Average Trucking Salaries By State

It’s interesting to note that there is very little correlation between average state earnings and trucker’s salaries – for instance, Alaska and Hawaii are among the lowest earning states for truckers, but both are in the top ten highest for general earnings. Similarly, the average Mississippian household only brings in $36,650 (the lowest in the country), but it’s the top place for truckers who average $68,000 a year.

Data compiled, with thanks, from the U.S. Bureau of Labor Statistics.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

Guide to finding a truck driving job.

There are plenty of truck driving jobs to be found if you know what you are looking for.  However, many qualified truckers experience unnecessary difficulty during the search and give up before finding the right job because they are not organized.  Having everything you need ready and being informed will make it easier for you to find a trucking job.

Don’t feel tied to a recruiter

When you start looking for truck driver jobs, you will probably talk to a recruiter.  However, it is important to realize that recruiters are often working for just one company, so you will want to talk to different recruiters.  This will give you a better view of the spectrum of available truck driver jobs and find the one that best suits your style.  Be sure to keep track of the information that you hear from different recruiters so that you may easily reference the details later when there are multiple positions to consider.

Tell the truth

Whenever you are talking to a recruiter about a CDL job, or at a job interview, it is important to be honest from the very beginning.  Even if you have some negative information to share, it is better to put it out in the open yourself than to have it come to light later on.

Have your information ready

When you are applying to a number of trucking jobs, it is important to have some information ready.  Some of this may be on your resume, and if it isn’t, make sure that you have it handy.  You will need:

• Your current CDL, which should be non-expired and have your correct home address
• At least three years of work history, though more is sometimes wanted by recruiters.  If you were not driving during part of this period, be sure to have other professional references that can speak to your working character.
• Names and contact information of all trucking companies and employers that you have worked for.  It is a good idea to talk to former employers beforehand to let them know you are using them as a reference.
• If any of the former employers are unreachable or out of business, you should have other proof of work history.  This can include letters of reference, DOT numbers, and W2 tax forms from trucking jobs.
• A copy of your driving record.
• Proof of eligibility for work

Know what the recruiters know

Before you can obtain a job in the trucking industry your potential employer will run a background check.  This will include pulling any criminal records, copies of your driving records, your DAC report with previous truck driving jobs, accident history, and more.  It is important to know what is included in that report and be forthcoming with the information before the recruiter finds it.  If the recruiter believes that you were being dishonest or hiding something during the interview, it could cost you the job.  Also, if there is any information in the background check that is false, you will want to get it taken care of before interviewing.

Drug testing

Most reputable companies will do drug screening on potential and current employees.  If interested, the company may require you to take a drug test on the spot to prove that you are drug free.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

Positive trucking outlook tempered by rising expenses

The Trucker News Services

4/27/2011

IRVING, Texas — Nearly three-quarters (71 percent) of trucking company executives surveyed expect business conditions to improve in 2011 but they are concerned about the impact of external and internal factors on their profit margins, says GE Capital, Transportation Finance.

The rising price of diesel, a nationwide shortage of drivers and the twin costs of complying with government regulations and maintaining their own aging fleets are all significant concerns.

When asked to identify their company’s top three business opportunities this year, a full 75 percent of respondents said they expect existing customers to ship increasing volumes of goods, according to the survey. The same number said they foresee an increasing rate environment. Sixty-eight percent of respondents expect to acquire new customers in 2011.

 “As the economic expansion gains strength — although it’s clouded by recent global challenges — trucking companies are working hard to communicate with their shippers exactly what’s involved in moving their freight,” said Dan Clark, president and general manager of GE Capital’s Transportation Finance business. “At the same time, shippers in the U.S. should try to understand the challenges that are impacting trucking executives’ business decisions.”

Executives said their biggest challenge will be recruiting and hiring quality drivers, cited by 74 percent of survey respondents. Two other widespread concerns are the rising costs of diesel fuel (67 percent) and equipment parts and maintenance (41 percent). Additionally, they are concerned about the operational costs of complying with recent government regulations related to the hours that drivers may work and the reporting of safety, compliance, vehicle, driver and regulatory violations to the Federal Motor Carrier Safety Administration.

