Are Small Fleets Running At A Loss?!

Are Small Fleets Running At A Loss?!
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With freight rates plummeting and numerous issues occurring within the trucking industry, many are uncertain whether or not the industry is profitable enough to launch a business in. In particular, many small fleets are steadily closing doors, which begs the question, are small fleets currently running at a loss?
Join Ronen as he explores the interest rates, costs of fuel, insurance, and the rise and fall of prices on new or used gear to determine once and for all if small fleets are accruing losses in 2024.
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📚 Chapters
00:00 Introduction
00:43 What Is The National Average For Dry Vans and Fuel?
01:10 What Would A Driver Earn With Today's Freight Rates?
01:35 What Is The Driver's Pay and Company Portion of Salary?
02:13 The Factor of Fuel
03:18 What Are The Dispatch Fees Incurred and ET's Dispatch Course?
04:36 Insurance Fees Accrued
05:04 What Are The Truck and Trailer Payments Accrued Monthly
05:30 Registration, Factoring and Tolls & Bridges Fees
06:10 Load Boards
06:30 Miscellaneous Fees
06:42 Parking
07:27 What Is The Total Monthly Deduction?
07:42 Things To Consider That Affect Monthly Earnings
08:39 Final Verdict?
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🚛 Ready to take your career to new heights? Calling all Owner Operators seeking independence in load management! 🚚✨ The buzz about Ronen's Dispatch Training Course is spreading like wildfire! 🌟 If you're ready for a game-changing opportunity, simply click the link below to get started! 📈🔥
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[@kennethcrenwelge4971]

I am 80 years old and purchased my first truck 60 years ago. There were ups and downs and 2008 was probably the the worst I can remember. I was running a dozen trucks last year and we actually did quite well until our biggest shipper closed the plant last September. All of my equipment was paid for, but my insurance ran until March 24 and the insurance company would not let me remove trucks as long as I owned them. I sold 5 at Ritchie Bros in Ft. Worth Last year. I am still waiting for my refund from the insurance on the ones I sold. Out of the 5 I sold, two went to non paying bidders and Rb doesn't pay the owner until they get paid. One finally paid and the second sold at the next sale 3 months.later. I was fortunate having drivers retirement age so no one filed for unemployment. I still have 4 trucks that are parked in the back lot and I insured 3. I carry no physical damage. Very few insurers even considered allowing me to insure 3 and parking 4. Even though I have had less than $5000 total claims in the past 10 years and have no out of service on my SAFER. I was a licensed salvage dealer for many years and I have two former drivers hauling off scrap that is bringing quite a good price at the moment. In reality I am only one truck hauling livestock feed. One is a spare and I keep one with apportioned license, UCR and IFTA and I use it to pull a drop deck when I buy stuff like antique trucks. I am hoping that carriers will thin out that things will get better. At the moment I would rather have two guys cleaning up the yard and selling scrap than running for nothing. My trucks are in an S Corporation which means I can deduct the losses from my other ventures that are still doing OK. I renewed in insurance and paid cash so having trucks sitting isn't too bad a drain on cash. And I am getting 10¢ a pound for iron and 44¢ a pound for aluminum. I am attending a bulk carriers conference later in April and I was asked to speak because of my 60 years of bulk hauling experience. I haven't accepted. I am afraid all I would have to say is "Boys, if you owe money and have a family to feed you might consider doing something else. trucking was fun 50 years ago and now it ain't even fun no more." Even though I have driven a truck myself for several million miles because I enjoyed it, my degree is a BBA in accounting and pre-law. I just can't see the figures add up these days. During my time of owning trucks I helped organize a bank in Texas. I was on the loan committee back in the 1980's and 1990's and I considered truck loans high risk back then. We sold the bank at a nice profit in 2003. It is going to get better one of these days, but anyone who tries to predict when is a fool in my opinion. But I will predict that when it gets better it will not be an overnight thing. Things will slowly get better. It sounds cruel, but a lot of carriers are going to have to go out of business before things get better. That has held true on every downturn I have seen in the 60 years I have owned trucks. I was fascinated by trucks since I was a child and that is why I chose to buy trucks instead of pursuing a career in accounting or continuing in law school. I still look at every truck I see on the road. But now I wonder how much negative equity the guy has and how much of a loss he is going to show at the end of the year.

