Who has the answer? Does the O/O or the Company Driver

Depends on a lot of factors. A true independent can probably make a lot more but he'll have a lot more responsibility to go along with it. A lease operator who's leased to a company might take home, after expenses, about the same as a company driver. But it all depends on many different things. I'll let other drivers chime in and I'll jump back in later. It's just too much to explain all at once. You got expenses like fuel, maintenance,tolls, permits, taxes, insurance, etc. You won't have much time at home because you'll have truck payments to make regardless if the truck moves or not. So you better pack your kitchen sink because there's a good chance you'll be on a good long tour of our beautiful country. Because you're not making money if the truck sits still. But that's not every case.... it's just a generalization of how it might be.

 

Palerdr is about dead on. The other benefits include hometime a little more U're way. If U are motivated to take initiative, as a true independent, U can make more.
Whats the old saying? "First U make the choice, then the choice makes U". The Best to U no matter what U decide!

 

the majority of o/o's will make less money working for themselves than they would working for a reputable company.

Most people are not good business people.
Most people are not very efficient.

If you are an exceptional business person you will do better.

In neither instance will you get rich, if you wanted rich you should have stayed in school or else started a "real" trucking company in which case you would not be an owner operator and still might not get rich... hehe

 

honestly i havent broken it down that far in a few months so i might or might not be making more....dont know dont care

main thing for me is the freedom i have in telling my dispatcher that no i will not take said load becuase I do not want to

theres more to life than money

btw when i want i can take all the time off i want....so long as i can still make all my numourus payments ( self imposed rule), and my health insureance policy is cheaper in cost and better in benifits than the plan i had thru the union last year

not all union jobs are gravy...i hated mine

 

I don't know about the union part [never done it], but everything else is dead on. The only other thing as I see it is if U really are the person who will follow through to become completely independent. There's some extra that can be found there. But U have to be diligent. No settling for "good enough".

 

An O/O starting out is going to be struggling for some time unless he has a lot of experience behind him and a set plan. Even then it's still much harder because you don't have the safety net a company driver has. Being an O/O is just like running a business. If something goes wrong your the one who has to handle it.

 

This has been a contentious topic for a long time and I have ruffled a few feathers along the way so here we go again! I love a good debate so lets have at it!

A GOOD company driver will have many benefits included with his job. Examples are the following;

Paid Vacation (some pay a flat rate others pay 1/52nd of previous years earnings).
Paid sick days (some are flat rate some are proarted based upon an average days work).
Paid personal days (same calculation as above)
Paid holidays (same calculation as above)
Breakdown pay (varies from company to company)
Detention pay (varies from company to company)
Congestion pay (for large cities such as the 5 burroughs of NYC, Downtown Chicago, Downtown Boston, etc).
Safety Bonuses (could vary from 1 to 2 cpm extra per month).
Recognition programs awarding everything from company merchandise, patches, uniforms, and even cash awards.
Paid Medical Insurance (some may have to pay a portion of the coverages).
Prescription plan.
Dental insurance.
Vision plan.
Disability Insurance.
Life Insurance.
Workers comp.
Paid Pension plan or 401k with employer match.
Company has to pay half the employees social security.
Company withholds all applicable taxes (federal, state, and local).
Optional AFLAC insurance (paid by employee at group discounted rates).
Credit Union memberships.
Paid mileage empty and loaded (Good companies will be paying in the mid 40's to mid 50's cpm depending upon the company).
Paid hourly for any dock work performed.
Paid for every time you bump a dock.
Paid for every drop.
Paid for every hook.


Now add to this the piece of mind of not having to worry about the truck related expenses of being an o/o, finding your freight, doing all the necessary paperwork from the business end of things, and you can take a week off without stressing about being "in the hole" and having to run your tail off to "catch up."

Now to be fair there are different levels of being an o/o.

The highest is the independant contractor with his/her own truck, trailer, and operating authority. They will negotiate freight rates directly with the shipper as well as fuel surcharges.

The next in line would be a guy that "owns" his truck but chooses to lease on to a carrier and operate under their authority. He agrees to do the job for less than an independant contractor in exchange for the carrier securing the freight, giving discounts on many things such as tires, fuel, insurances, plates, permits, etc. The rates vary but currently advertised rates are in the .90 cpm range with a 25 to 35 cent fuel surcharge.

The next guy could actually be called a "wannabe o/o." These are the fellas that haven't got the money nor the credit to buy a truck on their own yet want to be "in business for themselves." These are the "lease Purchase" guys. These guys will run a company truck, make weekly truck payments, pay for all the fuel, pay for bobtail insurance, road use tax, fuel tax, 2290 etc. and also be responsible for the full social security tax, medicare, federal, and state with holding, and pay in quarterly.

The numbers do vary from company to company so to give an absolute statement of one is better than the other is unfair.

A union company driver may earn close to 100 thousand per year in pay and benefits. (example pulling doubles in a linehaul application on a regular route)

A non union driver will usually have fewer benefits and may make 70 to 80 grand per year in pay and benefits. (example a dry van irregular route ltl carrier)

An Independant contractor may make 300 grand per year per truck in a niche business. But will spend almost half of that for "business expenses."
(example over dimensional, hazmat, or military contracts)

A lease operator may make 200 grand per year but again will spend around half for his operational costs. (example Flatbed oversize hauler or heavy hauler)

A Lease Purchase solo operator can make 150 to 200 grand in a year but will also spend around half for business expenses. (example reefer driver pulling general refrigerated freight).

These numbers are based upon projections of 1 driver in 1 truck running around 3000 miles per week for 50 weeks.

The question is how much control do you want to have over what you do?
If your content to drive, collect your paycheck, and go home without worrying about all the little things that happen behind the scenes, then a company driver position will suit you best.

If you want to have more control of where you go and when you go then a lease operator may be right up your ally.

If you desire to be an entrepreneur and challenges excite you then an independant contractor status should suit you very well.

 

JlkklJ777, I really appreciate how you have broken things down. As a new driver, who was self-employed for 20yrs, O/O or L/O has its appeal. One thing that drivers should consider is that being a co. driver may be as close too the best of both worlds. You get to set your own schedule, at least whether you drive day,night, or your own combination. You don't have someone looking over your shoulder to see how you do things. And you don't have the worries as you stated. The most important thing you said to me was that there is no ONE right answer. Different strokes etc.. To those considering either O/O or L/O I would only add: BE HONEST WITH YOURSELF! If you don't have the disipline to set aside money for taxes, health insurance, retirement, maintanence, replacement(NO- they are NOT the same thing!), then don't kid yourself. You won't do anyone any favors by being bullheaded about it. This doesn't mean that you should not try it. Please, just be careful. I have seen too many people drive themselves in the ground trying to prove a point to someone. And being miserable. Yes, you need to be determined enough to get through the rough spots, and there will be those. But also be smart. Wounded pride will heal faster than financial ruin. And you can always try again latter, using what you learned.