While shipping capacity is tight, nearly half (48 percent) of survey respondents expect the number of competitors in their market to decrease while an additional 39 percent expect the competitive landscape to remain unchanged.

“In previous business cycles, the positive volume and rate conditions that we’re seeing now would’ve primed the market for new entrants,” said Serena Tse, GE Capital, Americas’ senior vice president and transportation industry research manager. “Even though carriers have a tremendously positive outlook on business conditions and revenues, they’re sobered by concerns about profit margins.”

Additional findings from the survey include:

• A significant portion of carriers intend to maintain their fleet size in 2011; however, 68 percent anticipate adding to their sleeper cab fleets and 70 percent adding to their trailer fleets in 2012.
• Forty-nine percent of carriers expect the average age of their fleets to decline in 2011, likely a result of replacing older equipment; 25 percent are planning to continue using their existing equipment. The aging is concentrated in the long-haul segment of the industry.
• Carriers are positive about having adequate access to capital this year, with 43 percent expecting it to increase and 46 percent expecting it to stay the same.
• Executives representing fleets with 1,000 or more trucks are generally more optimistic about business conditions than those with smaller fleets, likely due to the latter’s regional exposure.
• Those in the Southeast are the most positive about trucking conditions, while those in the Southwest are least optimistic.

GE Capital surveyed owners, general managers, chief financial offers and other industry executives in March 2011.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

NPTC Supports Mandatory EOBR Rule

NPTC Supports Mandatory EOBR Rule
By Deborah Lockridge

The National Private Truck Council has followed the lead of the American Trucking Associations and the Truckload Carriers Association, coming out with a policy endorsing the federal government’s proposal to mandate electronic onboard recorders to track driver hours of service for nearly all carriers.

The NPTC board of directors adopted the new policy during its meeting at the group’s annual convention in Cincinnati over the weekend. Rick Schweitzer, the group’s counsel, recommended the policy change and announced it to the general membership in attendance Monday.

The group had three conditions for its support:

1. The technology must be cost effective and accurate.

2. It must protect data ownership and access for carriers and drivers. “It’s unnerving for defense attorneys to know there’s going to be an EOBR with information on the driver’s operations and probably a lot of other data, like truck braking speed is available, and we want to protect to the extent we can access to that data,” he said.

3. Eliminate all supporting document requirements. “It makes no sense to have a 21st century electronic system and still have this requirement that you have to have all your fuel receipts and dispatch orders and 32 other documents to check against the electronic logs,” Schweitzer said.

He noted that most private carriers of any size have already adopted some sort of electronic onboard recorders, so it’s not a huge leap for this segment of the industry.

“It’s going to happen,” he said. “This is one time we can be on the side of the angels, we can be the good guys saying we support technology to help us comply with HOS rules.

Probably the most important reason to adopt EOBRs, Schweitzer said, is the Federal Motor Carrier Safety Administration’s new CSA enforcement program.

“One of the BASIC areas where carriers are scored is in driver fatigue, and most of the violations for driver fatigue have nothing to do with fatigue or drivers exceeding their hours — they’re paperwork violations,” he said. “If you go to a complete EOBR system, I think it will eliminate a lot of those violations.”

In March, TCA adopted a new policy in favor of electronic logging and will support the Federal Motor Carrier Safety Administration’s proposed near-universal mandate for electronic onboard recorders (EOBRs) to track driver hours of service.

ATA followed suit earlier this month, announcing that its membership endorsed a policy supporting federal laws and regulations that would require trucking companies to use electronic logging devices to monitor driver hours-of-service.

ATA had the same concerns about the law as NPTC when it came to affordability/accuracy, protection of privacy and supporting documents.

The current FMCSA rule, which will go into effect June 4, 2012, says that carriers that violate hours of service rules 10 percent of the time, based on single compliance review, must use electronic onboard recorders to track driver hours. It will affect only 5,700 interstate carriers.

