O/O running for more then one carrier revisited

[Vinnie T]

This has recently come up again for me. Guys telling me they are running for several outfits at once. I am having a hard time wrapping my head around this concept. Can anyone tell me how they are doing it and under what agreeements such as percentages etc?

I also have to ask about insurance, are the O/O doing this getting their own authority and insurance? If so if your contracted with company A and they are a carrier and there is a claim, how is that customer going to collect from company A's policy if you carry your own insurance?

There is no way one truck is being insured by say 5 companies at once.

I guess i would be interested in this for my truck if anyone can break it down and has a program that covers all aspects of liability

Thanks

 

[idtrans]

This has recently come up again for me. Guys telling me they are running for several outfits at once. I am having a hard time wrapping my head around this concept. Can anyone tell me how they are doing it and under what agreeements such as percentages etc?

I also have to ask about insurance, are the O/O doing this getting their own authority and insurance? If so if your contracted with company A and they are a carrier and there is a claim, how is that customer going to collect from company A's policy if you carry your own insurance?

There is no way one truck is being insured by say 5 companies at once.

I guess i would be interested in this for my truck if anyone can break it down and has a program that covers all aspects of liability

Thanks

I run with 4 companies at the moment would have been 5 with LRT but that old news LOL ok so easy you must inform all companies when your loaded and where your going. only the paying gets all load details. and when your empty inform all companies so they know where your at to find you a load.

insurance is easy you get CIS Insurance they are on this site as well great company BTW very helpful and nice. You get your primary company insured and then start adding the other companies on to your policy its like $20 or $30 or something like that per extra company I am not sure what your rate would be .

Now here is the kicker the companies will not lease you on if your over 10kgvw because they do not want to deal with the logs needed or scales issues or any other potential IFTA laws.

But if your in a sprinter or cargo van or a small cube your ready to get the multi company deal for yourself.

Now is it worth it sometimes yes and other times no it isnt worth it.

Honestly all these companies goto the same boards for the freight unless they have a large or dedicated client base.

The catch to getting mre freight is who bids the lowest problem is then you get paid less after their cut.

Here is a example I bid the other night at 1am a load from NC to Laredo at $1.29 it was a sprinter load but it would fit in my super duty ok cheap for a sprinter load. Obviously not I lost the bid some outfit bid it at .75cpm WTF No way am I driving that load for that forget that noise and then have to wait 1 month to get paid.

so multi company can help at times and also if your into the qualcom and all the other stuff then 1 large company should be able to run you just as good as a few companies.

 

[Vinnie T]

insurance is easy you get CIS Insurance they are on this site as well great company BTW very helpful and nice. You get your primary company insured and then start adding the other companies on to your policy its like $20 or $30 or something like that per extra company I am not sure what your rate would be . .

So you are carrying the cargo ins, and what the liability? When you primary company, you pick one outfit to be your main company?

So what I don't understand is say your running a load for company A, and the frieght falls over in your truck and gets damaged. The customer is going to ask company A to pay the claim, but if you carry the insurance IMO there is no way company A's insurance company is going to pay that claim...

Does this sound right or am I missing something?

The catch to getting mre freight is who bids the lowest problem is then you get paid less after their cut.

Here is a example I bid the other night at 1am a load from NC to Laredo at $1.29 it was a sprinter load but it would fit in my super duty ok cheap for a sprinter load. Obviously not I lost the bid some outfit bid it at .75cpm WTF No way am I driving that load for that forget that noise and then have to wait 1 month to get paid. .

So how does it work? So company A calls you and says idtrans I got a load that pays 1.20 a mile from point A to point B. Up to you to accept it, so I assume they are getting 1.30-1.40 a mile and making a few buck for themselves. Isn't that essentially brokering without a brokers license?

Idtrans I really appreciate your input, am I missing something here with this because it sounds a little grey in some areas to me. I am worried about someone trying to sue me if we try this not being officially signed on to a carrier if there is a claim of some sort.

