Owner Operator: An owner operator is an independent trucker who owns or leases their truck and either operates under their own authority or leases onto a carrier.
Why it matters to owner operators
You run a business, not just a truck. You can choose loads and lanes, but you also carry the costs, taxes, insurance and compliance.
Example
An owner operator with their own MC number books loads through a dispatcher and pays a percentage of each load’s revenue for that service.
Leased on vs running under your own authority
An owner operator can lease onto a motor carrier and haul under that carrier’s authority, usually for a percentage of the load. Or they can get their own USDOT number and MC number and book freight directly with brokers. Running on your own authority usually means higher pay per load, but you take on insurance, compliance, finding freight and getting paid.
Costs an owner operator has to cover
- Truck payment or lease, and trailer if you own one
- Fuel, tires, maintenance and repairs
- Primary liability, cargo and physical damage insurance
- IFTA, IRP plates, UCR and heavy vehicle use tax (Form 2290)
- ELD subscription, load boards, factoring and dispatch fees
Knowing your cost per mile is the only way to know which rates are worth taking. Our owner operator dispatch service books loads around your numbers and your home time, and you can turn down any load.
Related terms
Haul smarter with a dispatch team behind you
Nexloads finds loads, negotiates rates and handles paperwork for owner operators and small fleets. No forced dispatch and no long-term contracts.