In recent months, Overdrive has talked with dozens of owner-operators and small fleet owners about their experiences and their businesses through the COVID-19 economic downturn. In the coming weeks, we’re checking back in with many of them to see how they’re faring as the economy slowly begins climbing back.
Timothy Barrett still hasn’t run a load since April. The one-truck independent owner-operator hung up the keys in early April, choosing to keep his truck parked as long as rates remain below what he’s willing to run for.
“I can go broke two ways: Hauling for nothing or not hauling. I’m not going to [run loads] and exchange money for fuel and drive the truck for free,” he told Overdrive in April.
As of late last week — mid-June — the story’s still the same: “Rates are just ridiculous,” he said. Especially for the loads he was running before the pandemic hit the U.S. — hauling primarily loads of auto parts and for trade shows and events from Tennessee (Nashville, Knoxville and Chattanooga) and Atlanta to Arizona (Phoenix or Nogales) and back.
“Everything I normally do is still shut down,” he said. And rates for his typical loads “are $1,500 off of what I normally haul for.” His revenue on the loads from Tennessee or Georgia usually totaled between $2,700 to $3,200, he said. Those are going for about half that now, he says. One broker last week “had an Atlanta to Phoenix for $1,900. That’s 1,856 miles and paying $1,900. That’s just impressive,” he quipped.
He doesn’t have a truck or trailer payment, and he cut a deal with his insurer to pay a lower premium as long as he’s not running, so that he can maintain his authority. “I’m watching rates,” he said, and if he sees something he wants, he’ll take it. He told his insurer they’d be “the second to know, after me,” if he accepts a load offer.
Independent owner-operator Toma Tomov, out of Missouri, was in the same spot as Barrett in April. He too had decided to shut down when rates tumbled. Then, he was watching load boards daily for loads he’d accept. Like Barrett, he’s kept his costs down. He doesn’t have any equipment payments and was able to weather a few weeks without running.
