Hot Shot Trucking Business Overview

Hot shot trucking operates within the transportation and logistics sector, focusing on time-sensitive, high-priority shipments. Businesses turn to hot shot services when they need rapid delivery of smaller loads that don’t require full-size commercial trucks. Using medium-duty pickup trucks with flatbed trailers, these operators transport diverse cargo like automotive parts, medical supplies, and manufacturing components.

Most deliveries occur within a 1-600 mile radius, making this business ideal for drivers who prefer regional routes over long-haul trucking. While independent owner-operators dominate the industry, brokers play an important role by connecting truckers with shippers needing urgent transport services.

The most common business models in hot shot trucking include:

• Independent Contractor Model: Operating directly with shipping companies through contracts and load boards
• Small Fleet Model: Managing multiple trucks and drivers while maintaining independent status
• Regional Specialist Model: Focusing on deliveries within specific geographic areas

Related: Checklist To Start A Business

How Do Hot Shot Truckers Make Money?

Hot shot truckers earn revenue by charging clients per mile driven for freight transportation, typically between $1-2 per mile. The base rate varies depending on factors like freight type, weight, distance, and delivery timeframes.

Industry Statistics

Hot shot trucking falls under NAICS code 484110: General Freight Trucking, Local. This classification covers businesses primarily engaged in providing local general freight transportation.

Here are some statistics that highlight this growing transportation sector:

Hot Shot Trucking Industry Size & Growth: Local specialized freight trucking, in which hot shot trucking is a segment, generated $68.3 billion last year. The industry has shown steady expansion of 3.2% annually over the past 5 years, driven by supply chain disruptions and increased demand for rapid, flexible shipping solutions. Growth projections remain positive, with a 1.8% annual increase, due to continued shortages of traditional commercial drivers and rising demand for time-sensitive deliveries (IBISWorld)

Hot Shot Trucking Profit Margin: Based on available data, profit margins for hot shot trucking operations range from 5% to 20%. (UpMetrics) Full-time operators can earn between $60,000 and $300,000 annually (Freight Print).

Costs To Start a Hot Shot Trucking Business

Starting a hot shot trucking business typically costs between $15,000 and $50,000. This range accounts for both basic setups with existing equipment and more comprehensive operations requiring new purchases.

There are several expenses to consider when starting, but here are some of the larger costs:

Truck and Equipment: The foundation of hot shot trucking is a reliable pickup truck capable of towing heavy loads. While many operators start with their existing trucks, purchasing a new or used heavy-duty pickup can cost between $25,000 and $40,000. The truck needs to be powerful enough to handle regular towing and maintain good fuel efficiency.

Trailer: A flatbed trailer is necessary for transporting cargo. Costs vary based on size and features, with prices ranging from $5,000 to $15,000. The trailer needs to be compatible with various load types and meet Department of Transportation requirements.

Insurance Coverage: Commercial auto insurance and cargo insurance are required for hot shot trucking. Initial insurance costs often range from $3,000 to $8,000 annually, with payments typically split into monthly installments.

Licenses and Permits: Operating authority, CDL licensing (if required based on truck size), and various transportation permits are needed. These regulatory requirements can cost between $800 and $2,000 to obtain.

These estimates provide a general idea of startup costs, but actual expenses will vary for each business.