Carrier Authority Vs. My Own

Discussion in 'Ask An Owner Operator' started by CaliTrucker510, Jul 17, 2013.

  1. CaliTrucker510

    CaliTrucker510 Bobtail Member

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    Jul 17, 2013
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    Hey Gang,

    I've heard of O/Os running under their carriers authority being asked to start using our own authority (and own MC numbers) as a way to make sure the carriers safety rating isnt affected by the O/Os. My dispatch recently mentioned something about this . How common is this? Do you have any experience with a carrier asking you to do something similar?
     
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  3. volvodriver01

    volvodriver01 Road Train Member

    If you what they want is for the trucks too have thier own numbers then they should up their pay to 87-90% for getting the trucks loads. There should also no longer be any contract stating you are "leased" onto them as a contractor. They would now be considered your broker. Also the trucks would not be tied to their company as the truck can get "loads" from anywhere they choose.
     
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  4. BigBadBill

    BigBadBill Bullishly Optimistic

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    It is becoming more common however it is more related to the old trip lease model. So while you are using your own authority they are still keeping the driver under the drug consortium and safety. It is more a way to get around the no brokering agreements and get more freight covered. Also, unless self-insured, larger carriers are seeing an increase in rates that are higher than what a small carrier can get.

    I suspect the early adopters of this will pay well and then you will see those following doing what is very common. Drive the pay down to drivers.
     
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  5. bigdad7

    bigdad7 Road Train Member

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    Jun 6, 2010
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    Man i hope not as i get 90% running my carriers authority
     
  6. thirdreef

    thirdreef Medium Load Member

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    Jul 8, 2013
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    If a company is worried about there CSA score ,you might want to pull-up the score and see if they are good enough for you. It sounds like the company wants to get into brokering . When you have your own authority you loose some of the benifits of being leased with that company. As they can pay you when ever, you have your own licensing, IFTA, all of your own insurance. Now the next thing you might want to look at is does this company have a brokers authority, and the performance bond. You are now a trucking company. Where you wouldn't have to take their loads unless you want to, and you could go to outside brokerage or get customers on your own. When you get your authority active, dot will want an audit, so somebody that knows what's happening has to do it at your office, home etc. then there is the drug test consortium that you need to be a member of, somebody to file your IFTA state taxes, your billing so you get paid, your own invoices, log books, etc. you are a business. Now do you want to do all of the required paperwork, billing , filing taxes etc, or will you hire somebody. I found it hard to work all day and spend at least an hour or better with paperwork, then there is the time on the phone looking for loads, hunting down slow or no pays. Now is it a god way to go ? It's all up to you. Now the big thing is you need to know what it costs to run your truck per mile, and how cheap will you go to take a load. That will make it where you are successful or will the repo man be hunting you down.. He will defiantly tell you how successful you are. Best of luck what ever you do.
     
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