Owner-operators refer to truck drivers who offer their services to trucking companies using their vehicles. These vehicles may either be leased or wholly owned by the owner-operators. Owner-operators are independent of carriers. Compared to company drivers, owner-operators are responsible for the upkeep and maintenance of their vehicles. In choosing whether to become an owner-operator or company driver in Canada, it is essential to consider several factors, such as payment, increased risk, repairs, and company choice. However, each job has its pros and cons.
Benefits of working as an owner-operator in Canada
Owner-operators comprise a significant portion of Canada’s trucking industry. Therefore, they enjoy a myriad of benefits, such as:
- Choice of freight. Owner-operators can choose whether to accept the freight, therefore, have control over their work-life balance.
- Increased work flexibility. Owner-operators can choose their route, truck stops, length of layover, and truck type.
- Capability to work longer hours. Owner-operators are not restricted by Canadian labor laws, unlike their counterparts.
- Access to higher income. However, this depends on the contract details, hours worked, and the owner-operator’s business skills.
Nuances of working as an owner-operator in Canada
Owner-operators face several challenges, some of which include:
- High cost associated with payments to licensure, purchase, or repair of equipment.
- Increase in stress levels. The owner-operator is personally responsible for making truck repairs, and any delay resulting from this can lead to fewer profits.
- Increased risk of unfavorable contracts. During contract negotiations, owner-operators risk attaining disadvantageous contracts with clauses such as huge penalties imposed when switching companies.
How to become an owner-operator
Deciding to become an owner-operator is not an easy choice. Below is a step-by-step process to follow to become an owner-operator.
- Conduct research about the job. One must first understand the risks associated with the job and determine if one can overcome them.
- Next, you need to assess your situation to determine if you can successfully handle the business’s financial and personal demands.
- Acquire relevant truck driving experience. This includes getting a commercial driver’s license and securing plenty of truck driving experience.
- Set up the business. After coming up with a business name and filing the correct paperwork, you can get your business license and insurance.
- Create a business plan. Includes the number of working hours and estimated profits.
- Apply for your trucking authority license to be officially recognized as a carrier.
- Either lease or buy a truck and obtain truck insurance.
- Get your first carrier contract. Ensure the contract is fair, then, provide excellent service to the company.
Difference between a company driver and an owner-operator
Foremost, owner-operators are self-employed. They are independent business owners, while companies employ company drivers. Moreover, owner-operators either lease or own their trucks, compared to truck drivers who drive trucks belonging to the company. Due to having some sort of ownership over their vehicle, owner-operators enjoy more flexibility regarding truck routes, working hours, and type of freight. Conversely, company drivers are restricted by company rules. Additionally, owner-operators work on a contract basis, making them exempt from labor regulations. In contrast, company drivers are considered employees of trucking companies and thus are subject to labor laws and regulations.
Benefits for a company hiring owner-operators
- Owner-operators own their trucks, which saves the company money that could have otherwise been used to purchase trucks.
- Most owner-operators are highly experienced truck drivers with excellent work ethics and vast knowledge of truck routes and driving safety. These factors improve their professionalism, which improves the company’s reputation.
- Due to owner-operators working on a contract basis, the company is exempt from providing some benefits that other employees are entitled to.
Benefits of working as an owner-operator at Transam Carriers
Transam Carriers is an Ontario-based transportation and logistics provider that offers its services in Canada and the United States. As one of the largest and most trusted carriers, our company is always sought after by owner-operators. The benefits of working with us include competitive pay, a friendly atmosphere, referral and sign-on bonuses, a flexible work schedule, and a consistent workload during the year. In addition to receiving a comprehensive benefits package that includes discounted fuel cards, free parking, and unlimited access to an on-site mechanic, owner-operators working with Transam also benefit from payment by installments for their truck maintenance.
Other advantages our company offers include preloaded trailers, which reduce loading time, and 24/7 dispatch. Compared with other trucking companies, Transam Carriers covers the cost of layovers, trailer maintenance, picks and drops, switching trailers, bridge and toll charges, plates, and waiting time per hour, except for the first two hours. Moreover, Transam Carriers provides special conditions for leasing vehicles for company drivers seeking to become owner-operators. All these advantages make Transam Carriers a desirable company for new and established owner-operators.
Closing thoughts
The transition from company driver to owner-operator can be pretty daunting. However, it can also be advantageous. Compared to company drivers, owner-operators enjoy a flexible work schedule, better pay, and respect within the trucking community. Moreover, they can choose transport routes, trucks, and freight. However, before starting an owner-operator business, it is crucial to understand the industry’s challenges. Only through understanding the challenges you can be successful in overcoming them.
If you are interested to work as an OWNER OPERATOR A-Z, D-Z, or consider another career in our company, please, use one of the next options:
- apply online via our Jobs page,
- send your driver’s abstract/resume to [email protected],
- call us 416-907-8101 ext. 4013.
