QuestionQUESTION: Hi Paul,
I currently am overseas on a military tour as a DOD civilian. I hold a valid class A CDL and was considering purchasing my own truck and going into business as an Owner Operator. I have a couple years OTR experience. I also have experience with reefer and flatbed, as well as experience with dump trucks and local Intermodel driving in Chicago area. When I return stateside I will be living in Chicago, and I would like to know your opinion on the best opportunity for some one in my situation. I am open to OTR depending on the benefits, but would prefer something local or regional.
Also, what do you think would be a good truck to get started with(year/make/model)? How much total start up capitol do you estimate I will need to be successful?
ANSWER: I would definately reconsider being an owner operator, because of the economic recession we are mired in. I drove trucks for over 18 years and talked to a number of owner operators along the way. You can actually make more money driving for companies like Werner and Schneider. When you own a truck, especially a new truck with substantial truck payments, you have keep running that truck all the time in order to not only pay diesel, which is very high, but permits, insurance, maintenance and living expenses on the road. Lots of owner operators have sold their trucks because they just weren't making the necessary money to make it worthwhile out on the road. Today, there is more drivers then there is freight in this country. All the bad economic news you read, including huge numbers of unemployed, low consumer confidence, and people being forced to save and cut back on their spending, all has a direct impact on the trucking business.
I would suggest working for JB Hunt, for instance, in the Chicago area-they always seem to have loal and dedicated opportunities nationwide. Intermodal opportunities are a big thing now and JB
Hunt is very good at filling that niche. I drove for them back in Philadelphia. The thing to keep in mind is do you really want to stress out being an Owner Operator and worrying about making a good living or let the company be responsible to finding you loads and being responsible
for maintenance and all the rest. We are living in uncertain times my friend and the economy shows no signs of improving anytime soon!
After reading all that, and you still want to try your hand at being an owner operator, I would suggest contacting a reputable owner operator company. Ask them for advice and guidance. I'd go
to a Freightliner or Volvo dealership and purchase a used truck. Lease on to a solid company like a Werner, US Express, Schnider, JB Hunt, Knight, or Swift Trans and you can expect to get financial assistance in paying for some of your costs like permits and insurance perhaps. Most of these companies at one time, had a special department for owner operators and had incentives to lure owner operators. Shop around! In terms of start-up capital, I'd try to have at least $25,000 if not more, for catastrophic situations-serious accidents that are your fault. There is a lot of unforeseen exposure out on the road as well as operating in places like Chicago metro area. One last thing-being an owner operator is like owning your own business. There are a lot of business that have gone bankrupt or gone out of business or merged with more successful enterprises. If you never own a business, this may not be right for you! I just want you to be aware of what you might be getting into. I am 55 and its really depressing all the bad economic
news there is around our country. I would be very interested as to what you do and if you need any additional info or guidance, please let me know. I told someone who was interested in getting into trucking, for guidance. I told him to consider a special niche where there might be a demand for truckers and pays very well. I told him that hauling explosives for the military can be a very lucrative business to get into. Obviously, most people would never consider hauling explosives but with the proper training, the sky's the limit. We spend hundreds of billions on the Defense Department. Thats just a suggestion...
Good luck to you and wish you the best!!!
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QUESTION: Thanks Paul,
Your response was very helpful. You make alot of good points about the economy.It's gotten to the point where even the DOD is feeling it. You also made some great suggestions. Furthermore I understand that owning my own truck is the same as owning my own business and I'm up for the challenge. It's something I've been wanting to do for a while. I currently sale American cars to soldiers overseas and my salary is totally commission based. Oddly enough, I enjoy having the opportunity to either fail miserably or succeed greatly. I aslo know that the owner usually gets a bigger piece of the pie.
Based on your response its seems that driving for a major company as an owner operator would probably be my safest bet. In your experience which model truck would you say is most reputable that you would recommend.I'm looking to buy something used but reliable.
AnswerI would greatly recommend you to consider either Freightliner or Volvo. Both have great reputations. Freightliners have been around for decades and are the largest in North America.
Volvo is known for their safety and driver-comfort and are a favorite among drivers. I drove both. Since you want to be an Owner Operator, I would like for you to contact an OO company called Landstar. They are the largest in North America and are the best in the business. I was trying to remember their name when I was answering your questions the other day. Their phone number is: 330-484-6013. They can answer any of your concerns and get you started in your new career. I got to know them when my company, US Express and Landstar were heavily involved in providing water and food after Katrina back in 2005. We made a ton of money but especially Landstar drivers.
They have a great website as well. I can't think of a better resource then those guys and they can even advise you as to what trucks to buy and those to stay away from! They have been around for a long time so they know what they are talking about!!! Good luck to you and if you need further assistance, please let me know!
