Own authority/broker a good idea?

[KYBulldog]

I own a 16ft box truck that is 26,000 lbs, which means I only
have to have a base state license. Have been with Panther
for 18 months and FedEx CC 2 1/2 yrs before that. Was a
team, but now single driver. I can afford the cost of obtaining
authority and can wait for payment on loads. But would like to
hear what some of you more experienced drivers with more
contacts with others think. Also are there boards other than
Expedited Loads and Get Loaded. Thanks for any and all advice.

 

[porkchop1981]

If all you have is a box truck and you only haul expedited type freight or ltl loads, then I say your better off with letting the larger companies find your loads. They have a MUCH larger base to work from then any load board you'd come across. There are about 3 other major boards to use.

Keep in mind when having your own auth. and waiting to get paid.......sometimes...thats all you ever do. Most companies are legit and pay, but others do not. Same with the brokers that are out there pushing this freight.

Me personally...I ran for an o/o friend of mine and its too much of a hassle with freight. I at least hauled cars and everything I did was COD or commeck/tcheck, so we knew if we didn't get paid in at least 24/48 hrs, not 3/4 weeks down the road. You also have to kep in mind that your insurance will go up and road taxes will go up. WHen your leased to a large company like panther or fedex they get discount rates because of the large amount of vehicles they have on the road.

The pros to having your own auth. is the freedom to take any load you like. But the cons (in my eyes) for expedite/ltl add up much more then the pros do.

Just my 2 cents.

 

[Oilerman1957]

I own a 16ft box truck that is 26,000 lbs, which means I only
have to have a base state license. Have been with Panther
for 18 months and FedEx CC 2 1/2 yrs before that. Was a
team, but now single driver. I can afford the cost of obtaining
authority and can wait for payment on loads. But would like to
hear what some of you more experienced drivers with more
contacts with others think. Also are there boards other than
Expedited Loads and Get Loaded. Thanks for any and all advice.

Sent you a PM Bulldog

 

[fortwayne]

I did it and regret ever doing it. Like the other post said - you are better off staying with one of the legit companies (ones that advertise here I would suggest) and let them find the freight for you in your own truck.

You don't have to worry about driving 11-hours per day then after dropping the freight off getting somewhere to hop on the boards to find another load - sleep becomes a huge problem when running your own show and driving the truck as well.

Credit with some of these people could become a HUGE issue for you as well. If you take a load 1,000 miles for $2,000 let say and they don't pay you - then that is a serious issue since you know are looking at a pending fuel bill for that trip of around $260-$300 or so. and you just wasted two days on moving the freight.

Also, you blow a tire out on the highway - you better have a spare $500-$800 to take care of that problem, let alone if something major goes wrong with the truck itself.

I could go on and on but I will not.

Keep this in mind - having your name on the side of the truck is a really cool thing, it boost your ego - and we all need that..........but, I learned - it doesn't pay the bills and in today's economy I would rather have a more stable enviroment than a big ole' ego just because my name is on the side of the truck.

 

[dhalltoyo]

Yes, sign on with a carrier.

The paperwork is overwhelming for most O/O's.

Moreover, you can't look for freight while you are sleeping or driving.

Moreover, in this economy some carriers are waiting 45-60 days before they settle their accounts payable.

 

[Jefferson3000]

Hey KY,

It can be an uphill climb starting a new carrier and not for the faint of heart, but it can be very rewarding if you have the "gumption" to keep it up, even when you get a few doors closed in your face. As a one-truck "mom and pop" we have ridden out the wortst parts of this recession and are still kicking. Now we are in the process of adding a few new o/o's this year. You have to learn to be effective as a driver, dispatcher, salesman, and accountant, even if you are not so good now. PM me if you wanna talk more.

 

[skyraider]

I did it and regret ever doing it. Like the other post said - you are better off staying with one of the legit companies (ones that advertise here I would suggest) and let them find the freight for you in your own truck.