[@user-nd4hk9pb2o]

I am no wheres near you as far as being in you're shoes, but I grew up trucking in the passenger seat. I have run run out of fuel, blown tires, lost engines, had employees quit, had equipment damaged, etc. I know I will survive. I understand everything you are saying and all I can say is, I would like to make a decent living for the effort I put into this racket.

[@mike-sk2li]

You can make more money cutting grass! No insurance, dot, and detention!

[@user-xt7rs4ut7g]

Don't write this in comments. They will start insurance?😁

[@bradtaylor7507]

Exactly right

[@zenioduncanson3027]

Too late.. You’ll need insurance.. but it’s cheap tho..

[@MS-oz2wu]

Did everyone hear that goof on Fox News the other day praising truck driving jobs yuking it like he was gonna get rich, without saying your in a truck 128 hrs a week?

[@melvinhill6726]

I agree 💯😂

[@charron1]

You forgot Maintenance, oil changes, Truck wash, Tires, brakes, taxes etc.

[@anonymoustrucker1782]

Truck wash 6x a year $500 Oil change 2x a year $1000 max Tires $6000 a year $7500/12 $625 a month on truck save it and if you can't go company!!

[@McCuneRS]

@@anonymoustrucker1782two oil changes a year?

[@vaghotao]

@@McCuneRSmaybe that person is like a 50-60k mile oil change mega carrier

[@sardoryunusov]

@@McCuneRSi do 8 oil changes. Every 15 k miles. My truck is about to hit 1 million miles so he is becoming a senior. If I force it drive 50-60 k for oil change it will do something to me 😂

[@jaeinnmoon3279]

@@sardoryunusov - he did not mention the cost involved in radiator fluid change, transmission oil and filter, and diff oil change, steering fluid and filter, the shocks, airbags, belts, brakes, brake chambers, DEF fluid and filter… this standard maintenance list goes on, not enough time to list them all.

[@kentr2424]

Seeing as how a large company (Pride Group) just declared bankruptcy, I can't see how smaller fleets moving general freight (or even reefer loads) are more than one step away from doing the same. The costs of fuel, maintenance/repairs, wages, taxes, equipment are at an all-time high, while shipping rates remain low. That's a guaranteed recipe for failure.... Specialized companies (that haul oversized/overweight) are still able to charge rates that meet their costs and leave some left for profits, but I think they're likely to soon see the same issues.

[@damirrakhmonov]

Interesting but in my DAT shows $2.04 national contract rates, but small fleets usually run spot loads and national average of spot market $1.56 I would like to share this screenshot

[@abdisheik2041]

This time he came closer to the real math thanks for the time you spent

[@calshrock3531]

Tires, brakes, annual inspection, etc. My truck cost me $2.50 per mile in 2022. Just as well park it.

[@NorthAmerican-Trucking-News]

Honestly, that's real

[@zoranradovanovic4995]

$ 22,110 is totally unrealistic monthly earning per truck.

[@dhardy6654]

This loser is a Canadian.

[@davidowen9671]

It also seemed to me that the 11,000 miles / month, sustained over the long run, was unrealistic, but what do I know? If the guy is part of a management team running a fleet, and that is what they actually have been experiencing, then ....

[@javedsmith8515]

How much is realistic?

[@ec5470]

Why you think $22110 gross is unrealistic ?

[@codym7960]

your unable to gross $22k a month? or your saying you gross way more and $22k isnt enought to stay afloat ?

[@wendellmitchell9177]

U forgot to take out for breakdowns

[@christianroberts1167]

and def

[@MS-oz2wu]

Thank you Ronen

[@minnesotasasquatchtrucker7116]

I own one truck I've been barely keeping my head above water struggling to make truck payments and insurance payments my bank account is constantly going into the negatives. These brokers got to quit robbing us

[@MS-oz2wu]

Shippers too!!!!!

