Is 2023 A Good Time To Get Into The Trucking Industry? Start Up Costs, Freight Market, Cash Flow
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- Опубликовано: 28 май 2024
- The most frequently asked question I get is "Is this a good time to get into trucking?" and instead of answering this question directly, I wanted to make a video where you would come to your own conclusion. We will be looking at how much you need to start a trucking company, the reality of the current freight and spot market, and of course cash flow. And as always, I am going to be using our numbers as well.
COURSES:
Dispatch Course: miranda-c-s-school.teachable....
Open a Trucking Company Course: miranda-c-s-school.teachable....
OTHER LINKS:
Spotify Podcast: open.spotify.com/show/5NzdtFa...
Apple Podcast: podcasts.apple.com/us/podcast...
Industry Social Network: www.TMSConnection.com
My email: talkabouttrucking@gmail.com
RTS Fuel/Factoring: www.rtsinc.com/agent-company/....
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How to become a millionaire in trucking business: - enter the market as a billionaire 🤦♂️
Facts
This cap
Broker your own assets, target key industries like hazmat and DOD high security freight.
Lol. Made my nigh
😂😂😂
I started my career in trucking in flatbed I never regret it gross 5k to 6500 weekly after truck payments and expenses i take home 2k to 3400 I can't complain( thanks your channel helps me a lot 😊
I make the same without truck, daily
@@gst4043 you mean you are a company driver?
@@ronnader2458 yes hauling ☢️
Yo
@@gst4043😂😂 let’s work
Always a great time to get into trucking. Trucking has ups and downs always. If you can make it in this horrible market then you will obviously do well when the market is good. If you can't start in trucking right now and make it to the other side then a trucking business is not for you ever. Trucking has been up and down for generations. You have to run lean no matter how good the good times are because bad times are right around the corner. The companies that figure that out are the ones who prepare and last even if they aren't profitable currently. In business you are not guaranteed profits 24/7 you need to be able to withstand losses. That's how you become successful and grow. Imagine having to run you trucks at a guaranteed loss for an entire year just to keep your drivers happy. It might feel stupid now but it will pay off when you are one of the few still standing when it turns around.
Ya that sounds about right, I heard if you are responsible with your money and you have minimal bills and ur truck is mostly paid off you should be able to get through this hard times, would u agree?
If you can do alot of your own maintenance, that helps alot on the bottom line! Also keeping up on maintenance helps alot! My dad was a trucker and he greased his u-joints on his big rig every week, and claimed he had over a million miles on em. He used a grease called "hydrotex"
Good thing I’m an owner operator cuz I can add back in the driver pay and dispatch pay because I do that all myself. Carriers are my saving grace and I am theirs, together we make it, divided we all fall. Thanks for the video, great content.
@@VPNroutes I work under another carrier so I am a single independent.
Hi can you help please I want do my job buy myself
Once a broker refused to give us a load because they needed 3 (!) years of active authority. And also, even if your MC is old enough they might not give you a load if you don't have inspection (for example if an MC has only 1 truck and was not pulled over for an inspection). And the most crazy part of the inspections issue, is that I heard once from a broker that he can't give us a load because we didn't have any inspections in that particular state where the load was picking up from. Absolutely crazy!
They will really use ANYTHING to say no at this point, and this comes from an abundance of choice.
Also, some brokers do not give you a load, if in your company less than 5 trucks!
What's the name of the broker? We need to put them on a do not use list.
@@Stavros1977 It is Halvor Log. MC 662343
Have run across several companies that require 5 trucks. They're in control of the load so they can do what they want with it. Best way is to get rid of them altogether.
have 40 trucks going now.....best is to own your own trucks have consistent loads going and back having a solid relationships with clients and brokers and reliable delivery and drivers. also i never pay retail 250k for a truck and reefer. my cost are 60k for tractor and 35k for trailer..both 2 years old with 200k miles. where are you getting 2k a month in service? 6500 fuel?
One of my absolute favorite youtubers who talk about trucking......
