SMART MOVES:Ask those who know-I want to employ O/O's and don't know doodly *h*e*l*p*

Discussion in 'Ask An Owner Operator' started by trashy_is_my_handle, Aug 26, 2010.

  1. trashy_is_my_handle

    trashy_is_my_handle Bobtail Member

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    Jul 17, 2010
    Racine wi
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    Folks, I need some help!

    The company I have been working with has only been running a couple trucks, and only since May, owned by the owner of the company. The owner is a novice, not even a driver, who got his hands on a couple of trucks and went from there.

    As for ME, I am a driver w 5 years experience who's family has outgrown my own ability to run otr. Now I manage the office. I have gotten a real good handle on dispatching, (thank goodness for PC Miler ) IFTA, schedule A, the brokers, the insurance, invoices ( eTrux.com is the BOMB for a rookie manager) and I have even managed to come up with a palpable company policy outline for the couple company drivers we already have. We have our own authority and run flatbed. I keep us FMCSA compliant, maintain a focus on safety and draw upon my experience as a driver to keep crap REAL. ((and now that I'm on THIS end, I feel a burning desire to call some of the companies I have ran for and APOLOGIZE! lol)) That said...

    Now I have been approached by a driver who has a truck in the works and wants to run under our numbers. Bossman says ****ing "A", let's do it.

    So here I am- clueless. I understand we will probably cover the plates. I suspect IFTA for the O/O's will be our responsibility too. Who usually handles the insurance? We want to maintain load control, since it will be our numbers they run under so I presume DOT and MC will have to be on the O/O's rig. Who usually pays for that work?

    I have a gazillion more questions! This is just the tip of the iceberg. I have phone calls and Emails out for info too. Any input you folks are willing to share would be greatly appreciated!

    Thanks!

    Jim "trashy" P.:biggrin_25514:
     
    denis3721 Thanks this.
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  3. denis3721

    denis3721 Bobtail Member

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    Aug 19, 2010
    Davenport, IA
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    Jim, omg . I have all the same questions!! I just started operating my company yesterday! Dispatching is easy especially since my dads the driver, he can forgive my errors if my make any :p ...but the hiring process is kind of confusing. I mean, I got all the regulations down, but who pays for what!? --plates, registration etc..

    I've never driven a truck, but my dad has for over 9 years. So I'm learning from him how drivers should be treated and what to do in certain situations.

    What trucking software do you use for, IFTA, Accounting, Dispatching tracking...I looked all over the internet and couldn't find anything good. Prophecy and other company's charge way to much...some even charge hundreds of dollars a month to use their software.

    Hows your licence agreement? Do you pay ur drivers cpm, or do u take a percentage from out of their settlement.

    Good to meet a fellow carrier on the forum. Hopefully some helpful answers start coming in
     
  4. denis3721

    denis3721 Bobtail Member

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    Aug 19, 2010
    Davenport, IA
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    I just checked out etrux.com it really is the BOMB!! Exactly what i've been looking for a while now!
     
  5. Krooser

    Krooser Road Train Member

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    Jul 25, 2010
    Wisconsin
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    I'm leased to a small carrier... I pay my own cargo and liability... and my bobtail and physical damage as well. I pay for my plates and permits but they get them for me. I pay for my plates at a rate of $200.00 per week in a load deduction.

    They dispatch me but I can refuse any load... so far I've haven't since they do a good job of keeping a guy busy.

    I get 97% on the product that they ship from their farm... and 92% on broker loads/loads from other shippers/etc.
     
  6. fr0sty

    fr0sty Light Load Member

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    May 16, 2010
    Melbourne, Victoria
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    I would say; the loads would be under your insurance... as well as the trailer(unless its his)..
    aside from that... I dont know (see im an O/O; all I pay for is my truck and trailer insurance, they pay for MISC(Warf card) cards or any other card I need to do a drop/pickup)
     
  7. trashy_is_my_handle

    trashy_is_my_handle Bobtail Member

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    Jul 17, 2010
    Racine wi
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    Denis, Kroozer and Frosty- Thanks for your input! Every little bit helps. In my research so far, I have discoverd that: per our ins carrier, WE are responsible for the cargo and liability insurance of anybody running under our numbers. To the tune of $6100.00 a year, per truck. OUCH. With a max of 1k down, per truck. BUT.. our cargo and liability are good policies, so that's a plus. (I need to look into the bobtail ins yet) --I'de look for a better ins provider but we are 4 months into our policy and bouncing around comes under a negative recommendation at this point.

