Dropping spot market rates and insane fuel costs have put traditional Class 8 big rig owner-operators in the crosshairs as the odd man or woman out in today\u2019s highly volatile freight market.<\/p>\n
As a result, industry professionals are indicating one option for owner-operators might possibly be to exit the industry entirely as they simply won\u2019t be able to weather these two conditions without going out of business. It\u2019s simply unsustainable. One owner-operator told Business Insider it was costing him $20,000 a week to keep his three trucks running.<\/p>\n
Five other truckers told Insider that the industry could be at a breaking point and that they\u2019ve had to get creative in recent months to turn a profit while spending thousands at the pump.<\/p>\n
Plus, many owner-operators likely over-invested in new or used equipment during the pandemic to take advantage of a hot freight market that had no end in sight \u2013 and that was a good idea at the time.<\/p>\n
Relatively speaking, the red-hot e-commerce market has dipped, and consumers are spending more on experiences and travel after being pent up for so long during lockdowns. Instead of owner-operators leaving the industry entirely, sacrificing years of over-the-road experience, not to mention having to find another career and livelihood, we\u2019re suggesting getting behind the wheel of a sprinter van, box truck, or pickup with a trailer.<\/p>\n Think of it as going from a 5BR\/4BA McMansion to a 2BR\/2BA condo in a gated community. It\u2019s way more manageable.<\/p>\n Downsizing doesn\u2019t feel like traditional trucking to you? Perhaps not. A box truck or cargo van doesn\u2019t carry the same vibrato, machismo, and sexiness of a high-polish, out-my-way-four-wheeler big rig. Take a look at our cost-to-ship page<\/a> to see for yourself.<\/p>\n But what IS sexy is dropping your expenses in half \u2013 down from $1.50\/mile in a Class 8 tractor-trailer to $.75-.$80\/mile in a smaller vehicle. The chart spells out the significant difference. Industry data shows Class 8\u2019s get 6.5 mpg while the top-performing sprinter van gets over 25 mpg. Even if that van is fully loaded with furniture and pulling 20 mpg, that\u2019s still 3x what you\u2019re getting in your 2001 Freightliner.<\/p>\n And God forbid an accident occurs. Even if it\u2019s not your fault, the deductible is a completely unexpected hit that dips into whatever reserves you have.<\/p>\n Then there are the intangible benefits. More home time. Easier parking. Total schedule flexibility. No more grouchy forklift drivers or over-caffeinated dispatchers.<\/p>\n Transport marketplaces like uShip spend a considerable amount of time and money to source new business and shipments \u2013 things like furniture, cars, boats, motorcycles, equipment, and more. And unlike load boards with phantom loads, uShip has real stuff. And in some parts of the business, you can become part of a private carrier network for high-volume customers.<\/p>\n As uShip CEO said, \u201cuShip is grab-and-go freight, not hunt-and-peck freight.\u201d<\/p>\n Given uShip\u2019s commitment to supplying a constant supply of new shipments, the platform comes with booking fees that run about 15% of the total shipping cost. That percentage was dramatically reduced across all categories in late 2020, while pricing estimates were raised by 12.5% in early 2022.<\/p>\n Ultimately, uShip doesn\u2019t get paid unless you get paid. It also comes with all sorts of valuable tools, tracking, and promotion that you don\u2019t need to do yourself. Think of uShip as your marketing and sales division.<\/p>\n To be clear: downsizing isn\u2019t for everyone. unlike the traditional freight world, where pallets are shrink-wrapped and palletized, items on uShip often need to be blanket wrapped or secured. These items can be a family heirloom from Aunt Sally or a high-end piece bought on an e-commerce site. In other words, these items matter to the parties involved \u2013 and they expect you as the transporter to care as well.<\/p>\n Of course, the next natural question is: And making this shift will likely require a transfer of authority given the change of equipment, goods shipped, and region covered.<\/p>\n Transporters who have made the jump from a big rig to a small vehicle \u2013 and had the entrepreneurial spirit and patience to build a positive reputation \u2013 now reportedly make more than they ever did driving a Class 8. And based on a survey of transporters on uShip, 52% say their favorite thing about being on uShip is \u201cbeing my own boss.