Best thing to do is look at the math between what they are paying out vs if you leased to them directly. It's hard to justify the added expense of running your own authority and being dispatched by them when compared to the rate they pay to O/O's that are leased to them.
If I remember correctly, Prime has a decent program but the difference between leasing to them and running your own authority is I believe only 6%. If you have a great insurance rate that still doesn't cover the cost of insurance.
Anyone a partner carrier
Discussion in 'Ask An Owner Operator' started by haider99, Mar 4, 2016.
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The company offering this program is TransX. And according to them it is Partner Carrier Relationship. They are paying roughly 44 percent more than what they would be if you are leaser on to them.
The have several daily rounders to OH, PA and NJ out of Ontario. And it's there trailer.
Seems pretty decent to me. -
44% more? What is the difference in O/O percentage and the percentage that you would get? It sounds like if they pay a leased O/O a $1 you would get $1.44. Are you talking about that level of spread?
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Yes, actually 30% more
The leased on rate in Ontario are around $1.30/mile with fuel discount of around 10 cents a litre..so lets say $1.35
I spoke with a dispatcher and under the partner carrier program, they are paying $2/ mile for rounder.
If you leased on to them, they pay for plates, insurance and all the other good stuff. -
There are a lot of carriers that do this through their logistics arms. It's called "power only" you can pull their trailers and be dispatched by them for a percentage.
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$2 per mile is good only if you can make $700 plus per day after fuel
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Are you out of ontario? Hiw about customs and border crossing?
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PGT out of Monaca, PA has a few "partner carriers". Of O were you, I'd talk to them and see how the deal works. Kitchener is one, TVM is another (I think!)
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Yes, from Ontario. What about customs and border crossing? Is there something we have to pay there?
From my understanding. From the $2/mile --- lets say a 700mile round trip
I will be paying the following expenses:
Fuel, drivers pay/ or mine, tolls, plates, faxing, scaling trailer if not done by Transx, repairs to tractor.
What are the other expenses?
I have never went independent and never into the U.S.. so I am researching as much as possible.Last edited: Mar 7, 2016
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After the rate and capacity debacle of 2014 you are seeing a lot more carriers doing things like this. It is much easier to ramp up for new business with trailers than it is to get tractors and drivers. This is a good news/bad news situation. The good news is it will allow smaller carriers to gain access to dedicated freight that they would never even see.
The bad is it can also be a way for the carrier to get freight covered now and let them build their fleet with much less risk. Once they get the capacity the outside carrier loses the business.
I would approach it as a way to get consistent business while looking for direct/3PL business to replace it.hrpatterson Thanks this.
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