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- Thread starter fortwayne
- Start date
nightcreacher
Veteran Expediter
Please explain this to me,if you are dependent on the load boards,which you are paying for a service,and your probably under you own authority,which is also costing you,plus a whole insurance package,more money paid out,how is this better than being leased to a company.My pay comes everyweek,I dont have to worry if the freight broker is cheating me,or when I will get paid for the load I delivered for him.
Now if I had my own customers,of which I negotiated my own rates,then I can see having my authority,but beinng the driver and salesmen,just doesnt seem practical to me.
Before going into expedite,I did have my own exempt authority,produce,air freight fell under this,brought my produce from california to pittsburg,and hauled air freight out of cleveland back to California,had to sneek thru new mexico,air freight in that state wasnt exempt freight.
my produce loads went cod,hauled for produce broker from Pittsburgh,the air freight I had to wait 21 days for pay.
My expenses were very high,and back then the fuel cost were cheap.
When I leased to Roberts Express back then,well since then my profits have just gotten better,and I did away with the authority.
I realize no company is perfect,I've had trucks with other expedite companies,but where I'm at fits me perfect.
Now if I had my own customers,of which I negotiated my own rates,then I can see having my authority,but beinng the driver and salesmen,just doesnt seem practical to me.
Before going into expedite,I did have my own exempt authority,produce,air freight fell under this,brought my produce from california to pittsburg,and hauled air freight out of cleveland back to California,had to sneek thru new mexico,air freight in that state wasnt exempt freight.
my produce loads went cod,hauled for produce broker from Pittsburgh,the air freight I had to wait 21 days for pay.
My expenses were very high,and back then the fuel cost were cheap.
When I leased to Roberts Express back then,well since then my profits have just gotten better,and I did away with the authority.
I realize no company is perfect,I've had trucks with other expedite companies,but where I'm at fits me perfect.
fortwayne
Not a Member
One thing you mentioned caught my eye. You said by being leased on to a carrier you don't have to worry about pay - that you do not have to worry if the freight broker is cheating you.
True - but how do you know that your carrier is not cheating you. Lets just say you have a contract that pays you 1.35 per mile. Well, that is good, say your carrier gets 1.65 from the shipper and you get the 1.35 per mile - your happy!
Now, say your in a different freight lane now and your carrier can get lets just say 1.95 per mile - yet, you are still getting 1.35 - and that is not right, but a good honest freight broker will pay you for the freight lane you are in and going to NOT some typical flat rate no manner where you are.
So after learning the freight lane rates and the whole HUGE difference carriers get for running to and from certain areas - take my word for it - your carrier is pocketing some extra money off your sweat all the time!
Fort Wayne
Like Is Good!
True - but how do you know that your carrier is not cheating you. Lets just say you have a contract that pays you 1.35 per mile. Well, that is good, say your carrier gets 1.65 from the shipper and you get the 1.35 per mile - your happy!
Now, say your in a different freight lane now and your carrier can get lets just say 1.95 per mile - yet, you are still getting 1.35 - and that is not right, but a good honest freight broker will pay you for the freight lane you are in and going to NOT some typical flat rate no manner where you are.
So after learning the freight lane rates and the whole HUGE difference carriers get for running to and from certain areas - take my word for it - your carrier is pocketing some extra money off your sweat all the time!
Fort Wayne
Like Is Good!
Ftwayne, if you're going to get your boxers in a bunch over what kind of profit the carrier is making, as opposed to what you are making yourself, then you're probably not going to be satisfied with any carrier. In which case, having your own authority is the way to go - but many of us feel that the bottom line is whether we are satisfied with the money we are getting, and what the carrier gets is irrelevant. To each, his own, you know?
Jefferson3000
Expert Expediter
Hey Fort,
Think of it this way: You can't have the best of both worlds with any carrier. Either it's going to be a guaranteed flat rate plus fsc, or it's going to be an agreed percent of the take. You can't say, "I want $x.xx per mile, but if you're getting a windfall from a certain shipper, I expect to get more. Let's say, carrier is paying you $1.20 + fsc (a contract you agreed to), your carrier may be able to charge most customers $2.00 + fsc. Some customers might be caught at a better fsc (say only $10) which of course means you are the only one taking the hit, not the carrier. But just remember, it is the carrier that offers you pay for an empty move sometimes. That comes from their pocket. Also, sometimes they may have a big customer that really keeps the trucks moving. That customer may negotiate a rate of 1.75 per mile plus only 10% fsc for a D unit. In that case, the carrier is eating their profit as well cuz they still have to pay you 1.20 plus fuel. Probably more info than you want right now, but maybe a newbie will get something from this.