Do these carriers have some kind of contract in place with you outlining some of these issues i am asking about like other traditional carriers do if you sign on with them?

 

[Moot]

I run with 4 companies at the moment...
Here is a example I bid the other night at 1am a load from NC to Laredo at $1.29 it was a sprinter load but it would fit in my super duty ok cheap for a sprinter load.

If you run for 4 companies why are you bidding on loads at 1:00 a.m.?

 

[Vinnie T]

If your run for four companies, why are you bidding on loads at all?

 

[idtrans]

you must carry cargo insurance and everything! 1mil/100k/1mil

and you have a signed lease with each carrier.

its easy as 1. 2. 3. ok

So you are carrying the cargo ins, and what the liability? When you primary company, you pick one outfit to be your main company?

So what I don't understand is say your running a load for company A, and the frieght falls over in your truck and gets damaged. The customer is going to ask company A to pay the claim, but if you carry the insurance IMO there is no way company A's insurance company is going to pay that claim...

Does this sound right or am I missing something?



So how does it work? So company A calls you and says idtrans I got a load that pays 1.20 a mile from point A to point B. Up to you to accept it, so I assume they are getting 1.30-1.40 a mile and making a few buck for themselves. Isn't that essentially brokering without a brokers license?

Idtrans I really appreciate your input, am I missing something here with this because it sounds a little grey in some areas to me. I am worried about someone trying to sue me if we try this not being officially signed on to a carrier if there is a claim of some sort.

Do these carriers have some kind of contract in place with you outlining some of these issues i am asking about like other traditional carriers do if you sign on with them?

 

[idtrans]

If you run for 4 companies why are you bidding on loads at 1:00 a.m.?[/QUOTE

Just because your signed with 4 companies doesn't mean your always busy. I met a guy down in Laredo a few weeks ago leased on with like 6 companies he was in a old 97 express 3500 decked out ac/generator and all bunk he says he lives in van and just drives he was in laredo 2 days waiting for a load.

 

[greg334]

With the amount of work out there, it would be easier to get your own authority and tap into it instead of waiting around for someone else to get you work.

 

[RLENT]

With the amount of work out there, it would be easier to get your own authority and tap into it instead of waiting around for someone else to get you work.

Sounds to me like that is what the idtrans is doing - otherwise what's up with he himself bidding on loads ?

Sounds like he is a "partner" carrier ....

 

[Vinnie T]

you must carry cargo insurance and everything! 1mil/100k/1mil

and you have a signed lease with each carrier.

its easy as 1. 2. 3. ok

Hows does that bidding business work? Not sure if I am comfortable doing that


Also what are you getting paid now since you are essentially becoming a carrier, and the carrier is double brokering you the loads...is it paying better since you have to buy all that insurance?

 

[Vinnie T]

you must carry cargo insurance and everything! 1mil/100k/1mil

and you have a signed lease with each carrier.

its easy as 1. 2. 3. ok

Another question

Is this insurance what they call "A" rated? What rating is the policy you have?

Also if there is a claim, who does your insurance company pay? They pay the carrier you haul for? Because the contract is between the customer and the carrier you haul for. How does that work?

IMO you guys are playing a game, if there is a fatality expect the carrier you run for and yourself to be sued for everything you have, let alone any claim you get because no way the carrier's isurance company will pay for damages on a truck that is not covered under their policy, no way your policy will pay your carrier's customer....

 

[idtrans]

Sounds to me like that is what the idtrans is doing - otherwise what's up with he himself bidding on loads ?

Sounds like he is a "partner" carrier ....

I don't always partner carrier because some freight when bid on can not be passed onto another carrier it must be hauled by the winning bidder.

For example joe blow company bids a load on panther board and wins bid ok panther does not permit you to pass that load to another carrier you or 1 of the drivers leased to your company must haul that load.

