Why 2024 Might Be the Best Year to Become an Owner Operator Truck Driver

We talked about many of these same things in last year’s very popular post of the same title and now in 2024, it serves to further support a solid foundation. This post isn’t a rehash or an update for 2024. Run a cost/benefit analysis on your decision making as a prospective or current business owner. Look at it this way, prices for trucks and trailers have gone down considerably from 2022 to 2023, had you jumped into trucking in 2023, you’d be past your first year in business, the toughest, roughest, and most expensive year in starting a trucking company.

Interest rates were lower in 2023 which means that you’d finance a smaller amount at a lower rate, thus directly lowering your operating costs. You’d have a tool that would be making you money for an entire year. Truth is, the market could support a new MC as long as you did a few things right. In no particular order, financed a truck at a good price, rented a dry van at good terms and price, and opened up all of your special state permits like NY, NM, OR, CT, KY, and CA. Get all of your trucking company affairs in such good order that if your state DOT decided to run a new entrant audit, you could pass it with flying colors. By the way, if you want some help with getting those permits yourself and getting prepared for the new entrant audit, go to our contact page, give us a call, or send a text to (801) 448-6363 with your name and email and a short message that you want these things and I’ll make sure it’s sent out. I won’t do it for you but I’ll show you how you can do it yourself. Or you can pay someone to do it for you but I don’t recommend that route.

You have to understand your operating costs. You have to know them as both variable costs and fixed costs. I’ve made several videos about this on our YouTube Channel but the below video should be very helpful in this regard. I would definitely take the time to go through this video whether you plan to become a motor carrier, or any type of an owner operator. In either case, don’t forget about about the operating part of being an owner operator. Too many trucking companies prematurely shut down because the owners owned but forgot to operate. In fact we made a video on this as well and it would be of a great benefit to any new or aspiring owner operator who’s willing to learn from other people’s numerous and repeated mistakes. You can also find these videos on our videos page.

Is It Time to Gear Up and Hit the Road as an Owner Operator?

Despite economic headwinds, the trucking industry is projected to experience steady growth in the coming years. This growth is being driven by several factors, including the rise of e-commerce, globalization, and the increasing demand for goods and services.

While there is currently a surplus of truck drivers, this is expected to change in the near future. The average age of truck drivers is increasing, and fewer young people are entering the industry. Additionally, the trucking industry is heavily regulated, which can make it difficult for new drivers to enter the industry.

As a result, there will be a growing demand for qualified and experienced owner operator truck drivers who are willing to work hard and provide excellent customer service will be in high demand and will have the opportunity to earn significant incomes.

Overall, 2024 is shaping up to be a promising year for those looking to become owner operator truck drivers. The combination of industry growth, and potential for high earnings creates a favorable environment for success in this industry.

Increased Demand for Trucking Services

The demand for trucking services is expected to continue to grow in the coming years, driven by several key factors:

• Rise of E-commerce: The rapid growth of e-commerce is a major factor driving the demand for trucking services. Consumers are increasingly purchasing goods online, which need to be shipped from warehouses to their homes or businesses. This has led to a surge in demand for freight transportation, as trucking companies are responsible for transporting these goods.
• Globalization: Globalization has fueled demand for trucking services in the United States through increased imports, expanding export markets, and the adoption of just-in-time manufacturing practices. This has led to a surge in demand for trucking services to transport goods from ports, warehouses, and factories to their final destinations.
• Increasing Demand for Goods and Services: The overall demand for goods and services is also expected to continue to grow in the coming years. This will lead to an increase in the volume of freight that needs to be transported, which will in turn benefit trucking companies.
• Infrastructure Improvements: Governments around the world are investing in infrastructure improvements, such as new roads and bridges. These improvements will make it easier and more efficient for trucking companies to transport goods, which will further increase demand for their services.

This is good news for trucking companies and owner operators, as it means that there will be plenty of opportunities for them to find profitable loads.

