Has your trucking income taken a beating this down cycle? You're not alone

Owner-operator business services firm ATBS' midyear owner-operator update session September 19 revealed a few different ways the average ATBS client might make up the income loss we’ve seen over the last year and a half -- on average, it’s been an almost 10% decline.

In real terms, though, as ATBS VP Mike Hosted notes at the top of this edition, a 1% increase in fuel mileage would get all of that back for the average owner-operator. In short, there are tangible things that can be done to combat what's been tough times of late, particularly in the spot markets for freight.

For this edition, know that there’s also a Youtube version that is airing the same day that includes Mike Hosted’s presentation in full, if you want to follow along with all his slides presenting market and operating analysis data: https://youtu.be/toHRRbwi1Pc

Podcast listeners can download the slides, too. Follow along via the link you'll find here: http://overdriveonline.com/15634919

The audio comes from ATBS’ annual midyear temperature taking of the trucking market for owner-operators, offering a variety of insights. Things have changed mightily since this time a year ago. Rates are down big-time in the spot market, a little less so but also down in the contract market. That’s come with some positives. With declining demand, used-truck prices are way down, too, and parts and other maintenance difficulties, though not entirely resolved, seem to be getting better.

Hosted here runs through a bevy of the data for a market update, but also dives into real numbers averaged among clients who are independents with authority and/or small fleet operators and leased flatbed, reefer and dry van owners, to present bellwether industry averages against which to benchmark your own business performance.

A couple things definitely have not changed for the better since last year. Fuel’s recent moves have taken it back to the highest of highs, ever more reason to focus on fuel mileage improvement. And in addition to the long rates tumble, there’s another market-impacting element that’s decidedly worse coming out of the freight highs of the post-COVID period -- the cost of borrowing.

Yet there are a variety of indicators that have the folks at ATBS, Hosted included, feeling like we’ve hit the bottom of this market – quite some time ago, in fact. And though we’re probably going to stay here a while when it comes to rates, for owners who can weather the storm, the bottom line could look considerably better this time next year.

Owners looking for additional business-planning and other management tips, among a myriad of other topics, can find more in the Overdrive/ATBS-coproduced "Partners in Business" manual for new and established owner-operators, a comprehensive guide to running a small trucking business: http://overdriveonline.com/pib