The trucking industry is growing, and so are opportunities for local owner operators to join the driver workforce. As a result of the increasing demand and shortage of drivers, there’s been a rise in new programs designed to support local owner operators as they enter the industry. Local owner operator jobs are a great way for independent drivers to begin their trucking career without requiring any upfront capital.
If you have previous experience in another field or you have friends or family that can offer assistance with expenses, becoming an owner operator may be your best option. Read on to learn more about these driving opportunities, including what they entail, the types of trucks you’ll need to get started, and if they’re right for you.
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What is a local owner operator job?
Owner operators are contractors who own their own truck but lease their space from an interstate carrier. The carrier provides these drivers with a personalized routing plan, but they are responsible for driving their own truck to complete all deliveries. Local owner operators move goods within a local region and typically haul less-than-truckload (LTL) loads.
This is in contrast to a long-haul, over-the-road (OTR) haul, which transports loads over a long distance. Local owner operator jobs can either lease or buy their own truck to haul these loads. In order to lease their own truck, owner operators must put down a security deposit and pay a monthly lease fee. While the exact amount varies by lease, the average security deposit is around $10,000 and monthly truck lease is $1,000.
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Types of trucks for local owner operator jobs
Depending on the loads you’ll need to haul, there are various truck types to choose from when you become a local owner operator. Owning your own truck means you’ll need to purchase a New Used Truck (NUT). NUTs are used trucks that have been thoroughly inspected to comply with the Federal Motor Carrier Safety Administration (FMCSA) regulations.
For local owner operator jobs, the best type of truck to purchase is a truck with a GVWR (gross vehicle weight rating) of between 8,501 and 14,000 pounds. This includes many conventional, short-haul and refrigerated/reefer trucks. This also includes many types of trailer combinations, like a double drive-away, gooseneck or livestock trailer. What’s most important is that you get a vehicle that’s right for your business and your needs.
How to become a local owner operator
If you want to become a local owner operator jobs, you’ll first need to find a carrier that will hire you as an independent contractor. There are two ways to do this: Ask your friends or family members if they know anyone who’s hiring You can also post an ad on websites that connect owner operators with carriers, like DAT All Trucking, iHOR and Truckers Forum.
Once you’ve found a carrier, you’ll need to get your commercial driver’s license (CDL) and obtain your Hazmat endorsement. If you don’t already have a CDL, you’ll need to complete a state-approved Commercial Driver’s License training course. Your Hazmat endorsement will depend on what type of loads you’ll be hauling.
Requirements for local owner operator jobs
In order to get hired as a local owner operator jobs, you’ll need to have a clean driving record, a commercial driver’s license and a valid DOT medical card. Your commercial driving record will be thoroughly examined by carriers as part of their hiring process, so clean record and good driving record are crucial.
Also, you’ll need to show proof of insurance, regardless of whether you own or lease your truck or trailer. Lastly, you’ll need to have enough cash on hand to purchase a truck and get your business off the ground. This typically means having at least $10,000 on hand.
Pros and cons
As with any type of job, there are pros and cons to owner operator jobs. One of these disadvantages is that the maintenance cost of any type of equipment for the provision of services will be the total responsibility of the owner. For example, the driver of the owning truck will have to pay for breakdowns or the cost of replacing worn tires on any truck in addition to the cost of fuel. Maintaining the required insurance can also be a costly problem for some.
Insurance should be obtained that covers not only the truck, but also the contents of the cargo to be transported. One will also have to find their own job and deal with all the administrative issues like billing and collection of services. Negotiate new contracts or delivery dates must be scheduled. In some cases, a secretary may be appointed to deal with these matters, but this is not commonplace.
These types of drivers must check the goods they are going to transport to make sure they are not damaged and must keep the items in these conditions during transport as it is their responsibility. Truck owner operator jobs are demanding because if the truck is not on the road, it is not profitable. Many times, the owner lives in the truck to be available at all times to get to the load quickly and earn money.
Job search
When searching for jobs of this type, it’s often helpful to check local and national classified ads in newspapers or online. Many companies hire owner operators with dedicated and extended operations. Salaries can vary and most are paid at a fixed rate of miles plus pay. Those who are self-employed often see an amount very close to their expenses, but may find it useful to place ads offering their services.
The benefits of being a local owner operator
Being an owner operator has many benefits, including: Earning more money – You can earn more money as an owner operator than as a driver for an interstate carrier. This is because you’ll be responsible for your own expenses, such as fuel and maintenance costs.
Which means you’ll be able to pass these savings along to your customers. Also, you won’t be entitled to the same level of benefits as a company driver. This will allow you to keep more profit in your pocket.
Drawbacks to being a local owner operator
Local owner operator jobs do face some drawbacks, including:
Longer hours – Owner operators may be required to drive longer hours and spend more time on the road than a company driver, which can be especially challenging if you have other obligations at home.
No benefits or retirement – As an owner operator, you won’t be entitled to the same level of benefits, such as health insurance and retirement.
No help with expenses – Unlike company drivers, owner operators aren’t entitled to any help with expenses, like fuel, maintenance and employee-benefit costs.
Final words: Is becoming a local owner operator right for you?
The best way to find out if becoming a local owner operator jobs is right for you is to get in touch with a few carriers, find out what they’re looking for and see if it fits your skill set. By becoming an owner operator, you’ll be able to set your own schedule.
Spend more time with your family and enjoy more flexibility in your work life. You’ll also be in charge of your own success and be able to set your own rates, which can be especially helpful if you’re trying to start your own business.
References:
1-Owner operators: employing a segmentation approach to improve retention
Publishing Date: 16 August 2010
https://doi.org/10.1108/09574091011071924
2-Driver Shortage and Fluctuation: Occupational and Organizational Commitment of Truck Drivers
Publishing Date: 09 Nov 2015
https://doi.org/10.1080/16258312.2014.11517352
