I am really glad "I wandered in". This forum is tops. Spend many hours with you because there is precious little business for me right now.
I have read somewhere on this forum that brokers will not use a new contractor until he has been in business for a while. Is this right? If so would it be better to lease on with a company from that perspective? From the few lease contracts I have read, fairness is not part of their deal. Maybe there are some but have not seen 'em yet.
Regards
Jet Lag
How Long in business?
Discussion in 'Ask An Owner Operator' started by Jet Lag, Mar 8, 2009.
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
If you are leasing on, then yes they require experience. If you are self-insured on your own authority then most don't care.
Jet Lag Thanks this. -
There is a legitimate business reason why some brokers will not use a trucking company that hasn't been in business for a while (usually 1 year). This is to protect themselves from double brokering.
There are real scumbags out there that churn MC# and open and close businesses every few months until the feds catch up with them. Here is an example... http://www.landlinemag.com/todays_news/Daily/2008/Oct08/102708/102908-02.html
Here is part of how people like this operate...
Between March 2002 and July 2007, Russell:
- Operated under 15 different motor carrier numbers issued by Federal Motor Carrier Safety Administration.
- Owned, acted as an agent, or was otherwise connected with 46 different companies and names.
- Possessed 20 different addresses in eight different states.
- Kept 38 different phone numbers.
- Used the flaw in the $10,000 bond requirement by collecting from shippers then failing to pay carriers, which would ultimately grossly exceed the $10,000 bond.
No, fairness is not the deal between a broker and a carrier. It's pure capitalism. It operates like ticket scalping. Pure supply and demand.
There are brokers that do business with brand new comapnies, but they are usually desperate because their freight is cheap or they are scam artists themselves. If you find a good broker who will use a new company, be prepared for the equivalent of a full cavity search (and I don't mean the dental kind).
If you can find a good outfit to lease on with, I would do that. Right now, you aren't missing much being out on your own. When the supply of trucks contracts, then go for it. Just keep your ear to the ground. To clear up any confusion, by 'leasing on,' I mean that you own your own truck and run under the company's authority, not signing a lease- purchse agreement, which is usually a bad idea.Last edited: Mar 8, 2009
Jet Lag Thanks this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.