The path to o/o?

Discussion in 'Ask An Owner Operator' started by gravdigr, Feb 8, 2012.

  1. gravdigr

    gravdigr Road Train Member

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    So I have been researching this a lot and there's some things I find confusing. A lot of advice says be a company driver for a few years before trying to be an o/o. What more are you learning getting your loads and route handed to you on a qualcom driving 3 years for a company rather than 1? In one year as a company driver if you cannot figure out how to do your own trip planning and hours management you will probably never get it. Unless you are using the company job to make money to buy a truck I cannot see what other benefit you are getting out of it that can be applied to being an o/o.

    Then when you do go o/o people say do not lease onto a company, get your own authority. So the logic here is to take someone who has never been on their own trucking and throw them headfirst into authority, insurance, IFTA, brokers, and taxes? Would it not make more sense to lease onto a company first to get your feet wet where you do not have to worry about authority, IFTA, insurance, plates etc. and instead pay the company a flat fee to handle that while you concentrate on learning how to deal with brokers, shippers and receivers, and the like. Then when you have confidence with that look into learning the rest and then get your own authority?

    Just curious what you think. Been doing a lot of reading and talking to other drivers on the subject.
     
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  3. Semi Crazy

    Semi Crazy Road Train Member

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    The path to o/o is just like a path through the woods. There are blood-sucking parasites waiting to latch on to you everywhere! Use plenty of Deet!
     
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  4. rollin coal

    rollin coal Road Train Member

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    Because you don't really have a clue about the basics of trucking. I surprise myself sometimes I can call these brokers about a load, when we get down to the nitty gritty, they tell me the company it's picking up at etc. A lot of times I am familiar with the company and their product, I'm talking about off the wall companies here. Another instance, I know when to expect big wait times for loading and unloading and asking about detention time. I was looking for loads out of NC once and saw a boatload of them, 10 or 15, coming out of Eden, NC. Now I knew better than to waste my time even calling on those loads because I have been there with the old company and know all the hassle of that place.


    Just for fun I called one to see and, yep, it was really cheap and beneath me ever calling and asking again. And I also understand the situation with those very loads is you could wait for 24 hours or longer at the shipper and it is NOT JIT freight meaning the receiver doesnt care when it gets there within a few days time, so those loads will never pay squat on the spot market. They are just garbage fuel money loads for mega carriers. These are just some small things that I can think of. It's really difficult for me to put in words the many things I take for granted pulling loaads off the boards that I would never dream to think of had I not had that long 10 years of grinding it out experience of just running the freight that was put on my truck without the hassels of searching for it myself.


    And I am by no means an expert on searching for loads. I just hate to think of the sevral things that would have surprised me over the past 5 months working load boards, that didn't because my experience led me to ask the right questions before I even started rolling towards the piuckup. And there have been a handful of loads that I ended up balking at and skipping out on because, well our office personel dont have that experience either, which is not a problem I just have to check more, but if I dont like what a broker is telling me about something I'm not hauling their load. If you fly into the o/o without at least 3 to 5 years experience you're just not going to have any gut instinct to go off of. You'll be flying blind so to speak. It's not necesarily a huge roadblock or anything but it will definitely be a big handicap for you that will end up wasting a lot of your time and probably costing money too.


    I'll toss another thing out there. With time on the road as a comp[any driver you will start to build up a memory bank, a road map so to speak, in your head. This one key area that I think is more importanat than any other. Which will quickly help you to figure that a load going from Baltimore, MD to Lexington, KY is going to have to pay a really fat rate considering the shortest route if it weighs 80,000 gross. Honestly it would have to pay a fat one if it was light in my book. There are just some routes that suck. Of course you won't know that without experience. I could have done what I am doing now with 3 years as a company driver behind me and hit the ground rolling like I am now.. it's possible you could do it to after as little as a year. But I doubt it. Running regional all those years, pretty much the same areas I tend to work now, it took some time for me to build that roadmap to where I can hear city names and know the basic route most times without even looking at a map. Although I routinely find with some of these oddball routed loads I'm running now that I still dont know every road and mapquest is your friend.
     
    Last edited: Feb 8, 2012
  5. RedForeman

    RedForeman Momentum Conservationist

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    What RC says ^^^^^^ plus..

    Think about planning loads around HOS requirements, PM stops, etc. When thinking about a load from SC to OH, knowing to check the weather in WV. Knowing when a $2.25/mi load tomorrow isn't as profitable as the $1.90 load today is.

    All stuff that you may not have any "hands-on" experience with as a company driver, but will have a far clearer insight to once you've been OTR for a while.

    Some will be baptism by fire. Like knowing how to work with a broker. Or knowing when the best time to call on loads in a given market area is. Or being able to spot higher value loads based on market areas and who's posting them. And so on.

    Based on 20/20 hindsight, I'd value that experience coming in at around $10-20k, assuming you're as smart as I think you are. If I'm overestimating your ability, the dollar amount is greater. That being the money you will give up through loss or opportunity cost because you don't know better.
     
  6. rollin coal

    rollin coal Road Train Member

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    A post like that Red reminds me of what areas are my trials by fire. I'm actually in a trial by fire right now having worked myself up to the great north east, against conventional wisdom, and I think Bill's better judgement.. ..but it is working so far and I'm under no pressure to go anywhere other than where the rate takes me for the next 10 days or more so we will see where this thing goes...
     
