How to Become an O/O: Should you specialize?

January 1, 2010

 | by: Max Kvidera

frieght pixFor the past seven years, Rusty Wade has specialized as a commercial moving operator, following more than 30 years hauling general freight, first as a company driver and then as an independent.
 Wade says he knows which he prefers. “Going down the road with general freight, I might be making $0.95 to $1 a mile plus a fuel surcharge if I’m lucky,” he says. Speaking in November, though, he was under a commercial load that “was $1.80 a mile out of Florida, one of the worst places to get a load. I’ll get a load out of my destination that will book at about $2.20 a mile.”
Wade, who’s been an owner-operator since 1999, has found a lucrative niche transporting loads such as trade show displays, museum pieces and a stainless steel kitchen for a new restaurant in his Pigasus LLC moving van-like trailer outfitted with furniture wraps and a urethane-sealed floor.

In a good economy, Kevin Koorenny would prefer to specialize, but in this recessionary market, the Redlands, Calif., owner-operator is hauling general freight if the rates are high enough. A specialty customer has reduced shipments, and Koorenny has cut his rate to keep the business. “Things are so iffy and scary that I can’t lock myself in,” says Koorenny, who carries $250,000 in specialized cargo insurance. “If you specialize right now, it’s not good. Before, it was good to specialize.”

Chris Harrington, an ATBS business consultant, says this is a tough time for a novice operator to jump into specialty work that requires experience, such as heavy and oversize hauling. Some specialty operations have been reduced as customers have cut back because of the poor economy.

When conditions return to normal and you want to specialize, Harrington recommends a self-assessment. One major question: Are you willing to do the work involved in a specialty? “You can make more money in flatbed, more in reefer and more in tanker work than you can in dry van, because in dry van you usually don’t have to do much — it’s often no-touch,” he says.

You also should determine a specialty’s freight cycles, Harrington says. Flatbeds are generally busier from May to September as construction heats up, while reefers and dry van activity might peak in the fourth quarter to meet holiday retail business.

With a flatbed, you face strapping, tarping and securing loads in all kinds of weather. It’s physically demanding, and you risk injury if you slip or fall from your trailer or get blown off. “In our industry, we talk probably once a month with someone who fell off a load and broke something,” Harrington says.

In refrigerated work, you might get involved in hands-on activity, especially if you are hauling mixed frozen and refrigerated loads. If you desire to haul produce, you might face driving in different regions as seasonal harvests change. You might be able to temper that by leasing on to a large carrier that has contracts to haul items such as frozen meat or camera film to offset slow seasons in certain areas, Harrington says.

With a tanker outfit, drivers will have to invest a few thousand dollars in a “wet kit,” “wetline kit” or hydraulic kit to lift, drain, dump and rinse out equipment.

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2 Comments

  1. Nogy n Gunner says:

    I am a new trainee out of Oregon and found this article a good read. What is the ‘fast-track’ to being an OO with less than 2 years OTR experience?

  2. Rusty Wade says:

    Fast track? lol learn about trucking, learn to run your own business.. forget fast tracks.

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