The rule the agency is now proposing, which will go into effect three years after it is made final, will cover all of the approximately 500,000 carriers now required to maintain driver logs. It will create a market for at least 2 million recorders by one estimate, although other estimates go as high as 3.4 million. It also covers requirements for documentation to prove compliance with the hours of service rule, and it would require carriers to monitor driver compliance with the rule.

Under the proposal, violators of the recorder requirement would face civil penalties of up to $11,000 for each offense. Noncompliance would also negatively impact a carrier’s safety fitness rating and DOT operating authority, the agency said.

The proposal will not apply to short-haul interstate carriers that use timecards to document hours of service.

In addition, two senators have restarted last year’s effort to pass a bill that would mandate electronic onboard recorders on most trucks.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

Truck Leasing 101: Complete Guide to Semi Truck Leasing

For some, the pull of the open road starts early, tugging at them while they’re still kids with the “come hither” appeal of a particularly attractive member of the opposite sex, and millions have answered that call.  For thousands of drivers, driving for the company isn’t nearly enough, and they want the full experience of being in business for themselves.  However, many would-be owner-operators have to face the harsh reality that financial skeletons in their closets have put their dream out of reach until their credit situation improves.

Recognizing the demand for a viable alternative, many trucking companies have put together lease purchase, lease option, and drive-to-own opportunities for drivers unable to pursue their dreams through more traditional financing sources.

The question is: Does leasing a truck from a carrier ever make financial sense for the driver — or should you avoid all of them like the plague?

The answer to that question depends upon your individual circumstances — and whose message you choose to believe.

The Carrier

From the carrier’s perspective, leasing a truck makes perfect sense for those drivers who are credit-challenged or have a lack of down payment money and other start-up costs.

Carriers have heavily marketed lease opportunities to would-drivers as a short-term path to truck ownership, and thousands of drivers have taken the bait.  While the terms vary from carrier to carrier, carriers claim that leases benefit drivers in a variety of ways, including:

• Low Down Payments (in some cases — no down payment)
• Low deposits
• No long-term commitment
• Opportunity to drive up-spec equipment
• Pride of Ownership
• Relaxed credit standards (in some cases no credit checks)
• Lease completion incentives (cash back, lease buy-outs, etc.)

This gives lease operators the chance to experience first-hand the perks of ownership, while limiting their financial risk.  Many carriers advertise their leases as being “walk-away” leases, meaning that the driver can simply walk away from their lease obligation if for some reason things don’t work out.

Driver Advocacy Groups

Driver advocacy groups have a different take on carrier-sponsored semi truck lease opportunities.  Some, such as the Owner-Operator Independent Drivers Association (OOIDA) have successfully filed class-action lawsuits on behalf of drivers who have fallen prey to unfair or illegal carrier leasing practices.

In recent years OOIDA has successfully won large settlements for drivers in high profile cases against carriers such as C.R. England, Inc., Landstar, Inc., Ledar Express, and Arctic Express, Inc.

Some of the issues raised in these lawsuits have been violations of federal truth in leasing laws, the failure of carriers to return escrowed funds at the end of the lease or when it is terminated, illegal or improper deductions, and in some cases — outright fraud.

Driver Complaints

For many drivers, leasing a truck has been nothing short of a financial disaster.  Instead of allowing them to experience the joys of truck ownership and the fulfillment of a dream, what they have experienced instead has been a protracted nightmare: low miles, unauthorized deductions at the hands of sometimes unscrupulous carriers, and confusing lease contracts written to heavily benefit carriers.

Many drivers have been taken advantage of by these deals and — frequently — the lease drivers are left holding the financial bag, owing their carriers more at the end of the week than they have managed to earn by driving.

Some of the chief complaints that some drivers have about these lease contracts is that most carriers make it nearly impossible to earn a living due to:

• Large Payments
• Inflated fees for insurance
• carriers that over-charge them for fuel taxes
• carrier-mandated repairs at company-owned repair facilities (with repair rates set by the carrier)
• Large deposits, escrow, and repair accounts

In addition, some drivers charge that their carriers don’t clearly spell out in the lease agreement under what terms drivers can access tire and repair money — and some carriers make it impossible to access those funds by setting very high minimum spending limits before the funds can be tapped.

