Carriers, riddle me this

[brokcanadian]

More in the "things I've always wanted to ask" category

Why do so many advertise hiring new O/O for being on the road so long? Example "3 weeks out before going home"

Now I'm not new, and can guess why a driver would be required to...

But owner-ops? What if a guy wants to work 1 run a week, do you say no?

I found out in my research something about carriers being required to pay insurance in USA, is that it?

Honest question. I've always wondered because here in Ontario, a fair number of companies require the O/O to pay costs including insurance, and large companies being self insured...what does it cost to have more vehicles on than less?

 

[TFTN-one3B]

I can answer the first question without being a carrier. Most carriers get it in their minds that they have the power to dictate such things . Almost like you are an employee who pays for your tools(truck, maintenance, fuel, costs, etc). But in reality, they can't dictate when or how long you go out for. Most they can do, is end the contract with you.

Carriers (especially dispatchers) would love to have power over you to be able to dictate when you go out..... And what you take.

When I signed on with my current company, they told me that. From day one, I have taken off time whenever it was convenient for me without them being in any regard.

 

[brokcanadian]

Yeah, I was hoping it wasn't the "power trip" factor

That's really not helpful to either carrier or o/o

Wondering what the official reason could be

 

[Grizzly]

In any profession, availability matters.

 

[brokcanadian]

A little one sided, no?

I've been available 37 days straight and had 5 runs...

But explain WHY. 10 full time trucks and 10 part time = 10 more than 10 fulltime trucks (to me)

Here's my reasoning. A truck available once per week, is one more chance for extra money for both carrier and driver. But it seems sometimes, with some carriers, they'd rather not have that truck at all

 

[terryandrene]

Simply stated, he larger the fleet, the larger the infrastructure. As the fleet grows, so must the support staff and office space. Safety departments are need to ensure all federal, state and local laws are in compliance and ready for the inevitable audits. Safety folks are required to monitor drug and alcohol testing, pre employment testing ELD monitoring, accident investigation and reporting. As carriers grow, the Geek squad is no longer sufficient so full time IT folks are needed. A sales and marketing force is required to maintain and grow a customer base. Now we need an HR staff to ensure employee support and regulations addressed.
Recruiting, building maintenance, security, finance folks are need to ensure contractors or drivers and employees are paid, Bill collectors are needed and eventually legal counsel is required.

Income to support infrastructure is obtained by maintaining a fleet of vehicles delivering freight for bill paying customers. Conscientious carriers maintain fleet size to have the trucks ready for next day, next week, next month and next quarter anticipated freight availabilities. There is a known cost of keeping each truck in a fleet. That cost can only be met by trucks being available when the freight is available. Too many drivers that consistently refuse offers to carry freight will eventually cost the carrier some of their steady customers. A loss of customers hurts everyone.

 

[brokcanadian]

Thanks for the answer.

Hard to wrap my head around the perspective from the other side. Since that is an unknown cost to me, I'll have to do some digging to see if I even CAN grasp that

From a driver's perspective, you want to know where the 35% goes, all you know is, it's nice to not answer the phone, or deal with too much paperwork

 

[brokcanadian]

From this perspective, the Load 1 app seems like a game changer. Cut office costs, and give the driver more control makes them happier too.

That's really what I'd like to see. An uber style app that lets you pick and choose

 

[guido4475]

Simply stated, he larger the fleet, the larger the infrastructure. As the fleet grows, so must the support staff and office space. Safety departments are need to ensure all federal, state and local laws are in compliance and ready for the inevitable audits. Safety folks are required to monitor drug and alcohol testing, pre employment testing ELD monitoring, accident investigation and reporting. As carriers grow, the Geek squad is no longer sufficient so full time IT folks are needed. A sales and marketing force is required to maintain and grow a customer base. Now we need an HR staff to ensure employee support and regulations addressed.
Recruiting, building maintenance, security, finance folks are need to ensure contractors or drivers and employees are paid, Bill collectors are needed and eventually legal counsel is required.

Income to support infrastructure is obtained by maintaining a fleet of vehicles delivering freight for bill paying customers. Conscientious carriers maintain fleet size to have the trucks ready for next day, next week, next month and next quarter anticipated freight availabilities. There is a known cost of keeping each truck in a fleet. That cost can only be met by trucks being available when the freight is available. Too many drivers that consistently refuse offers to carry freight will eventually cost the carrier some of their steady customers. A loss of customers hurts everyone.

Very well said. Excellent post.

 

[brokcanadian]

I still have a hunch a driver going out once a week for $500 more than covers back office for that unit, assuming like me, they pay everything save cargo insurance (and large companies self insure, right?)

Now taking care of a large customer with diverse needs...all I know is picking a load off a board, and delivering great service for that one load.

Who knew the office staff was necessary

(Edit: 4 wheeled owner op cargo van perspective for unit cost)

 

[brokcanadian]

All that "regulation" stuff has a cost too I'm sure

 

[SoG]

More in the "things I've always wanted to ask" category

Why do so many advertise hiring new O/O for being on the road so long? Example "3 weeks out before going home"

Now I'm not new, and can guess why a driver would be required to...

But owner-ops? What if a guy wants to work 1 run a week, do you say no?

I found out in my research something about carriers being required to pay insurance in USA, is that it?

Honest question. I've always wondered because here in Ontario, a fair number of companies require the O/O to pay costs including insurance, and large companies being self insured...what does it cost to have more vehicles on than less?

That's why it's better to go through dispatching companies. No commitment. Work as much or as little as you please! Though from my experience that isn't huge, making a decent living while driving less then 3 weeks a month is pretty hard.

 

[brokcanadian]

More in the "things I've always wanted to ask" category

Why do so many advertise hiring new O/O for being on the road so long? Example "3 weeks out before going home"

Now I'm not new, and can guess why a driver would be required to...

But owner-ops? What if a guy wants to work 1 run a week, do you say no?

I found out in my research something about carriers being required to pay insurance in USA, is that it?

Honest question. I've always wondered because here in Ontario, a fair number of companies require the O/O to pay costs including insurance, and large companies being self insured...what does it cost to have more vehicles on than less?

That's why it's better to go through dispatching companies. No commitment. Work as much or as little as you please! Though from my experience that isn't huge, making a decent living while driving less then 3 weeks a month is pretty hard.

Pm me some examples plz. Seems pretty rare in Canada