[@Green_BuL]

Somebody is accepting cheap freight ?

[@csway1]

Another great video ronen. About 12 years ago i had a truck and reefer trailer working on percentage and used to regularly gross 30 to 35k with ease and bank 15 to 20k after all expenses. Now im on milage and trailer long gone because the rates fell through the floor. Now im lucky to bank 10k and im a major breakdown from finishing.

[@Countrycashflow]

Well the dispatch courses sure don’t help the market

[@oreojsn92]

These freight rates are ridiculous!! I keep thinking about leasing onto a small 85/15 carrier but right before I complete the application I back out. As it stands I'm much better off staying an LTL employee for a company with a 73% OR. Good luck to all those who committed and are stuck 👌🏾

[@JBe77]

Not ideal. You will be paying pretty much every thing at those companies and wind up only making about 72% if lucky

[@bentonja668]

The question was answered. "Are small fleets running at a loss?" He doesn't need to account for every conceivable cost beyond that.

[@Stavros1977]

There are too many truckers that are okay with making less money as owner operators than they would be as company drivers

[@user-sq9lk8bk5q]

You pay less taxes as an owner operator though. More right offs

[@Jose-gq8wc]

Got to love the payroll taxes down here in the lower 48.

[@rickmanning9561]

I'm in at a place that is paying is a flat $2 a mile plus fuel surcharge... nice thing is I have consistent loads and I stay local... I also run very light so less spent on fuel and less wear on the truck. That's also loaded and empty and I get 500-700 miles a night

[@mashhurbekyusupov9043]

Only fleet organizations can rise the cost by gathering all truck owners and companies to stop moving cheap loads. But unfortunately there will be people that does not care about tomorrows market and will still move cheap loads

[@Frank1776.]

And on the loadboard does loads gone for 1.50 😂😂😂

[@samndisya1922]

RACE TO THE BOTTOM

[@KillMeOrUDie]

Sometimes you gotta take a bad load to get out of a place. If you see a load going in to Florida for 2.7, just know you’re prolly gonna take 1.5 to get back out. So much of the country is like that these days. You can get good money going in but you better be aware of what it’s gonna cost to get back out. I play the averages and try to break even at 2.00+ which wasn’t hard a few months ago at all but right now I’m struggling. I need about 3k miles at $1.70 per week before I turn any profit at all. So for my budget it’s super important I stay above $2.00

[@Frank1776.]

@KillMeOrUDie i understand people try to do Florida like that but if one of my truck goes to Florida we will change to go FL and also to cover the miles heading out of FL to GA or SC because we're not going to haul cheap freight just to get out of a place, I'm pretty sure any body can calculate to make the logistics without having to go bad places but everyone do their math and if it makes sense it makes money and if it makes sense but doesn't make money people will find out quick on the next breakdown 🤣🤣

[@melvinhill6726]

​@@Frank1776.I'm not going to haul cheap fright just to get out. 😂😂 My mind set all day coming out of FL. Free load my as. I rather dead head out. Get someone else to do it.

[@RomeoUrsu-fy9qo]

@@KillMeOrUDie Doesn’t pay good to get into a bad spot 😂😂😂😂 So they pick a crap load to get into a bad spot …then they pick a free load to get out …yeah…that’s a good business 😂😂😂😂

[@bigwiffy7767]

I parked my truck two months ago. I absolutely will not haul cheap freight. Been in a business for 45 years they can shove their cheap freight.

[@KillMeOrUDie]

Can’t speak for yall but I’m running on the spot market and I’m getting absolutely murdered out here. I’m struggling just to break even after paying for everything. In the last 2 months I have brought home about 1,400 bucks. I got like 1 year left on my truck and that will put 3k a month back in my budget

[@michiganstad]

Hahaha , The Republicans call it The FREE Market . The Hell with both . Regulation regulation regulation , back to the seventies

[@void308]

Stay strong man! Good luck!

