Something I've seen in a few threads (the Eclipse Expediting one, for instance), the idea of leasing with several different companies. I never thought or even considered that a possibility...but, I've seen several mentions of it, saying this or that company is small and can't keep you busy enough, need to lease with several companies. Is that done a lot? Wasn't even aware it could be done...I can see if you have your own authority and working with different companies for loads, but is this still a possibility if you do not have your own authority?
Leasing with several companies
- Thread starter osumike33
- Start date
purgoose10
Veteran Expediter
If your new to the game I would wait till you really know whats going on.
chefdennis
Veteran Expediter
You operate under each carriers authority seperately but you carry your own insurance and list each carrier on it..there is normally a small charge for adding each additional carrier after the 1st.
Alot of smaller companies will do this and alot of O/O's do do it...but as purgoose said, learn the ropes, then if you feel the need, give it a try....waiting locations become very important with the smaller carriers and multiples..what good for one might not be goos good for another...you learn where the normally good freight centers are and follow those trends...but learn on someone elses dime not your own to start....but there is money to be made doing it this way....read the threads and find the guys that are doing it and message them, those on here that are doing are straight shooters and will share info with you...
Alot of smaller companies will do this and alot of O/O's do do it...but as purgoose said, learn the ropes, then if you feel the need, give it a try....waiting locations become very important with the smaller carriers and multiples..what good for one might not be goos good for another...you learn where the normally good freight centers are and follow those trends...but learn on someone elses dime not your own to start....but there is money to be made doing it this way....read the threads and find the guys that are doing it and message them, those on here that are doing are straight shooters and will share info with you...
Jefferson3000
Expert Expediter
The flipside to this is the expectation that any one of those carriers is going to give you the attention that you would expect on an exclusive contract. If you have 3 companies that you're hauling for, then think of it as giving the carrier 33-1/3% of your effort. I would not expect any one of those dispatching to give you back any more than that. If a company has exclusive, as well as non-exclusive drivers, then expect to be at the back of the line for freight. If a carrier is just an option for you, then expect that you are merely one of theirs as well.
chefdennis
Veteran Expediter
Jefferson3000 wrote:
Great point...especially coming from the Owner of the company...
Great point...especially coming from the Owner of the company...
When you are leased on to multiple carriers at the same time, it is true what, Jefferson is saying about being a top priority with each individual carrier at certain times of the week. The flip side to that is "if you are that carriers only driver in a certain area, they will pick up the phone and call you on every load they see" because like us, they are also out here to make money. The reason why the companies that I haul for allow "and even encourage" me to work for other people is beacuse there is a lot of competition for cargo van freight, and they don't want to be solely responsible for my success and/or failure out here.
There are times when conflicts arise and this is to be expected. I have one company who has customers that the other three can't see and occasionally they will get a little bit upset if I get a load out of one of their hot areas with another carrier. They will say it sucks that I couldn't be there to cover the load but not to worry too much because they had an outside partner carrier in the area who covered the load. Also, there has been only 2 instances where two companies were bidding on the load at the same time. This can be somewhat beneficial to the driver, but detrimental to the bidding process.
I have had at times only one company call me on a really good load because the other two companies were too busy to watch the boards. This is where having multiple dispatch teams looking for loads comes in handy. Even when you are exclusively leased on to one carrier, it doesn't automatically mean that getting you a load is their number 1 priority that day. I have worked for larger carriers that have never called me on loads even though I was sitting right in the area when they popped up on different boards.
With all that being said, it is sort of selfish for a cargo van driver to lease on to multiple carriers at the same time as it is a way to buck the system and make more money. But on the other hand, it is extremely selfish for a company with limited resources to require a van to be exclusive in todays difficult business environment. I would not condone doing this in a straight truck though, because from what i've seen, even a tiny company should have no problem keeping a straight trucks wheels turning. This set of cirsumstances is for vans, sprinters, and box trucks only. We are in a completelu different vehicle class and we have the flexibility to operate in this manner regardless of what some people have to say about it.
There are times when conflicts arise and this is to be expected. I have one company who has customers that the other three can't see and occasionally they will get a little bit upset if I get a load out of one of their hot areas with another carrier. They will say it sucks that I couldn't be there to cover the load but not to worry too much because they had an outside partner carrier in the area who covered the load. Also, there has been only 2 instances where two companies were bidding on the load at the same time. This can be somewhat beneficial to the driver, but detrimental to the bidding process.
