I wanted to share a few of my thoughts on the subject of running for multiple carriers. I have recently been dropped by one of my multi-carrier companies and it has caused me to re-evaluate the entire business model. As you all know I have a driver in my van. For reasons that I cannot mention on this forum my driver can't drive for a lot of the bigger more established carriers. I have decided to keep my driver despite this fact so that he can earn a living and provide for his family. For personal and moral reasons I have decided to accommodate him in his situation and he will always have a van to drive no matter what happens.
It is for that reason that I decided to leave my current van in the multi-carrier model. I also decided to leave the van in the multi-carrier model because I have recently started a new company (which shall always remain anonymous on EO). But if I do decide to come back out on the road I'm not going to use the multi-carrier business model any longer. I'm going to lease my new van on with Bolt Express or Panther Expedited Services.
As I stated earlier my driver was dropped from one of our carriers because he went out of service for 10 days and apparently this carrier didn't like it. So here is my problem. I pay 300 dollars a month for primary liability and cargo insurance. I'm supposed to be an independent contractor. Yet some of the smaller companies complain when my truck takes too much time off, or when my driver turns down a load. Why should I be forced to stay in service or to take loads when I'm the one paying for the primary liability and cargo insurance?
Also some of the carriers that I partner up with only pay .85 cents per loaded mile. You mean to tell me that I have to pay 300 dollars a month for insurance so that I can make less money than a driver that is leased on to a company that pays a decent linehaul rate with a fuel surcharge? Then on top of that I have to keep up with 4 dispatchers, and 4 different truck numbers, all while taking a chance that one of the smaller operations can go belly up at any time. It just doesn't seem to be a logical way to earn money. Sure you have more eyes on the load boards, but from what I've seen I can do better with one solid company as opposed to 4 smaller companies.
I'm not bashing smaller companies. I was a small company and I'm going to be a small company again. Also renegade drivers who want to lease on with multiple carriers are always going to be a part of this industry. I'm just re-thinking the entire game at this point. Don't get me wrong I'm quite satisfied with the three companies that my van is leased on with right now. I'm just trying to point out the cons of doing business with multiple carriers.
I also dispatch for one of four companies and I'm able to get my van loads. I get to keep 100 percent of the profit when I book a load for my van; and I trust this company because it's owned by a very good friend of mine who pays me the same day the load is delivered. It doesn't get any better than that! But when I'm bidding a buck a mile for loads (carrier rate) and I can't win the bid "it's pretty bad." In light of this I sometimes think that my driver would make better money working for a larger carrier that has a solid customer base.
With the multi-carrier model what happens if every company decides to drop you for no reason? At least at the bigger companies you have to really do something bad to have your contract terminated. With the smaller companies (being a true independent contractor) you can be terminated on a whim. You can make the owner of the company mad one day and simply be terminated for no valid reason, and there is little to no recourse when this happens. You are also not guaranteed to be paid on time! To tell you the truth it scares me to death how some of the smaller carriers are so undercapitalized that one or two chargebacks from their factoring company can cause them to go under.
But then again that is the risk we take when we push the (i'm an independent contractor) mantra all the way to the multi-carrier extreme. There will be those that justify paying for higher insurance rates only to get loads at sub-single carrier rates. There will also be those who bash me for turning my back on the multi-carrier model in favor of stability. But that will not answer the single biggest question of all! Why would anyone want to pay such high rates for insurance simply to make .85 cents per loaded mile? It seems to be quite counter-productive to me.
Also now that Progressive is raising their commecrial insurance rates, and a lot of the other insurance companies that I've contacted are unwilling to underwrite new expedite companies, what options do we have left? It's only a matter of time before the additonal expense of Primary liability and Cargo insurance will outweigh the benefits of working for multiple carriers. Progressive is the only insurance company that will write me a new policy and they have jacked up their rates due to taking massive losses over the past couple of years. If Progressive leaves the commercial insurance market where will all of the multi-carrier companies and multi-carrier drivers be? That is the question that I propose to the EO community! Will the multi-carrier model stand the test of time, or will the single-carrier model rule the day?
It is for that reason that I decided to leave my current van in the multi-carrier model. I also decided to leave the van in the multi-carrier model because I have recently started a new company (which shall always remain anonymous on EO). But if I do decide to come back out on the road I'm not going to use the multi-carrier business model any longer. I'm going to lease my new van on with Bolt Express or Panther Expedited Services.
As I stated earlier my driver was dropped from one of our carriers because he went out of service for 10 days and apparently this carrier didn't like it. So here is my problem. I pay 300 dollars a month for primary liability and cargo insurance. I'm supposed to be an independent contractor. Yet some of the smaller companies complain when my truck takes too much time off, or when my driver turns down a load. Why should I be forced to stay in service or to take loads when I'm the one paying for the primary liability and cargo insurance?
Also some of the carriers that I partner up with only pay .85 cents per loaded mile. You mean to tell me that I have to pay 300 dollars a month for insurance so that I can make less money than a driver that is leased on to a company that pays a decent linehaul rate with a fuel surcharge? Then on top of that I have to keep up with 4 dispatchers, and 4 different truck numbers, all while taking a chance that one of the smaller operations can go belly up at any time. It just doesn't seem to be a logical way to earn money. Sure you have more eyes on the load boards, but from what I've seen I can do better with one solid company as opposed to 4 smaller companies.
I'm not bashing smaller companies. I was a small company and I'm going to be a small company again. Also renegade drivers who want to lease on with multiple carriers are always going to be a part of this industry. I'm just re-thinking the entire game at this point. Don't get me wrong I'm quite satisfied with the three companies that my van is leased on with right now. I'm just trying to point out the cons of doing business with multiple carriers.
I also dispatch for one of four companies and I'm able to get my van loads. I get to keep 100 percent of the profit when I book a load for my van; and I trust this company because it's owned by a very good friend of mine who pays me the same day the load is delivered. It doesn't get any better than that! But when I'm bidding a buck a mile for loads (carrier rate) and I can't win the bid "it's pretty bad." In light of this I sometimes think that my driver would make better money working for a larger carrier that has a solid customer base.
With the multi-carrier model what happens if every company decides to drop you for no reason? At least at the bigger companies you have to really do something bad to have your contract terminated. With the smaller companies (being a true independent contractor) you can be terminated on a whim. You can make the owner of the company mad one day and simply be terminated for no valid reason, and there is little to no recourse when this happens. You are also not guaranteed to be paid on time! To tell you the truth it scares me to death how some of the smaller carriers are so undercapitalized that one or two chargebacks from their factoring company can cause them to go under.
But then again that is the risk we take when we push the (i'm an independent contractor) mantra all the way to the multi-carrier extreme. There will be those that justify paying for higher insurance rates only to get loads at sub-single carrier rates. There will also be those who bash me for turning my back on the multi-carrier model in favor of stability. But that will not answer the single biggest question of all! Why would anyone want to pay such high rates for insurance simply to make .85 cents per loaded mile? It seems to be quite counter-productive to me.
Also now that Progressive is raising their commecrial insurance rates, and a lot of the other insurance companies that I've contacted are unwilling to underwrite new expedite companies, what options do we have left? It's only a matter of time before the additonal expense of Primary liability and Cargo insurance will outweigh the benefits of working for multiple carriers. Progressive is the only insurance company that will write me a new policy and they have jacked up their rates due to taking massive losses over the past couple of years. If Progressive leaves the commercial insurance market where will all of the multi-carrier companies and multi-carrier drivers be? That is the question that I propose to the EO community! Will the multi-carrier model stand the test of time, or will the single-carrier model rule the day?
Last edited by a moderator:
