I own two straight trucks and have them leased to an expediter as a side business right now. I can't drive as I cannot get a CDL (have an ICD). My goal is to leave the desk and industry I've been working at for 20+ years and get my own authority with the two straight trucks and venture into the big trucks. I did drive t/t years ago but have not had any experience with them since the early 80's. I'm giving myself until April 1 (yes, April Fool's day...) to get my first trucks & trailers on the road. Asking for advice in what type of preparation I can do to familiarize myself with the tractor/trailer side of this business in the mean time. My thought was to join a load board (possibly My Members Edge, I'm an OOIDA member) just to see what is out there, what to expect. I've called on 'clients' before so can certainly try to get some of my own but want to get a feel for what is out there, what rates are like, all just watching from the sidelines. Plan is for dry van and/or possibly reefer, live in the Chicago area, but am free to hire drivers that would be convenient to the freight, as long as it's not too far from here. Any other tips would be much appreciated. Just in a learning, watching and listening mode now and for the next few months....
Thanks....
Preparing for own authority
Discussion in 'Ask An Owner Operator' started by osumike33, Aug 17, 2012.
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How much,,,,,,,,, on 'hand cash' do you have? Just kidding!!!!!!!!! The area,,,,,,,,,,,,, you are in. is always changing. If possible find a NICHE MARKET. Something nobody else wants to do.
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I think you'd be better off staying with expedite and maybe add a few trucks . Running under their authority saves a lot of money and headaches . A few violations during inspections can really hurt a carrier with just a few trucks . You also have to ask why drivers would want to work for you . Can you offer pay and benefits to attract and keep good drivers and still bid competitively ?
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If you plan on putting drivers in trucks I would encourage you to find drivers that live close to you. Having them close will make it much easier to check your equipment and they are less likely to abandon your equipment. Subscribing to a couple of loadboards is a good way to see where freight is running. Mymembersedge is owned by OOIDA and members can receive a discount. It is owned by DAT. Any load posted on on DAT board is supposed to be visible on any of the various DAT boards. You could also subscribe to Internet Truckstop or Getloaded. You will either need to have your authority or know someone who Will allow you to use their credentials. You may be able to subscribe using your present carrier's information as long as you have their permission. In any case, you can start checking around before you start spending money. As someone else mentioned, you could always add more expediter trucks and leave them leased to your current carrier.
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Thanks for the input. The main reason I want to establish my own authority is I want something 'to do', I want to take an active part in the day to day running of the company. And I too have questions as to why someone would want to work for me or such a small carrier, but, it does happen and I know the guys that drive my trucks now are very happy, even though they deal as much or more with the carrier than with me. So, that's why I want the time to check into all of this first, make sure it will be viable...maybe it won't. But, it's the being more involved I'm looking at more than the money part of it...maybe I can make myself into a carrier that other guys will want to lease on to. I thought of putting on trucks with someone like Landstar, but would still have to pay the drivers and I'd be getting the 68% instead of the entire amount, but without some potential headaches....anyway - we'll see and I really appreciate your comments.
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If you furnish your own trailer with Landstar you will make about 8% more than power only. It could be an easier transition to buy trucks and lease them to a carrier before getting your own authority. The capital outlay would also be much less than getting your authority. If you want something to do then Landstar or similar carrier could provide that "something." Many of those that did best when I leased to Landstar had a spouse or someone watching the loadboard and making phone calls while they drove the truck. I have known fleet owners who have leased their trucks to Landstar and CRST Malone. Those whom I met did seem to do well. It takes a lot of time to dispatch trucks. It is not a 9-5 job, whether they are your trucks or not. Finding the better paying loads requires time and effort, especially starting out. Whether you get your authority or lease to a carrier you should be prepared for a learning curve. You will need to learn their system or develop your own under your own authority. -
Thanks...have definitely thought of that and have spoken to Landstar. They would require that I put my two straight trucks on with them as well and I'm not quite prepared to do that, happy where they are. I might do something with ownership of my company, come up with another company for the big trucks, to get over that hurdle. I know that makes the most sense, that way I will learn that part of the business better before making the leap into own authority.
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