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What does it mean...

Discussion in 'Ask An Owner Operator' started by Ducks, May 31, 2007.

  1. May 31, 2007 #1
    Ducks

    Ducks "Token Four-Wheeler"

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    ... for a trucker to have his own "authority"? I see this term used periodically and am not sure what it means.

    Thanks!
     
    Ducks, May 31, 2007
    Ducks, May 31, 2007
    #1
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  3. Jun 1, 2007 #2
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    It means a whole host of things but the short version is that the government regulates trucking companies and in order to do this they issue authority as a way of keeping track of them.
    It bring with it certain requirements one being minimum insurance standards. Also a requirement to abide by the laws that go with operating authority. Laws that regularly get broken and then revenue generated to the government thru fines etc when the offender gets caught.

    It allows the company with authority to seek their own freight. Whether its one truck or 10,000.

    Where as a leased operator is only able to haul what ever freight the company he is leased to provides.
     
    Brickman, Jun 1, 2007
    Brickman, Jun 1, 2007
    #2
  4. Jun 3, 2007 #3
    Ducks

    Ducks "Token Four-Wheeler"

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    Thanks for the explanation, Brickman. When you say they can "seek their own freight", do you mean that the trucker with his own authority can secure freight through what I think you call a broker, or does it mean s/he has to solicit their own loads with shippers?

    (I feel like such an idiot here sometimes. LOL)
     
    Ducks, Jun 3, 2007
    Ducks, Jun 3, 2007
    #3
  5. Jun 4, 2007 #4
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Either/or


    They can legally haul for who ever they want. Kinda like "if you got the money honey, I got a truck."
     
    Brickman, Jun 4, 2007
    Brickman, Jun 4, 2007
    #4
  7. Jun 6, 2007 #5
    wallbanger

    wallbanger "Enemy of showers everywhere"

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    BMan is dead on, having your own authority means you can also set your rates, when dealing with a customer/shipper. You hear a lot of talk about not hauling cheap freight, that's where your own authority can help.
     
    wallbanger, Jun 6, 2007
    wallbanger, Jun 6, 2007
    #5
  8. Jun 8, 2007 #6
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    How it works is you tell them what you WANT, and they tell you whether or not you have a load. Having your own authority does not mean you get what you want for a rate.
     
    Brickman, Jun 8, 2007
    Brickman, Jun 8, 2007
    #6
  9. Jun 8, 2007 #7
    Ducks

    Ducks "Token Four-Wheeler"

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    Thanks, Brickman and Wallbanger. I am learning -- may I ask another question?

    Having your own authority seems like a lot of responsibility when you think about everything involved -- seeking good-paying freight, maintaining comprehensive records, and, no doubt, the periodic submission of documentation to the governing agencies... not to mention the time spent on the road actually getting your freight delivered.

    Do many O/O's pursue this, or is it safe to assume that most will lease out to a company...
     
    Ducks, Jun 8, 2007
    Ducks, Jun 8, 2007
    #7
  10. Jun 8, 2007 #8
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    There are a lot of independents, there are also a lot of lease O/O. I don't have the numbers of how many do what.



    I've been both, and my experience was that I made MORE money with LESS work when I was leased to a good company. That is the key to be leased to a good company.
    What ever you do.... DO NOT fleece to own with the likes of Swift, CR England or ANY of the other fleece to own companies. Do not have your financing and available loads thru the same company.
     
    Brickman, Jun 8, 2007
    Brickman, Jun 8, 2007
    #8
  11. Jun 8, 2007 #9
    wallbanger

    wallbanger "Enemy of showers everywhere"

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    You sure ain't kidding about that, a good company can make a lot of headaches disappear. And, it also lets you focus on running your business.

    I have a friend who is leased to a carrier, and in his situation, it isn't bad. However, he will soon have his own authority, and then he plans on running completely independent, because in his case he will make more money. BMan is right, there are still plenty of independents out there, but there are probably more leased operators right now.

    And Bman, sure, you won't always get what you want for a rate, but having your auth. means you're not at the mercy of some crappy co that's pushing $1/mile freight.
     
    wallbanger, Jun 8, 2007
    wallbanger, Jun 8, 2007
    #9
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