As always, you are 1000% correct
Thanks for the break down of everything. Most people close to me or around me have just put me down saying it wasn’t worth buying your own. You make the same amount a company driver does, but this motivates to buy my own rig. Thanks a lot!!! It really helped a lot. I’ve been a driver for the past 5 years. Hopefully one day I’ll get my own fleet too! (Edited)
I love your videos. This channel has helped me and my company survive this Trucking recession. Thank you!
Your videos are very informative. Keep up the good work 👍
Thank you, M, for sharing this video and all the other videos. Despite the few assumptions in the video, this is one of the most realistic videos I have come across. The assumptions were quite close to the truth, and the main message of the video was easy to understand for anyone who wants to decide on whether to start a trucking business at this time in 2023. In general, the trucking industry is at a decisive turning point. It is not a question of if, but when the overhaul of the industry will take place. Fortunately, it is an industry the society cannot do without in the short and long term.
Thanks for the Auto Socks mention. I live in Canada and I had never heard of that product before. It looks like it is a life saver.
Amazing content, have been following you for some time now, you are full of positive energy and the intent to help everyone by sharing your knowledge, it’s obvious the effort and time you put in making these videos,, really appreciate your efforts, thank you may god bless you.
Very informative for anyone interested on creating their own trucking company and moving forward with permits.
Wow! Your channel has grown!, you been keeping It real since day one💯, love your channel 🫶🏼😎🚛
Great video Miranda! You don't miss ⚾️💨
I love when you demonstrate and explain , you make so clearly and I don't even have truck . Yes this was great content well done and I'm learning some much about the trucking business. I understand why trucker need higher paying freight from broker's and great dispatch that can help them , that a lot of overhead , I appreciated your time . I know I will be re-watching again.☺
Not as an owner operator as a company driver is still the best way to get into the business. And the best way to do it is to make a full commitment to doing it and living in your company truck pretty much year round and taking off as little as possible. And while you are out there keeping your expenses very low by only paying for a phone bill and living frugally on food and that will allow you to save tens of thousands of dollars every year. And if you stay committed to do that in 5 years you can and will be able to have enough money to start a business in a different field or you could stay with trucking for 10 years or more it all depends on what you want from your life. But trucking is still one of the best ways to make a large amount of money and save a large amount of money. But you have to be committed to wanting to do it for yourself and to make a better future for yourself. And if you are willing to do what I have said to do you can have saved between $100,000 and $300,000 in 5-10 years if you go for 10 years you really should be able to save even more than $300,000
THANK YOU!! I am a new sub found you today binge watched alot of your videos, they are very informative. I have been a driver for a company for about 4 years now, however ive been trying to randomly make my own fake budgets to try and become an owner operator.
Thank you for sharing. Preciate ya
Very informative video. You are doing well. Keep it up. We are with u
Trucking business is just to must uncertainty. Up and down rates, fuel prices, employees,insurance going up, maintenance and that’s just if you own your equipment all money coming in just go right out. Find good company DONT GET A TRUCK UNLESS U HAVE ANOTHER FROM OF CASH FLOW. Your personal overhead and trucking business overhead will just be running negative or breaking even!! Good luck..🙏🏾💯
What a great breakdown of everything. Keep up the good work. People need this.
nice. My favorite part is "lets go!"
Hey there! Randomly came across your channel; youtube algorithm and all that. You make for a really good teacher, the info was super concise and well put out. However it does seem like in reality it's not such profitable thing to get into if we're talking on average. The expenses category sure looks frightening, but honestly if I was to get into this myself, I would without a doubt buy a used truck and trailer preferably pre-2005 era. I worked as a diesel mechanic for awhile so I would be able to do quite a bit of the maintenance and repairs myself. An older CAT motor for example could be overhauled and run for a million miles if done right, and all other repairs taken into consideration, you'd still be paying way less than buying/leasing the new truck. Now whether the driver has a problem with driving a 20 year old truck is another topic, but I do love older, proven machinery so there's that...
Greetings from Bulgaria!
Thanks for your time you give this million dollar info wel said
much love ❤
Great time to buy equipment at a sale price. Bad time to make money in trucking though. No debt is key to success during this down market.
Been watching your content for and this has been awesome information!! I was wondering if you can add Hazmat to your equations as well?
