2020 is shaping up to be a very interesting year for the trucking industry. External pressures are offering both growth opportunities and challenges alike, and they are very prevalent among owner-operators across the United States.
Challenges Facing Owner-Operators
At the start of the year, California’s AB5 Bill was ruled to infringe on the livelihoods of trucking companies and independent drivers. In essence, AB5 was going to force carriers to take on owner-operators as full-time employees. This would have increased the overhead for trucking companies while simultaneously decreasing the pay and scheduling freedom of owner-operators. Over the years, a symbiotic relationship has formed between carriers and independent drivers who can fill in during shortages and take shipments that may fall out of the radius of the fleet that hires them. Now, in the middle of a pandemic, more states are pushing legislation similar to AB5. Overtly, these bills are intended to protect those who make a living in the gig economy. Ohio, New Jersey, New York, and others are looking to put owner-operators under the umbrella of gig-workers, which would pose the same challenges as California’s AB5.
Opportunities for Owner-Operators
The current reality with the coronavirus has actually opened up opportunities for owner-operators. As many people in the United States shift to e-commerce instead of going out to purchase goods, independent drivers are in-demand. Spot rates are edging upwards, and the need for LTL drivers places owner-operators at center stage. Independent drivers are getting more business, and they have more leverage when negotiating rates with clients. Additionally, some owner-operators are even transitioning from driving to launching their own trucking companies. Small trucking companies that can provide “last mile” delivery or that can take some of the pressure off larger carriers that may not deliver to certain areas are picking up steam. More owner-operators are finding that starting a small trucking company can be quite lucrative.
Launch Your Trucking Company
If you are an owner-operator and you are thinking of launching your own trucking company, contact the professionals at Single Point Capital. Our team will help you navigate the red tape and documentation necessary to start your own motor carrier service quickly and efficiently. We will even waive administration fees associated with launching a trucking company for owner-operators that sign up for our factoring services. Contact Single Point Capital today to get the ball rolling.