So I bid loads on my own plus I am leased to companies and at the end of the day keeps me a little busy and out of trouble. And yes it is a headache at times but at the end of the day it is worth it.

 

[aileron]

you must carry cargo insurance and everything! 1mil/100k/1mil

and you have a signed lease with each carrier.

its easy as 1. 2. 3. ok

If you don't mind, how much do you pay for insurance? What insurance company you went with? You can PM me if you want.

 

[Vinnie T]

I don't always partner carrier because some freight when bid on can not be passed onto another carrier it must be hauled by the winning bidder. .

Plus you do not have your own authority, so you are not a carrier

For example joe blow company bids a load on panther board and wins bid ok panther does not permit you to pass that load to another carrier you or 1 of the drivers leased to your company must haul that load. .

That is double brokering, I bet 99% of the 17 carriers you run with customer's don't know they are essentially double brokering to other carriers with their own insurance

So I bid loads on my own plus I am leased to companies and at the end of the day keeps me a little busy and out of trouble. And yes it is a headache at times but at the end of the day it is worth it.

How are you bidding on loads when you are not a carrier?


Sounds like your a cowboy running an illegal scheme till you prove otherwise and these carriers you work for are risking an awful lot to make a couple cents per mile on cargo van moves!

Not trying to attack you, but sounds like what you guys are doing is technically illegal, misleading to the customers because they think the freight is being hauled on the carrier's trucks which is insured by the carrier, and very risky!

Am i missing something here??

 

[xiggi]

So you are carrying the cargo ins, and what the liability? When you primary company, you pick one outfit to be your main company?

So what I don't understand is say your running a load for company A, and the frieght falls over in your truck and gets damaged. The customer is going to ask company A to pay the claim, but if you carry the insurance IMO there is no way company A's insurance company is going to pay that claim...

Does this sound right or am I missing something?



So how does it work? So company A calls you and says idtrans I got a load that pays 1.20 a mile from point A to point B. Up to you to accept it, so I assume they are getting 1.30-1.40 a mile and making a few buck for themselves. Isn't that essentially brokering without a brokers license?

Idtrans I really appreciate your input, am I missing something here with this because it sounds a little grey in some areas to me. I am worried about someone trying to sue me if we try this not being officially signed on to a carrier if there is a claim of some sort.

Do these carriers have some kind of contract in place with you outlining some of these issues i am asking about like other traditional carriers do if you sign on with them?

I dont think many carriers are going to pay you a $1.20 on a load they are only getting a $1.30 - $1.40.

 

[idtrans]

All I can say is the multi carrier deal can be complicated. and as far as a scam goes no it is not because I name each person whom I have a lease with as a insured on my policy. and The bidding I do is with a company I permited to bid on loads with the accounts he sets up on boards. so no scams or rippoffs. just out making a honest living.

 

[Vinnie T]

All I can say is the multi carrier deal can be complicated. and as far as a scam goes no it is not because I name each person whom I have a lease with as a insured on my policy.

I understand that, but nobody has answered my question as far as liability. It's not all that complicated really. I will ask again.

One of the carriers you run for gets a load from say Express-1. They call you, you bid on the load. Express-1 awards YOUR carrier the load and your carrier puts you on it. Say the pallets dumps over in your van and the product is damaged. Express-1 has a contract with YOUR carrier..NOT you. Your carrier's insurance policy WILL NOT cover that claim because your truck is not covered under YOUR carrier's insurance, you have YOUR own policy. Your insurance policy WILL NOT cover that claim because the freight belongs to Express-1, not YOUR carrier. Your policy has YOUR carrier listed on it, not Express-1.

How do you explain this? Don't you see the lapse in coverages how you and your carriers have this set up?

and The bidding I do is with a company I permited to bid on loads with the accounts he sets up on boards. so no scams or rippoffs. just out making a honest living.

I understand what you are trying to do, but I think what your doing is very dangerous. I can't believe these carriers are taking such a risk!