Potential for Higher Earnings

Owner operator truck drivers have the potential to earn higher incomes than company drivers. There are several reasons for this, including:

• Control over Rates: Owner operators are able to set their own rates for the loads they haul. This means that they can negotiate higher rates with shippers and brokers, which can lead to increased profits.
• Keep a Larger Share of the Profits: Owner operators keep a larger share of the profits from their loads than company drivers. This is because even though they are paying for the overhead costs of a trucking company, such as fuel, insurance, and maintenance, they also get to keep the remaining profits.
• More Flexibility: Owner operators have more flexibility in their schedules and routes. This allows them to choose the loads that they want to haul and to work the hours that they want to work. This flexibility can lead to increased earning potential, as owner-operators can take on more loads and work longer hours if they choose.

Another advantage of being an owner operator truck driver is the ability to build your own business and expand your operations over time.

• Purchase additional trucks: Owner operators can purchase additional trucks to increase their hauling capacity and take on more loads.
• Hire drivers: Owner operators can hire drivers to operate their trucks, which allows them to expand their operations without having to drive all of the trucks themselves.
• Offer additional services: Owner operators can offer additional services, such as expedited shipping or temperature-controlled shipping, to increase their revenue.

Government Support

The U.S. government recognizes the importance of the trucking industry to the nation’s economy and is providing support to the industry through various initiatives.

One key initiative is funding for infrastructure improvements. The government is investing in the construction and repair of roads, bridges, and other infrastructure that is essential for the trucking industry. These improvements will make it easier and more efficient for truck drivers to transport goods, which will benefit the entire economy.

Another initiative is tax breaks for small businesses. The government offers a number of tax breaks to small businesses, including trucking companies. These tax breaks can help trucking companies to save money and reinvest in their businesses. This can help trucking companies to grow and create jobs.

These initiatives include funding for infrastructure improvements and tax breaks for small businesses. The funding for infrastructure improvements is being used to repair and replace aging roads and bridges, as well as to build new infrastructure that will improve the flow of goods. This will benefit trucking companies by reducing their costs and making it easier for them to transport goods.

Overall, the U.S. government is providing significant support to the trucking industry through these initiatives. This support is helping to improve the efficiency of the industry and to create a more favorable environment for trucking companies to operate.

Is 2024 the Year of the Owner Operator?

For individuals who are considering a career in the trucking industry, 2024 could be an opportune time to become an owner operator truck driver. The confluence of several favorable factors creates a propitious environment for success in this field.

Firstly, the demand for trucking services is projected to increase in the coming years due to the rise of e-commerce and globalization. This means that owner operators will have access to a growing pool of potential customers and will be able to find profitable loads more easily.

Secondly, owner operators have the potential to earn significantly higher incomes than company drivers. This is because they are able to set their own rates and keep a larger share of the profits. Additionally, owner operators can build their own businesses and expand their operations over time, which can lead to even greater financial success.

Finally, the U.S. government is providing support to the trucking industry through various initiatives, such as funding for infrastructure improvements and tax breaks for small businesses. This support is helping to create a more favorable environment for trucking companies to operate and is making it easier for owner operators to succeed.

Overall, 2024 presents a compelling opportunity for individuals to enter the trucking industry as owner operators. The combination of increased demand, driver shortage, potential for higher earnings, and government support creates a highly favorable environment for success in this field.

Tax Breaks, Deductions, and Retirement Planning for Owner Operator Truck Drivers

Becoming an owner-operator truck driver can be a lucrative career, but it also comes with unique tax and financial considerations. Here are some key tax breaks, deductions, and retirement planning strategies that owner-operators should be aware of:

Tax Breaks and Deductions:

• Section 179 Deduction: Owner-operators can deduct the full purchase price of a new or used truck, up to a certain limit, in the year it is purchased.
• Fuel Tax Credit: Owner-operators can claim a tax credit for the federal excise tax they pay on diesel fuel.
• Per Diem Deduction: Owner-operators can deduct a certain amount of money for each day they are away from home for business purposes.
• Vehicle Expenses: Owner-operators can deduct expenses related to their truck, such as repairs, maintenance, and insurance.
• Business Expenses: Owner-operators can deduct other business-related expenses, such as office supplies, marketing, and professional fees.

