Reading the Help Wanted Ads on Expediters

jjoerger

Veteran Expediter
Owner/Operator
US Army
The responsible thing would be to have the owner set up a pay schedule with the carrier, and indicate how the drivers are to be paid, be it 60% or 40%, who gets the FSC, and then the amount of assessorials, all of that worked out in advance so there are no misunderstandings. All set up in the computer, all automatic. Then, the carrier pays the drivers directly to the driver's Comdata card (or whatever), and pays the owners what they are due.

That would get a lot of owners out of the business, tho. :D

I like that idea. We are working on getting another truck and would welcome a plan like that. Maybe they could issue the 1099's too.
 

cheri1122

Veteran Expediter
Driver
It sounds good, but I bet most owners won't agree. First, they want control of the driver's pay, because the driver has control of the truck - what if they abandon it? What if it's damaged? The owner would have no recourse, if the driver were paid automatically.
I guess they could work out the issue of reimbursing the driver's out of pocket expenses separately [I send the owner an itemized list with receipts & copies every month], but the potential loss an owner would be open to under an autopay system could be a major one.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Cheri hit the nail on the head. Exposure comes with a cost for any business. If the financial payroll end is administrated to the driver via the carrier, then the truck owner would have to have a appropriate escrow or a reduction in pay to the driver to subsidize that operating expense.
I would be all for it but sadly, not all drivers are diamonds out of the rain.
On a side note, I do think it would be good to have more fleet owners participate here on EO. Because of some of these stories & behavior, a good many don't want that type of exposure.
As I have said before, reputation and solid references from current and past drivers is the path to finding a decent fleet owner. Ones that advertise continuously or give half truths, are the ones to avoid.
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
How about setting up a small escrow account for the driver to cover damage or abandonment?
Then the owner would be somewhat protected.
The carrier does that with the owners.
 

cheri1122

Veteran Expediter
Driver
The benefits of writing your own contract include writing in whatever suits your needs - if you can make it work fairly, why not?:)
 

davekc

Senior Moderator
Staff member
Fleet Owner
How about setting up a small escrow account for the driver to cover damage or abandonment?
Then the owner would be somewhat protected.
The carrier does that with the owners.

Possibly, but that puts in the carrier involvement which is a cost the carrier now has. Carriers have to pay someone to administrate it. Not sure many would sign on. Also could see some legal problems if a dispute came up.
 

BillyBob

Seasoned Expediter
Miss Kat,,I greatly apprecdiate everything you wrote. I'm thinkin of gettin into this expediting game, but I'm gonna hang here for a while and see what's what.
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
Possibly, but that puts in the carrier involvement which is a cost the carrier now has. Carriers have to pay someone to administrate it. Not sure many would sign on. Also could see some legal problems if a dispute came up.

The carrier already has involvement with the driver. (At least at FedEx CC. And I thought at all the others) Drivers have to be approved and the background checks, driving records, etc. are done by them, not the fleet owner.

When I was in the construction business I employed many people over the years. Some as contractors most as employees and I never had a builder involve themselves with any of them. But then again they weren't carrying valuable freight on there behalf either.
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
Miss Kat,,I greatly apprecdiate everything you wrote. I'm thinkin of gettin into this expediting game, but I'm gonna hang here for a while and see what's what.

Check out the thread Business Advice for Newbies by Doc Rushing. Great advice for all.
 

davekc

Senior Moderator
Staff member
Fleet Owner
The carrier already has involvement with the driver. (At least at FedEx CC. And I thought at all the others) Drivers have to be approved and the background checks, driving records, etc. are done by them, not the fleet owner.

When I was in the construction business I employed many people over the years. Some as contractors most as employees and I never had a builder involve themselves with any of them. But then again they weren't carrying valuable freight on there behalf either.

Correct. If you have a third party handling subjective financial transactions, the dimensions change quite a bit verses a fixed cost item like insurance or satellite costs.
 
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