Owner Operator Min Mileage Requirement

O/Os are independent contractors so mandatory work days would imo be hard to make legal in an agreement which is what you have with them I’m sure you don’t have a contract or would hope you don’t.Its really simple if you have people who aren’t profitable to your business you let them go and move to the next.I would say to the guy your not making enough revenue to cover your overhead. If you want to mandate work schedule you need to hire employees.

 

I’m not sure what he’s doing that you think is out of the normal range. If someone leased to you and you were covering insurance,trailer and fronting fuel money aren’t you allowed to make money?

 

I have been thinking of this very thing for sometime now .
I'm an O/O with landstar
Why not set up a sliding scale percentage , so you cover your expenses but encourage drivers to earn more .
The other side of the equation is why should a driver earning 5k a week pay the same % as a driver earning 1k per week

 

I like how the company I'm leased at doesn't charge back for cargo & liability. That's how it should be if you're leased. They actually have a nice arrangement with their insurance company to where they only pay those costs for the miles I run each month. If I run zero miles in a month the cargo & liability they have to pay for my unit is zero to the insurance company. As a one truck operation or even a small fleet I don't think insurance companies give those kind of deals. As usual the little guy always pays top dollar and gets no breaks.

 

Nothing is out of the norm....except in my experience, Lease-on carriers want O/O's to carry their FC (trailer / office / Yard costs etc)

That 20% (or whatever) cut should be figured to cover their FC - if not, then they (carrier) are not charging enough.

My argument was: why should I GIVE UP nearly 350/week to lease on, then deal with drama (dispatchers etc), and STILL GIVE UP a cut of my load, when I can do the same with my own MC? I can pay my own insurance ($350/wk) and 100% of my load without some dispatcher starving me esp if they vindictive.

 

This is how it should be.

 

Well first I’ve never heard of a insurance company that charges on a per mile base.I guess your paying insurance premiums every week.I don’t know of any insurance company that is payed that way usually at the very least liability is payed on a 6 months bases.Insurance companies want the money up front not after the fact.The $350 your talking about saving your basing that on if you could get the same rate or do you think that broker is not going to keep 20,30 or even40%.If like the op said he’s supplying the trailer how much is that trailer now going to cost you.he als said he paid fuel tax how much is that going to cost you.he stated he was paying cargo insurance how much is that costing.So are you saving money because your making more if you’re also spending more

 

So if you take 2 weeks off and don’t pay liability how do you keep your tags

 

I'm not so sure about that. As part of the contract one can specify a minimum performance required. Have a bonus to meet it and/or have a fine if not met. Heck that's what happens in construction contracts all the time. I.e. finish the bridge replacement by June 1st and get a million dollar early completion bonus. Finish after July 1st and owe a non completion fine.

 

@Pepper24 What does liability have to do with IRP? I pay for my own IRP every year. I pay for bobtail & physical damage on my own. I *wish* I had a sweetheart deal like the company I'm leased to has on their cargo/liability but it's cheap anyway.