Adding insult to injury, many carriers promising drivers that they can walk away from their lease purchase obligations if things don’t work out keep escrowed repair funds and deposits if the driver elects not to complete the lease.  This has caused many drivers to question whether lease opportunities are an opportunity — or a pathway to certain financial ruin.

Some Drivers ARE making money

While there’s very little doubt that leasing a truck may very well be a huge gamble for some drivers, it’s also true that there ARE drivers making money with a truck lease opportunity.  Some earn a very good living.

Since there is no national database available with statistics showing how successful or unsuccessful drivers can be with commercial truck leasing, drivers are left to form their own conclusion.

The best policy is to do your homework

If you’re determined to roll the entrepreneurial dice — and your current credit situation doesn’t allow it — you are basically left with the choices of driving a company truck until your credit situation improves or finding a trustworthy carrier from whom you can lease a truck, as a lease operator.

If you elect to lease a truck, the best advice you can follow is to:

Talk to other drivers — If you’ve spent any time listening to truckers talk on the CB or in a truckstop, you’re very well aware that some drivers love to hear themselves talk.  Some are more reliable than others, so don’t automatically assume that the picture a particular driver paints of their company bears even a faint resemblance to the reality that you’ll experience of you opt to go to work for them.

Some drivers have nothing but venom for their carrier, regardless of how driver-friendly they might be, while others will portray their carrier as heaven on Earth — even if they’re losing their shirt and are on the verge of quitting.  A good report will spell out the good, the bad, and the ugly, but it will ultimately be up to you to piece it all together and decide how accurate each report is.

Carefully research carriers — Since you’re not looking for a company driving job, do a thorough job of researching carriers.  While there are many outstanding companies in this industry, there are also some duds.

Keep in mind, too, that your initial point of contact at most companies will be the recruiting department — and recruiters are under constant pressure to fill seats with quality drivers.  This pressure can bend some to the breaking point, which can lead to recruiters telling applicants what they want to hear in order to get them to orientation.  Once you’ve signed on the dotted line and have begun leasing a truck is a terrible time to find out that a company is a poor fit.  So do your homework — and ask lots of questions, being ever-mindful that the answers that you’re hearing could very well be sweet nothings designed to win your trust and entice you to agree to their sales pitch.

Find out what’s in the contract — The amount of money that you will make leasing a truck from any company or truck leasing company will depend largely on what it costs to operate the truck.  In addition to the cost of the tractor lease payment, many carriers will expect you to pay:

• A deposit or a down payment (sometimes financed over a short period of time at the beginning of a lease)
• For Base Plates and permits
• For deadhead and/or bobtail insurance
• Pay for cargo insurance
• Pay for cargo insurance or accept responsibility for freight claims
• Set money aside for maintenance, towing, repairs, or tires

It’s important to note that just because a carrier has you set money aside for a specific purpose that that’s not necessarily how it will be utilized.  For instance, if your tire escrow account has $1,000 in it, but the carrier requires a tire repair expense to be at least $500 before you can tap into it, you will be forced to pay most tire-related expenses yourself.

The same holds true for breakdowns and repairs not covered by any existing truck warranties.  So find out what the details are before agreeing to contract provisions that could make profitability a pipe dream.

Run the numbers — Finally, before agreeing to any carrier truck lease contract, it’s critically important that you run the numbers and make sure that you will be able to make money.  If you can’t make money on paper, it’s highly unlikely that you’ll be able to make it work in the real world.

The following income and expense budget will help you to decide whether you should be able to make it as a truck lease operator.  While some carriers will pay for certain items, this gives you a good idea of some of the expenses that you might incur.

