understand the definition of O/Os

[joebob1_30132]

If you are leased on with PII,Fed Ex and anyone similar you are NOT really owner operaters. you just incure all the cost of operating your equipment. In reguard to remus's "leagal rights" post and the swap out disclaimer being implemented. with limitations on acceptance, and no real negotiating power on loads and with the "you gotta take it or you will be subject to my discretion" you are are pigeon holed.
The comment "if I had an acceptance rate of 54% id fire myself ..well this may be true but as an owner op you can make that determination. but an real owner has the flexibility to shoot himself in the foot or what ever.. Your really just a carpenter that has to bring his own hammer to the job site.

 

[terryandrene]

Any person that owns and operates their own equipment is, by definition, an owner/operator. It matters not if you have a lease agreement with a carrier, have an employment agreement with a carrier, operate under the authority of a freight broker, or have your own authority and find your own customers, you're an owner/operator if you own and operate your own truck.

Independent Contractor (IC) is mainly an IRS classification used to separate an employee's tax status from that of the Independent Contractor. Expedite carriers that lease Owner/Operators(O/O)for the carriage of their freight, classify us a Indepentent Contractors and loosely adhere to the IRS's definition of IC so that they can avoid the burden of employee Federal, state and local withholding taxes, FICA taxes, workers compensation premiums, unemployment taxes and the payment of any benefit packages offered to employees.

Most expedite carriers have lease agreements with O/Os to obviate the procurement of their own trucks and drivers. In this manner, they can accept or reject any O/O who wishes to agree to the terms of their lease agreement. These terms usually, if not always, include standards of operations to which both parties agree. At any point in time that one or the other party does not agree with the other, the lease agreement may be terminated.

As Joebob indicated, there is no small expense for the O/O to own one or more trucks. Conversely, there is no small expense for a carrier to recruit, lease, train/orient, license/permit and maintain O/Os and their truck. In addition, they must find, schmooze, bill and satisfy their customers to get the freight for us. In exchange for their role in the lease greement, the O/O is expected to maintain a reasonable percentage of availability to haul the freight they find and to accept a reasonablle percentage of the freight offered.

As I reread what I've just written, I know I sound somewhat like a company stooge, but let's be realistic...there is no free ride in life or in expediting. Even an owner with his own authority, who gets all loads from load boards, rejects way more than 50% of the loads offered on the board. That same owner has no real negotiating power with any of the brokers used and may sit longer than an expediter if only taking the premium paying loads.

I choose to be an IC with an O/O lease to a carrier because it eliminates the burden of authority maintaining, permit getting, load finding, customer billing and payment worrying that is enjoyed by those without lease agreements.

 

[Crazynuff]

In joebob's view you are only an o/o if you operate under your own authority . I agree any o/o leased to any carrier in the industry knows the possible consequences of refusing loads . Terry makes good points . But a carrier doesn't necessarily leave the expense of operation to o/o's to take advantage of o/o's . The advantage of having a fleet of o/o trucks is the contractors are more motivated to keep the trucks moving and there are far less retention problems . Contractor trucks will be serviced better and suffer less damage due to negligence or inexperience . Contractors have much more freedom than employees . How many companies allow an employee to park a truck for a week every 4 or 5 weeks ? I really wasn't going to respond to this topic . Members here know the conditions of their contracts and most are happy with them .

 

[joebob1_30132]

the post should have been in the form of a question..and terry is right . owner opoerater is exactly that you own you operate you repair insure you cost this leaves the carrier with only the business of taking phone calls and relaying them to the driver. Crazy dont be offended by a question ...discussion is nothing to shy away from even if I disagree with a lot of what you have said not everyone understands just what is meant by O/O's in terms of what the carrier states it to be . the carrier dosnt have maintain a fleet insure a fleet, give benifits or anything else dealing with a truck.
as an owner op you have total control of those and total liability But as a business owner you have limited controll over your income.your limited by the carriers rules and their negotiating with their clientel.and by what you can decline (no forced dispatch how about but if you dont ....) tery and co company are correct there is a trade off no worries about billing booking loads and all the other things.
hey crazy a week off after being on the road for that amount of time.. please... tell that to someone whose home every night with a 401 health insurance and wathching football every sat and sunday 15 feet from a cold beer. just talkin ..and im glad you replied I learn somthing every time im on here ..mainly that foot to the upper left ends up in my mouth sometimes..
This businees is growing and dont take for granted that everyone understands what you do.
What are the differences between owner ops and employees???
Hey Cherri