I have had at times only one company call me on a really good load because the other two companies were too busy to watch the boards. This is where having multiple dispatch teams looking for loads comes in handy. Even when you are exclusively leased on to one carrier, it doesn't automatically mean that getting you a load is their number 1 priority that day. I have worked for larger carriers that have never called me on loads even though I was sitting right in the area when they popped up on different boards.
With all that being said, it is sort of selfish for a cargo van driver to lease on to multiple carriers at the same time as it is a way to buck the system and make more money. But on the other hand, it is extremely selfish for a company with limited resources to require a van to be exclusive in todays difficult business environment. I would not condone doing this in a straight truck though, because from what i've seen, even a tiny company should have no problem keeping a straight trucks wheels turning. This set of cirsumstances is for vans, sprinters, and box trucks only. We are in a completelu different vehicle class and we have the flexibility to operate in this manner regardless of what some people have to say about it.
You are right too Chef. Jefferson has some valid concerns with companies allowing their cargo van contractors to lease on with multiple companies. But in this instance i'm going to use my status as an independent contractor in my defense and say it is my right to accept multiple jobs from multiple people. Much in the same way that a plumber accepts multiple jobs from multiple general contracting companies. Being leased on to multiple companies is sort of selfish on the drivers part, but it makes the driver a true independent contractor. I am truly free to do whatever I want whenever I want. When I turn down a load, all the company says to me is, it is your decision, you are an independent contractor, we'll try and find you something else.
Now there are instances when the same companies are bidding on the same load for you, but this has only happened two times in 3 months. Mostly because one company that I work for has exclusive GE customers and another has a higher tier on NLM and sees loads that the other 2 cannot see, because they have not been on NLM for that long. It all works out to give me the miles and flexibility that I need right now. I am very pleased with what my companies have been able to do for me financially and I look forward for more success in the future.
Jefferson3000
Expert Expediter
Well, because there have been further responses, let me just say this. I have no particular predjudice towards van owner ops who do this. I have attempted to do it with a couple of people in the past, in the midst of others who only ran for us. At the end of the day, I found myself going out of my way to move the "exclusive" truck, even if it meant a sacrifice rate wise on our part. At the same time, I was not willing to do that for the "multiple" people. The people running multiple tend to relocate after dropping according to what suits them, not necessarily to where I see opportunities for them, and so be it. We tend to work harder for our exclusive trucks, doing everything we can to keep their total DH under 10%. This is just the reality of the market. IMO, posting three units in a town where there is actually only one, just keeps the overall rates for vans and now sprinters at a break even point and makes it even harder to keep everyone running at a profit over time. It creates a false supply of trucks
chefdennis
Veteran Expediter
Jeff my comment was not meant to be a "shot" at you at all...I do totally see your point and understand..To expect "regular" dispatch when yu are offering "limited" service would be a stretch..
Blizzard...as normal, you shine through with your expertise on running for multiple carriers...I hope you don't get "T'd" off when i refer people to you for info you have....but from my standoint, you are the one to turn to on this topic....Good Job!!
Blizzard...as normal, you shine through with your expertise on running for multiple carriers...I hope you don't get "T'd" off when i refer people to you for info you have....but from my standoint, you are the one to turn to on this topic....Good Job!!
Jefferson3000
Expert Expediter
No offense taken, Chef. My qualifying remarks were only intended to explain my reasons for choosing to do things the way we have chosen to do it. There are others who have explored a different business model. Which I have room for. However, there are definitely reasonable expectations that must be acknowledged when going the multiple route.
This is very true, Jeff. I don't expect Charles to place me above one of his exclusive guys. If he has an exclusive guy in the area and decides to load him up first, that is fine. That is why I have elected to run for multiple companies, it just makes it easier to diversify. I figure if I can pull 4 loads a month for each carrier and they don't have to pay for freight insurance on me, this is a benefit for all parties involved. Also, I won't be quitting a carrier because things are slow, because I can simply get more freight from another source.
The companies I work for are not exactly lowball either. The cheapest I have had to run for is 85 cents per mile. Actually, one newer carrier that I recently added has paid me a dollar a mile for 2 loads and 90 cents per mile for another. One load was over a thousand miles to boot. The newer carrier I added appears to see freight from Express-1 that the two other ones don't even see on their screen. This benefits me because it means a quicker turn-around on getting loaded! But i'm just giving this a shot till the end of the year. Working for multiple companies has been something i've wanted to test for quite some time now. I do get tired of calling all these different people to let them know what's going on each and every day. So, if I do get worn out from all this, I will eventually end up working exclusively for one carrier in the future.
