A Company Truck Driver versus Owner Operator

You might be scratching your head to decide to be a company truck driver or an owner-operator (O/O) in the trucking industry? The world is full of suggestions but it should be your sole mind to decide what is better for you and decisions cannot be taken without understanding all sides of each trucking career in detail.

Here, we will detail the pros and cons of owner operator trucking job and company truck driver job to help you to decide what is better for.

Owner Operator (O/O)

Owner Operator truck driver means a self-employed commercial truck driver or a small trucking business that operates trucks to transport freights. Majority of O/Os have their own trucks where as some own a small fleet of trucks. Some Owner Operators have their own authority, while others lease their trucks and services to some trucking company.
It is to be kept in mind that to be successful as Owner Operators you need hard work, skill, ingenuity, energy and most of all intelligence to keep updated with all the federal and state rules, regulations and laws. Moreover, you should always remember that the total revenue generated from your trucks is not the ultimate profit, true profit is the amount left after paying all of your overheads, including paying yourself a compensation and benefits package.

If you think that being an Owner Operator is as simple as buying a truck and heading out to open roads to meet your financial goals then you are absolutely mistaken. To be a successful O/O you should always have an experience as a trucker for at least two years in trucking industry. This job experience will be very helpful for you to become a successful Owner Operator. You should also consider purchasing the truck outright or get a loan from a bank or leasing company then to get involved in a lease-purchase program through a trucking company. And it is better to charge per mile because the more you make per mile, the less running you have to do to earn profits. The owner operator typically has to pay higher rates on insurance due to smaller size than most larger companies, meaning they have to charge more to balance the cost.

No wonder, to be an Owner Operator you have to look after everything like health insurance, 401k programs, trucks’ maintenance, costs of rising fuel price, etc. and sometimes may bring home lesser profits than a company truck driver. So, if Owner Operators do not (generally) make more take-home income than company drivers then why become one? It’s the temptation of freedom, freedom of choice, quality family time, sometimes bigger profits, etc.

Company Truck Divers

Company truck drivers mean truckers who earn living by driving trucks for a trucking company. They drive company’s trucks to deliver the freights and get paid for their services. Working for a good trucking company benefits the truckers with better advantages. Fortunately, today the truck drivers’ salary is pretty handsome and they enjoy various facilities of insurances, 401k programs, no tension of fuel taxes, etc. But their job is stressful and have to live far away from the family.

Conclusion

You have read about both the options of being a company truck driver or Owner Operator. We have put forward the details of both types of trucking careers, each has its own benefits and short comings. If you love to be a man of your will and ready to bear risks then opt to be an Owner Operator and if you want to play very safe and would not mind killing your small little happiness in the course of your trucking job then company truck driver job is suitable for you.

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