Thanks for telling everybody how it really is and the truth. I use to have 7 brand new trucks and 7 brand new trailers and i shut it all down last year just on time and sold everything just on time. And in this situation i would not do it again untill ther is more fright and better payed and low fuel
Interested in starting a trucking company?
Option 1: RUN 💨💨💨
Option 2: Seek mental help immediately
Very true
Factoring companies also charge you the prime rate interest that the bank charges them, and you can see it in your reserve account . So don't be surprised when they take more.
Thanks for sharing your numbers, its hard to find such relevant info! I wanted to know what are your thoughts on Amazon loads? with Amazon you can benefit from running empty trailers or even ‘bobtail’ meaning no need to finish leg. Plus you have savings on your equipment. I also wanted to point out your fuel expenses that look quite high
I have actually never worked with Amazon before
Working capital (cash flow) is king for any small business. Do NOT underestimate how much cash flow you need to stay afloat.
Good video
She is on the money and is very informative , not to mention pretty 👍🏻👍🏻
I do have a question, is San Diego a busy port to haul containers from? Is there good business there?
She is right. I shut down due to the low rates.
How many carriers have you tried leasing onto? Just because rates suck somewhere doesn’t mean that they sick everywhere. I can still take home 3500-4000 a week after expenses and I have a truck payment, rent trailer, etc. look around
@@truckerjoe3008What’s a good engine to get on a truck? I’m stuck between Cummins and DD13 or 15.
@@KevinG1994 dd15
Dd15 is the best right now. None of these current engines should be considered good. More like best of the worst. Get a truck with pre 2003 engine. Can be a newer glider kit. Way more reliable. Cummins, Detroit, cat, all good.
@@KevinG1994DD15 since they’re virtually everywhere and parts are dirt cheap or Cummins since they hold their value better.. just make sure it has relatively fresh DPF filter and Always have extra NOx sensor and DEF supply kit/pump these things needs to be replaced every 350k and many services still have them on back order
Yes I started my authority a month ago hoping I can make it. I blew a fan belt on a busy highway and almost got hit 100 times by people who fail to yeild to 4 way flashers. Last week I blew a coolant hose. I’m in the negative right now but I’m hoping for the best. Tql really takes care of me and pays me fast. I mainly work for Indian brokerages that oay me at 50 days. I’ve had a few not pay at all. I run the port of NJ to Buffalo for 1.50/mi on average. I only have enough money for mailbox stickers for my numbers and use duct tape to keep my front bumper on. I think I’m getting the hang of it though.
Apex capital Corp.. you too? They are pretty amazing for a factoring company.
Most of our clients have Net-30 terms but very often end up paying 40, 50 or even 60 days after being invoiced. Maddening to say the least and really hard on cash flow.
Do you give them a -1% savings if they pay in the 30?
@@matthewharper7333 We do give a small incentive discount if they pay within 15 days. Most clients are still late though
Love the all negative out look. we need to push people away from this industry in order for it to recover.
Once the market picks up, I will remember the brokers who put stupid road blocks against me.
I laughed so hard at the video headline!
If not now when don't let videos like this deter you from starting your own company and getting out there grinding and making your money and making your way trust God not people
Appreciate your input and yes, always trust God but also remember God helps those who help themselves 🙏🏼
You look wonderful in this Video
I'm just in love, again.
My opinion is a company driver offers the paycheck without the headache or responsibility of ownership at this point in time.
But to each their own.
Love the channel and the information you offer though.
Some only have a choice to become an owner and some only have a choice to become a company driver, we never know because each situation varies by person
It’s not a good time to get in the Trucking, hard to make profit, even if you’re Truck is paid for, you need $3.00 per mile to make profit, but you don’t get $3.00 per mile all the time, so it sucks,
Greetings from Flagstaff
Two days ago I had a plan and was going to be in my own truck by Jan. 1st. Now I'm thinking I will just stay where I'm at. Very discouraging. How does it go? You wanna make a million in trucking.......start with 2 million.
