Independent Carrier vs Company Contractor

Tennesseahawk · Apr 10, 2009

I've been independent for almost 10 months now. I've had months that blew away previous bests as a contractor; but am now wondering if going back to a company, at least until things pick up, would be the best move. As any independent would know, the rates out there are close, or lower, than the rates a contractor would get.

I'd like to hear from independents who have noticed this, or have experienced something else. If you want to pm me, that's fine too. I'm just at the point where I can't see the paperwork, fees, taxes, etc. being worth the couple of pennies I make beyond what I would if I became a contractor again.

One other thought was a coalition of independents on EO who could share advise, ideas, contacts, etc. Basically, a group that would benefit from the interaction of its members; thus benefiting each member. It's worked well, for the most part, with TEANA. I thought it could work for a number of small 1-10 truck carriers who needed to hold it together in a time when the big carriers make the rules, and the little man is forced to feed on the scraps.

Look forward to hearing your thoughts.

davekc · Apr 10, 2009

Pretty much the reason I don't run under just my own authority. Too much headache for the difference. That could always change, but most of the current independents need the larger carrier's overflow to operate. When that shrinks, the independents take a double hit. Lack of freight and higher operating costs which you are experiencing.
My personal preference is to have a little bit of both.

fastrod · Apr 10, 2009

I have been independent for 3 years now with a van. I work directly with shippers and get no loads from other carriers. I make close to twice the rate that most vans get and my costs are much lower than if I leased to a carrier so I would never even consider leasing to a carrier.

davekc · Apr 10, 2009

I could see it in a van, but your costs are lower than someone who has to meet DOT regs. Not many hauling for the shipper as the direct source.

Tennesseahawk · Apr 11, 2009

Dave, I understand where you're coming from. The best of both worlds would be the best scenario. Unfortunately, going with Panther is not in my best interest; and not many smaller carriers would give contractors the latitude to look for their own freight. The only other option there would be is going with a small independent who has a number of shipper customers, but has too few trucks to consistently service those customers himself. He would also have a number of contacts who would look to him as an asset, rather than an opportunity to unload cheap freight on.

Fastrod, I'm curious as to where you're based out of. I'm in SE Mich, and the leftover glut of expediting's heyday is sitting in my backyard. In fact, the MI-IN-OH corridor is so full of local/regional expediting companies, and disillusioned contractors, in general, that no one thinks that life in expediting is worth risking outside the corridor. I've given up the thought of forming my own niche in MI; but cannot set up shop where I think survival would be possible... NE/IA, MN, TN/MO, KS/OK, New England, as my wife has work here she would rather not give up. Not to mention we have a house that we owe more on than it's worth.

This was, as far as I can see, a bad time to go it alone. I'm willing to acknowledge that I wasn't prepared for it. However, I know I'm not the only one out there with this dilemma. It's together, I'm convinced, that we can weather the storm, instead of having an "every man for himself" mentality.

Jefferson3000 · Apr 11, 2009

Hawk,

You probably already know what I'm going to say. I still think you're only a couple more good contacts away from seeing the results you want. Yeah, I know it's been slower. My March was the slowest I've seen it since last summer. We're still hopeful for this month though. Knock on some doors and make some calls. Ya just need to try swimming in a different pool than the rest of the kids in Detroit.

dhalltoyo · Apr 12, 2009

Ditto!

Now if you really enjoy dispatch getting rude with you because you turn down a "loser" load...

or getting awakened by dispatchers who can't read the "out of hours until xx:xx in your screen"...

or being offered a substandard rate because the carrier deems the shipper to be a "major account" only to see the same load on the boards being broker out at a much higher rate...

or knowing that dispatch is going around you so as to load the old timers or their corporate cheerleaders

and on, and on, and on........

PS. I am sending you a PM listing two carriers that won't get in your business if you decide to go the leased O/O route.