RE: Cheap Freight
Solutions are present and available for that dilemma.
As a memeber of OOIDA, the mantra as everyone most liley knows is..
"Say NO to cheap freight" Never take on a poor or bad paying load in hopes that it will lead you to the next one of decent value; you're setting yourself up for financial flushing.
Being in the transportation business for 30 years, starting back in 1975 as an owner oerator for a bed bug company, I have seen quite a lot. Heard wuite a lot, And read a lot of horror stories about every imaginable wway a truck driver/owner gets shafted, short-changed, decieved, abused, and manipulated.
You don't HAVE to accept cheap freight as a self employed business owner. Those rates come from 2 sources: shippers and broker/carriers. Now you have a focal point on where to direct your energies. A long long long time ago I was reading in another O.O. based magazine from a reader who posted a letter about a guy who recently died. He mentioned the fact that this person KNEW how to operate his truck business profitably; even if that meant parking it instead of taking cheap loads - which is only prolonging and perpetuating the parade of misery of the trucker.
Sure, people have come and gone since them, demanding strikes, walkouts, convoys, and simply not working, just park their truck.
The big companies have deep pockets (there are reasons for that related to freight rates and what owner operator are being compensated); they can easily outlive and and outdistance you in a sitdown strike, court battle, or any other showdown of nerves. They have the resouces; you/we don't. They know this already.
That is why I joined OOIDA. They have a little more legal kick than just Joe Regular, and if you have been reading up on their efforts, you will see where certain class action suits have been filed on behalf of abused owner operators by carriers; legal action taken, both pending and conclusionary. I have read that they won a couple of legal battle with carriers that mandated the carrier returning withheld "escrow" with interest, fuel charges never given to the actual truck owner, yet charged to shippers; and the finale' was the legal battle with a large carrier over driver employee/contractor status. OOIDA has the power to help the individual driver and small fleet owner. Membership is about $50/year.
They will also help you get set up with your own authority; the ability to contract as a common or contract carrier to anyone you wish; setting your own rates and terms of how you want to be paid.
Now THAT is what I call being a self-employed independent owner operator small business owner - not somebody running around with another's person stickers and decals plastered all over their $expensive$ truck, waiting and hoping for dispatch "orders" coming solely from that one source of money to keep them rolling.
Any any stock market person well knows; you diversify your assets to minimine business investment risk. The same holds true for operating a truck delivery service. Do these large carriers only have one customer? Course not. If you obtain your own authority to operate within the lower 48 (costs about $400-$500), you pick and choose and solicit your own customers from numerous sources; and drive where you want to drive; and take time off when you want to.
Drawbacks are trying to divert shippers from large carriers who offer low rates and make them sign airtight contracts with penalty clauses; They can afford to take on an occasinal bad load which the shipper refuses to pay - your margins are too slim and can't afford to do that. Every load has to be a money maker.
OOIDA has the resources to access a large database of broker information to protect you in that respect. I think its is called the RIS service. Within 5 minutes, you can have a broker's entire history on hand either by phone or by web based browser research to make a determination of whether this organization is worthy of credit.
Who says, and what law anywhere says that freight must be transported for free, and the freight rate collected later?
Right, you find a shipper of questionable repute, and do not want to lay their 30-60-90-120-NeverPay game; solution for that is simple.
Give them 2 options: pay me in full right now, never schedule a pickup.
You have to be smart in order to survive in this crappy business.
People will try to take every concievable method of taking advantage of you; and many have already accomplished this on many other so called "drivers". When you buy a $50,000 vehicle, pay all your taxes, fuel, and operational expenses..do you want to be given the label of "DRIVER"?
It's the way this entire industry has molded and solidified itself into a scenario where the poor person behind the wheel who is doing all the work, and at the most risk for road incidents and paying fines and penalties for every type of possible violation imaginable -
being at the bottom lower receiving end of the money flow. You are the last one to get the money, but the first one to show up to do the work. Something entirely wrong with that situation.
OOIDA will help you become a true business operation, they have a packet available which automates the interstate authority process , contacts for insurance coverages at group rates, fuel card program.
If you have the credit and cash available for a nice truck, then going to an insurance agent to get the $750K or million CSL with god credit will cost between $7500 and $10K a year; depending on yuor driving record and credit history - with a usual $15-%20 down payment to get covered. Cargo is about $1000/year; hazmat higher.
You need to join a pool of operators for DOT certification for drug screening and testing; OOIDA helps you with that. They have a nationwide network of medical review pain in the **** for collection sites, and they help you through the process of surviving the horrid DOT audit. Helpful hints.
if you want to be a driver and use your truck to make money for somebody else all your life, that is your decision. This is America, land of freedom and opportunity. You will never put your true potential to the test until you become fully independent owner operator - in the full sense of the word; not just some print type on a captive contrator lease agreement; heavily worded againt you, and full of non compete clauses.
And you even get a nice little round sticker to put on your car announcing your membership to the world. Wouldn't it be nice to have shippers contact you directly (or...brokers), asking if you can take the load, and what are your terms? You making all the business decisions. Its rough, granted, but man if you do it right, the potential for success in sweeeet.
Mike
Florida Expedited Delivery
Orlando, FLorida
Member: OOIDA
where we ALL say "NO" to cheap freight. x(
Solutions are present and available for that dilemma.