[@melvinhill6726]

You are not alone 🥹

[@Jose-gq8wc]

My truck and trailer are paid off, and I'm operating at a loss also. In 36 years, I have not seen this cost of operation so high. and rates at 1990s levels doesn't help at all.

[@karansandhu1815]

Same here I’m in negative I have paid off truck and trailer. Truck got complete overhaul by Volvo in 21 cost around 36k usd todays market I’m getting 25k for my truck and reefer included don’t have money to renew plates

[@lwrefrigeratedexpress5698]

The problem is the industry has allowed the brokers to dictate freight rates. They are under cutting each other in order to get the business.

[@bentonja668]

That's how markets work. You believe in free markets, I assume?

[@michealfanter6736]

I bet the next video is on Pride Group bankruptcy

[@rce8540]

Great news

[@danf6975]

As an owner operator, I have been because of repairs

[@arsalanparekh8122]

Really informative. One question though? How did we arrive at diesel price average of CAD 4.03 per gallon?

[@JimmyD6977]

This is so easy to fix. SAY NO TO CHEAP FREIGHT!!! Stand up for yourselves, drivers!!!!🤬

[@NorthAmerican-Trucking-News]

Not really... I mean how many truckers do you reckon are in North America alone.... unionization is historically one of the hardest things to eventuate. Had it been that easy whole laws would have never been put in place... wars avoided. Truckers are far too divided at the moment.

[@JimmyD6977]

@@NorthAmerican-Trucking-News divided yes. Why do drivers insist on uniting only when its doing what they dont want? Drivers are always willing to unite in being broke and over regulated by the government.

[@truckingwithfauz7089]

CPM should be illegal for a company driver

[@nebraskamalt6949]

Damn right, insurance is vastly higher

[@NorthAmerican-Trucking-News]

Yeah

[@tracker2038]

@ET Transport Hi Ronan, i will be interested in safety course? Thanks

[@davidowen9671]

Thanks for [your 5 categories of drivers video]. And you do very much seem to have a handle on this. Though as for Category 2, it is curious what "make a lot of money quickly" can actually mean. The training carriers, and those others that try to continue that party afterward, are going to pay subsistence. Even if we say that in 2022/2024, a hundred grand is still money in North America (where particle board houses in third-tier cities are 500K), OK how long will it take a hard-charging, live-in-the- sleeper-berth driver to SAVE US$100K?

[@georgiiarakelov6560]

Good point bro. As long as truckers live in a truck, they are making enough money.

[@davidowen9671]

Sir, Maybe you covered this in a previous video, but where does someone get a reliable power unit for US$2500/month? Perhaps worth a dedicated video? I have heard of power units going for 180K, new, and not $220K. Apologies, i haven't followed up much to verify. And there is the abiding issue of how lease companies can try to, and succeed in, getting the initial purchase price after 4 years, while that initial purchase price was built up to such a level by user (mis)understanding that these trucks should be good for 7 to 10 years without a major (a 5-figures) repair. Obviously, this is a big part of the puzzle.

[@void308]

What? You have to choose wisely. Take a mechanic with you to inspect the truck, and learn as much as possible about the truck and engine you are looking at purchasing in the future.

[@davidowen9671]

@@void308 You may be right, but some follow up: Great if you have a competent truck mechanic buddy, but if you don't? And take him to examine 20 trucks? 10? 5? What is the fair price for that? And if this guy can only look for obvious things that any driver can look at himself, then what value added? He is not going to be taking apart engines, transmissions, exhaust systems and differentials. It is curious though how, excuse me, boneheaded truckers are. For every 100 times I hear someone mention mileage on the truck (or engine), I hear engine hours mentioned ... well ... zero times. And how much should we really care about truckers at that level? Sorry.

[@davidowen9671]

​@@void308 And another factor, if you are just hiring a mechanic to perform this inspection service, excuse me again, but why assume that he is going to feel more loyalty towards his one-off "employer" than to the truck seller, with whom he might have, or hope to have, ongoing dealings? Bring in a guy from 50 miles away? I am not saying that bringing along a mechanic is a bad idea. No, it is a good idea. But the limitations are obvious. And didn't even the mega carrier's --- with in-house mechanic staffs --- have a policy of keeping these things only until 3 years / 360K miles, up until Covid and supply chain disruptions affecting truck manufacturing? Fact is, I just don't know. Of course a used truck for 50 or 60, major problem free for three more years, would be vastly preferable to $51733.93/ year, no equity accruing, to lease a Peterbilt (oh' and return it with new tires, brakes, etc.). But finding that needle in a haystack ....

