Due Diligence when choosing a carrier, especially for newbies

[xmudman]

OK, so I'm finally gonna hit the road soon, on a part-time basis to start while I wean myself off my NYC gig. Don't ask for whom yet, 'cos it's not cast in stone.

Which leads to my question: What kind of due diligence should an owner/operator, especially a n00b, do when choosing a company to run for? Obviously, some companies are well-known and well-established, such as Landstar, Panther and the Fed. For me, unfortunately, my eyesight problems mean no CDL, so I have to pick a small company to run for.

The first thing I noticed was that anyone can make themselves look good on the internet. Hell, I thought LRT was a good place to run, 'cos their website made them look like they were squared away. Well, not so much, eh?

Usually the first place I look is SAFER WEB , to see how safe and compliant the carrier is. If they're not in control of their safety, which is critical to just being able to keep your authority to run, then it's a safe bet they're not gonna be on top of payroll, either. Next idea came from Blizzard just this morning: Do a Google Street Maps search of the address they provide. If a company has a decent-looking office, even if it's just in a little office complex somewhere, then they're probably more on the ball than someone who runs out of a spare bedroom. This isn't flawless, however; I looked for Prestige's offices in Garfield Heights, OH, and while they were mentioned by Google as being there, there was no Street View available. However, I know Prestige is a going concern because I've worked with them.

Next thing to do, I guess, would be to call your target companies and ask questions. However, a guy could make his business sound as professional as his website makes it look, while still shoestringing it in the aforementioned spare bedroom.

What else should a potential new contractor look for when choosing a company? Of course, there's a website with a wealth of information , but since forum posts are strictly opinions, they can't always be taken as stone-carved facts.

Just the same, ya gotta do your due when signing on with anyone you contract with. After all, they check you out too (they have to; the FMCSA says so ).

Bring it on, folks, and thanks

 

[Turtle]

Just a couple of notes....

Panther started out of a garage.

A company truly in control of their safety, regardless of their size, will likely want someone who's eyesight doesn't preclude them from driving professionally. CDL or no CDL, any carrier worth driving for will make you pass a DOT physical.

"Call your target companies and ask questions." That would be my recommendation. Talk to drivers, as well. Regardless of any due diligence, there will be surprises no matter which carrier you sign on with. Some will be pleasant, some not so much. But once you get your feet wet, six months to a year with a carrier, you will then know which issues are and are not important to you, and you will then be able to ask the right questions and make the best decisions based on your own experiences rather than that of forum opinions or the 'pie in the sky' dreams of recruiters and Web sites.

 

[mjmsprt40]

Xmud, I've a notion to keep an eye on this thread because you and I have a similar thing going on. A bad left eye keeps me from doing the CDL thing, otherwise I would do it in half a heartbeat. So, I stick with the van and hope to find a better company someday. The one I drive for now is good on many points, the only problem is that I'm expected to deadhead back home at the end of the trip and as we all know those unpaid miles kill you. If it weren't for that, wild horses couldn't make me leave the set-up I have right now.

However, the IRS won't let me use mileage indefinitely when the mileage shows I made no money year after year, and there's doggone little to pay taxes on anyway. So, a better gig is getting to be kinda important. Reckon I'll keep an eye on this thread for a bit.

 

[cheri1122]

Xmudman: It's been a bunch of years, but I went to Prestige's office once, and it was entirely aboveboard & professional, if that helps any.

 

[blizzard2014]

You should try and go to the companies primary place of business and meet the owner. Try and get a feel for the company. You can find out if the company is a professionally run company or just one person working 24/7 in a bedroom or a basement. If a company owner can't afford 400 dollars a month for a small office location then there is a true cash flow problem. Ask the compay if they factor their freight bills. If a company factors their freight bills and can't pay you within 7 days of delivering a load there is definitely a money management problem.

Also some smaller companies are just 1 guy driving a cargo van and trying to load up drivers in between doing loads for themselves. As mentioned in another thread some companies are running their business out of a UPS mailbox center and it is very difficult to collect your money from a mail box. Ask your carrier how much overhead they have. Ask your carrier to provide you with the numbers of their drivers so that you can get a clear picture of what kind of operation they are running. Does the company answer their phones at night and on weekends?

Does the company have a customer base above and beyond taking the left over loads from the bigger expedite carriers? How long have they been in business? Does the company have an actual legal lease agreement. I know one company that requires no lease agreement and anothr company that has merely a 1 page lease agreement. I would never work with a company that did not have a formal lease agreement. How will you sue them without a lease agreement?

Does the company run in a professional manner. Do you get invoices from the carrier every time they send out a settlement? Do they mail out 1099's before the January 31st deadline, and if so are they accurate? Is your carrier in debt? Did they use a credit card to start their business or did they have sufficuent start up capital from day one? How many trucks do they currenty have? What kind of rates do they pay their O/O's?

Do they have a professional looking website with clear and concise contact information? I know LRT had a decent website along with a nice lease agreement and he still went under. But generally if a company takes the time to invest 1200 dollars in a website they aren't trying to rip people off. It also shows that the company has sufficient capital to pay for a nice website. These are all valid questions to ask a carrier before you go to work for them.

