Why lease / work for a company as an O/O?

Discussion in 'Ask An Owner Operator' started by numerius, Nov 26, 2014.

  1. numerius

    numerius Bobtail Member

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    Nov 4, 2014
    Chicago, IL
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    Hey guys, I have another question to seek your owner operator driving wisdom.

    Before I was looking into dispatching myself or getting a dispatching service. Now I am looking into companies. I know a few owner ops who are driving under the company's authority. Some on a "per mile" plan and some on a "percentage" plan. Overall there seems to be quite a lot of (semi)-legit companies out there and all of them offer a wide variety of perks for signing on with them. At the same time I've heard some horrible things from O/Os who run under a carries company.
    And so I wonder -- what is a proper motivation to join a company with your own truck? Is it the ability to use their internal loadboards of approved brokers/shippers, or not having to deal with insurance/MC#/paperwork/payment, or is it the perks the companies offer (such as purchasing power, paid lumper and tolls). Or is it something else like getting experience etc.
    Also when I am looking for a company to work with, what should I be looking for?

    And finally, just for giggles, what would be a perfect company to work with for you?

    I really appreciate your insights!
     
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  3. gokiddogo

    gokiddogo Road Train Member

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    You pretty much hit the nail on the head. When an o/o is running under someone else's authority, the company they are working for typically has access to enough good paying work for it to be worth while for the o/o. Also, typically the company takes care of all tax filings, all billing and collection issues, probably has a better rate on insurance than the o/o would get if he were independent, and also they usually provide a fuel card and float the cost of fuel, maybe even get good discounts. All of this in exchange for a % or it is figured into the mileage rate.
     
    Lone Ranger 13 and numerius Thank this.
  4. magoo68

    magoo68 Road Train Member

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    A shady trucking company in Chicago wow
     
  5. numerius

    numerius Bobtail Member

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    Nov 4, 2014
    Chicago, IL
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    gokiddogo, the fuel discount would sure come in handy.

    magoo68, that's what I'm trying to avoid. I've heard some good and bad things about Roadrunner and Jones Transport has been recommended to me, but I want to do more research before diving in and risking going broke.
     
  6. heavyhaulerss

    heavyhaulerss Road Train Member

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    some big co's will only give loads to a trucking co with 10 or more trucks. unless you know someone. that is the case with some Nucor steel locations. I do not do cold calling for hours trying to line something up. when my phone rings, it rings once, with the load I want, going to where I want. I do very little paperwork. I transflow from home, so no driving to pick up my check, and of right now, the last 3 weeks my fuel discount is .50 off cash price at pilot, loves. last 4 day's of work saved $124.50 just on fuel. just some of the reasons I am leased.
     
    Last edited: Nov 26, 2014
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  7. scottied67

    scottied67 Road Train Member

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    I am an owner operator leased to Roadrunner. They have an abundance of flat per mile rate terminal to terminal freight which I love (would love the per mile rate to be a little higher tho). They also have in house broker agents who can also set me up with percentage pay loads. I also have the option to sign up for my own 'pay for use' load boards and search out my own loads. Roadrunner supplies a list of approved and unapproved brokers I can see on the load boards. If I get a strange one they will run a credit check on them for me.

    If I take a terminal load or an approved broker load, Roadrunner will advance me money from that particular load for fuel. Deliver safe and get paid the balance of the load due next week.

    I do score fuel discounts, I did see a discount about $0.70 cents off billboard price at one location, but most of the time it is in the $0.50 -$0.20 range.

    Insurance is cheaper by several thousand dollars a year. And they do have the option for group health insurance rates and settlement deduction. I do have to pay for plates and permits but it is also taken out a little every week for 6 months rather than all up front for the independent guys.

    If my truck breaks down they will help financially.

    So you see there are all kinds of benefits to leasing on to another carrier's authority.
     
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  8. zinita17601

    zinita17601 Road Train Member

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    that sounds really good,i have couple of questions .do they give you hard time when booking work from the load boards?once you find a load how fast they send the broker a signed con sheet?
     
  9. numerius

    numerius Bobtail Member

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    Nov 4, 2014
    Chicago, IL
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    zinita17601, from what I've heard Roadrunner drivers just send their rate cons to their backhaul department, call in, and it's all done (if the broker's approved). Apparently, it is very hard to reach the backhaul department by phone tho. Not sure about how fast they sign it...
     
  10. gokiddogo

    gokiddogo Road Train Member

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    "backhaul department" ? .....

    lol sorry ......
     
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  11. numerius

    numerius Bobtail Member

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    Nov 4, 2014
    Chicago, IL
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    That's what a pal of mine called it. Said they never pick up the phone.
     
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