What is the standard practice?

[EddieMunster]

Is it common to have your own authority as well as to run loads for others, such as an Express 1, when things are slow? Are there legal issues and complications?

Thanks in advance,

Edward...

 

[Glen Rice]

I assume you are refering to trip leasing? In any event you need the permission of your lease carrier and the company you are tripping with must be approved by your carrier. The other problem might be cargo liability as neither your existing carrier nor the one you are tripping with will be behind you 100%. You will also have to send logs to your lease carrier as well as the company you trip with. And how about fuel tax liability? Kind of see where I'm going with this? Be careful if this is the avenue you go with. Caution is the word!

 

[EddieMunster]

Makes sense...thanks for the info

 

[davekc]

It is much more to your advantage to deal with someone like Panther in this regard. You can use brokers to get yourself out of slow or dead areas, thus eliminating large deadhead. In this scenerio, you are hauling under their authority ect. They collect 15% of the gross, which is well worth it. You are using their authority, and the handle all paperwork and collections. Money well spent in my opinion. There are all kinds of horror stories relating to collections from brokers. Panther pays on time without all the waiting for your money and game playing.
Davekc

 

[ATeam]

>It is much more to your advantage to deal with someone like
>Panther in this regard. You can use brokers to get yourself
>out of slow or dead areas, thus eliminating large deadhead.
>In this scenerio, you are hauling under their authority ect.
>They collect 15% of the gross, which is well worth it. You
>are using their authority, and the handle all paperwork and
>collections. Money well spent in my opinion. There are all
>kinds of horror stories relating to collections from
>brokers. Panther pays on time without all the waiting for
>your money and game playing.
>Davekc

I agree 100%! If you are looking for "back haul" using your carrier is better than trying to do so by getting your own authority. Own authority adds - as Glen pointed out - a level of complexity and compliance issues that most people would prefer to be without.

When I was researcing the industry as an expediter wannabee, I heard about Panther II's support as Davekc describes. What I have yet to hear is real-world reports about how it works on the ground. Perhaps Panther II drivers can help us here. How often do you use this support and how has it worked out for you?

 

[Weave]

Unless you are starting up your own trucking company with multiple power units, getting your own authority for a single truck is not worth the time, money, or effort.

-Weave-

 

[x06col]

WRONG ANSWER WEAVE!!!!!

 

[davekc]

While I have made numerous references to how this is done with Panther it is pretty basic. They have their own backhaul dept that does nothing but these types of loads. They put you in contact with the brokers and you talk to them directly. You would negotiate your rate and anything else. It is critical that you understand what it costs to run your truck before any attempt on this. You can use your own brokers as well. A combination of the two will usually ensure success if bid correctly. In addition, these types of loads are not exclusive use. Therefore, you can combine multiple shipments. This is useful if a shipment is low paying. Most would not haul a load for example, .50 cents per mile. But if you had three on there, you might be running at $1.50 per mile. This is not needed all the time however it is a useful tool when in slow or unproductive areas.
Davekc

 

[raceman]

I will add that I have done this while with E1. I found the freight and worked it through them. They actually did the final bidding for me and all the paperwork and they paid me when they got paid. It was right away in those cases. They did worn me that if they did this and the shipper did not pay them I would not get my pay. They took 15% for all they did. I use that approach when needed but not often. All was done on their authority. I do not think they like doing this and it was explained as being a risk on my part in terms of pay.

The Owner who once went by RACEMAN but due to the outcome of the Nextel Cup, am now just 6.

