Entrepreneurial Carriers and how Sparrow is Supporting
“With abundant freight but a shortage of capacity to move it, drivers have seized on the opportunity and leveraged new tools to bring new carriers to market,” stated Transport Topics. With the pandemic, the industry saw a 300% year-over-year increase in new registrations of new authority carriers and owner-operators entering the market. As we approach this new era of entrepreneurial carriers in 2022, it is necessary for carriers, shippers, and logistics brokers to work together to reach success.
Who is the Entrepreneurial Carrier?
An entrepreneurial carrier or owner-operator truck driver is someone who owns their own truck driving business that finds freight to haul. Transport Topics stated, “As of 2021, there are more than 600,000 owner-operators employed in the United States, and that number is quickly growing.” There are many reasons to pinpoint this growth, but a large number of drivers left the large trucking company they worked at to earn more money by being an owner-operator. Some of these experienced drivers are younger and more tech-savvy, they have the resources and experience needed to grow their own businesses. As the industry continues to change and access to capacity increases, freight brokers need to evaluate how they are supporting owner-operators.
Current Industry Trends:
In 2022, the industry will have the largest amount of heavy and tractor-trailer truck drivers ever. “Employment of heavy and tractor-trailer truck drivers is projected to grow 6 percent from 2020 to 2030, about as fast as the average for all occupations. About 231,100 openings for heavy and tractor-trailer truck drivers are projected each year, on average, over the decade,” stated the Bureau of Labor Statistics. Over the last 24 months, drivers have decided to start their own carrier operations at higher rates than ever. The carrier market is continuously changing allowing small owner-operators to be more empowered than ever.
The industry is seeing higher freight volume and a greater need for carriers to transport goods from point A to point B. “In 2022, a 24 percent increase in freight tonnage is likely, according to the American Trucking Association. As a result, revenue is predicted to increase by 67 percent in the trucking industry.” With the increasing freight tonnage, shippers can support entrepreneurial carriers by ensuring they have a great experience and can go from point A to point B efficiently.
A survey with Today’s Trucking shares, “Highlights of the survey included: About 72% of respondents expect load growth over the next six months; temperature-controlled carriers were most optimistic, followed by flatbed; 55% of respondents expect spot rates to rise in the next six months, and only 14% of respondents expect rates to decline.” The market is continuing to show growth of 4.3% year-over-year of loads being hauled.
The top concerns in the industry for many owner-operators and carriers are the rising fuel costs and how rising costs to move the goods will affect rates being lowered to save costs for shippers. Knowing these concerns allows Sparrow Logistics to gain insight into the stressors of the industry and how our team can help alleviate them when we work with you!
How is Sparrow Supporting Owner-Operators?
Sparrow Logistics is a small freight brokerage found in the heart of the Midwest. With over 25+ years of industry experience, our team has built many lasting relationships that continuously allow us to partner carriers and clients together. We have the knowledge and expertise to help owner-operators have equal access to loads and have control within the industry. “Empowered carriers are making smart decisions for a more efficient and reliable network, and we must empower both carriers and shippers with better information, better execution, and a better working environment,” shared by Transport Topics.
Since we are a small business, we understand how important it is to find someone you trust who can help you accomplish your goals. We want you to have all the information needed to make a decision that is best for you and your business. The best part about our team? We care about you and your success! You aren’t just another carrier, you are a part of Team Sparrow, and we want you to succeed just as much as we want our own success.
That shows in more than just what we say! Sparrow Logistics values each relationship we have with our carriers.
Our Team Makes the Difference!
Sparrow Logistics’ foundation is built on honesty, respect, positivity, and the integrity to follow through on our promises. These values are consistently embodied in our leadership and extended to every person who comes alongside us, including our clients, carriers, and employees. Want to know more about Sparrow? Start reading here!
Tell us what you need, and we’ll take care of the rest! We are a brokerage that you can always count on. You can trust that we’ll give you straight answers backed with experience and do everything in our power to help you when needed.
Ready to partner with us? Contact us today!