• Income
• linehaul revenue (mileage or percentage-based)
• fuel surcharges
• stop pay/unloading/etc.
• Fixed Expenses
• Tractor payment
• Trailer rental
• BT/DH Insurance
• Cargo Insurance
• Licensing
• Permits
• Accounting/administrative expenses
• Variable Expenses
• Truck fuel
• Reefer fuel (if refrigerated)
• Mileage fees
• Excess mileage fees
• Tires
• Repairs
• Maintenance
• Truck/trailer washes/trailer washouts
• Cellular services
• Tolls
• Workman’s compensation insurance
• Road, fuel, usage, mileage taxes
• Cargo claims
• Lumpers/gate fees
• Scale/weight tickets
• Fines
• Parking
• Legal fees
• Check cashing fees
• Qualcomm rental/usage fees

When figuring how much you can expect to earn, it’s of critical importance that you have accurate (and realistic) numbers.  For instance, if you base your profitability on your ability to drive an average of 3800 miles week in, week out, you will find that it’s impossible to meet that threshold if you take four or five days off in a given month.

Run several sets of numbers based on varying mileage totals to see if you stand a good chance of meeting your income needs.

While these are the most-commonly seen income and expense items, some carriers may have additional expenses not listed here.  If that is the case, be sure to include those items in your projections to ensure that you’ve taken everything into consideration.

Tax and insurance considerations

As a company driver, many carriers have fringe benefits — health, dental, vision, and life insurance — available for their drivers.  However, most carriers will not offer the same benefits to you as a lease operator, and if they do, you won’t be able to get them nearly as cheaply as you would as a company driver.  In addition, as a lease operator you will be responsible for your own retirement planning, which will come out of the ever-dwindling pool of money left over at the end of each week.

Taxes, too, will be your responsibility.  Instead of your carrier deducting money from your settlement checks to cover federal and state withholding requirements, you will be required to file quarterly federal and state income tax returns, as well as to make estimated tax payments based upon those returns.  Remember, too, that as a self-employed entrepreneur, you will also be responsible for paying self-employment taxes, which reflects the employer’s share of social security and Medicare taxes.

The bottom line

When you add it all up, leasing a truck will be a daunting financial endeavor under the best of circumstances.  However, times are tough in the transportation industry.  Some drivers have the business savvy, perseverance, and the luck it will take to survive — and thrive — in today’s trucking environment.

Unless you go into a truck lease arrangement with your eyes wide open, are aware of every minute detail, and can manage your business like a true professional, then you don’t stand a chance.

However, if you can, you might be one of the extraordinary drivers that proves that some people can succeed even in very difficult circumstances with sheer determination and a can-do spirit.

Are you one of them?  If you are, this might be the deal for you.  If not, or you’re not sure, your best bet is to stay behind the wheel of a company truck and take the safer, less risky path to your destination.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

The 6 Steps to Becoming an Owner Operator

Regardless of whether you’re a starry-eyed rookie driver or a grizzled veteran with a million safe miles under your belt, you’ve at least considered the possibility of giving up the security of a guaranteed weekly paycheck for the chance to live the entrepreneurial lifestyle as an owner/operator.  This is an achievable goal, but before you pick out a new truck and kick your current employer to the curb, you need to ensure that your ducks are in a row and you have set yourself up for success in what is a highly-competitive business environment.

In order to put yourself firmly on the road to success, there are a number of critical decisions and self-assessments that need to be made.  While failing to take all of these steps doesn’t guarantee that your new venture is destined for the trash heap, following this roadmap does dramatically increase the chances that you will look back on this time with fond memories.  So use this guide as a general framework around which to build a profitable, self-sustaining business.

1. Personal Assessment

Taking a good, hard look at your work ethic, habits, and other factors can yield solid answers about the likelihood you have of succeeding as an owner/operator.  Do you like to spend weekends holed up in truck stops watching races or ballgames, shooting the breeze with other drivers for hours on end, or trolling around on the Internet?  If so, you may not be cut out for the rigors of truck ownership.  Some of the personal factors you will need to examine include:

• Driving Preferences – How hard do you like to run?  Do you prefer to maximize your available hours so that you can run as many hours as possible or is it more important to you that get a choice parking spot and a place in the buffet line while the food is still fresh?