The spot market should not be a primary source of income for a carrier contract is way to go with the spot market as a backup
Mega carriers outbid small trucking companies with rates that you just can’t compete with. You are forced onto the spot market to get their leftovers.
I was in the industry for 30 years was great when I started but it’s horrible now if you options stay away from the trucking industry. These guys on here saying the make multiple thousands is BS if you are you aren’t buying fuel or anything else. I had 6 trucks and was doing good if I had 1500. Revenue for each truck at the end of the month. Stop BSN people the industry has gone to hell, no respect , nasty dirty people everywhere you go not to mention the no driving foreigners. Run as far as can from it.
Truck capacity increased during covid for them sweet sweet rates.. Then covid destroyed a lot of small businesses. A very slow recovery is expected . . .if it recovers at all.
I wanted to get a semi and haul for the shipyard. Why is no one on here mentioning shipyards and those carriers or am I missing something? Is that a good contract for owner operator?
I'm a new carrier and I have two things that challenge me most! I have limited access to loads. That's one! And I live in Florida, that's two. On top of that it seems like a lot of drivers here in Florida just take rates low and make it hard to get a decent load to haul. It drives me crazy... I owe zero on my truck. But as you may or may not know the insurance here in Florida is out of control. How these drivers take loads so low I have no clue.
Insurance ain't no excuses, business planning is everything....I heard everyone complaining about insurance, fuel and maintenance. 5 business account and set aside what really needed to set aside and stay in it own lane... meaning do you and do not watch what others are saying and doing....
Why don't you run under someone else authority as OO so you can save on insurance? And as for looking for loads, use the loadboard (i.e. DAT Loadboard)
Insurnace companies are also playing a part. I’m in Florida and it cost me three times the coverage as compared to my neighbor Georgia. If you have some secreted please do share on lower insurance rates in Florida.
@@dwayneg.5128 new carriers have no business on the DAT board. Most brokers will not work with the new authority. I have DAT and never get loads from the. Canceling the subscription this month. Limited brokers a few brokers. Which is another problem but it’s all good. I’m doing my best with what is available.
have my MC and DoT number. But I really don't know about the businessthat well . Who should I least onto so I can get knowledge about the business questi?
My truck is paid for, both trucks are paid for but don't own a trailer. I would buy an older trailer for better cost and buy it with cash. I would suggest to those that are in this situation, you do not buy your trailer until you are sure what commodity you want to haul. HOOAH!!! BTW, I always count DH miles towards my over-all miles per trip/load taken. So if the RPM doesn't makes sense for those total miles, I don't take it. If you get your numbers down to the penny, you will know how much it costs you to run your truck per mile. Once you know this, you than can make better decisions on load choice.
I shut down 4 years ago and never looked back!
🏃💨💨💨..........🚛
Learn to trade the market short and long , no over head just the taxes
Good solid info,,from a pretty lady
Just herd Surge transportation filed for bankruptcy. How does a company with no risk go belly up. You might want to do a video on this. A lot drivers are going to get hurt.
Just read that too! Crazy!
There are drivers out there that think getting a load that just covers their fuel to get to a good paying market is good business practice, only one problem with that theory, they're are thousands of drivers all over the states thinking the same thing. This destroys the rates because the greedy brokers take advantage of that. In short, don't get in right now.
That’s what the issue has been since deregulation. The asset side would have leverage if we didn’t continually have our own drive down our rates. Brokers and shippers can try all they want to get a load moved for 1.50/mile, but sadly you end up with some person accepting the load for a loss. People who claim it covers even their cost-truck, ins, fuel-rarely does anyone factor any maintenance. Anyway-horrible time to get in this industry-fuel is still high, market rates are horrible and never picked up all year, and yet equipment cost is up.
I’m going to attempt to thoroughly and completely answer the question. I’m sorry, it’s gonna be a little lengthly… So, here we go… NO, Run away really quickly.. Thank you for sticky with me through the end..😂
🤣
Brains and beauty..where do they do that at ?
There isn’t need to open a llc?
I just started and all of my prices are lower and I gross 55 to 6500 a week.
Do you get your loads through dispatcher ?
But doesn't it help greatly if your the driver of the truck?
