So you want to "own " your own company

This is a very informative thread. Has anyone here had success as an O/O hauling crude? Thanks!

 

I can hear the crickets now- chirp chirp.

 

I agree with nightwind transport is about planing but also about targeting a market aswell. Its important to have an costing model that will be invaluable to your business. When you have a breakdown of your fixed and variable cost that are current you actually know when a rate is to low, you will be able to workout your profit margin. One principle is transport is to do more miles to lower your total cost to be profitable. But will only be possible if you can pinpoit your cost. Other mistake I see truckers make is not factoring empty hauling between loading points for example lets do a rough calculation:

If you do three round trips per week with an accounted empty hauling of 35miles between loading points that one round trip hauling empty is 70miles multiply that by three you have plus minus 210 miles per week that you never factor! multiply that by 53 weeks per year meaning (53x210) that is 11130miles per annum multiplied by averag of 1.5 dollars per mile translating into $16000 dollars of lost revenue!

Its important that when you enter transport to plan for market you entering aswell and to factor empty hauls into your costing model. If you enter transport without proper costing its like cancer that is untreated.

Hope this info above have been helpful as cost control can make you or break you. Remember transport is low margin and high volume type business that needs proper planing to be successful to stay in the game.

 

It is very interesting to go through these threads that have several years of posting on them. They are like a recorded history of the industry.

 

Hey guys my question is there anyone willing to finance a tractor to someone with bad credit? I dont want to get into a lease program I have limited otr exp. alot of flatbed exp. local for the gov. aerospace loads. Thanks

 

I been off the road since 12/2009 all the big companies want me to do a refresher before considering and most mom and pops are not giving me a chance I have twic hazmat triples and a passport 2 1/2 years flatbed and 6 months dry van and a month of tanker the QUESTION is if I buy my own truck will the companys still require me to do a refresher or will I be treated as a normal o/o ??????????

 

The only thing brokers will be interested in if you have your own authority is whether you have the right insurance. They won't have access to how much experience or how long you have had your CDL. You will usually be dealing with brokers starting out. Shippers will be looking to the broker to get a carrier to haul their freight.

 

NightWind,
Thanks for the education. I thought I wanted to be a an O/O, but my past record of miscues will keep me out of a truck for the next three years or more. Therefore, I don't want to take on any new debt. Thanka again.
2 notoes

 

I am a young entrepreneur thinking about venturing into trucking business within Canada. I'm thinking about purchasing 24 feet box trucks to transport all kinds of goods on skids across Ontario wont be doing any long hauls for now. I've been researching online. Spoke to a few owner operators who told me not to. I am a dedicated individual that doesn't take no for an answer and i feel i can do anything i put my mind to. Does anyone have any advice for me please. I need some advice as to the what i should expect in this field as well as how to obtain contracts to provide carrier services.

 

It is an extremely tough market to tell your customers you only haul within Ontario. Think about how they are handling their LTL now. They are most likely having most or all of it picked up by someone now who can move it to all points it needs to go. The Ontario-only stuff they will get first. You will not likely be able to beat them on price. You are also not able to haul full loads that would require 53' and much more weight than you can haul. It is an uphill battle of a lifetime even if you can haul anything and anywhere, putting restrictions of small loads and staying within Ontario will limit your opportunity even further.

If you are completely hell bent on moving forward with this, I suggest you figure out who your customers are and what their needs are. Also take the time to figure out what your truck will cost, your cost to run it, your pay to a driver, and a huge one will be insurance. Your plates will also be expensive as Ontario has jacked up the rate something like 70% over the course of maybe 2 years.

Do you even have any experience in the trucking industry? Driving history?

I am going to echo the others you have talked to and tell you NOT to proceed forward with THIS business plan. No hard feelings.