No experience but getting Authority

Those are some pretty steep ins. quotes. I would hate to start out having to pay that kinda rate, you are gonna be hard pressed to make it your first year without a lot of experience. Gonna need a large amount of luck and some really good paying freight, and keeping your butt in the seat and not seeing much home time.

 

Thank you for the information. The insurance is a high rate but as I said before I expected much higher rates. As far as the freight and keeping my butt in the seat, the freight thing will be a bit of luck thrown in with some, hopefully, good marketing. Me and my fiance will be living in the truck as we do not own any property or anything like that so in a sense all the time will be home time lol. Once again thanks for the advice though.

 

There are a few carriers who will lease on an older truck, but they usually expect you to run. They usually want you to have a certain amount of otr driving experience. When a carrier leases on an owner operator they immediately need to add you to their insurance and those expenses go on whether you move a load or sit. If you only want to run the truck on weekends, then you should save your money. Most companies do not ship or receive on weekends. Another consideration is whether you can get a load picked up and delivered and still get back to your regular job. I think that the main reason you are having difficulty finding a carrier is due to your lack of experience. That will also create a challenge to you in finding insurance. Progressive is one of the few commercial insurance companies who will insure new drivers.

It is good that your girlfriend's father is willing to help you. But, unless he has run his authority or owned a truck, then his help may be minimal. It is one thing to drive a truck, yet another to run a successful trucking company. Not that it can't be done, but without experience and the commitment to work the business, you may be putting your money into a black hole.

Have you actually sat down and looked at your expenses of running your authority? What about getting loads that will get you back to your job? Before moving forward, I would suggest that you sit down and take a realistic look at whether you can actually make this work if you keep your current job. It is not cheap to start a trucking company. That is what you are doing when you get your authority. It will take a serious commitment of time and resources to make it work. If you plan on driving the truck yourself, then I am curious as to how you plan on running and making a profit?
Unless you plan on putting a driver in your truck, I think you are going to have a difficult time making money with your truck.

 

That truck can get pretty small with two people living in it full time.

 

Totally understandable, since their fixed costs of operation for having me on the books go on whether I run or not.

I have done about six months now with my girlfriend's father, but it has been all flatbed. I enjoy the challenge of securing the loads properly (something I did in the military, as well as in my primary gig) but doing it in all different types of weather, plus tarping - I'm not sure it's worth the few extra bucks you make running a skateboard. Then again, we never had to wait an extraordinarily long time to unload - everything has its upsides and downsides.

I want to run reefer - I am in an area with lanes that are conducive to it, and I like having the option of running dry goods or refrigerated.

I don't want to just run the truck on weekends; my primary gig gives me quite a bit of flexibility. For example, last time I worked was two weeks ago for two days; I've been sitting on my butt since and it's driving me nuts knowing I could be making money. I don't work again until this Wednesday and Thursday, then after that I work three days the following week - so I have plenty of time to work around the regular gig.

Very true. However, I have also been watching the load boards for the last two years, and noticed that when brokers need loads moved on a Friday for a Monday delivery, the rate will magically start moving in the right direction.

Also a very good point - I have been contemplating this as well. I have decided the best way to work around this is to not book any loads until the day after I work for my primary gig, and to plan to be back an entire day before I am to work at the primary gig the next time.

In my due diligence, I have quotes from several insurance brokers. As is usually the case, Progressive is the one that keeps popping up. However, Progressive does not provide cargo insurance for reefer loads, so one of the brokers was able to shop around and find someone else to underwrite that. I also wanted to get physical damage coverage for the tractor, and doing that on one over 25+ years old isn't easy - I had to have the tractor appraised to ensure I would get my money back in case of a total loss.

He was a leased O/O for George Transfer for a number of years, but went on his own about 25 or so years ago (his MC number starts with 222). He's been driving professionally for over 40 years. He has been quite successful, but wonders what's the matter with me trying to get into the industry in this day and age (just kidding - he's one of the few people who 'gets me'.) His advice was to try and lease on to someone initially, and gave me several carriers to go talk with. He already pointed out everything to me that you have - and so far, those are all the stumbling blocks I've run up against. I spoke with him for over three hours earlier this past week, and one of the things he said was, "I don't want to poop on your parade, but you may not find anyone willing to lease you on. If that's the case, and you want to do this, then you're going to have to get your authority." He understands why I want to do this, that it's always been a passion of mine, that I've done my homework...and so it's either time to do it or wonder what could have been.