BTW, as far as load boards go, I really don't see any of them putting expedites on them. usually just LTL and TL. GPS411 is a board that is for carriers.
Are you still driving for an owner? Are they helping you by teaching you lanes and/or helping to keep your truck moving?
Drive Safe!
Jeff
Driver for 15 years
O/O for 13 years
OOIDA #829119
[em]"Let us be thankful for the fools. But for them the rest of us could not succeed." --Mark Twain[/em]
Think of it this way: You can't have the best of both worlds with any carrier. Either it's going to be a guaranteed flat rate plus fsc, or it's going to be an agreed percent of the take. You can't say, "I want $x.xx per mile, but if you're getting a windfall from a certain shipper, I expect to get more. Let's say, carrier is paying you $1.20 + fsc (a contract you agreed to), your carrier may be able to charge most customers $2.00 + fsc. Some customers might be caught at a better fsc (say only $10) which of course means you are the only one taking the hit, not the carrier. But just remember, it is the carrier that offers you pay for an empty move sometimes. That comes from their pocket. Also, sometimes they may have a big customer that really keeps the trucks moving. That customer may negotiate a rate of 1.75 per mile plus only 10% fsc for a D unit. In that case, the carrier is eating their profit as well cuz they still have to pay you 1.20 plus fuel. Probably more info than you want right now, but maybe a newbie will get something from this.
BTW, as far as load boards go, I really don't see any of them putting expedites on them. usually just LTL and TL. GPS411 is a board that is for carriers.
Are you still driving for an owner? Are they helping you by teaching you lanes and/or helping to keep your truck moving?
Drive Safe!
Jeff
Driver for 15 years
O/O for 13 years
OOIDA #829119
[em]"Let us be thankful for the fools. But for them the rest of us could not succeed." --Mark Twain[/em]
ThibodeauxBayou
Not a Member
fortwayne
If youre thinking about diving in the o/o world and obtaining your own authority then i strongly suggest contacting www.oopermits.com
Two years ago they got us all setup in aprox 60 days and we aint looked back since.
We use 2-3 full time load boards at a cost of $45-75 combined per month. Not familiar with directfreight.com. We use getloaded.com & realtimefreight.com almost exclusivly.
After aprox 12 months your dependecy on the boards will lessen as you establish relationships with brokers and shippers. We run today real close to 50/50 loads direct versus obtaining them off public offered load boards. We still do our share of expidited freight as that most of the time is the highest pay.
The beauty of booking your own freight is that youre always open to filling avail floor space. Not terribly bright to be running across the country with only 4-6 skids. We can typically handle 2-3 P&D's and thats the case the majority of the time. When rates are hovering at 1.25 to 1.50 then it makes sense to fill the truck. You will eventually make more per mile ONCE youre established. Overall we average closer to 2.00+ per ALL miles.
Pay is quick as long as youre dealing with FreightCheck approved brokers and shippers. The majority of our loads +90% are all FeightCheck approved. This means you'll get paid quicker than any expidite big house.
The bottom line here is that we would have never broken out of the exclusive expidite only freight business had we not expeimented with load boards. Once we figured out how lucrative it really was the stickers came off the two trucks we own. We now are home more often now and spend one heck of alot less time sitten. We generally can choose the lanes we wish to run in. Its just alot more enjoyable when one has a voice in ones destiny.
If youre thinking about diving in the o/o world and obtaining your own authority then i strongly suggest contacting www.oopermits.com
Two years ago they got us all setup in aprox 60 days and we aint looked back since.
We use 2-3 full time load boards at a cost of $45-75 combined per month. Not familiar with directfreight.com. We use getloaded.com & realtimefreight.com almost exclusivly.
After aprox 12 months your dependecy on the boards will lessen as you establish relationships with brokers and shippers. We run today real close to 50/50 loads direct versus obtaining them off public offered load boards. We still do our share of expidited freight as that most of the time is the highest pay.
The beauty of booking your own freight is that youre always open to filling avail floor space. Not terribly bright to be running across the country with only 4-6 skids. We can typically handle 2-3 P&D's and thats the case the majority of the time. When rates are hovering at 1.25 to 1.50 then it makes sense to fill the truck. You will eventually make more per mile ONCE youre established. Overall we average closer to 2.00+ per ALL miles.
Pay is quick as long as youre dealing with FreightCheck approved brokers and shippers. The majority of our loads +90% are all FeightCheck approved. This means you'll get paid quicker than any expidite big house.