You don't have to worry about driving 11-hours per day then after dropping the freight off getting somewhere to hop on the boards to find another load - sleep becomes a huge problem when running your own show and driving the truck as well.

Credit with some of these people could become a HUGE issue for you as well. If you take a load 1,000 miles for $2,000 let say and they don't pay you - then that is a serious issue since you know are looking at a pending fuel bill for that trip of around $260-$300 or so. and you just wasted two days on moving the freight.

Also, you blow a tire out on the highway - you better have a spare $500-$800 to take care of that problem, let alone if something major goes wrong with the truck itself.

I could go on and on but I will not.

Keep this in mind - having your name on the side of the truck is a really cool thing, it boost your ego - and we all need that..........but, I learned - it doesn't pay the bills and in today's economy I would rather have a more stable environment than a big ole' ego just because my name is on the side of the truck.

The above fits me, no stickers, no name, looking like a tourist going down the road and so far all is calm. I don't want to be a flashy billboard sign, stay stealthy amen.

 

[bluejaybee]

I spent the money for my own authority and got it. Then came all the compliance forms, drug program, books, record keeping. No matter that there was only me to be a driver, the record keeping was the same as if I had a 100 drivers. Then within 6 months came the call for a safety audit (mandatory). I had already decided to lease to an independent and run their numbers, so I cancelled my authority. Too much BS and on top of that, I would have had to get my own loads. Getting loads to work out was a big problem also. Lots of paper work there, too. My conclusion after several years of leasing, let someone else do the paper work and billing for the loads. I am a driver, not a book keeper (there is enough paper work just for being an O/O).

 

[guido4475]

If you enjoy chasing your money and/or small claims court, go for it. I have a freind who is constanly on the phone trying to get paid from small carriers as well as large.too much of a headache to deal with, as far as I'm concerned.Look at it this way.If it was so easy to do, then why does the company with the 150 -plus Red Kenworths lease his trucks to companies instead of getting his own freight?Just a thought.Save your blood pressure, lease to a company.

 

[KYBulldog]

Thanks to all that replied. Have leased my truck the past 4
years to the 2 largest expeditors and I'm just fed up with all
their condescending BS. FedEX CC is way too anal and will
almost never admit a mistake, but for the most part they are
professional. Panther is the most incompetent and unprofessional
organization I've ever been involved with. Guess that is what
getting bought out by an investment firm does for you these
days. Sorry for venting, but that is how I feel.
Anyway, back to the point, sounds like I need to either maybe
work out something with a small independent or use a factoring
agent if I go on my own. Thanks again!!

 

[greg334]

If you think FedEx is too Anal, I got news for you, there is a couple of other companies out there that make FedEx look like they don't care. I won't name them but someone else may pop up and say who they are.

 

[porkchop1981]

KY,

If you have anymore questions, pm or the others. I'm new to the expedite world, but not to trucking. If it was as hard as it was with regular freight, then I could only imagine the nightmares one might face trying to have their own #'s in expedite.

Maybe you try some of these other expedite companies that are listed on this website. You said you ran with the 2 Top dogs out there, but why not try the Underdog now?

Good luck in whichever route you take.

CHop

 

[guido4475]

If you think FedEx is too Anal, I got news for you, there is a couple of other companies out there that make FedEx look like they don't care. I won't name them but someone else may pop up and say who they are.

Aw, c'mon, the large star wasnt that bad !!! lol. I actually had not one problem with them.Worked for me.But I have heard others with the same complaint, as well.

 

[greg334]

its not them.

 

[x06col]

I own a 16ft box truck that is 26,000 lbs, which means I only
have to have a base state license. Have been with Panther
for 18 months and FedEx CC 2 1/2 yrs before that. Was a
team, but now single driver. I can afford the cost of obtaining
authority and can wait for payment on loads. But would like to
hear what some of you more experienced drivers with more
contacts with others think. Also are there boards other than
Expedited Loads and Get Loaded. Thanks for any and all advice.

