Why do most owner operators fail?

Way too many and they are usually the first to complain about rates, then take loads that don't pay enough.

 

Autocar Speak the truth!!! O/O like that are messing up the industry

 

I received a call from a broker yesterday. He had loads coming out of Iowa. Some were oversized. The rates were the same other than the broker or shipper was paying for the permits on the oversized. These loads were flying off his loadboard. I told him "Why would anyone haul an oversized, with all the additional time and hassle for the same rates as legal loads?" His response was that he had no clue. Oversized loads may not be able to run the same routes as legal loads and are usually restricted to daylight hours only. There can be much more to running oversized loads than legal loads, yet some are more than willing to take them for the cheap rates. I guess these people just love to run those flashing lights.

 

I commented in this one long ago and thinking it over again. I look at an area here around me wiith, alledgedly 300 more loads than trucks according to ITS, and the rates offered up on various loads I've checked on are break even for me or worse. So the megas do a great job of keeping expectations low and my fellow o/o don't use the power and control they have to set rates, they just accept whatever slick salesmen tell them. This morning some joker was trying to get me to take a 6,000 load 268 miles, had to sleep on it overnight then deliver, for $500... He mentioned it weighed only 6,000 lbs at least a half dozen times.. ..cause the light load is supposed to excite me into running for losses. I guess I was supposed to think about all the fuel I'd save??? or something like that??? Are we close, are we close???? No we just wasted 5 minutes of our lives..

 

After reading all these pages, there are two categories. One that is pro mileage, the other that is pro revenue. I'm jumping into the pro fuel mileage for many reasons. As a NEW owner operator, I'm conscious of everything, grew up around it and experienced it for the part few years prior to getting my license. Mpg is a huge deal, why run your tall off to get that extra stop in when you burned 2 extra mpg? Prior to me running with my Dad, he was in the high 5 low 6 for avg mpg. After the trips I've been running with him, my avg fuel has been 8.578 mpg. And I have the same amount of time off that he did, and I get all the stops done in the same amount of time. Since we are contacted in and have a guaranteed load each week, the only time spent looking for loads is to get from the New England region to Alabama. Now the money my father has saved in fuel from me running at 60 mph is huge. Here's some info.

2000 Sterling N14 motor, 13 spd, 3.55 gears, 232 wb. Condo and running dry van, approx 25k excerpt for when finding a load down to Alabama, then approx 40k.

Now there is a huge difference in running 60 vs 65 vs 70+mph. Anyone who claims not just doesn't understand the process I guess. Just between 60 vs 70 mpg you save an automatic 1 mpg. You might make it an hit ahead of me if you were running my rt, but when the rates are set at a fixed price, and it takes the same amount of time, I will work on my mpg. Besides at a million two, I'm not working thus motor as hard as it could be.

Time is money. But the slower driving you are saving money. I'll take my mid 8s all day long.

 

Well worded, the truth...

 

On that particular truck that may be the case. I have never driven a cummins N14 so I have no opinion on it. I can tell you, I drove a w900L with a 2002 6nz cat in it, I kept that motor around 7 psi on the turbo, the speed didn't matter and the MPG would always be the same. It didn't matter if I was at 50 mph or 75 mph, that 7psi kept me always in the neighborhood of 6.5 mpg, +/- maybe 0.25. I did try driving slower on no-wind days and the highest I saw was 7.4 with very light load, but at the time the boss was happy with my consistency. I really enjoyed driving that truck. NO problems in the 300,000 miles I drove it. It was a 2003 kw W900L, 6nz, 3.55 rears, 13 speed, 250 wb. Reefer freight heavy one way and LTL the other way usually very light. ALWAYS around 6.5mpg.

 

Very good point, I'm surprised with that. That's good mileage on the w900. My favorite truck hand down. The good thing you mentioned was the turbo. Keeping it low will benefit greatly. I know not every truck will have the same results. To be honest I'm not that familiar with the cat motor. I know the Cummins motors are well built for fuel. I would just assume that slower would mean better, but not everything has the same scenarios. Both have pros and cons. Really appreciate that knowledge you shared!!

 

what good is high mpg if you have low revenue?? it has to a combination of all factors in both cost savings and revenue generated. getting 8.5 mpg while running for and avg of 1.30 a mile only dlays the inevitable going belly up.

out of curiosity whats the revenue difference in your load up, vs your load back to alabama?

 

I agree with you in terms of low revenue to save costs. Just the way I have seen it is no point in hauling tail if you'll get that extra load that doesn't pay much. Just cause I've watched the boards a while, always gave me something to do. Sometimes the rates aren't there and ways to save in my eyes would be fuel costs. Just my opinion. Yeah that's the thing, if we have to find a broker load, it has to be en route, and pay roughly 2+ a mile.
In regards to revenue to and from Alabama, I'm not sure. Never really asked. I'll get back to you on it though. Only thing is I know the loads coming up from Alabama pay more than going down.