Retirement Planning:

• SEP IRA: Owner-operators can contribute up to 25% of their net income to a SEP IRA, a simplified retirement savings plan.
• SIMPLE IRA: Owner-operators can also contribute to a SIMPLE IRA, which has higher contribution limits than a SEP IRA.
• 401(k) Plan: Owner-operators who have employees can set up a 401(k) plan, which allows them to contribute a portion of their income on a pre-tax basis.
• Roth IRA: Owner-operators who are eligible can contribute to a Roth IRA, which offers the potential for tax-free growth and tax-free withdrawals in retirement.

Note: The specific deductions and retirement options available to owner operators may vary depending on their business type, structure, and tax filing status. It is important to consult with tax professional to determine the best tax and retirement strategies for your individual situation.

Additional Tips:

• Keep detailed records of all your business expenses. This will help you maximize your deductions and minimize your tax liability.
• Consider setting up a separate business bank account to keep your business finances separate from your personal finances.
• Make estimated tax payments throughout the year to avoid penalties.
• Consult with a financial advisor to develop a retirement savings plan that meets your specific needs and goals.

Watch my video “What Owner Operator Truckers Need to Know About Truck Driver Retirement – IRA vs Roth IRA” for more information:

In this video, I discuss the different types of retirement accounts available to owner-operator truck drivers, the pros and cons of each type of account, and how to choose the best retirement savings option for your individual situation.

3 Ways to Make Money in Trucking – Video

In 2024, with the possibility of an economic recovery after the pandemic, becoming a truck driver is a good option. It is important to choose the right company to work for. Picking the wrong company can have long-term effects on your career.

Before choosing a company, it is important to think about what you want to achieve. Do you want to stay with a company as a driver and work your way up, or do you want to lease a truck and become an owner-operator?

Many people who start as company drivers eventually lease a truck and become owner-operators. However, it is important to do your research before leasing a truck. Many owner-operators fail because they do not do enough research before leasing a truck.

If you are thinking about becoming an owner-operator, you must decide if you want to become your own Motor Carrier (MC) or lease your truck to another MC. You must also decide if you want to be a single-truck carrier or have a fleet of trucks.

Many people fail in the trucking industry because they do not do their research, make costly mistakes, and do not learn from their mistakes.

We can help you choose the right company, choose between leasing or owning a truck, and help you research different companies’ pay rates, benefits packages, and policies. We can also help you avoid making costly mistakes.

Carriers and Owner Operators Welcome

Take the next step towards financial success with AFT Dispatch, your trusted partner in the trucking industry.

With our established truck dispatch service, we provide small trucking companies and owner operators with the tools and support they need to maximize their earnings and achieve long-term profitability.

Our experienced team of dispatchers will work tirelessly to find you the most lucrative loads, negotiate the best rates, and optimize your routes. This means more money in your pocket and less time wasted on the road.

We also offer a range of additional services to help you succeed, including:

• Access to a vast network of shippers and brokers: We have relationships with a wide range of shippers and brokers, which means that we can find you the best loads for your needs.
• Expert advice and support: Our team of experienced dispatchers is always available to answer your questions and provide support.
• Competitive rates: We offer competitive rates for our dispatching services, so you can keep more of your hard-earned money.

Don’t miss out on this opportunity to increase your earnings and take your trucking business to the next level.

Call or text us at (801) 448-6363 to learn more about our services and how we can help you make more money.

Or, visit our website to check out our vast library of free educational trucking videos and resources.

Are you ready to start making more money with AFT Dispatch?