I am the "just go for it" type of guy. I wanted to try Bolt in 2010 and I did. I wanted to try Panther in 06-07 and I did. I wanted to try Express-1 in 08 and I did. I wanted to run for Demaris and try the smaller company deal with really good rates "and we got excellent rates in 09 off the west coast" and I did. I am currently trying another business model that appears to be beneficial at this point in time "although that may change at any time!" I may possibly explore other avenues in the future while making my way around the expedited block so to speak! These are just some things that I had to experience for myself! I hope this helps anyone who is contemplating the multiple carrier scenario.
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Jeff my comment was not meant to be a "shot" at you at all...I do totally see your point and understand..To expect "regular" dispatch when yu are offering "limited" service would be a stretch..
Blizzard...as normal, you shine through with your expertise on running for multiple carriers...I hope you don't get "T'd" off when i refer people to you for info you have....but from my standoint, you are the one to turn to on this topic....Good Job!!
Chef, sometimes I envy you guys over there because you seem to get equal "if not more" miles than I do, and your rate of pay is pretty good. You don't need multiple companies when you got John whipping dispatchers to get you all loaded. lol. I'm gonna use Johns business model if and when I decide to start my own expediting company. I think paying right and treating people right is a great way to live. Even if it means you make less money on the office end, at least you can go to sleep at night knowing you are doing right by your people.
danthewolf00
Veteran Expediter
blizzard i have to say out of all the big companeys i have worked for load-1 is the best.
working for the smaller carriers has been good for me. so far i have paid out less this month than when i was with e-1
no qc fees no signage fees while yes i pay a little more for insurance thru CIS their roadside asst is above and beyond my AAA.....
working for the smaller carriers has been good for me. so far i have paid out less this month than when i was with e-1
no qc fees no signage fees while yes i pay a little more for insurance thru CIS their roadside asst is above and beyond my AAA.....
Jack_Berry
Moderator Emeritus
so lemme ask this question....blizzard who handles your workmans comp ins? most every carrier has it but i am guessing you must have your own. who handles it and how much? ours is 70 bucks a week.
danthewolf00
Veteran Expediter
my o/a thru cis is $122 a month but thats for one person tho
Dan, they only charge a 100 dollar deductible for deer hits. You get what you pay for. Sure, the insurance is higher, but you are covered throrughly and the PIP "personal injury protection" through my Michigan no fault insurance pays me in the event I have to go to the hospital or lose work time due to an accident.
I'm glad to hear you are running the way you should be running and making the money that you need to make in order to be profitable.
I have signed a waiver with every company that I drive for stating that I am an independent contractor and do not need workmans compensation. Companies that force you to get workmans comp are just making money off of it. Now, it is prudent to have a workmans comp policy, because you can get disabled very easily from an accident, but I have similar protection through my Michigan no fault auto insurance. I pay 250 per year for PIP "personal injury protection" and it pays all medical bills that arise from an accident and up to 4k a month in lost wages for up to 4 years if I am hurt in an automobile accident; all this regardless of who is at fault. You can go look this up if you like.
This works for me as I still have enough social security credits within the past 10 years to qualify for disabiity coverage. I'd just file for permanent disability while getting the 4 years of temporary disability through my insurance provider.
jamesr
Active Expediter
The main thing with signing up with several companies is to keep the driver going at a rate that he or she is able to make the money they need to.
At Eclipse Expediting we tell all drivers when they start with us that it's good to work with at least 3 companies. We have had some that feel we run them enough that they don't need to work with others.
It is true that there is a lot of smaller companies out there and all fighting for a foot hold. Many companies that you sign up with will give you a truck number and that's all you will ever be to them.
At least with Eclipse Expediting when we call you on the phone your a person "with a name" and we work for you. You work with us not for us.
At Eclipse Expediting we tell all drivers when they start with us that it's good to work with at least 3 companies. We have had some that feel we run them enough that they don't need to work with others.
It is true that there is a lot of smaller companies out there and all fighting for a foot hold. Many companies that you sign up with will give you a truck number and that's all you will ever be to them.
At least with Eclipse Expediting when we call you on the phone your a person "with a name" and we work for you. You work with us not for us.