The trucking industry, especially for owner-operators, is having a tough time in 2024. A recent report from DAT shows that small carrier profits have dropped below what they were in 2019. In August 2024, the average per-mile freight rate fell to $2.01, which has put a financial strain on many owner-operators. With the cost of running a truck around $1.79 per mile, a lot of truckers are barely making it, making it even more important to find higher-paying loads.
Impact of dropping rates on small carriers
With rates so low, owner-operators running about 100,000 loaded miles and 15,000 empty miles a year are seeing losses. On average, they’re losing around $3,000 a year. That’s a big change from the more profitable days of 2021, when truckers were making about $64,000 annually. Right now, the market feels a lot like 2019, when small carriers were also struggling. But some truckers are figuring out ways to get through by making smart changes to how they run their business.
Not all Truckers can cut costs
Some owner-operators are surviving by cutting their costs, but it’s not something everyone can do. A big reason some carriers are doing better is that they don’t have monthly payments for their trucks or trailers. Without those financing costs, their breakeven point drops to about $1.43 per mile. But for most owner-operators who still have truck payments, it’s much harder. The reality is, if you’re still paying off your truck or trailer, it’s tough to stay competitive in today’s market. These carriers who don’t have those payments are the ones who can be picky about what loads they take, choosing only the ones that make financial sense.
Things Might Get Better by the End of 2024
While things are tough now, there’s hope that the situation will improve later this year. The DAT Report suggests that demand for trucks will increase around key retail events like Halloween, Thanksgiving, and the holiday shopping season. These events usually mean more freight needs to be moved, especially in places like Allentown, Harrisburg, and Philadelphia. DAT’s Market Condition Index also predicts tighter truck capacity, which could drive up spot rates as we head toward the end of 2024.
For owner-operators, this increase in demand could be a real opportunity. If you’re prepared to take advantage of it, you could find more profitable loads. Keeping track of market trends with tools like DAT’s load boards and Market Condition Index can help you spot those opportunities as they come.
Will Owner-Operators find more profitable loads in 2024?
Despite the challenges, there are still ways for owner-operators to increase their earnings this year. It’s all about making smart choices: cutting costs where you can and targeting the right lanes. As demand picks up toward the end of 2024, staying informed and using resources like DAT’s updates can help you find better-paying loads and improve your bottom line.