O/O Owned Broker Co-Op

I hire trucks for incoming loads, almost all reefer.

Then my own trucks deliver final product to customers.

 

Several years ago, I considered something along the lines you are talking about. Some of what you would like to do has merit, but if you want owner operators to invest in something like this, I don't see it happening. You are primarily talking about a dispatch service in the way it would operate. Someone will need to manage it. Someone will need to underwrite the start up costs to get things rolling. I decided to not pursue it due to the time commitment. I had too much on my plate at the time to give it 100%.

 

An ethical brokerage business has a much lower ROI than that of a trucking company. A carrier that is looking to grow direct business would be wise to look at adding brokerage as a tool to help the carrier side. But stand alone brokerage will see about 10% gross profit and less than 5% net profit.

A carrier should be able to double that plus see a return much faster because during the growth phase a carrier can keep a truck moving with loads from other brokers.

So compare having 3 loads from a customer in a week. The broker only has 3 loads to get income from. The carrier has those 3 loads plus loads they find from brokers.

So anyone carrier that would be looking at investing in a co-op could find a much better return growing their own business.

And comparing starting an in house broker vs using a co-op does not work. An in house broker can start by using excisting carrier resources (staff, computers, interent, etc). A co-op would have to fund resources up front.

 

Not all owner operators have good communication skills. Not all are good businessmen. Not all are well organized. But, many are good communicators, good businessmen and well organized. I think that you are confusing owner operators with carriers. We usually consider an owner operator as someone who owns a truck and leases it to a carrier. A carrier can be a single truck or not own any trucks. A carrier can lease on owner operators to their authority. Many do call those who have their authority and only own a single truck as owner operators. Others may call them independents.

You might be better off starting a dispatch service and then growing your concept from that. Having a dispatch service would give you a taste of what it would be like to run trucks. With the concept you describe, someone will need to be in charge. You need to have someone who can run the company. Whether you call it a business or co-op it is still a business. Every business needs a leader.

 

Owner Operators Co-Op

 

8 years ago

 

Time flies when you're having fun.