 

[davekc]

Raceman
I wasn't aware the E1 did broker loads. A good option for those who are having problems keeping their truck moving. I do think Panther has a much better plan as they have a dept for this and handle all of the collections. You don't carry that risk of not being paid or waiting forever for you settlement. As mentioned, Panther is at .15% collection as well. Very good option when needed.
Davekc

 

[MSinger]

1997 Dodge Ram 3500 with 12' cube. Dock high with jackstands. 5.9L Cummins Turbo Diesel.

Can anyone use this Panther service or just Panther drivers? If anyone can use this is there a special number we can call do get hooked up? Thanks

 

[davekc]

This is just available to Panther drivers. You are running under their authority. You would have to lease your truck to them.
Davekc

 

[raceman]

DaveKC, Express-1 used to do this. I am not sure that they still do. I am sure if they do still do it, it is not thier preference. I think something like you have at Panther is really more of a system that everyone can work with. Ours is more of a service they will help with if it really becomes necessary. I do want to point out I am not an authority on this by any means. I have just done it a few times and E1 helped me. Someone from E1 should answer as to what the true program is there, if it still is an option.The Owner who once went by RACEMAN but due to the outcome of the Nextel Cup, am now just 6.

 

[X1_SRH]

The Express-1 policy is that we will assist you processing a broker load and pass it along to the truck at 62% of gross once the broker pays us. We do not recommend doing this as we have enough resources that we can usually help your bottom line a lot better by procuring freight through our internal sales department at full expedite rates.(instead of discounted broker rates). I have seen a lot of situations where a driver gets antsy, books a broker load at a discount, and then 2 hours later we have to turn down a load at full rate because there was no truck available. This results in an unhappy customer and an underpaid driver. These two things add up to equal BAD. If you have any questions regarding this policy feel free to give me a call here at the office. Thanks, Scott

 

[raceman]

Thanks Scott. I should point out that my experience with E1 says Scott's statement is 100% true. They usally have something where we drop, well near. I only used that method during the first two weeks of July. That was a very slow period and I had a new driver that I simply wanted to run so he did not give up based on that two week period. It worked well but Scott is dead on with his response.

The Owner who once went by RACEMAN but due to the outcome of the Nextel Cup, am now just 6.

 

[JohnMueller]

EddieMunster;
It is not uncommon for owner operators (independent contractors) to acquire and use their own authority while leased onto a carrier. Having your own authority would allow you to find your own load(s), invoice your customer(s) for that or those load(s), collect the payment for that/those load(s), carry primary liability and cargo insurance for carrying loads, file IFTA fuel taxes and Weight Distance/Ad Valorem/Property taxes in some states (or if subject to the regulations), maintain Driver Qualification files, administer an alcohol and drug testing program, audit logs (if your vehicle is subject to the regulations)and the list goes on. It also can pose problems with the insurance carrier who writes your "Non-trucking and Phys Dam" policy for the carrier you are leased onto. Most insurance carriers write those policies while you are permanently leased to a specific carrier. Each carrier (trucking company) will also have their own policies regarding O/O's having and using their own authority while leased to that carrier.
Now that the responsibilities of having your own authority have been addressed, is having your own authority worth while? If you are leased to a carrier that allows you to operate under your own authority, and you have a willingness to put the time in for all of the above responsibilities, then it is worthwhile. Having a secretary would be helpful. The elimination of the deadhead miles increases your bottom line. Keep in mind that the difference on insurance premiums (Just NTL + Phys Dam vs. Primary and Cargo) is large. You need to do quite a few loads on your own throughout the year to justify the additional insurance premiums and paperwork. I hope this helps you.
Thanks,
HotFr8Recruiter

 

[davekc]

I agree. It is much better to run under the carriers authority. In addition, if one is only paying 62%, you are not going to do that well with broker loads. As mentioned, Panther pays 85% and that is a much better rate. They also handle all collections.
I have looked at enough NLM boards to know there are certain areas of the country that produce little freight. There are only so many days in a month and every day that you sit is a lost opportunity to make money. If one load is not great paying, add another to increase the rate. Of course you don't want to run your truck at a loss so you must gain some experience with doing this. In addition, find the brokers that work well with you. We have several and some of thoere rates were very simular to the expedite load. Put two on the truck if possible and you are running at a much higher rate. We have done this for a good period with a truck that has a 18 foot box.
The other item to consider is that I have never had a brokered load on the truck that paid less than any companies normal deadhead or empty moves.
Certainly not for everyone, but for some it is a viable option
Davekc