  7. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Gravedigger, even though any truck company you lease on to will do IFTA, insurance and dispatch (which means you won't deal with brokers ), you, as a glorified company driver (L/P ) will still need to monitor your settlements and understand how to read them and understand where your money goes. Then you need to consider "forced dispatch" and can you "trick out" your truck ? Probably not, since it's really not your truck, yet. Until it's paid off, you're a company driver.

    If you want to be an O/O, then be an O/O......all the way, both feet, not just your big toe. The process can be done yourself or by an agent for a fee. There is a HUGH difference between a L/P and having your own authority. A big mistake a lot of L/P guys make, is thinking they can call the shots......not so, my friend. Do not finance a truck with the company that you are beholden to, that dispatches you, that does the bookkeeping and controls everything.

    Run your present company truck as your own truck for 30-60 days and keep track of every penny, coming in and going out. You'll have to estimate some figures. Just some friendly advice.
     
  8. gravdigr

    gravdigr Road Train Member

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    Rollin coal, I get you on the trip planning stuff. I'm getting to the point where I can remember routes and drive times. Most of the time I don't remember it until I check it on the map, but then I look at the map and think "I remember that route, this route sucks lots of slow 2 lane" or "I remember most of this is US route but it is 4 lane 65 mph most of the way" so I get ya there.

    As for planning trips around HOS requirements, I like to say I am a student of the HOS. I made it a point to understand the HOS inside and out. I have actually impressed my dispatcher with how I can work my logs to deliver a tight load on time in a governed truck. Once he said I couldn't deliver on time because I would have to take a 10 hour break and would be 2 hours late for appt, but I told him it was no problem I could just take an 8 hour break in my sleeper to extend my 14, deliver the load on time, then just spend 2 hours at the receiver (I knew I would be there at least 2 hours for them to unload me as I had been there before) and I would leave there with the bulk of a new 11/14 clock. His words "you can do that?".

    Thanks for the replies I know you guys will come up with stuff I never thought of.
     
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  9. gravdigr

    gravdigr Road Train Member

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    I didn't mention L/P, I meant a truck owner leasing onto a company ie. I buy my first truck then lease myself onto a company.

    Yes learning to read your settlements and figuring your profit/loss, fuel cost per mile, break even point per mile, maintenance cost and PM planning all come in. But that won't be learned with a company driver. The best I can do as a company driver is track fuel mileage and use. Fixed costs would just be a shot in the dark as well as load rates as that is something companies will never tell us.

    And since you brought up L/P let me run something by you since I researched this as well as part of my information gathering mission. Supposed you found a company you could L/P a truck from. The truck is 3 yrs old, payments are $300/month, with other fixed expenses your fixed cost per week runs around $800/week (not counting fuel since that cost isn't fixed) ie. plates, registration, ins., trailer lease, etc. This 3 year lease includes bumper to bumper maintenance for the first 2 years and PM only in the 3rd year. At the end of year 3 you can pay a $5k balloon and keep the truck or you can walk away at any time during the lease.

    In addition with this company there is no qualcom, no elogs, no dispatcher, just a company load board. In addition you can choose your own loads from any load board/broker that passes the company credit check.

    This is just another option available.

    Also keep in mind the wealth of tools and information available out there. Kevin Rutherford has a couple tools available online called fuel guages and profit guages along with tutorials that show you how to track fuel use and mileage and how to reconcile your settlements and figure out your profit loss. Then there are tutorials and webinars that can teach an ambitious driver how to be a successful owner.

    But anyway there is a middleground between L/P and O/O with authority, O/O leased onto a company. Incidentally if I went O/O with authority I found OOIDA will do everything you need and walk you through the entire process of getting authority and handling all the compliance issues such as drug testing.
     
  10. RedForeman

    RedForeman Momentum Conservationist

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    Knowing what you need to get in and out is half the battle, and drops the stress level way down. Knowing the best way out and your options for getting out is the other half. That last part tempers the greed a little and helps you say no when you're slobbering over that rate and the little voice in your head says you know you're gonna come out MT or sit too long.

    Had to do that myself twice this week with regular customers. In one case my offer was too high and I let it go versus taking too much risk. Booked a different load with the same guy for the next morning because the math worked better on it. The other was my best customer, and in some different circumstances (maybe if it had been a day earlier in the week) I could have made it work in the name of customer sat. He wasn't offended when I turned it down. That dude's been in the trucking business over 25 years and he knew it was a turkey. I think he threw it out there to see if I'd bite.
     
  11. RedForeman

    RedForeman Momentum Conservationist

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    Just the tip of the iceberg my friend. You'll need to polish up your chess game to play that out a week ahead, then shop the loads to make it work. Since I'm not driving, I also have to guess and take into account driver fatigue while I'm trying to load them up with miles without making them want to quit. Doing all that for yourself while driving will make it all the more challenging.

    For example, today both drivers have run hard for two days straight. I know by the time those loads final, one in the morning the other tomorrow night, they won't be playing well with others. Now I have to figure out the best runs for both that will A: keep the trucks moving and B: not have to post bail for anyone when they beat a dock hand to death. BTW, neither is pushing any boundaries on HOS.
     
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