Granted.....still wouldn't start with less than 30k in operated acct.
How about as a company driver?
As a company driver, you make more than as a carrier I feel like
What about tankers
you know this will be some good info when shes glowing like that.
Meh its all makeup LOL
Comment on brokers thinking they will get a cheap truck. On lane we run sometimes brokers post a load at 2 bucks a mile or so. Every once in a while I call and talk to them. Offer them to take it for 3 bucks a mile ( still cheap dat avg is 3.76 right now). They always tell me how out of line I am. And I tell them no, its you who are out of line. The few I have talked to later have always dumped that lane because they lost so much money moving their underbid load. Nice to see the brokers lose. Can't be too hard being a broker they seem so bad at what they do. With a few exceptions. I call those good brokers. Kind of like a rare unicorn, but they do exist. Been doing this 15 years and I can name 5 good ones. You remember them.
Hey,
My truck is paid off. Do i need physical insurance?
No, you can elect not to get it
Hello, Can you help me establish a trucking company? I am a truck driver in Sweden & Norway now, But I want to come to USA and start there
Crazy that brokers can do whatever they want.
No it’s not. It’s called the free market. Nothing has been simpler than the current situation. People are willing to move trucks for 1.50 and so they post for that said amount.
@@truckerjoe3008 whatever you say 🤷🏽♂️. I saw brokers were a problem 3 months into the industry and I got my own freight and never need a broker or load broad. It’s ridiculous how they get to control the rates, but ALL carriers need to have back bone if they are going to work with brokers. It’s NO WAY rates should EVER drop under $2.50 per mile.
17 years on the carrier here with 20 rigs zero finance coz we buy and make new engine for the motor, we are also inhouse mechanic.
Trucking bussiness now aday, faced to the fact we had worker comp extremely costly, we had AB5 new law being enforced by “driver and lawyer”, insurance really hight etc.
To recap this trucking bussiness as of 2023 we under new ab5 work for free, or work until you hit the lawsuit by your drivers and had nothing left after long period of time saving that still considering lucky case, i been see carrier at the end of the day they can not afford after all new laws, new regulations and bunch of bs on the industry.
Without getting political, there's talk about China invading Taiwan. My question is, what do you think the market would be like? I was told that WW2 help boost the economy. It was how we got out of the great depression.
what factory company do you use ?
RTS!
I’m a diesel Tech and a truck driver…. I’m gonna say nay.
There is at least a half million too many trucks. Time for the rent-a-truckers to cash out. What were you thinking?
😂rent a truckers. I love it.
Don’t get into this business she is right on !! But remember something always go wrong with this engines let’s keep it real
Engines, differentials, transmissions- and that stuff tends to go to 💩 in the middle of nowhere where you have to call a tow service for $1000
I guess people have to run with tweaked ELD logs just to make it
Freight market is good:
"Don't get in. Truck prices are too high. You'll be buying high and once you get in it'll crash."
Freight market is bad:
"Don't get in. Fuel prices are too high and freight prices are too low. You'll lose."
_is there a company that can do all of this for me that I can hire?_
Smart and pretty
I wasn't going to mention it but I can't help myself. Factoring is a bad idea. A better option is to get an operating loan to use for operating cash. I find 40,000 works for me. Many of my brokers are out 6 to 7 weeks. Let's say a 7% loan annually will cost far less than 2 to 5% per check from a factoring company, not to mention the extra Hassel of dealing with a factoring company. Work had to pay the 40 off. Better yet have 40k sitting in the bank to start with. This is only for collections. It takes a fair chunk of money to get started and do it right.
Most people who open their business/authority are cdl drivers so you can take that expense out in this situation. Also right now I see dry van average $6000 gross per week where I live, not $2500 as she is saying. Trucking or transportation business will always be profitable as long as we live. The biggest problem with transportation is that rates go u and down reflecting demand and supply. Right now it’s bottom of bottoms regarding rates. But, trucking companies still stacking their cash for sure. No one will operate at loss at least not smart once. There is exodus of trucks or companies who don’t like the pay cut or have too high liability and are loosing money. Cash is very important for a business when hard times come
I don't want to insult you. You're a beautiful woman. In a certain way, you're a news reporter. Most female news reporters wear makeup. I would love to see you with some makeup and some eye lashes. I'm sure you'd be incredibly beautiful.