[@jesusrodriguez7947]

You're asking questions that are actually pretty easy to answer if you have some experience as an owner operator. Are you new and trying to get into this industry right now ?

[@davidowen9671]

@jesusrodriguez7947 Sir, you might want to lose the "Experienced driver" identity and line, because no one gives a rat's ass. The most experienced drivers I have met are supremely stupid, selfish, self-absorbed, stinking slobs. You can content yourself with being a simple worker. There is dignity in that. The attempts of you and other "Experienced drivers" to "pull rank" on others make you ridiculous, fair objects for ridicule. Not surprisingly, in your comment, you have no information about actual costs. Well, time for you "Experienced drivers" to get back to your flat-nosed trucks with their 6 mpg; idling your engines all night, every night; acting out your aggressions on the road (maybe caused by your violent argument this morning with your fourth wife, a tattooed, body-pierced, blubber-bag beauty). Have the day, and the life you deserve, EXPERIENCED DRIVER.

[@waltmiller]

$ - 48,000 2023 still running

[@integralx1988]

2700 miles a week? He’s never home

[@user-jd9nj5fg9s]

Loosing 6-7k a month in diesel is just something I can’t do anymore .

[@NorthAmerican-Trucking-News]

Understandable...

[@mikejohnson7858]

Keep up the good work and haul that cheap freight.

[@lynnshell78]

ronen what are your thought on the pride trucking bankruptcy please thank you?

[@rce8540]

These people have destroyed the trucking. Hope they all go out of business

[@lwrefrigeratedexpress5698]

Yes they are

[@SSYLogisticsLLC.]

Just wonder how FMSCSA will make money from inspections , when only mega carriers will be left, and all small operators will be under their control. Good luck to everyone who is staying in the business, I am done 35+ years on the road. I become a truck driver 1985 because of the freedom it provided back , the end result was a reflection of your capabilities. Today it is all backwards, no freedom , regulators tell you how to work, how long to do it ,sky hig insurance rates, bad roads (some) Drivers absolutely disrespected in any way, luck of proper driver training ( not the one required to pass the exam), the wind blows ...and the road is closed LOL... wasn't like this back in the 80s.

[@NorthAmerican-Trucking-News]

We're sorry to hear that :(

[@robertavila8165]

Do you use O/O in your system?

[@NorthAmerican-Trucking-News]

Hi, yes we do!

[@cintroberts6614]

The amazon business model.

[@NorthAmerican-Trucking-News]

Surprisingly effective though

[@jsta625]

You missed eld and oil change each month and accounting and safety and taxes and food and repairs and health insurance and yea sometimes a tire 😂and sometimes 1 week down time off or repair shop ,,,so the actual gross gets much smaller compared to your ideal perfect conditions

[@amelmelez1969]

Seems to get worse and worse as the weeks go by, i dont see this getting any better anytime soon if ever, if you really think about it, what would cause the load prices to go up when all these low paying loads are leaving the load boards almost as soon as there posted. I hope im wrong

[@NorthAmerican-Trucking-News]

The only resolution I have in mind is unionizing and striking against it all together, but how do you gather every trucker together?

[@isxj4tts]

loadlink biggest scam

[@Corleone_Napoleone]

What do you expect. This buffoon uses Carrier 411, one of the biggest JOKES in the history of trucking business. (I am in business for over three years and Carrier 411 still has me categorized as “applying for insurance “😂😂😂) Don’t take him seriously. Just a big mouth with a YT platform. I feel sorry for the naive ones who will pay for his “dispatch course”. No ofense to this Ronen guy , whatsoever

[@ShowmestateFox-bm8iz]

All this mess with trucking industry, is made up by brokers, regulations should be implemented, on brokers.