    It's looking like it will take about 4k per truck to get one running under our numbers. That's plate and insurance alone.. yeesh

    I'll share more as I learn it.

    "trashy":biggrin_25514:
     
  8. MedicineMan

    MedicineMan Road Train Member

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    Jan 13, 2007
    Woodville, TX
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    like you already found out the cargo ins has to be through the carrier. There is no law that says you can't charge them for it though although most don't, they just get it back out of their percentage. Beyond that you can set it up any way you want as long as you can get someone to agree to it.

    Myself, I pay for EVERYTHING but I get it all from the company. it just makes it easier for me that way. NORMALLY I would liek to pay for my own plate and have it in my name but when I signed up they just happened to have a plate returned from another owner op that had 6 months left on it and they gave it to me to run for free untill it was time to renew. SO I went that way and just renewed it. All my insurance is through them and they just take it out of my settlements. They do the road and fuel taxes and I write the check. My lease technically says I run for 90% but I actually average more like 94% because they don't take their full percentage... or ANY percentage if my return loads are too cheap.


    I imagine if they didn't charge me for cargo i'd be down around 85% or thereabouts but personally I'd rather have it this way so I know I'm paying the exact amount and not more
     
  9. trashy_is_my_handle

    trashy_is_my_handle Bobtail Member

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    Jul 17, 2010
    Racine wi
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    Thanks Medicine Man:biggrin_25514:

    It's good to know that there is good folks out there willing to share info. As a driver FOR a driver, I want to make the best choices I can. I think it's paramount to protect the driver and keep him rolling safe and happy. THAT'S the point I hope to be able to separate our company from the douche-bags. Your input is greatly appreciated.


    "trashy"
     
  10. highside

    highside Medium Load Member

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    Feb 6, 2010
    Kansas
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    As the company, you must obtain the plates, CARGO insurance, LIABILITY insurance, and any necessary permits to complete the run. Whether you pay the costs or the O/O pays is between you and him, but they HAVE to be obtained by your company. Also, you can have only one LIABILITY insurance policy for the fleet (i.e. one truck get's his liability through company A and another truck gets liability coverage through company B -- you CAN'T do that -- only one LIABILITY policy for the company) BOBTAIL/PHYSICAL DAMAGE insurance is the responsibility of the O/O entirely... he can get whatever he wants from whoever he wants. He's not your problem when he's not under dispatch, so you're not liable for him.

    IFTA is your responsibility to FILE. Whether you charge for the service, return tax over-payments to the O/O, or charge the O/O for under-payments is between you and the O/O, but you are responsible for making sure it gets filed on their behalf.

    Your company name, DOT number, etc. must be on the O/O's truck. He can have his own name as well, but your company name must be the most prominent.

    Federal regulations state you have to settle with O/O's on a bi-weekly basis - even if you haven't been paid for the load yet. The O/O's agreement is between you and him - not him and your customer, so if you get stiffed for the load from the customer, the O/O still has the right to get paid.

    Make sure you have a lease agreement - for legal reasons and for regulatory reasons. States like Oklahoma mandate that your O/O's have a signed copy of the lease agreement in their possession.

    One last thing to remember...with CSA 2010 just around the corner, keep in mind that even though they're not your trucks, their actions will affect YOUR safety rating with the DOT. YOU ARE RESPONSIBLE FOR ENFORCING SAFETY REGULATIONS!!! This includes making sure their logs are legit, annual inspections get performed, etc. They can come and trash your safety rating, then leave, and you're the one who's left holding the bag, so I'd suggest you utilize the Pre-employment Screening Program to check your potential O/O's past inspection record to make sure he's not a renegade.



    GOOD LUCK AND GOOD TRUCKING!!!
     
  11. musicmaker

    musicmaker Medium Load Member

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    Dec 25, 2009
    Fort Madison, IA
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    by the way OOIDA will answer any question you have and will lead you step by step on any trucking business issue.
     
    halfburn Thanks this.
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