I have looked at the expenses...so much so that I've filled numerous notebooks and modified my business plan several times over the last two years. Since I will initially be restricted to the 500 mile as-the-crow-flies radius (with an exception of being allowed outside that radius twice yearly with prior notification to Progressive), I will be doing mostly regional work. I have made quite a few contacts who have direct shippers and have made it known that once I have my authority they are willing to set me up with their overflow work. I am beating feet around the local area to also set up my own direct shippers. I will be driving the truck myself, and my girlfriend (who worked for her father in the office and knows the ins and outs) will be acting as my dispatcher - she knows what our bottom line is and has dealt with many a broker on behalf of her father. Obviously running 'part time' it is much tougher to make a profit - but we won't haul cheap freight, and the initial expenses are being covered by 'seed money' from my other gig. If, in our first year, we are able to break even and start building a reputation for ourselves, I'll consider that a win. I have enough cash on hand to float the first two to three months worth of operating expenses, plus have a maintenance fund in the bank in case something goes boom. Additionally, I have a spare motor and trans in case something REALLY goes boom.

So I dunno if I have it all covered, and doubt there is any way you can ever cover it all - but I have tried my best to prepare as much as possible and do my homework so that I have the best chance for success that can reasonably be hoped for doing what I want to do.

 

No shortage of reefer freight in that area but you know rates suck coming out of there, so make sure you're getting paid on the way home.

That's odd. I have a Progressive policy and have $100k cargo insurance on a reefer trailer. What they (and probably most others) won't pay is a cargo claim due to a reefer breakdown. Cleverly they will sell you an add-on called "reefer breakdown" coverage for an additional fee. Most brokers selling reefer loads will have that add-on as a requirement in their carrier agreement and won't load you without it showing on your certificate.

 

Yes, I do know that...New Jersey is especially HORRIBLE. I have figured a few lanes that will pay well...it will require doing a 'triangular' routing instead of straight out-and-back. In other words, I will try to scrounge up the best rate I can to get west or southwest. Pick up a higher paying load to somewhere other than back home that has a lack of trucks, then make the final leg home (hopefully with another decent rate).

RedForeman, I would be very interested in PMing with you (if you don't mind) about some reefer-specific things. I've done searching on here (and elsewhere) as well as talked with current reefer operators in my area, but you can never have enough first-hand insight.

With Progressive, reefer cargo coverage is on a state-by-state basis...crazy, I know, but true. Unfortunately, Pennsylvania is one of the states where they do not offer it.

I'll make sure I have the 'reefer breakdown coverage' as well. Thanks!

 

Yeah it is going to be a bit different but I think we should be fine. We can always take a day or two off every month to stretch out legs. I am hoping to get at least a 60" sleeper though. That should make it a little better.

 

Even more interesting as my agent is in Pittsburgh (I think) although I am operating out of GA. Insurance companies operate under different laws of physics as the rest of us mortals.

I don't mind sharing what little I know LOL. The main advice I have is read a couple of old threads on here about minding your freight temps on loading and ways/excuses receivers will refuse freight. Often shippers will put temp tattletales in the freight and check them when you get unloaded. You really have to step up your game at the dock and with the broker. Don't be afraid to walk back there with a thermometer in your pocket and don't be afraid to leave "warm" freight at the dock if they won't note it on the BOL. Don't scrimp on reefer PM and trailer maintenance, and read a few of the many articles on the internet about how to load properly to improve airflow.

 

A 60” is small for a single person.
If you are looking to break-up with your finance there easier and cheaper ways to do it.
Man o man, what do you think this lovely young lady is going to think of you when she gets out on the road with you and realizes that all those wonderful life on the road stories are a load of Cr@p and you don’t have a clue to what you are doing?
I know I am sounding harsh but the reality is that you can maybe learn 10% of what you need to learn here. The rest happens on the road.
My wife has been reading these posts and keeps saying “that poor girl, she has no idea, no idea”.