Considering a pilot program for O/O-feedback please.

Having been thoroughly ticked off by some recent ocurrences, I am considering a pilot program empowering aspiring O/O, as well as existing O/O's. This industry for a number of reasons has changed, and it appears that the backbone of the industry, the driver, is bearing the blunt of deceptive, unfair practices. It is essentially a system that will provide upstart capital for equipment, load planning svcs., auth., and more. It will based on "fair" splits, and surrounded with professional advisors such as accountants, attorney's, etc. for oversight to insure uninterrupted service. At present I have most of the players in place to launch, as well as the freight connections to make this work. Trying to get some feedback, as this will be a costly venture, and I have to consider all aspects from the upstart to loss mitigation, thus any feedback is welcome. Happy Trails!

 

Thanks for the feedback guys. It is really sickening the way this industry is going for the small company. I have watched various brokers jockey for position obviously cutting rates. I have friends that are freight brokers and it appears to be a free for all, even still the rates they are getting are no where near the rates for the carrier. It is my hope that a carrier service 'type' or carrier could both secure the freight, manage an account, make a little and pass a bit more to the truck. Just had a friend take a job @ .20/mile??? He said because they offer insurance-hmmmm...... At 2500 miles per week that is some expensive insurance. The math doesn't jive!!!!

 

This is not rocket science. Fortunatley I have not been one to chase the carrot, and work with some fairly decent people, but the posts just keep rolling in (some are my friends)-is it really that bad? that hard to see? There are so many scenarios that I see horses chasing the carrot. Got bad credit, but a good operator?Want to be an O/O? Fair rates? Why isn't there a network that can accomodate this cycle and eliminate the crooks reigning supreme? Let's hope that Wall Street can meet Main street and bring some subprime products to newbies and others, and brokers/shipppers can agree that there needs to be a more equitable distribution of revenue. "Divide and conquer"

 

Thank you for that outlook, which is why I posted this to get all types of feedback, and NO a union it isn't! nor intended to be. Assuming you know what 'actual' freight rates are, and assuming you understand prime rates in tems of interest rates (for equipment), then a picture should begin to develop. The picture: there are HUGE sums of money being made and improperly redistributed. Unike a union, which I absolutley think is garbage, I can't see why a "resource" could not provide shippers with comparable rates as a mega-broker, still making substantial profits and allow the truck to earn a worthy sum. Same for equipment lenders that impose inflated interest rates to effective, credit dinged O/O's. This is not concept lending rather collateral based, and if they are one in the same the risk has been greatly reduced. There is no one on top as in a union-just a reorganization of resources that makes it equitable for all-no mandates-no dues. Compared to any hedge fund, transportation is equally as productive, with less risk, and receession proof. This furthers the independence of the O/O through empowerment off the business owner (again unlike a union), by making resources available in 'real terms'. It all has become skewed because of seemingly dsperate times, when the reality is just the opposite. Unlike conventional employment this is hard clad and we all are co-dependent on it, but when pitched to a newbie that freight is a sacred opportunity therefore I will pay $ridiculous, or a lender charging you 18% interest due to risk is a joke. If I am a bank ("resource') that also has a play on the freight I couldn't feel more secure about giving a loan to a good driver. A union it is not. A "resource" that can make a little on both ends-the freight & equip. financing provides a more profitable opportunity for small business and fortifies their positions as both a freight provider and lender-it doesn't seem that hard.