Bizarre Change Of Opinion

Yahoo finance has an article out right now under this title...

California gig economy law to strip truck drivers of highest-paying industry jobs

Now, I recall USA today writing a big detailed article last year where they interviewed many of these gig economy drivers and compared their jobs to slavery. They went on and on about how cruelly these companies were treating these drivers. According to the authors, some of them could barely buy groceries for their families, and were "indentured" through the lease they signed under duress.

Geez, give me a break! Somebody needs to figure out how to do some basic business math and come up with some competent reporting.

Which ever way the political winds happen to be blowing seems to determine how we see things.

It doesn't help that the person writing the article sounds like an intern who knows little or nothing about the trucking industry or the business world in general, uses the wrong terms throughout the article, and couldn't even do basic spell-checking or editing.

She has written articles recently that include:

"Facebook accused by lawmaker of aiding Chinese Communist Party"

"Wheat exports are Trump administration's latest 'win' for American farmers"

So she knows nothing about trucking, unfortunately.

She keeps using the term "Owner-Operator" when she's really referring to "Lease Operators" which are two completely different business entities. It's lease operators that California is trying to convert into company drivers so these companies won't take advantage of their workers by leasing them a truck and then pawning off their risk and burdens onto them. We've been warning people for over a decade to avoid these lease programs because they're rigged to make the company money at the expense of the driver. Thankfully, many people have gained an understanding of this without having to learn the hard way.

She also used the word "salary" to describe lease operator revenues and compared a lease operator's revenues to a company driver's wages.

So thank you, Brittany De Lea, for making an even bigger mess out of an already challenging topic.

The bottom line - if you're not a lease operator living in California, this doesn't apply to you and you shouldn't care. If you are a lease operator living in California, now is your chance to either buy your own truck outright and become a full-fledged owner-operator or become a company driver. Hint: become a company driver.

Just for the sake of being contrary I thought I'd throw another twist in this conversation. I just noticed this information while reading an article in "Overdrive" about Owner Operator income holding up during this recent time period. It had this to say...

Average monthly income for July, August and September was $5,327, slightly below the second quarter, but well above the first quarter’s $4,971. Also, it was only slightly below the year-ago average of $5,573 during the third quarter, which represented the tail end of an exceptionally hot freight market.

Now, that should be interesting to those who think the only way to make money at this is to own your own truck. I'm scratching my head (not really). Most people think owner/operators are making a killing out here, so much so, that it's their ultimate goal in trucking.

Hmmm, it appears they are making considerably less than me, a lowly (steering wheel holder) company driver.

Just for the sake of being contrary I thought I'd throw another twist in this conversation. I just noticed this information while reading an article in "Overdrive" about Owner Operator income holding up during this recent time period. It had this to say...

Average monthly income for July, August and September was $5,327, slightly below the second quarter, but well above the first quarter’s $4,971. Also, it was only slightly below the year-ago average of $5,573 during the third quarter, which represented the tail end of an exceptionally hot freight market.

Now, that should be interesting to those who think the only way to make money at this is to own your own truck. I'm scratching my head (not really). Most people think owner/operators are making a killing out here, so much so, that it's their ultimate goal in trucking.

Hmmm, it appears they are making considerably less than me, a lowly (steering wheel holder) company driver.

Apparently they didn’t make much more than a rookie driver, and they have way more bills to pay than the rookie company driver.

Just for the sake of being contrary I thought I'd throw another twist in this conversation. I just noticed this information while reading an article in "Overdrive" about Owner Operator income holding up during this recent time period. It had this to say...

Average monthly income for July, August and September was $5,327, slightly below the second quarter, but well above the first quarter’s $4,971. Also, it was only slightly below the year-ago average of $5,573 during the third quarter, which represented the tail end of an exceptionally hot freight market.

Now, that should be interesting to those who think the only way to make money at this is to own your own truck. I'm scratching my head (not really). Most people think owner/operators are making a killing out here, so much so, that it's their ultimate goal in trucking.

Hmmm, it appears they are making considerably less than me, a lowly (steering wheel holder) company driver.