• Hometime – If you prefer weekends at home regardless of what that time off might mean to your take-home pay, you might be better off remaining on the company payroll.

• Family Considerations – Do you have special family considerations – such as a spouse with a strange work schedule or shared child custody – that heavily restricts when you’re available to drive?  While it’s possible to successfully manage these issues, there may be times when hometime may have to be sacrificed in order to remain profitable.

• Health Considerations – Is your health generally good?  While you may have a current medical card, do you have health conditions that will get progressively worse over time?  If so, you might want to remain on the company payroll as an employee because serious health problems can strike a death blow to your business if you’re not financially prepared.

• Insurance – Do you need employer-sponsored health insurance or do you have a spouse that has an employer plan that covers you?  If not, in most cases, you’ll discover that insurance can be a costly expense that might be beyond your reach (depending upon your health, age, weight, and other factors).  Pending health legislation might change that, but until all the details are worked out there’s simply no good way of knowing how it could impact you.

• Short- and long-term career goals – What are your goals?  Are you a “lifer” or do you plan on eventually moving into a non-driving position?  If you’re planning on making a move within 3 to 5 years, you probably shouldn’t plan on becoming an owner operator.  However, if your long-term plan is to stay on the road as long as possible, your plans could very well include becoming an owner operator.

These are just a few of the practical considerations that you need to think about before making the decision to become an owner operator. By honestly assessing your personal wants, needs, and goals you can ensure that becoming an owner operator passes the compatibility test and is in your best interest.

2. Financial Considerations

Your finances impact every part of your life – and will be a critical component in your eventual success or failure as an owner operator.  To help ensure that you’re realistically ready to make the leap into full-fledged truck ownership, it’s important that you examine your financial house to ensure that everything is in order.

• Personal Budget – While some truck drivers tend to think that budgeting is the thought that goes into allocating how to spend their last $20 – three days before payday – it is really much more.  A personal budget is a financial lifestyle that allocates money equitably to all of your bills so that everything gets paid and you don’t have to resort to selling your CB for $10 in order to keep from starving.  Getting a handle on all of your income and expense items, creating and living by a reasonable budget, and planning for a rainy day by setting aside a little bit each week “just in case” is not only wise – it’s critical to your financial health.

• Eliminate Excessive Debt – Setting yourself up for success as an owner/operator might sound easy, but it can be a challenge, particularly if you’re carrying around excessive debt.  Like most Americans, truck drivers tend to carry too much credit card debt, and it chokes off your ability to borrow money for business purposes – and is too frequently the way some truck drivers finance their road expenses if they have a short week.  By eliminating most of your credit card debt, you can reduce the amount of money that you have to earn each week, which can improve your bottom line, as well as your chances of succeeding as an owner/operator.

• Emergency Fund – What will you do if you get sick, have a true financial emergency, or need to access cash in a hurry?  If you set aside 3 to 6 months of your living expenses, you won’t be dependent upon your dispatcher for cash if something comes up.  This is especially important when your dispatcher slips out the door for lunch on a Friday afternoon and then goes AWOL for the rest of the weekend –leaving you high, dry, and penniless until he or she returns the following Monday morning.

• Disability Insurance – It’s important that you get disability insurance, especially if you plan on becoming an owner/operator.  If you get sick or injure yourself, you will need cash for everyday living expenses as well as having the means to continue making your truck payment while you are out of commission.  You may have an emergency fund, but that money will be siphoned off in record time – especially if you have a truck payment to make each month.

• Life Insurance – If you have dependents or other financial obligations, you need to have some life insurance in place to pay these debts and provide for the future financial needs of your loved ones in the event that you exit stage left before you are old and ready to step into eternity.  Term life insurance is extremely cheap and is a much less expensive alternative than signing up for credit life insurance for your truck loan.

