This week’s version of the Overdrive Radio podcast options the semi-annual ATBS owner-operator revenue benchmarking session delivered in late September by ATBS Vice President Mike Hosted. The audio accommodates the complete presentation, and the video model up high exhibits all of the slides together with it. 

You’ll be able to observe together with any audio-only model by downloading a bevy of detailed slides charting price, income and revenue tendencies amongst ATBS’s tens of 1000’s of owner-operator clientele at this hyperlink. 

Hosted affords lots in the way in which of tendencies evaluation displaying the place we have been as much as the current second within the wider freight economic system. For the reason that COVID run-up in freight and charges, although, I believe most owner-operators know what the story’s been. Hosted put it fairly plainly, taking a look at contract freight volumes and charges at a sure level within the presentation that you simply’ll hear: “Now we have been contracting in freight quantity for the final two and a half years,” he mentioned. 

It’s been in regards to the longest contraction (although not at all times occurring shortly these final years) that he and lots of others have ever seen. There’s hope in some methods for a turnaround, given what he referred to as a measure of stability freight-volume-wise seen in a number of the numbers recently. Likewise, hopes for successful to trucking capability by way of the Trump administration’s foreign-domiciled driver credentialing rule adjustments — or one other issue. Not that Hosted performs a lot of the outdated prognosticating recreation this time round within the presentation.

New

Overdrive’s Load Revenue Analyzer

Know your prices? Compute the potential revenue in any truckload, analyze per-day and per-mile breakouts, and evaluate actual affords on a number of hundreds or recreation out hypothetical charge/lane eventualities. Enter your trucking enterprise’s mounted and variable prices, and cargo info, to get began.

Attempt it out!

[Related: Foreign driver exodus clearing parking lots and boosting rates?] 

“I hold listening to ‘center of subsequent 12 months, second half of subsequent 12 months,'” he mentioned, however “I have been listening to that for 3 years now. I am bored with saying that. I do not know when issues are going to get higher,” essentially. Management what you may management, he added, to rein in prices and keep watch over producing income above and past them.

Overdrive Radio’s sponsor is Howes, longtime supplier of gas therapies like its Howes Diesel Defender all-weather mileage booster and winter Diesel Deal with anti-gel therapies to get you thru the coldest temps, the Howes Multipurpose penetrating oil, and different merchandise.Hosted’s made an effort in current occasions to emphasise what’s referred to as contribution margin, a measure of complete revenues incoming minus simply variable prices incurred. That’d be your gas prices, tires, upkeep typically, something you spend to maintain the gear transferring down the street to generate that income. The contribution margin determine can be utilized month-to-month or weekly to assist decide simply once you’ve met your mounted prices for a similar interval. Mounted prices are incurred at time intervals and are what they’re referred to as within the very identify — mounted, predictable. Know your contribution margin as carefully as potential, and you’ll, on an ongoing foundation, know once you’ve met your mounted prices for a given month, as an example. All of the contribution margin earned thereafter throughout that interval is pure revenue.

“The necessary factor is once you hit that mounted price, your revenue per mile is thru the roof,” he mentioned. 

[Related: Overdrive‘s Load Profit Analyzer: How to use to assess rates, costs]

Proprietor-operators analyze and observe prices, revenues and revenue in so some ways, however Hosted wagers shut consideration to the contribution margin might assist anybody in decision-making round freight, and motivation to strike when the iron is scorching, because it have been, not within the freight market broadly however within the run of your individual day-to-day enterprise. Take a pay attention: 

Obtain these ATBS presentation slides to observe together with the audio model by way of this hyperlink. 

ATBS is coproducer of Overdrive‘s Companions in Enterprise, a complete information (now in a dynamic on-line library format) to execution of an owner-operator profession. The owner-operator enterprise providers supplier is accessible instantly by way of its web site.

[Related: ‘Foreign driver capacity’ hit incoming? Fleets watch, as owner-op income back on a slow rise]