Time Is Your Biggest Asset
Updated: Nov 1, 2021
Most owner-operators were company drivers before they bought a truck. Company drivers quickly figure out how to get the time off that they want, and how to get it without significant penalties. But when the company driver becomes an owner-operator, the old company driver habits about time off should change with the new responsibilities.
An owner-operator has costs that the company driver does not. One of these costs is “fixed expense”. This is the cost of ownership, and the expense is unrelenting. It is spent every day regardless if the tractor is moving or sitting. A typical fixed expense is about $80.00 and it happens every day until the last tractor payment is made. (After that last payment is made there will still be fixed expense, although it will be reduced.)
Unlike a company driver, when an owner-operator takes time off, this expense of about $80.00 a day is still incurred even though the truck is sitting. Because of this penalty, time off has a different meaning for the owner-operator. There are a few clever things an owner-operator can do to lessen the shock of this expense while still having time off.
First, look ahead for a full year and set goals based on what is reasonable and what is possible. There are 365 days in a year, and many drivers will say they would like about 550 miles per day. If you do the math, that comes to 200,750 miles. But we’re only human, and that’s a lot of miles! However, you should ask yourself: is 255 working days possible? Is 550 miles a day average reasonable? If these are feasible to you, then the miles would total 140,250. Not too bad!
Are 100 days of time off right for you? (Remember to allow time for mechanical issues, bad weather, layover & holidays). Some studies show that if operators commit less than 255 working days per year that their success is only marginal, sometimes worse. Other operators may need closer to 290 working days to be successful. Figure out how many working days remain this year, and then do the same every year following. You’ll be moving forward by mapping out the number of working days you need to succeed, instead of working to catch up without having a plan ahead of time.
Understanding freight cycles will give you another advantage. There are yearly, quarterly, monthly, and weekly freight cycles. Every sector of the trucking industry (van, flat, reefer, HHG, tank) will have different cycles and even individual companies in the same segment may have differences. Here are the differences between each type of freight cycle:
Yearly. The yearly fright cycle depends on your industry. For one segment of an industry it might be slow in the first quarter (Jan-Feb-Mar) of the year. Then the next two quarters (Apr-May-Jun and Jul-Aug-Sep) things can pick up and are more normal. The last quarter (Oct-Nov-Dec) is often the busiest quarter of the year.
Quarterly. A quarterly freight cycle is where the first month of the quarter will be slowest, the next month will be more normal, and the last month will be the busiest of the quarter.
Monthly. This is when the first week of the month will be slowest, the next two weeks will be more normal, and the last week will be the busiest week of the month.
Weekly. Friday is the busiest day of the week, and Monday is the next busiest. If you are consistent with making the most of these days of the week, it can help your business to thrive.
If you can get in synch with these cycles, you can use them to your advantage. Match your time off with the slowest time of the calendar. Then take your time off accordingly, and when it will affect your business and productivity the least. Give yourself the advantage by being available for work during the busiest times on the calendar.
Here are some additional ways to ensure that you make the most of your time:
Ask your fleet manager or operations manager to explain your company’s freight cycles to you. Mark the cycles on a calendar for the rest of the year, then plan your time off and availability for work accordingly.
Plan vacation time (and any major truck repairs) in the first quarter when it is usually the slowest.
Stay out and stay in service during the busiest quarter of the year.
Never take time off during last week of the month, or during the last two weeks of the quarter when it is the busiest.
Set a goal every week for how you can make your business more profitable. Set another goal for the month, and for the year.
Make the most out of Fridays and Mondays, since they are the busiest days of the week.
Don’t be tempted to refuse “bad loads” late in the week – they could be the key to what makes your business more profitable.