• Credit – Finally, your overall credit situation paints a vivid picture about the overall state of your financial health.  Just as your blood acts as the conduit for transferring oxygen throughout your body, your credit rating affects your ability to access the capital you will need for equipment, fuel cards, credit cards, etc.  Before attempting to obtain truck financing, it is important that you eliminate or minimize any hurdles that could prevent your credit application from being approved. Checking your credit report for inaccuracies, clearing any judgments, unpaid bills, and ensuring that you aren’t carrying too much personal debt can improve your chances of being approved for truck financing – and achieving your goal of becoming an owner/operator.

3. Go Independent – or Lease to a Company?

One of the most important questions that you need to answer is, “Do I truly want to be independent or do I want to lease on to a carrier?”  While the answer to this question is neither easy nor short, there is a right answer.  Unfortunately, this is a decision that can’t be made for you.  Because no two truckers are alike, you will have to weigh the pros and the cons and make the best decision for you and you’re trucking business.

Some truckers would prefer to be beaten about the head with a hammer than give up their independence by leasing onto a company, while others prefer the security of knowing that they will have a more consistent base of freight from which to get loads.

Major benefits of being an independent owner/operator are that you can:

• Select the loads and lanes that best suit you and your lifestyle

• Not have to deal with company politics, dispatcher favoritism, and policies with which you might not always agree

• Decide when you run and when you don’t

• Take responsibility for load selection and not face possible dispatcher retaliation for refusing a particular load that might not be to your liking

However, leasing your truck onto another carrier has some advantages as well:

• Access (in most cases) to company-provided fuel cards, advances, and money transfer systems

• Company-provided trailers

• Load and freight consistency (and more loaded miles)

• Access (in most cases) to fleet rates on the insurance you will need to operate your truck

• In many cases, company-paid or reimbursed tolls, plates, and permits

• Not having to worry about obtaining your own operating authority

These factors will weigh heavily on your decision-making process because they will also impact the income you can generate with your truck.  Leasing onto a large carrier usually means that you will earn less per mile with your truck, but in many cases that deficit can be partially absorbed by reduced deadhead miles, less sitting around waiting for loads, and company-negotiated pricing discounts on certain items such as fuel, tires, and parts.

The only way to know for sure which way is best for you is to crunch the numbers and see how things turn out for you.  Because no two drivers are the same, this is your decision to make, based upon a massive list of factors and variables that can vary from company to company, driver to driver, and even day to day.

4. Equipment

The type of equipment you choose to run, the type of operation you have, and the way you drive will be a determining factor in your profitability.  You might prefer the sleek looks and the classic styling of a long-nosed Peterbilt or KW, but can your business afford to look good at the expense of profitability and fuel economy?  Other factors to consider include:

• Age of truck (including mileage, warranty, and amenities)

• Your area of operation

• How long you’ll be out (more frequent trips home generally means you might be willing to forego some creature comforts in exchange for a lower price)

• Fuel economy

There are no hard and fast rules when it comes to being an owner/operator and selecting the equipment that you will operate.  Horsepower, torque, transmissions, engines, driving style, and the cost of tea in China (OK – that might be a stretch but you get the point) all contribute to your bottom line, but the habits and driving style of the man or woman behind the wheel can also play a huge role in profitability.

5. Legal & Accounting

In order to become an owner/operator you will have to choose a business structure for your trucking business and plan for taxes.  Because so much goes into this process that is dependent upon specific professional advice that can only be given based upon your specific situation, you will need to locate qualified professionals that can provide you with sound advice that can help to ensure your success.

6. Before You Buy Your Truck

This article is designed to guide you through many of the decisions that you will need to make in order to succeed as an owner/operator.  Give careful consideration to each item and make the decision that you feel is right.

While there are a lot of truck drivers making the determination that now is not a good time to become an owner/operator, thousands of truckers have found a way of remaining profitable – regardless of a sluggish economy, low freight rates, and high fuel costs.

There is money to be made in the trucking industry if you make sound business decisions and with common sense, sound planning, and a little luck, you might be one of the thousands of truck drivers living your life’s dream as a profitable owner/operator.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.