Driver Lifestyles
Considering Expediting? Consider This!
Well, you've been looking at Expediters Online for a few months now, reading the topics and posting the occasional question. You've also talked to your neighbor with the expediting straight truck and possibly, you have even stopped at the local truck stop to pick the brain of a driver or two to get their input on this business.
You've been doing your research and that's a good thing. The more you know, the better, right? Yes, in most cases, if you're aware of the pitfalls that are present in business ownership, you can sidestep them or at least prepare for rough times.
The points listed below are not necessarily in their order of importance and represent a very few of the things to consider before commiting to this busines. Some are basic common business sense items that still should be reviewed. But, there are also those more obscure problem areas that don't always come up when researching this business.
Rose-colored glasses removal
Many prospective expediters are first exposed or introduced to the expediting business by a friend, relative or neighbor who, with good intentions, extols the opportunities of traveling the nation's highways, while at the same time making a great living.
If that image brings a smile of recognition to the veteran owner-operator, it's because many of us, in our enthusiasm for this business, have often painted a rosy picture of expediting and have glossed over the hazards and pitfalls awaiting veteran and newbie alike.
When the van driver tells of making $1.00 or more per mile or the tractor owner-operator relates his stories of $3.00 per mile loads, it sounds like easy money because the details of running the business aren't exposed at the same time.
Being an expediting owner-operator has a few unique qualities that separate it from the typical small business. Sure, you own your truck and make the decisions on how to operate that truck, but you're not quite as independent as the folks down the street who opened their own gift shop, for example.
Your business success is at least partially dependent upon the expedited carrier you lease with. You rely on that carrier to provide you with good-paying loads and in sufficient quantity to keep your business profitable. In the real world, there are some carriers that simply can't meet those two essential requirements and regardless of your business acumen, it will be a difficult task to make/keep your business a paying proposition.
Also, your carrier will typically have rather stringent requirements about how it wants the freight transported and delivered. These procedures might, at first, seem to further diminish your independence, but that's the nature of this business and one of the reasons that expedited carriers can charge the higher rates. Sometimes, it will be necessary to "bite the bullet" and accept a less than top-shelf load, but working with the carrier as a team player can pay dividends.
As you've undoubtedly discovered through your research, expediting, as in conventional trucking, is a cyclical business with both slow and busy times of the year. There will be times when the owner-operator will be "running his wheels off" and be generating great revenue. There will, most assuredly, be those times when freight is slow for all carriers and you'll wonder if you'll ever have another load.
If you have been frugal and banked as much as you could during the good times, that will help see you through those periods of reduced income. It can be a difficult period, but for those who plan ahead, it can be surviveable.
What do you do with the truck?
One area that is seldom discussed is truck parking. No, not while on the road, though that can be difficult at times, but rather, where do you park that Commercial Motor Vehicle when at home?
Many residential communities have ordinances that prohibit the parking of CMV's on their streets, including in some cases, even cargo vans. For the straight trucks and tractors (with trailers), it can be quite problematic of what to do with the truck when back at the house.
One veteran expediter had an arrangment with a service station in his neighborhood in which he could park his straight truck behind the station for 50 dollars a month. All was well until his city established an ordinance prohibiting the overnight parking of all CMV's. He found a solution by renting an outdoor space in a storage facility, albeit at a higher rate. The parking problem is something to consider.
Undercapitalization
The expediting owner-operator is involved in a business and like any business, it requires sufficient funds to operate.
In your business, you'll need enough cash or credit to buy your truck, outfit it with the necessities for the road (in both equipment and personal items) and fill the fuel tanks. For the new owner-operator, this requires a major expenditure and it will be weeks before you experience a steady revenue stream.
At the same time, the rent or mortgage for your home and household expenses still arrive every month, so it's easy to see why the undercapitalized owner-operator is on a steep and slippery slope. Expediting truck ownership is not for the faint-hearted or for someone who hopes to operate a successful business on a shoestring basis. For many, this business is just not do-able with their financial situation and it's better to realize that before it's too late.
Benefits
As a self-employed, small business owner, you're on your own.
Literally.
It still comes as a shock to some prospective expediters researching this business to discover that the expedited carriers don't provide the "benefits" that many in conventional employment settings take for granted. The carriers don't provide (in the conventional sense) health insurance, pension plans, workers comp, etc.
As a business owner, the responsibility of providing those "benefits" is yours, particularly health insurance. For the owner-operator running solo, but who is covered by a spouse's insurance, it's not a problem.
However, for the husband/wife team or the solo driver without insurance and a family to protect, it becomes a very expensive proposition, with coverage running into hundreds of dollars (or more) every month. Some carriers have begun offering group health insurance packages to their contractors, but be prepared to shell out serious money for coverage. Besides taxes, it's one of the major expenses for the self-employed business owner.
Lifestyle
This key topic is often touched upon in an introduction to expediting. The simple fact is, professional driving can be a lonely existence, especially for the owner-operator in a solo operation. For the family person, those long periods of separation from the loved ones can be a real test of a relationship and place quite a burden on the spouse at home. There have been many cases in which the driver decides that this vocation that requires his absence from home for days and weeks at a time is simply not worth it.
For the expediting couple, loneliness is typically not as great a factor, but rather, the closeness of living in a truck cab and sleeper 24/7 is. This degree of intimacy can also be a test of a couple's patience and understanding, particularly during those periods of inactivity while waiting for the next load.
Speaking of waiting, this can be an extremely draining process for solos and teams alike. Those long hours of waiting for the Qualcomm to beep or the phone to ring can test an owner-operator's resolve, and can be one of the most irritating aspects of expediting. The new expediter should also be aware of another wrinkle to this business - after a long day spent waiting for that load offer, it will often come about the time he's thinking about retiring for the evening.
Having listed just a very few of the real world negatives, it's only fair to say that, for many in the business, expediting is their dream job and they would never consider another vocation. If you feel that being an expediting owner-operator could be your ideal business, by all means, go for it - just do it with your eyes open.
Terry O'Connell contributed to this article