The bottom line here is that we would have never broken out of the exclusive expidite only freight business had we not expeimented with load boards. Once we figured out how lucrative it really was the stickers came off the two trucks we own. We now are home more often now and spend one heck of alot less time sitten. We generally can choose the lanes we wish to run in. Its just alot more enjoyable when one has a voice in ones destiny.
greg334
Veteran Expediter
Now, say your in a different freight lane now and your carrier can get lets just say 1.95 per mile - yet, you are still getting 1.35 - and that is not right, but a good honest freight broker will pay you for the freight lane you are in and going to NOT some typical flat rate no manner where you are.
So after learning the freight lane rates and the whole HUGE difference carriers get for running to and from certain areas - take my word for it - your carrier is pocketing some extra money off your sweat all the time!
FW,
let's say most owners know going into this with a contract that they will get paid regardless what the carrier is getting. Sometimes the carrier may take a loss to keep the freight moving while other times they may make that $4 a mile while you get the $1.35 - WHO CARES! You get the flat rate, you get (maybe) a FSC and you get to move that truck hence producing revenue for that movement. Your business world does not revolve around the carrier's accounts receivable on loads they get, it revolves around that $1.35 you contracted for.
So after learning the freight lane rates and the whole HUGE difference carriers get for running to and from certain areas - take my word for it - your carrier is pocketing some extra money off your sweat all the time!
FW,
let's say most owners know going into this with a contract that they will get paid regardless what the carrier is getting. Sometimes the carrier may take a loss to keep the freight moving while other times they may make that $4 a mile while you get the $1.35 - WHO CARES! You get the flat rate, you get (maybe) a FSC and you get to move that truck hence producing revenue for that movement. Your business world does not revolve around the carrier's accounts receivable on loads they get, it revolves around that $1.35 you contracted for.
jasonsprouse
Expert Expediter
>fortwayne
>
>If youre thinking about diving in the o/o world and
>obtaining your own authority then i strongly suggest
>contacting www.oopermits.com
>
>Two years ago they got us all setup in aprox 60 days and we
>aint looked back since.
>
>
No offense intended but they won't do anything for you that you can't do online for yourself. I set up my own authority, all it takes is attention to detail to get through the legalese.
>
>If youre thinking about diving in the o/o world and
>obtaining your own authority then i strongly suggest
>contacting www.oopermits.com
>
>Two years ago they got us all setup in aprox 60 days and we
>aint looked back since.
>
>
No offense intended but they won't do anything for you that you can't do online for yourself. I set up my own authority, all it takes is attention to detail to get through the legalese.
ThibodeauxBayou
Not a Member
>
>No offense intended but they won't do anything for you that
>you can't do online for yourself. I set up my own authority,
>all it takes is attention to detail to get through the
>legalese.
No offence taken.
Quite aware of what was needed to be done but we were scrambling with the chores of day to day driving. At the time we were getting all papered up we were signed on with the big boys. I thought having professionals doing the dirty suff made reasonable sense especially since they charged us a minimal fee. Our decision to have a 3rd party prep all the paperwork was justified $.
>No offense intended but they won't do anything for you that
>you can't do online for yourself. I set up my own authority,
>all it takes is attention to detail to get through the
>legalese.
No offence taken.
Quite aware of what was needed to be done but we were scrambling with the chores of day to day driving. At the time we were getting all papered up we were signed on with the big boys. I thought having professionals doing the dirty suff made reasonable sense especially since they charged us a minimal fee. Our decision to have a 3rd party prep all the paperwork was justified $.
fortwayne
Not a Member
I forgot who asked the question, if I was still driving for an owner/operator or driving for myself - the answer is no to both!
To make a long story short - I was involved in a pretty bad accident, on the 14th, and good golly don't point the finger at me, at least not yet.
I more than likely will not be able to drive again - I have some really bad 'inner' damage to my left arm along with my left hip and knee.
Therefore, I have had an associate of mine, set me up under his authority to broker freight loads.
And no, at this time I do not do much expedited freight - sorry about that but give me time to learn the ropes!!!
Otherwise, regarding the other comments above - points well made!
Ok - now, seriously everyone! - BE SAFE OUT THERE! SERIOUSLY BE REAL SAFE EVERYONE!
Fort Wayne
To make a long story short - I was involved in a pretty bad accident, on the 14th, and good golly don't point the finger at me, at least not yet.
I more than likely will not be able to drive again - I have some really bad 'inner' damage to my left arm along with my left hip and knee.
Therefore, I have had an associate of mine, set me up under his authority to broker freight loads.
And no, at this time I do not do much expedited freight - sorry about that but give me time to learn the ropes!!!
Otherwise, regarding the other comments above - points well made!
Ok - now, seriously everyone! - BE SAFE OUT THERE! SERIOUSLY BE REAL SAFE EVERYONE!
Fort Wayne