I am going to back you up on this Old School... Rates out here are the worst I have seen in my 31 years. I own my truck, and am in the process of parking it and going to go work for a tanker outfit driving one of their company trucks. I ran my tail end off this past week, leased to an outfit out of Indiana, my settlement, worked out to .41 a mile. You cannot make this stuff up... I just signed on with them and this was my first paycheck, I have yet to see the actual settlement. BUT! I am still parking the truck, it is paid for, and she can sit, I cannot work, much less survive on these rates.

As far as what CA is doing, Canada is doing the same. The problem is, they are not going to actually fix this problem, instead they will hurt the few honest brokers out here that are actually fulfilling their end of the bargain. The real criminals, see Driver Inc in Ontario Canada, will walk Scott free and continue their exploitation of drivers with their sham 1099 dealings. These are the outfits in Eastern Europe and India, they come here, and Canada, buy trucks and hire 1099 drivers and cut them lose. Their entire front and back office is located overseas. They have no skin in the game and can afford to haul freight for below market rates. I see it everywhere around me, from Detroit to Chicago. What these outfits get away with is beyond criminal. Just my opinion.

I saw someone advertising $1.10 a mile I get .69 cpm a mile as a company driver. I do not see how anyone can make money owning a truck for just over a dollar a mile, just between fuel, insurance, maintenance and permits there can not be much room for profit. That doesnt even take into account health insurance or retirement let alone vacation.

I saw someone advertising $1.10 a mile I get .69 cpm a mile as a company driver. I do not see how anyone can make money owning a truck for just over a dollar a mile, just between fuel, insurance, maintenance and permits there can not be much room for profit. That doesnt even take into account health insurance or retirement let alone vacation.

You cannot, and it is getting worse out here as rates further collapse. You keep hearing about a driver shortage, there is no driver shortage, there is a shortage in decent paying freight. It is still the independent that carries the brunt of the work out here, be it a guy with one truck or one with a small fleet. The big boys have their niche markets with the big companies, us little guys take care of the rest. Problem is, they are running us little guys out with more regulations, uber expensive and poorly built/engineered equipment, along with the fact that prices are rising out here faster than we can keep up. My insurance alone went through the roof a few months ago, I asked why and my agent told me flat out, fatalities are way up and the cost to replace these new EPA trucks is ridiculous. There are more than a few insurance companies that will no longer even deal with commercial trucks. It is a different world out here, everyone wants their pound of flesh, and the American Trucker is prime pickings right now.

And we are not all cowboys as some accuse us of being, I am out here just like you guys, I just chose to have even more responsibilities by taking care of my truck in my down time. I take a lot of pride in the fact I rebuilt, in framed my own motor. I can fix just about anything on it in my driveway, which I do, and I would put it up against any company truck in regards to a serious DOT inspection. Sad part there, the parts are going through the roof too. A simple valve that in its generic form is $65. On these new trucks, same valve, just a tad different design, will run $350. All of the parts are heading this way, we are being priced right out of this industry.

My one buddy, he is looking at opening a pizzeria... A few other are selling or parking their trucks like I am and going big company or specialized company. I have always made good money in tankers, chemicals and gases, so I am going back. It is just not worth it out here at present, and many of us do not see it getting any better on the owner operator side.

I have always made good money in tankers, chemicals and gases, so I am going back. It is just not worth it out here at present, and many of us do not see it getting any better on the owner operator side.

Michael, have you talked with P.J.? It sounds like you might do well with QC in your current truck.

I parked mine mainly due to skyrocketing insurance costs. That, coupled with lowering rates, made it easily apparent to go back to driving a company truck for me.

I have always made good money in tankers, chemicals and gases, so I am going back. It is just not worth it out here at present, and many of us do not see it getting any better on the owner operator side.

Michael, have you talked with P.J.? It sounds like you might do well with QC in your current truck.

Marc, no I have not spoken with P.J., and yes, I am headed to QC. As far as my truck, unfortunately it is too heavy by 4,000 pounds. They need tractors in the 18,000 lb range or less, I'm pushing 23,000 lbs. I need one of those new lightweight sport models like Freightliner makes. They told me they have some older tractors there that they may part with. If they have any older non emission trucks, I might consider something like that if the money is there. But as of now, it sounds like some of the company drivers are doing better than the owner operators when everything comes out in the wash. I've pulled 6 figures in tankers before, I figure, if these outfits are not lying to me, I can do that again as a driver. It would be nice to have my time off for me instead of wrenching on the truck.