 

[BigBadBill]

Lots of ways to look at something. We started in our house. $400 office rent turns into $600-$700 additional fixed expense plus lots of other expenses just to get started. In an office now but would have been wasted money back hen.

Good balanced contract protects all parties. And you can get a good one when starting from OOIDA.

Web site, that is funny. Seen some good scams with fancy sites.

Best thing is talk to drivers. If they are large then track them down. And not from a website. Find them on the road. 500 or less units they should be able to just send a message to just he drivers of the class you are looking at. If they won't do that and wil only give you cherry picked references that should tell you a lot.

I have a personal distaste for recruiters. Smaller companies it should be the owner or president. Larger companies it should be management that is over drivers.

 

[blizzard2014]

Lots of ways to look at something. We started in our house. $400 office rent turns into $600-$700 additional fixed expense plus lots of other expenses just to get started. In an office now but would have been wasted money back hen.

Good balanced contract protects all parties. And you can get a good one when starting from OOIDA.

Web site, that is funny. Seen some good scams with fancy sites.

Best thing is talk to drivers. If they are large then track them down. And not from a website. Find them on the road. 500 or less units they should be able to just send a message to just he drivers of the class you are looking at. If they won't do that and wil only give you cherry picked references that should tell you a lot.

I have a personal distaste for recruiters. Smaller companies it should be the owner or president. Larger companies it should be management that is over drivers.

True about the office. But if a company has been in business for over a years time and they still do not have a physical office location, and just a personal mailbox at the UPS Store, I think there is a problem. It shouldn't take more than a couple of months to get an office.

 

[Tennesseahawk]

True about the office. But if a company has been in business for over a years time and they still do not have a physical office location, and just a personal mailbox at the UPS Store, I think there is a problem. It shouldn't take more than a couple of months to get an office.

Really? I think it depends on a lot of things, like how many trucks are on, how much business they're getting, how much profit, how much they have put aside, etc. Look at Polly Express. I don't think they have a legitimate office after being in business for the better part of 10 years; and they're still going at it.

 

[runrunner]

If your eyesight is so bad you can't get a CDL how can you drive at all? My point is with glasses you should be able to pass a DOT physical now so you can sign on with someone who requires it and get your CDL later if you want to. You can get some pretty cheap glasses if you aren't picky about the frams. Don't sell yourself short go get glasses!

 

[xmudman]

If your eyesight is so bad you can't get a CDL how can you drive at all?

Amblyopia - Wikipedia, the free encyclopedia

Amblyopia can only be reversed if treated before age 5; I was diagnosed at seven. Oops.

My right eye corrects only to 20/80; my left corrects to 20/20. My license is marked for corrective lenses (natch) and for "mirrors on both sides of a vehicle". DOT standards require 20/40 in both eyes.
I have had three rear-end accidents since 1975, two due to distraction and one due to nodding off at the wheel. The worst injury I have ever caused was someone getting banged around; that person was treated & released from the E.R.
I've driven all manner of under-CDL vehicles, and on one occasion a bobtail tractor. Between vans, ambulances, pickup/trailer combos, etc I'm sure I have over a million miles on my tush, with at least half of those since 2003.

So that's how I can drive at all. Any further questions?

 

[mjmsprt40]

Optic nerve damage in the left eye KO'd any chance I'd get a CDL. The standard for a regular driver's license aren't so strict, the only restriction on my license is that I have to have outside mirrors-- which all vehicles come equipped with anyway.

The left eye DOES detect movement so I do have at least limited peripheral vision on that side, but for all practical purposes my right eye does all the heavy lifting.

 

[xmudman]

Optic nerve damage in the left eye KO'd any chance I'd get a CDL. The standard for a regular driver's license aren't so strict, the only restriction on my license is that I have to have outside mirrors-- which all vehicles come equipped with anyway.

The left eye DOES detect movement so I do have at least limited peripheral vision on that side, but for all practical purposes my right eye does all the heavy lifting.

Haha we're mirror images of each other . You'd mentioned before that you had eyesight issues, so I figured you'd chip in here

Actually, I'm an old fart so I remember when cars didn't have mirrors on the right side; you were supposed to get along with the one on the left and the one on the windshield. I had to install a right-side mirror on my mom's '68 Nova, and she never used it; said it drove her nuts.

Anyway my brother, gotta go. My seeing eye dog needs let out

 

[BigBadBill]

True about the office. But if a company has been in business for over a years time and they still do not have a physical office location, and just a personal mailbox at the UPS Store, I think there is a problem. It shouldn't take more than a couple of months to get an office.

I agree on the mailbox only part. I understand using a mailbox in terms of getting mail. But you have to be a detective to find a physical address on some of these people. If you are that worried about the business you are doing then something is wrong. Or do what I do. Get a 110 lb Goldendoodle that will love anyone that walk through the door to death.

