Should I get an authority and get my own load or n

[henboy1]

I started doing rush delivery in Ga 3 months ago.I ended up with a big expediting company who pays 90cpm with 12% surcharge.I have done a couple of trips for them.For ex: I went to NJ to deliver stuff on skids and the trip was 865miles.I even stayed over a friend of mine to see if I would get another load from this company around NY/NJ/CT, but nada. I dead headed back to atlanta.The whole trip did cost $300 in fuel and when you calculate the pay, it comes out to $821.This means I only made $500 bucks.It doesn't seem worth it to work with this company when they always dead head me everywhere I go.
I met a guy (chevy 3500 express)who had an account for getloaded.com and he pays about $70 a month to find him loads whenever he drops off a load for this same company I am working for.He also has his own authority and which he says costs about $850 and his 1 million liabily and $100,000 cargo insurance costing around $4500 a yr.
Would it be worth it for me to go this route?
The cool thing is that he logs on the website via wireless to find him laods wherever he is.Would I loose going this route with my cargo van or am I better off still working for this company at 90cpm and 12% fuel surcharge?

 

[davekc]

RE: Should I get an authority and get my own load

Using getloaded.com for van loads will be tough. The available loads will be weak because of you load capacity with a van.
The light one or two pallet loads are LTL and have very low rates.
Rates and work will be better with a carrier, plus overhead will likely be lower. Namely, insurance costs. Fleet insurance will be a fraction of your posted number.
Bottom line; doing brokered freight with a van is a tough business. Even more so with the current economic climate.


Davekc
owner
21 years

 

[teacel]

RE: Should I get an authority and get my own load

The best advice I can give is to stay where you are. You have a lot to learn. It's not as easy as you think it is.

 

[ACE]

RE: Should I get an authority and get my own load

I agree with Teacel.
Haul for your carrier and get more experiance.

 

[TJ959]

RE: Should I get an authority and get my own load

If you're getting .90 per mile and a 12% surcharge for a van, you're getting one of the highest rates in the industry. The grass may look greener on the other side but you may end up on the outside looking in. Many carriers are not recruiting vans. Stay with your carrier.

 

[henboy1]

RE: Should I get an authority and get my own load

I am also wondering if I can get my authority and the 1 million liability insurance with the 1,00,000 cargo insurance without getting the expensive commercial insurance.Will the FMCS allow that and issue me an authority?
Since I acquired my CDL class A it seems every door is closed for me.

 

[Crazynuff]

RE: Should I get an authority and get my own load

I read that with the need for more trucks for disaster relief FHWA is waiving the 3 week waiting period for authority and processing authoritys ASAP . More insurance than cargo is required . Figure around $8,000 a year . Contact OOIDA for full info

 

[LDB]

RE: Should I get an authority and get my own load

If you get your own authority when are you going to find time to wear all the extra hats that go with it? The primary ones will be sales and dispatch. You'll have to be working full time to sell your service to be able to have loads to drive. You'll have to work part time as dispatcher trying to keep the company vehicle in the right places to service the loads the salesman is lining up. You'll have to work however many hours are needed as driver to move the van where dispatch tells you it's needed. You'll also have to work as safety director some to keep permits etc. up to date. I see it as going from one job to about 3.72 jobs.

Your other option is to run at 90cpm plus 12% which is a fantastic rate for a van. Talk to the carrier about hauling loads you find on your own. When I do that it costs me 15% of the gross pay of the load. I negotiate the rate and then call in and tell them. They do the rest. I run on their authority and insurance. Based on $8000, which seems about right, I'd have to do about $54000 in revenue to pay the $8000 from 15% of the revenue. If I were on my own I'd do more than $54000 a year but I can come out better running for my company and filling in from getloaded.com when I need to.

I also agree it's going to be really hard in a van to fill in. I am in a D unit with 11k capacity. I find more jobs on getloaded that are too heavy for my truck than ones I can carry. I find a few that are light enough for a van but they are very few and they don't pay well at all. I have to go with the ones saying stay where you are or look into a different company if you think the grass would be that much greener.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

 

[greg334]

RE: Should I get an authority and get my own load

Henboy1
I agree with Leo that there are few van loads on getloaded.com. I watched several boards for a few weeks to see which way I wanted to go and ended up contracting to Express-1. I didn’t find a lot of loads and with maybe 5000 vans to compete with and the fact that there maybe three loads a day for cargo van, as a newbie I would never get a load.

A lot of companies will allow you to book your own load to get out of an area, sometimes for 10%, sometimes for 40%. Even at 40% it is far more prudent to use their authority, insurance and especially their collection system to get work.

90CPM/12% FSC that’s good, stay where you are.

I want to add something here and would like to hear what others think. I ran into another “independent” expediter; he had two d units and his own authority and booked all his own loads. I was tired and tried to pay attention to his ideas but the one thing I caught was his suggestion to get my own authority and magnetic signs to cover up the company logos to book my own loads.

Crazy idea?

What are your thoughts about this idea?

 

[LDB]

RE: Should I get an authority and get my own load

I would never do it because I'd have thousands of dollars of expenses per year to maintain my own authority and insurance for the times I used it. I have to give 15% to my company to run on their authority and insurance. It's such a no-brainer for me based on my circumstances. Even if I was in a 62/38 split situation like some I'd still do the same.

I only use outside loads to either get home for something special or get moved to a better area. When the company moves me what I get usually pays just for fuel. When I use getloaded I negotiate for the best I can get of course but will take something if it pays my full cost per mile and gets me to where I need to be.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

 

[trhoades]

RE: Should I get an authority and get my own load

I have a sprinter, and I use getloaded. My company takes 20% of the load. So if I am in a pinch and I have to get home for some appointment or whatever, I will use them. But I can not see those loads keeping you in business. For a van load you will get paid something like $250 for 1200 miles. Sometimes you can negotiate higher, but they know they can get an LTL company to put it on a truck with 10 other loads going to the same area. I can't see how you could make a profit unless you had at least a straight truck to take larger loads. Although, I wish you the best of luck if you try it, and let us know from time to time how you are doing.

 

[kwexpress]

RE: Should I get an authority and get my own load

KW Express
o/o till i die


It can be done with a cargo van but you need more than getloaded.
I think you do need to know more than getloaded to make it worth your while

the only thing I could share with you is if you do this sign up with
the company your with now as an outside carrier.

the company you work for now will still broker you freight
then I would suggest you sign up with all the other expediters as an outside carrier also and do there freight to.

Never put all your eggs in one basket.get to know the different areas that there are cargo van shortages.