get out now. Being a hands off owner is a horrible idea in this business, there are people that have been in transportation running there own numbers for twenty years that are not making it right now and either got out or are just sitting waiting for stuff to recover. Just cause you see idiots posting crap on tiktok or YouTube about how much money they are making doesn't mean they are actually making money, as soon as there truck goes down and costs them a pile of money they will go under also or have to finance repairs or a new truck, which is also a horrible idea. The market is horribly over saturated right now with people running around hauling freight for cheap who thinks they are making money but realistically are one breakdown away from being out of the game. There is not going to be a freight recovery until trucks are purged from the system, and to quit sugar coating it your truck is one of them that needs to be purged

 

OK I was going to put together a lot of the OP's quotes and so on.

But instead, I am going to offer some really important advice, read it a few times.

Some of it will go against the majority posted here but don't matter.

First OP, I have sitting on my desk a similar situation that was presented to me by a bank trying to help an armchair owner like you without default. There are 4 trucks, 6 trailers, 3 pickup-type trucks, and a couple of trailers that go with them. I am ready to make an offer, I will also end up with the business entity and other assets, but I will not take the drivers - they are all substandard. This is what I really do to make money and now with a dozen or so little fleets being liquidated, we will see capacity go down a bit.

So let's start with this, I think you are over your head. There is no excuse for getting out of the business RIGHT NOW, stop acting emotional about losing out, this isn't an emotional business, it is a high-risk business that has a lot of losers (90% of all o/o fail, 95% of fleet owners fail).

You made a lot of mistakes;

• You used a substandard truck the first time around and then doubled down on the second and thought getting a tractor would be the best solution.
• You didn't learn the systems on how to find work; you went to brokers for work and they don't have the bulk of the work.
• You most likely hired a driver who was clueless as to how to get the hell out of an area without costing you a lot of money, think composite loads for $1.50 each to move the truck.
• You hired a "dispatcher" who I think is also clueless about what she is doing, she should be searching and working with brokers to keep the truck moving all the time. She should know how to route work to build composite loads to get the truck moved to a better lane to get better work. She should have been busting her ***** to find consistent, dedicated work to get you out of the hole.
• The biggest thing I gathered is this - you have no ****** clue of what you are doing. You have no clue as to what your finances are - most failures are because of this alone. You don't know what your BEP is or margin is. You needed set goals and learn how to manage everything.

So you are paying money from other jobs into a failing business, honestly, you need to cut your losses and move on.

If you mortgage your house, or something stupid like that, then sell everything to what you owe and move on.

Call the lender and see what they can help you with, they will be willing to do more than just pay lip service.

If you think that is wrong, then here is an option.

Sell what you can, if you have the Dodge and trailer(s), get rid of them. Focus on the real truck and trailer.

GET TO KNOW YOUR finances, project your fuel costs, and budget everything - which can be done.

If you have an accountant (which all fleet owners have to have), talk to them to help. You need to have professional help with tracking and goal setting. You should make 5% to 8% minimal.

I would go to a major carrier that leases, like LandStar (it does not have to be them), and ask them to see if they have drivers looking for an owner to work for. If they do, go through the hiring process with those drivers; LS will keep the jacket and then go through the onboarding process for the truck. They will take care of a lot more than you think.

What this will give you is access to their load board, it will give you a reduction in operating costs from fuel costs to insurance and it will stabilize your business. They will have the work because of their network of agents (again - this is NOT the only carrier to go to).

That said, we are in a rate slump which will not get better for a while, and we need to get rid of a lot of capacity.

I hate armchair owners; they are the problem in this industry.



You do not need to reply, just read it and then go do it.

 

This is almost as comical as the OP, lol

my life insurance made 5% last year, never mind what my retirements and market account did, and you would have to do literally nothing but deposit the money you are throwing away into something else

 

I have never ever seen people make money in situations like you. You will fail 100% if you keep things they way they are now.
This is not a business for investors. Cut your losses and get out before you dig even bigger hole.