Leasing VS Independent

Discussion in 'Ask An Owner Operator' started by gtn428, Oct 29, 2008.

  1. gtn428

    gtn428 Bobtail Member

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    Aug 29, 2008
    groton,MA
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    Hi guys.....

    I have on queston.....

    would you say their is more money in being an independent o/o or leasing to a company like landstar?????

    If you are leased does the company find you jobs or do you still have to work with brokers???

    thanks in advance,
     
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  3. gtn428

    gtn428 Bobtail Member

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    Aug 29, 2008
    groton,MA
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    also.....do you have a say wheather you take the load or does the company make you take a certin # of loads a week,month or year.......
     
  4. MedicineMan

    MedicineMan Road Train Member

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    most imes when you lease to a company they will dispatch you. there are very few exceptions. Landstar you find all your own freight on the online board, schneidr has a similar lease if you have o/o experience.

    As to wether or not the force you to take loads depends on the company. Some do, some don't. personally I would never be an owner operator and be under forced dispatch. that said, even under non force dispatch often times you have no choice as there may only be one load. it's take it... or sit
     
  5. gtn428

    gtn428 Bobtail Member

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    Aug 29, 2008
    groton,MA
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    so do you make more $$$ being an indepent oo?
     
  6. MedicineMan

    MedicineMan Road Train Member

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    you don't have to pay the percentage to the company you are leased to, you keep it all. Wether or not you make more money depends on how well you can run your company and how well you can kep loaded and for what rates. If you get your authority and hit the load boards and haul there cheap crap then I think you would be better off leasing but if you get some brokers or customers you can get a good orking relationship with then you can do better with your auhority. So I know you don't want to hear it but the answer is a big ol "It Depends" there is too many variable and unknowns
     
  7. Evilcapitalist

    Evilcapitalist Light Load Member

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    Oct 14, 2008
    Aiken,SC
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    If you're completely independent, you'll definitely make more money, of course. You OWN the truck, you OWN the trailer, and you skip the broker and go DIRECTLY to the shipper and sign a contract for the load(s) you'll be pulling.

    For every item listed above that you're not doing on you own, you're paying the price for it. For example, the broker. If you don't sign a contract with the shipper, and the shipper contracts a broker to move his goods, then, in effect, you're paying the broker to find you a load, since he's doing the work. Also, the broker is taking some risk from you if he pays you once you do the work, b/c some times he doesn't get paid for 45 days. If you had gone straight to the shipper and signed a contract, you'd have to wait 45 days for remittance of pay. Also the broker is assuming risk in that the shipper may not pay at all. Again, if you had to bear this risk, you may pull a load for free. Not owning the trailer. If you don't own the trailer, you'll either pay to lease one, or pay the company you're leased to a percentage of the linehaul, since it is his trailer. Just like anything else you don't do your self in trucking, you're paying someone else to do it one way or another.
     
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  8. MedicineMan

    MedicineMan Road Train Member

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    Making mre of the total percentage of the pay desn't translate into making more money. If a guy has all those things but can only find two loads a month then he's not going to make more money.
    Direct customers are EXTREMELY difficult to obtain, nearly impossible for a one truck operation
     
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  9. Gonzo_

    Gonzo_ Medium Load Member

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    Oct 30, 2008
    Clayton, NC
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    Hey, I'm new to this forum but not new to trucking. Being independant isn't for the squeemish or inexperianced. Leasing on to a carrier is what 90% of O/O do. Only a handfull are cut out to do it all on their own..
    Not only does a carrier help find loads but they do a lot more behind the scenes, file quarterly fuel taxes, bill customers, get credit checks on new customers, handle accounts receivable, have cheaper rates on tires, fuel, and often register their trucks in states where it is cheaper to do so..
    Do a lot of homework before taking the plunge.. Getting contracts for a 1 man band is practicly impossible... IMHO
     
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  10. Markvfl

    Markvfl Road Train Member

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    Once Upon a Time I was leased to a carrier that had forced dispatch. I was away from home for 1 solid year. Finally had to quit to go home. Never again.

    It's hard to get anywhere if you don't know where you are going. Carefully examine your goals and priorities. Put them on paper. If you want a lease I suggest you look for a company with a 100% O/O fleet, no forced dispatch and fits most of your goals and priorities.

    A general rule of thumb is that the companies that advertise the most are the worst to work for. That's not to say that good companies don't advertise. Look for companies that peak your interest then ask guys who are leased to them what they think about the experience. But - be careful if the company offers bonuses to the lessee for the referral... Good Luck
     
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