I'd say, if you had anything besides a toy truck to try this with, my suggestion would be to not leave home without it (authority). IF you are dead set on this project, at least try to use equipment you can do something with. As for all the "work" the "experts" have eluded to...well then, if you don't like work, then you won't like going this route. One of the posters here "looked the gift horse in the mouth" with me some time ago, and apparently is still looking at opportunity from the same vantage point. Sooo, i'll just suggest it's a real good thing for satisfaction and is rewarding revenue wise, but will gitca tired if you do it well.

 

[Jefferson3000]

I'd say, if you had anything besides a toy truck to try this with, my suggestion would be to not leave home without it (authority). IF you are dead set on this project, at least try to use equipment you can do something with. As for all the "work" the "experts" have eluded to...well then, if you don't like work, then you won't like going this route. One of the posters here "looked the gift horse in the mouth" with me some time ago, and apparently is still looking at opportunity from the same vantage point. Sooo, i'll just suggest it's a real good thing for satisfaction and is rewarding revenue wise, but will gitca tired if you do it well.

Aw come on, Colonel. You know that it's as easy as paying a few fees, and signing on a line or two. Gotta take the phone off the hook. As soon as those brokers hear you're in business, they're calling 24/7, begging you to run their freight for $3 a mile. It's gets hard being pre-dispatched 3-5 loads in advance. You can even be late if you really need to stop and eat at Denny's on the way. They won't mind. Tell the truth? Way overrated!

 

[pjjjjj]

Anyway, back to the point, sounds like I need to either maybe work out something with a small independent or use a factoring agent if I go on my own. Thanks again!!

Altho one might get the idea that factoring must be a great service, based on the large sum of money they command, there are HUGE issues with that as well, issues you couldn't possibly think of considering until you're there.

I'm going to vote for going with a small independent... or a little larger carrier that's been in biz for a number of years with an already-established list of regular customers, dependable cash flow and LARGE line of credit.

 

[jimlookup]

A year ago I was in the same position you are. Some suggestions & thoughts are: Paper work is not that bad for C unit. No individual state taxes or drug screens. Permits Plus will be glad to tell you what you need in a language you can understand. Dispatching. Do not deal with any Co. that wants to send load offers by email or bidding process. You would be glued to your monitor looking at loads that don't pertain to you and be worn out when it comes time to drive. This prety much eliminates the big guys. Look for 3 or 4 for small companys that have been around for 8 or 10 years and have a good credit rating. They may be actual carriers that also broker, brokers disguised as carriers, or plain vanilla brokers. These companys are most likley to have their own customers, good contacts and the ability to work Tienna etc. Keep them informed of where you're at, where you are going, when you're going to get there, and what kind of load you're looking for.
More than 3 or 4 makes communication difficult. It takes time to get everything in place but once there you could average $1.40 a mile, all in (remember, C unit) and 1000 to 2400 miles a week. (I've done over 2000 last 3 weeks.) Factoring. You already know your partners have good credit, but you may want to factor for convience. Accept the credit risk and and spread your payment down the road a little and you should be able to find a company to factor your loads for under 3%.
This has not been presented as a business plan or is it suggested that it will work for every one. It is just what I have experienced over the last year. GOOD LUCK

 

[CharlesD]

As far as being glued to your computer, all you need is a couple other people who can have access to the same boards and can watch things for you when you need to sleep or drive. That's what I do and it works out pretty well for the most part.

 

[Jefferson3000]

1.40 sounds low, especially if they want a dock high truck. If yours is, then you can get full tilt, whether one skid or six. Being on with the Alliance can ensure you a high volume of freight, but not already the highest rates, due to competition.

I ran a 14 ft cube in the beginning. Not dock high, but had a liftgate and pallet jack on board. I still charged my local freight forwarding customers $2 plus fuel, usually another .20-.40 or so. You just have to be the most professional, and the easiest to deal with.