But will still give push back on the value of an office. If we did not plan on growing past 15 or so trucks I see commercial space as a waste. Initially when we started planning to move from IL to TN our plan was to get a house with some land and build a separate office space.

 

[mjmsprt40]

The carrier I drive for now operates out of the basement of his house. I haven't had a problem with him yet.

I drove for another carrier that had an office. The office was in the seedy part of town and generally had an unwholesome atmosphere about the place. No operating authority that I ever could detect, but they did get me through the STA paperwork so I have an STA number. That bit about no operating authorities-- I know, I drive a van and therefore technically don't need one, but it's still a bother. A company that runs trucks-- their website shows that they do-- should have operating authorities, and I should have been able to get information so I could at least have signs made. I don't drive for them anymore.

 

[zorry]

When a guy works out of a spare bedroom at least you know where he lives.

 

[blizzard2014]

Amblyopia - Wikipedia, the free encyclopedia

Amblyopia can only be reversed if treated before age 5; I was diagnosed at seven. Oops.

My right eye corrects only to 20/80; my left corrects to 20/20. My license is marked for corrective lenses (natch) and for "mirrors on both sides of a vehicle". DOT standards require 20/40 in both eyes.
I have had three rear-end accidents since 1975, two due to distraction and one due to nodding off at the wheel. The worst injury I have ever caused was someone getting banged around; that person was treated & released from the E.R.
I've driven all manner of under-CDL vehicles, and on one occasion a bobtail tractor. Between vans, ambulances, pickup/trailer combos, etc I'm sure I have over a million miles on my tush, with at least half of those since 2003.

So that's how I can drive at all. Any further questions?

I have a slight version of what you have. But they were able to get my left eye to 20/30 with corrective lenses. Without corrective lenses my left eye is 20/100 which is half legally blind. When you are near sighted in one eye and the other eye is normal, your brain gets one clear image and one distorted image. So in order to prevent the combined images from being distorted the brain ignores the bad eye and the brain gets used to blocking the information from the bad eye. Even if vision is corrected in the rejected eye you will still have no stereoscopic vision. It's called monocular vision. You have to have two images from each eye going into the brain in order to have 3-D or vison or as the doctors call it stereopsis. A Optamologist told me that they are going to use camera in the eyes along with internet waves to correct this problem in the future. Did they give you the Randot test and the Titums test?

 

[BigBadBill]

When a guy works out of a spare bedroom at least you know where he lives.

You should have seen us towards the end. We didn't work out of our house, we lived in our office. When we moved states that was a non-starter. We where getting an office. PERIOD.

I don't think it has any relevance to if a company small carrier is reputable or not. Heck, we got an honorable mention in Best Fleet To Drive For and most of the year we ran out of the house. A big part of our business model is being lean and leveraging technology.

BUT, someone that won't tell you where the "office" is and not willing to meet with you in the town they have the office (understand some people not wanting a stranger in the house) in is a no go for me.

 

[Rocketman]

It's too easy to cover your true intentions or your lack of capitol. I wouldn't base my decision on whether or not they worked out of an office or a basement. I would base my decision on how quick they put money in my pocket after I ran a load for them. It's hard for them to screw you out of it once the money is deposited into your account.

I could go out and rent a heck of a nice office and put on a pretty big show...for a while. Or I know people that could stand toe to toe with people like John Elliot in the business world, but you would never know it if you met them.

Don't bet the fate of your business on one appearance or another. It never hurts to do that research and get your own gut feeling. But when the chips are hitting the table, make your decisions based on what they are doing at the moment. Never let them get into debt to you for more than a week at a time unless you have a LOT of STRONG reasons to trust them. That's my opinion.

 

[xmudman]

Did they give you the Randot test and the Titums test?

The whaaa?

My diagnosis was in 1966, and I was 7, so I have no idea what the tests were called. I have memories of using a stereoscope to try to train my eyes. Then they tried the eyepatch trick, but I found it intolerable because they were using stick-on patches. Not only did the glue pull on my skin and eyebrows, the patch made me look like a pitiful little blind boy. I got picked on enough for not having a dad, so imagine what looking deformed would have meant. NO THANKS!! Maybe if they'd given me a pirate patch, that would've looked cooler, but I guess they were afraid I'd cheat & pull it off.

I think I understand why the major expedite companies require CDLs of cargo-van operators: hazmat considerations, the desire to have drivers with common qualifications, and especially insurance requirements. The last one troubles me for two reasons: 1. Progressive has never made an issue of it in 8 years as my insurer, and 2. owner/operators typically bring their own insurance into the deal, at least to some extent. I'd love to see comments from guys like Jelliott, CharlesD, et al on this; they certainly would know more than I about this topic

 

[blizzard2014]

The Titmus test is when you wear 3-D glasses and they show you a picture of a butterfly and ask you to touch the wings or something like that. The Randot test is where they have you look at some pictures to see how good your gross and fine steroscopic vision is working. I can see in 3-D but it might be from the prisom they put in mym left lense to help keep my left eye straight. I have a very slight exotropia. It's a fancy word for lazy eye that goes away from the eye. But it is very slight and really hard to detect.