Is being O/O or company more profitable in 2024?

I fully understand the desire ‘to be your own boss’, I get it 100%. I was a sole proprietor for 12 years, not exactly in ‘trucking’. I owned a local fuel delivery company. 100% of the business income was ‘sales’, ‘buy low, sell high’, in other words the business model was based on ‘margin’.
In hindsight, that probably was a mistake, just not enough income streams for steady cash flow. In short, get into a venture where a good percentage of the business income can generated by charging for your ‘time’. Such as ‘service call’, ‘consulting fee’, ‘research & development’, ‘restocking fee’, ‘delivery charge’, etc.

 

I'm actually looking to potentially work for the company Driver Driven in Minnesota that does o/o, lease, and company driving all as options. I spoke with one of their drivers the other day and he actually switched from owner op to company because he said the company does take care of him and has given him everything he wants which simplifies everything for him in a way that he is happy with. They are offering everything I want for the most part to include a truck that I actually want to drive, I just don't see the benefit in being an owner op right now unless you're doing it for a company like Roehl that takes care of a lot of the headaches for you.

Personally I find that there are just a lot of nickel and dime mentality people out there that only really care about every last little bit of money that they think that they are saving or earning doing this or that while they drive themselves crazy micromanaging. I absolutely hate that nonsense and would happily take less money to not have the headaches. I just want to do the job, get paid, and go home.

 

Trucking period stinks. If the ball stops rolling it will roll you over and if you have reserve capital to tap yes you got out of hot water, but you’re not profitable. The money is in this logistics nonsense. If you look at a company like landstar per truck they make an insane amount of money. Even Werner. Run their numbers. At today’s or any rates they clearly aren’t making money off operating trucks. It’s in brokerage, logistics, contracts, etc. Landstar is all O/O. They have zero skin in the game. You are taking all the risk. A penny a mile profit or $1. Profit is profit. The drivers leased to them think it’s a good deal. Who am I to crap on their sunshine, but at the end of the day landstar made nearly as much as the driver on whatever load and risked nothing. Computers, an office and keeping the lights on that’s it. Plus figure in insurance, retirement like 401k matches, etc and in the end 99% of company drivers after 20 years will be way ahead than any O/O I guarantee it.

Now let’s hear from the exceptions. That’s all that chime in. Those who lost their arses of course don’t come back here to a trucker forum to post. Their male ego alone won’t allow it.

 

When I bought my first truck in 2006, it needed an in frame in three months. $16K. Double that, today.

There is a lot of risk in the trucking business. Mechanical, accidents, credit, you name it. Starting without money is stacking the deck against your success.

 

Owner op can be more profitable, but it depends on a lot more than your ability to drive a truck. I profited net after taxes $1.10 per mile last year and only worked 3 days a week, but a lot of other owner ops went bankrupt last year and probably even more will this year.

 

I think owner operator is more profitable, but I also have maxed out my business credit cards to pay for unexpected repairs. I've only been an owner-op for 10 months, and running team to maximize miles. I'm leased onto a carrier based in Phoenix, and although it wasn't exactly as advertised (is it EVER?) it has kept my head above water. My first carrier I leased on with only lasted 5 weeks, they seemed dedicated to bankrupt me with low reefer rates running ($1.30-$1.50/mi) and lots of nickel-and dime fees to strip away all my profit (Mid Group based out of Indiana/Chicagoland, see posts under Bad trucking companies). I became an owner-op after my great company job had to cut wages in response to lower freight rates, and there also happened to be a lot Freightliners on the market ( from other lease guys bailing out, I guess) . Run frugal, don't expect to make much in the first year, and have some cash and credit resources before jumping in. Stay with a smaller company based in your home city, I found mine on Craigslist. They should be willing to help if needed with unexpected costs. Hope this helps!

 

I have a hard time believing post like these are real.

 

Don't start without having a big chunk of change behind you. If you buy used truck, you are taking big risk without money to back you when things go wrong.

 

I've done the owner op game before and will say based off what you've said so far, you're in no position to be one yourself. That's the short answer. DPF and engine software issues alone will shut you down potentially for weeks to maybe a whole month and that's not something you're ready for. I've been there and it sucks. Wouldn't dare jump into any lease program to haul general freight right now anyway.

 

exception here. I highly recommend becoming an exception because the regular rates are horrible right now.


Find out what it takes to haul the gases (not gasoline and diesel), heavy haul, AA&E or and get the required experience for that niche.


We did that and are grossing 10k and netting 6k per week and everyone in this niche market says its a down year for us too.


Most 0 down company leases are garbage and you wont ever own that truck while paying more that buying it outright on a simple loan. We bought a used truck instead


The general advice is right for most people, BECOME an exception by doing something different!