Independent vs Company OO

Most companies just want to act as your agent, book the load and take their money. Even if they initially pay for things, they'd just be financing you and will ding you for the money later.

 

As an O/O you still pay everything the same as I do as an independent. As an O/O you are pretty much restricted to their loads. Being independent you can pick and choose from everyone's loads.

 

If you don't already have a good list of contacts for freight,it would be a lot easier to start out leasing on. Keep track of the good and bad. I'm leased to a small co but basically do my own thing,have been working with same broker for last two months for my back haul. Once you get a good reputation with a few brokers and learn your local freight base,then you can look at going on your own. For me it's best to just stay leased on.

 

You don't need any contacts. You just get on the load boards and pick a load. It's simple.

 

I can tell you a lot of the better freight doesn't make it on to the loadboards. That's why I've been working with same broker for last two months.

 

Probably true most of the time, but where I am leased I can haul agent freight or get it off a load board or have my own shippers. It makes no difference to them. Granted though, you are generally on target.

 

Starting out, leasing your truck on to run under a carrier's authority will give you access to resources that will be unavailable as an independent. Licensing, permits, fuel taxes, fuel cards, or even just guaranteeing a paycheck every week even when customers are slow to pay their bill...not to mention finding freight, a support network when you break down, etc... The company will be there to help you if you're contracted to them, but if you're an independent, you've got to figure it out on your own.

Sure, you can make more hauling the freight when the company isn't taking their cut off the top...but just starting out, sometimes it isn't such a bad thing.

 

As a true Independent with your own authority you can haul direct for the shipper .Hauling direct you cut out the pimps (middlemen) . Sure it takes more effort and work but making an other 25% or more makes up for it. There are many carriers, agents and brokers that get all their freight off load boards or from the mega brokers called "Third Party Logistics". Too make money go direct and cut out the middleman, the carrier and the brokers.

 

As an independent you really shouldn't limit yourself to that kind of thinking. 3PL's can be an excellent source for very lucrative freight. Reality is that's just how some transport gets handled and in many cases you will never access that direct.