As a memeber of OOIDA, the mantra as everyone most liley knows is..
"Say NO to cheap freight" Never take on a poor or bad paying load in hopes that it will lead you to the next one of decent value; you're setting yourself up for financial flushing.
Being in the transportation business for 30 years, starting back in 1975 as an owner oerator for a bed bug company, I have seen quite a lot. Heard wuite a lot, And read a lot of horror stories about every imaginable wway a truck driver/owner gets shafted, short-changed, decieved, abused, and manipulated.
You don't HAVE to accept cheap freight as a self employed business owner. Those rates come from 2 sources: shippers and broker/carriers. Now you have a focal point on where to direct your energies. A long long long time ago I was reading in another O.O. based magazine from a reader who posted a letter about a guy who recently died. He mentioned the fact that this person KNEW how to operate his truck business profitably; even if that meant parking it instead of taking cheap loads - which is only prolonging and perpetuating the parade of misery of the trucker.
Sure, people have come and gone since them, demanding strikes, walkouts, convoys, and simply not working, just park their truck.
The big companies have deep pockets (there are reasons for that related to freight rates and what owner operator are being compensated); they can easily outlive and and outdistance you in a sitdown strike, court battle, or any other showdown of nerves. They have the resouces; you/we don't. They know this already.
That is why I joined OOIDA. They have a little more legal kick than just Joe Regular, and if you have been reading up on their efforts, you will see where certain class action suits have been filed on behalf of abused owner operators by carriers; legal action taken, both pending and conclusionary. I have read that they won a couple of legal battle with carriers that mandated the carrier returning withheld "escrow" with interest, fuel charges never given to the actual truck owner, yet charged to shippers; and the finale' was the legal battle with a large carrier over driver employee/contractor status. OOIDA has the power to help the individual driver and small fleet owner. Membership is about $50/year.
They will also help you get set up with your own authority; the ability to contract as a common or contract carrier to anyone you wish; setting your own rates and terms of how you want to be paid.
Now THAT is what I call being a self-employed independent owner operator small business owner - not somebody running around with another's person stickers and decals plastered all over their $expensive$ truck, waiting and hoping for dispatch "orders" coming solely from that one source of money to keep them rolling.
Any any stock market person well knows; you diversify your assets to minimine business investment risk. The same holds true for operating a truck delivery service. Do these large carriers only have one customer? Course not. If you obtain your own authority to operate within the lower 48 (costs about $400-$500), you pick and choose and solicit your own customers from numerous sources; and drive where you want to drive; and take time off when you want to.
Drawbacks are trying to divert shippers from large carriers who offer low rates and make them sign airtight contracts with penalty clauses; They can afford to take on an occasinal bad load which the shipper refuses to pay - your margins are too slim and can't afford to do that. Every load has to be a money maker.
OOIDA has the resources to access a large database of broker information to protect you in that respect. I think its is called the RIS service. Within 5 minutes, you can have a broker's entire history on hand either by phone or by web based browser research to make a determination of whether this organization is worthy of credit.
Who says, and what law anywhere says that freight must be transported for free, and the freight rate collected later?
Right, you find a shipper of questionable repute, and do not want to lay their 30-60-90-120-NeverPay game; solution for that is simple.
Give them 2 options: pay me in full right now, never schedule a pickup.
You have to be smart in order to survive in this crappy business.
People will try to take every concievable method of taking advantage of you; and many have already accomplished this on many other so called "drivers". When you buy a $50,000 vehicle, pay all your taxes, fuel, and operational expenses..do you want to be given the label of "DRIVER"?
It's the way this entire industry has molded and solidified itself into a scenario where the poor person behind the wheel who is doing all the work, and at the most risk for road incidents and paying fines and penalties for every type of possible violation imaginable -
being at the bottom lower receiving end of the money flow. You are the last one to get the money, but the first one to show up to do the work. Something entirely wrong with that situation.
OOIDA will help you become a true business operation, they have a packet available which automates the interstate authority process , contacts for insurance coverages at group rates, fuel card program.
If you have the credit and cash available for a nice truck, then going to an insurance agent to get the $750K or million CSL with god credit will cost between $7500 and $10K a year; depending on yuor driving record and credit history - with a usual $15-%20 down payment to get covered. Cargo is about $1000/year; hazmat higher.
You need to join a pool of operators for DOT certification for drug screening and testing; OOIDA helps you with that. They have a nationwide network of medical review pain in the **** for collection sites, and they help you through the process of surviving the horrid DOT audit. Helpful hints.
if you want to be a driver and use your truck to make money for somebody else all your life, that is your decision. This is America, land of freedom and opportunity. You will never put your true potential to the test until you become fully independent owner operator - in the full sense of the word; not just some print type on a captive contrator lease agreement; heavily worded againt you, and full of non compete clauses.
And you even get a nice little round sticker to put on your car announcing your membership to the world. Wouldn't it be nice to have shippers contact you directly (or...brokers), asking if you can take the load, and what are your terms? You making all the business decisions. Its rough, granted, but man if you do it right, the potential for success in sweeeet.
Mike
Florida Expedited Delivery
Orlando, FLorida
Member: OOIDA
where we ALL say "NO" to cheap freight. x(