\u201d Another 20% love financial flexibility.<\/p>\n In May 2022, nearly 20 transporters earned over $20,000 in gross income on uShip, while 54 earned over $10,000 gross. The top-earning transporter grossed $60,000 on hundreds of shipments. Most shipments on uShip travel 800-1000 miles.<\/p>\n As a business, uShip did $200 million in gross shipping volume last year.<\/p>\n Curious about what kinds of customers use uShip? Customers are both businesses and consumers. Our partners are companies like eBay<\/a>, Etsy, Chairish, 1stDibs, Ritchie Bros., Vibe Kayaks, as well as 1000s of SMBs, that tap into capacity on our marketplace. We also have a lot of consumer enthusiasts \u2013 think motorcycle refurbishers, car collectors, and boat owners. One of our biggest categories is furniture and household goods.<\/p>\n As you can tell from the customers above, freight types flowing through uShip vary widely. So having the right equipment is essential. In other words, a Ford Transit Connect cargo van, bidding on or booking vehicle shipments<\/a> isn\u2019t practical. Your wheelhouse will be furniture, antiques, sofas, and the odd vintage item. If you drive a pickup and open trailer, motorcycles, ATVs, golf carts, and some cars might be your specialty.<\/p>\n The industry and world are changing so fast. When you\u2019re the odd person out, it sometimes requires expanding your perception of what you\u2019ve known. There is an opportunity to make some good money here.<\/p>\n","protected":false},"excerpt":{"rendered":" Dropping spot market rates and insane fuel costs have put traditional Class 8 big rig owner-operators in the crosshairs as the odd man or woman out in today\u2019s highly volatile freight market. As a result, industry professionals are indicating one option for owner-operators might possibly be to exit the industry entirely as they simply won\u2019t… Read More<\/a><\/p>\n","protected":false},"author":53,"featured_media":18241,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[294],"tags":[],"class_list":["post-18228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-trends"],"acf":{"blog_post_content":[{"acf_fc_layout":"blog_post_entry_footer","blog_post_entry_footer_cta":[{"blog_post_entry_footer_cta_url":"https:\/\/www.uship.com\/learn\/carriers\/getting-started\/","blog_post_entry_footer_cta_text":"Become a Carrier","blog_post_entry_footer_onclick":""}]}]},"_links":{"self":[{"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/posts\/18228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/comments?post=18228"}],"version-history":[{"count":0,"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/posts\/18228\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/media\/18241"}],"wp:attachment":[{"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/media?parent=18228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/categories?post=18228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ushipblogsubd.wpengine.com\/wp-json\/wp\/v2\/tags?post=18228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nWhat\u2019s the Alternative?
\nHere at uShip<\/a>, we see another option for traditional big rig owner-operators: Downsize.<\/p>\nExpense Math Is Sexy<\/h2>\n
\nConsider this:
\nIn a smaller footprint vehicle, you\u2019ll (likely) run on gas, not diesel. You\u2019ll drive fewer miles. Tires, repairs, and maintenance are significantly less costly \u2013 and parts more available. Insurance premiums are far lower. And capital expenses, like loan payments on vehicles that have a lower cost basis, are far less as well.<\/p>\nYour Own Marketing & Sales Team<\/h2>\n
What You Need To Know<\/h2>\n
\nIt requires lifting, working directly with customers, and receiving a customer feedback rating after each delivery. You\u2019re competing against other transporters like you so you need to be a bit savvy. It takes a bit of time and elbow grease to build a feedback score.<\/p>\nAnother word on your customers:<\/h2>\n
\n\u201cWell, sure the expenses are less, but aren\u2019t I hauling a lot less freight in a pickup truck with a 15-foot trailer?\u201d The shorter answer is yes. But it\u2019s all relative. It\u2019s a different strategy. It\u2019s a volume game. Establish a regular route. Find an anchor shipment, say, a sofa and two chairs. Then you fill in around it with various items that let you ride topped off.<\/p>\n\u2018Being my own Boss\u2019<\/h2>\n
So how much can established transporters on uShip make?<\/h2>\n
Where Do Shipments Come From?<\/h3>\n
Conclusion<\/h3>\n