Quick question

Quick answer.

Differs from company to company.

 

The responsibilities are going to be varied with each different carrier. You must very carefully read and understand the individual lease agreement which will spell out the exact requirement of each party to the lease.

The carrier is responsible to maintain liability insurance on all vehicles either owned or leased, but it may charge back the cost of the insurance to the driver.

If a carrier will not provide a copy of the lease agreement prior to leasing so that you may study it or have an attorney look at it that is your clue to walk away and not look back.

 

Mostly, you get a break on insurance, they find loads, and they deal with brokers and getting paid. Otherwise, you'll pretty much pay for everything else.

 

This should be spelled out in your agreement. Fuel is generally the contractor's expense, as is maintenance, repair, and of course purchasing the equipment itself. Some carriers pay for the plate, many charge it back, many allow contractors to run their own.

 

As far as compensation goes this also can have some interesting things happen.

Let's play with some round numbers for a moment.

Say your lease says you get 75% of a load.

You take load that you find out some way that billed at $2000.00.

Ok, you figure that 75% will pay you $1500.00.

When you get your settlement you find that you were only paid $1150.00. Now you're going WTF the carrier just screwed me.

What most people don't realize is that most lease's are worded to pay a % of the line haul amount which will be different that the billing amount due other charges whether real and / or inflated or not.

Read a lease carefully, understand it, take to somebody that can explain it to you.

 

It depends what the company has to offer.

 

A couple thoughts about that.

The carrier has to provide on demand the freight bill statement to the lease holder - per FMCSA regs.

ALSO the contract has to be given prior to the signing for legal review.