[@NorthAmerican-Trucking-News]

What regulations would you propose?

[@llll-po2pf]

I seen one of your trucks the other day It said e.t transport I think It was a white pickup truck pulling some vehicles if I remember correctly Heading west on i80 toward Indiana

[@brianfuller9565]

Dispatch services are illegal in America

[@overdp]

This is the worst carrier you can choose you work 24/7 and you pay to work.

[@michiganstad]

k , still trucking in North America is nothing but a Failure

[@ceasarwright7567]

Big fleets . ET included are not profitable at the moment.

[@NorthAmerican-Trucking-News]

Hey... are you spying on our accounts?

[@stillyoungish]

If you’re out here paying for dispatch courses I honestly don’t think this is the career field for you

[@Lookatme5]

Ronan stop saying bad rates. There are good rates in the market but you always demotivate the owner operators or new comers.

[@NorthAmerican-Trucking-News]

The national average is literally barely above $2 a mile...

[@njgiant1]

After they finish your dispatch course. Do they get the dispatch your driver under ET Authority? or are they supposed to come out here and harass other drivers who’s under there own Authority dispatching they’re own trucks just asking 🙄

[@devoywilliams3956]

Why would you use 11,000 miles a month, thts not realistic nonstop.

[@markstack2309]

Well if mega fleets would quite chopping the rate this would stop nothing but stupidity. Keep hauling your cheap freight

[@bentonja668]

You can't blame the megas. Under capitalism, ALL of the companies are racing to become the next mega. Megas are eventually going to have all the freight after they outlast the little guys. "Competition is a sin." There's not a company anywhere that doesn't want to get bigger over time. Swift started in what,1990? Its not that many years if you think about it.

[@50something67]

Wife and I lease on to Prime Inc. husband and wife team is the ticket! $$$

[@mikejohnson7858]

You want to know the fact. I don't think anybody wants to do anything about it. I think you just want something to Complain about. Fact is all I get is you will never fix it or unit truck drivers well you know I've come to realize your right becouse the people in this industry are to lazy to fill out a simple invitory Inquiry. And would rather haul cheap freight, as long as they're loaded. So, as you go out of business look in the mirror and say to yourself I have nobody to blame but myself.

[@mrbasscow]

Im running for 7$ plus a mile man i love oversize

[@Parasefvirte]

I am in Macdonald making more $ than trucking and I don’t have DOT on my shoulders and all the BS compliance expenses or maintenance. I don know why pp keeps insisting and don’t want to leave trucking,? I know you like the engine noise and the j brake pops.

[@davidowen9671]

You probably also don't risk your livelihood and life every minute in aggressive urban traffic.

[@RomeoUrsu-fy9qo]

Actually you are correct 💯 Many are just working in minus…and they gonna lose everything….even their friends and family

[@michiganstad]

dude again interesting to watch your video's but I don't need all your math and Bla Bla Bla . I Know that I need $5 < FIVE > Dollar a mile to get bills paid , make a living and SAVE Money as well .

[@Kaonik1978]

PRIDE truck sales filing bankrupcy

[@yuseff_bobrowski]

We are nowhere near the bottom....go to India, Ukraine or Somali and see how much truck drivers are making over there. You will then start appreciating $1 mile TQL loads all day everyday

[@rce8540]

These are the people that have destroyed trucking.

[@charron1]

Comparing Apple and Oranges? In India, Roadside lunch costs 50 cents.

[@RomeoUrsu-fy9qo]

Maybe they don’t have the ridiculous expenses that we have here…even their taxes are not the same…or tolls etc. Maybe they don’t have to pay in repairs $180-$220 per labor And maybe people don’t want to transform a great Continent into a 3 world leader life. And if they apreciate so much their way of living….they should stay there and they could enjoy everything they like… What a stupid comparison

[@killerkett]

@@RomeoUrsu-fy9qohe is an idiot bro dont even answer. comparing usa and india lmao what an idiot

[@geno166]

First

[@a007x3]

Whose numbers are these ?