What you should be doing is having your own authority and have your carriers broker these loads to you assuming they are a broker too and not only a carrier in order to be fully covered.

I discussed this with my carrier rep and he confirmed my concerns, I also had a conversation with my insurance agent and he expressed the same concerns. This is a time bomb waiting to happen. This will all come to an end when a driver doing business this way gets into a major accident or has a major claim and the driver and carrier he runs under gets sued!

 

[HHDLLC]

I understand that, but nobody has answered my question as far as liability. It's not all that complicated really. I will ask again.

One of the carriers you run for gets a load from say Express-1. They call you, you bid on the load. Express-1 awards YOUR carrier the load and your carrier puts you on it. Say the pallets dumps over in your van and the product is damaged. Express-1 has a contract with YOUR carrier..NOT you. Your carrier's insurance policy WILL NOT cover that claim because your truck is not covered under YOUR carrier's insurance, you have YOUR own policy. Your insurance policy WILL NOT cover that claim because the freight belongs to Express-1, not YOUR carrier. Your policy has YOUR carrier listed on it, not Express-1.

How do you explain this? Don't you see the lapse in coverages how you and your carriers have this set up?






I understand what you are trying to do, but I think what your doing is very dangerous. I can't believe these carriers are taking such a risk!

What you should be doing is having your own authority and have your carriers broker these loads to you assuming they are a broker too and not only a carrier in order to be fully covered.

I discussed this with my carrier rep and he confirmed my concerns, I also had a conversation with my insurance agent and he expressed the same concerns. This is a time bomb waiting to happen. This will all come to an end when a driver doing business this way gets into a major accident or has a major claim and the driver and carrier he runs under gets sued!

You want a simple answer. I have a lease with each carrier. Each carrier is listed as an additional insured on my policy. Sounds like most of you don't have a clue on trucking.

If you have your own authority and you end up using 150 brokers over the year, you will have 150 companies listed on your policy as additional insured. When you first start out you end up calling your insurance company everything you book a load. If you can't figure this out, then you need to stay with one company and be at their mercy.

 

[idtrans]

Thanks for saying exactly what I wanted to say ! LOL maybe he needs to stay on with just 1 company and leave his life simple

You want a simple answer. I have a lease with each carrier. Each carrier is listed as an additional insured on my policy. Sounds like most of you don't have a clue on trucking.

If you have your own authority and you end up using 150 brokers over the year, you will have 150 companies listed on your policy as additional insured. When you first start out you end up calling your insurance company everything you book a load. If you can't figure this out, then you need to stay with one company and be at their mercy.

 

[Vinnie T]

You want a simple answer. I have a lease with each carrier. Each carrier is listed as an additional insured on my policy. Sounds like most of you don't have a clue on trucking..

I understand that. But what you guys fail to realize is even though you have a contract with a carrier, you don't have a contract with the carrier's customer. The carrier's customer has a contract with your carrier, not you. Therefore if there is a claim your insurance will only pay who is listed on the insurance..your carrier. Since the freight belongs to your carrier's customer, your insurance company will NOT pay that claim. Your carrier's insurance company will not pay that claim because the freight was damaged on YOUR truck, and your truck is not listed on your carrier's insurance policy since you have your own.

Do you now understand what I am talking about?

If you have your own authority and you end up using 150 brokers over the year, you will have 150 companies listed on your policy as additional insured. When you first start out you end up calling your insurance company everything you book a load. If you can't figure this out, then you need to stay with one company and be at their mercy.

I can figure this out. But what you can't figure out is your policy has YOUR carrier listed as additionally insured, NOT the customer that gave the load to your carrier. The contract is between the customer and your carrier. In order for that claim to be paid, the load has to come from who is listed as additionally insured on the policy. Your carrier has the customer listed as additionally insured, your policy does not, it has your carrier.


Do you see the issue with this?