As the price of fuel soars at and above $4 per gallon, owner operators have reason to be concerned. Small operations, without the cost savings of having a large fleet to spread out costs, are especially affected with their profit margins already low.
Meet Chris Milburn, a leased owner operator from Hilliard, OH. Chris recently testified in front of the House Energy and Commerce Committee’s Subcommittee on Energy and Power about the effect that the high price of fuel is having on owner operators. Here are some stunning statistics that Milburn brought to the committee’s attention:
- A five cent increase in the price of fuel can increase an owner operator’s fuel costs by $1,000 annually.
- An owner operator travelling 100,000 miles per year can spend $80,000 on fuel at $4 a gallon.
- As an owner operator, business income and family income are one in the same – furthering their financial burden.
Chris had lots more to say to the committee, read the full article here: http://www.landlinemag.com/Story.aspx?StoryID=23327
What do you think? Is the price of fuel affecting your bottom line? Sound off in the comments!