I have been operating as an independent o/o for 3-1/2 years, and after doing well for the first 3 years, for the last 8 or 9 months I have been in a steady decline in profitability. I'm now at the point where I have seen the handwriting on the wall and admitted that I can no longer operate independently and must lease on.
Until now I've not been sure whether I am really an expediter (more of a hot-shotter since I haven't usually stayed out for more than a few days up to a couple of weeks at a time, always heading back toward home after most deliveries). I recognized several years ago that most of the members at EOL are lease operators, so I haven't felt like my circumstances would fit in on the forum so I've mostly just been lurking.
My questions are those that I'd rather not entirely rely upon the answers I might get from the recruiters I've spoken to and would appreciate replies from experienced lease operators. My first question is, if I sign a lease contract with a company, will I be obligated to drive only for that company, or can I haul a load for a broker from time to time? This question brings up another one, will I be able to retain my own operating authority, or be required to give it up? If anyone can explain how this might work, it would be of great help. How many people generally do this, if it is allowed?
I recently attended an expedite seminar in my town. My focus then was still on how I might do the opposite of the above, i.e., haul occasional loads for expedite companies under my own authority. The general answer was that some have in-house brokerage departments and some don't, it seemed that most don't and most aren't open to this option. After thinking about it I can understand why they might feel this way, they don't know me and aren't interested in entrusting their customers to me (this has always been frustrating to me, but I can understand it). I do wish now that I had asked more questions, I just wasn't ready to admit that I wasn't going to be able to hold out any longer on my own.
Another thing I'm not clear on is, who pays for what, does it vary from one company to the next? Primarily referring to fuel, insurance - public liability and cargo, tags, tolls, tickets/fines (I'm willing to take a wild guess on that item, although there might be exceptions, as if routed incorrectly onto a truck-restricted route such as those in NY) and non-apportioned permits as in NM, AZ, etc. -- I have a 13-ton C truck and don't have to worry about IFTA and fuel tax filing/reporting. Do companies pay for different things, like all or part or none of fuel? Are any maintenance items ever covered, e.g. roadside service, towing?
Do mileage rates vary much between companies? I've seen quotes from between $1.10 per loaded mi plus a 15% fuel surcharge to $1.35 plus surcharge, and different compensation rates for unloaded miles. I'm wondering how realistic the advertised "average pay" amounts are. How much should I settle for, or hold out for, given a fuel mileage of about 10 mpg?
I guess the thing I'm most concerned about is how much sitting I will end up doing. What are the high-end wait times, e.g., how often will I end up sitting for more than 3 days? I'm based in NC. Last of all, will an 8500 pound, 10 skid limit knock me out of many loads? It hasn't in my experience to date, I think the liftgate and pallet jack get me more loads than I lose because of the diminished weight capacity.
My sincere appreciation to anyone who has read this far and willing to advise me.
Many thanks,
Dan
Until now I've not been sure whether I am really an expediter (more of a hot-shotter since I haven't usually stayed out for more than a few days up to a couple of weeks at a time, always heading back toward home after most deliveries). I recognized several years ago that most of the members at EOL are lease operators, so I haven't felt like my circumstances would fit in on the forum so I've mostly just been lurking.
My questions are those that I'd rather not entirely rely upon the answers I might get from the recruiters I've spoken to and would appreciate replies from experienced lease operators. My first question is, if I sign a lease contract with a company, will I be obligated to drive only for that company, or can I haul a load for a broker from time to time? This question brings up another one, will I be able to retain my own operating authority, or be required to give it up? If anyone can explain how this might work, it would be of great help. How many people generally do this, if it is allowed?
I recently attended an expedite seminar in my town. My focus then was still on how I might do the opposite of the above, i.e., haul occasional loads for expedite companies under my own authority. The general answer was that some have in-house brokerage departments and some don't, it seemed that most don't and most aren't open to this option. After thinking about it I can understand why they might feel this way, they don't know me and aren't interested in entrusting their customers to me (this has always been frustrating to me, but I can understand it). I do wish now that I had asked more questions, I just wasn't ready to admit that I wasn't going to be able to hold out any longer on my own.
Another thing I'm not clear on is, who pays for what, does it vary from one company to the next? Primarily referring to fuel, insurance - public liability and cargo, tags, tolls, tickets/fines (I'm willing to take a wild guess on that item, although there might be exceptions, as if routed incorrectly onto a truck-restricted route such as those in NY) and non-apportioned permits as in NM, AZ, etc. -- I have a 13-ton C truck and don't have to worry about IFTA and fuel tax filing/reporting. Do companies pay for different things, like all or part or none of fuel? Are any maintenance items ever covered, e.g. roadside service, towing?
Do mileage rates vary much between companies? I've seen quotes from between $1.10 per loaded mi plus a 15% fuel surcharge to $1.35 plus surcharge, and different compensation rates for unloaded miles. I'm wondering how realistic the advertised "average pay" amounts are. How much should I settle for, or hold out for, given a fuel mileage of about 10 mpg?
I guess the thing I'm most concerned about is how much sitting I will end up doing. What are the high-end wait times, e.g., how often will I end up sitting for more than 3 days? I'm based in NC. Last of all, will an 8500 pound, 10 skid limit knock me out of many loads? It hasn't in my experience to date, I think the liftgate and pallet jack get me more loads than I lose because of the diminished weight capacity.
My sincere appreciation to anyone who has read this far and willing to advise me.
Many thanks,
Dan
