New survey of owner-operators highlights importance of knowing operating costs

A recent survey shows that owner-operators who know their operating costs stand to make significantly more money than those who don’t.

On Feb. 22, the OOIDA Foundation – the research and education arm of the Owner-Operator Independent Drivers Association – released the results of their 2022 Freight Rate Survey. Now in its 11th year, the annual survey of the Association’s members aims to “document the holistic changes that are occurring within the trucking industry, including freight rates.”

According to the survey, in 2022 owner-operators who knew their cost of operations earned $1.15 more per mile, and $1,500 more per trip, versus those who did not know.

“It is critical for an owner-operator to know how much they need to earn in order to both cover their operating expenses and pay themselves,” the Foundation’s report read. “An owner-operator who knows (his or her) costs is better equipped to choose which freight, region, and type of operation is best for their business as well as being better able to negotiate their rates.”

The importance of knowing your costs of operation isn’t a concept lost on most owner-operators. In fact, 88% of respondents to the survey stated they knew their figure, a 10% increase over the year prior. Owner-operators with their own authority (93%), those pulling refrigerated trailers (93%), and those operating long-haul (93%) were among the top groups to report knowing their operating cost.

“Obviously a lot of people said that they did, but there are still 12% that said that they didn’t … So if you don’t know your cost of operations, I hope that that kind of sparks a thought on maybe I should start’,” Andrew King, researcher analyst for the OOIDA Foundation, told Land Line Now.

As far as the numbers go, the reported average cost per mile in 2022 among all respondents was $2.38, a 36% increase over the $1.75 reported cost per mile in 2020.

With operating costs climbing, perhaps one surprising revelation from the survey came in terms of compensation, with two groups reporting higher earnings in 2022 compared to last year.

Among the responses, members pulling dry van trailers reported receiving 8% more per mile in 2022 compared to 2021, up from $2.01 to $2.18. Those pulling flatbeds saw a similar increase, growing from $2.69 per mile in 2021 to $2.97 per mile in 2022, a 10% gain.

The one group to report a decrease came from those pulling reefers. Their average pay per mile saw a 16% decline in 2022, from $2.56 to $2.16.

On top of an increase in per-mile compensation, the average pay per trip also increased in 2022. According to the survey, the average pay per trip was $2,390, up 26% from the $1,888 reported in 2021. This increase was mostly experienced by owner-operators under their own authority (37%, from $1,873 to $2,570) and fleet owners (117%, from $1,750 to $3,793), as well as those pulling oversized loads.

While the data may show that compensation is up, that doesn’t seem to mirror the current conditions many drivers are facing. In fact, 70% reported that rates were going down compared to the previous year. Only 14% of owner-operators stated that rates were increasing.

King said that some of that is perception based on the current market conditions. The numbers reported in the survey are a yearly average. However, the survey question was asked when the rate-roller-coaster was in a valley rather than a peak, which may have skewed some responses.

“(Drivers) are obviously seeing things a lot different than just your analyst who is looking at a bunch of data points and they’re not actually on the road,” King said. “They’re not feeling the pain that the (truckers) are feeling.” LL