There're people out there taking some very low ball rates and dropping that avg rate like crazy.
Unless you drive your own rig and understand how maintenance works, all the costs, etc. DON'T BUY A TRUCK!
Its really crazy- I have seen brokers start with a rate, and then once they realize that carriers are taking cheap freight they all together start reducing rates on the load board.
Minor correction: Swiss ain't neutral like it used to be.
Truth !
❤❤❤❤
❤
We're in borderline recession right now. I hope it's a no
If I shut down my mc.will I keep my age
I dont believe so, but I would double check with the FMCSA
@@TruckingMadeSuccessfulu should make a video about it.a lot of us are thinking of shutting down a while
I gave mine up myself and reinstated it after a few months and I was back to a new authority. Starts the clock over unfortunately
@@leehensley7711 yea I fought for mine but my truck motor blew so ima give it up
@lashan4636 also I Closed my company and where I get my permit they told me I have to star like new.
There should be a GOVERNMENT, yes I said it, a Government study of your fact finding videos, and the trucking industry revamped! It's ridiculous really.
Jacksonville, FL lower Ga. Dry van and reefer going below $1.50 and the greedy pig brokers aren't budgeting forcing me to deadhead.
Let me save everybody 25 minutes of watching this video. The answer is no. BTW, I love your videos.
Now with that said, and you're still looking to buy a truck and do it anyways, I would wait 3-6 months towards the end of the year and the beginning of the next. Owners will be looking to get out, and the prices of equipment will go back down below what they were before this president took office. This, by the way, is what I'm doing, because I'm looking to take advantage of those people who overpaid for their equipment, and now want out. I'll be looking forward to picking another rig, and maybe another flatbed.
So basically, if you spend all that money to open a transportation business, you will make less than poverty level and social security. This from holding rates down and taking too much percentage on the brokerage side.
Correct, in the game with paid off equipment, and I am thinking of shutting it down.
People believe supply and demand so why is it demand drops in a democratic administration and demand rises in a republican administration. Have you not seen the videos on this channel how brokerages are taking 30 to 50 percentages on loads? That's highway robbery and stealing the fruits of our labor!
@DavidTrucker-lo4bs mine is paid off and I'm barely making it. I'm leased on, so meat loads pay decent, but these spot market return load rates are killing me.
@DavidTrucker-lo4bs why? Are you willing to work out a payment plan for the trucks?
@@TwoCents690maybe just do spot marketing vs the contract/dedicated load since it puts you in awkward locations which forces you to take the bad load
Better have a credit card and live on the east coast or the midwest
physical damage is a must either way, my tanker was paid for and a major accident happened. Insurance paid me the value of my truck and trailer witch i used to buy a new rig and tanker, also pushing fuel pays way better then any other industry
Not EEEEVEN! When Yellow Freight (a Union Company with a long history in transportation) closes it's doors and Teamsters lose pension money you really need to just go local and leave it at that.
Nobody even catching on to this comment. Yellow was basically the giant of hauling cheap and running rag tag equipment. AND THEY WENT UNDER. soooo yeah. I don't people even understand what's really coming either 😂 cheap freight is basically the street sweeper that's about to clean up the industry and take out the trash. But at the same time the big game hunters are also about to gain a heap ton more control. So it's still a lose lose. So the answer is. Stay away from trucking if you haven't already been hogtied in for over 5 years 😂 newbies will die and get their hearts broken. Just keeping it real
@@user-zo9fe2sp5b I agree with most of what you said. Union companies like Yellow made young and old drivers stare at the pocket watch with a dash of smoke and mirrors. And it caught up with them.
If you've never really had anything or (in some cases) belonged anywhere, .... well, isn't that how cults are usually formed.
There's more to why Yellow closed. You can make it in trucking
@@dwayneg.5128, you can. But it's not really worth it as a company driver. Get your rig and find your own loads is the only real way to get ahead and balance home.