Authority questions

To add to that, let's say one is leased to a company that pays a particular rate on a certain lane minus 10%.

If I can get the same rate (which I do) on the same lane on my own, using my own authority and my own truck & trailer, without paying the 10% to the leased company, is the 10% on say $200,000 of gross annual revenue worth the "hassle" of doing it on my own?

Not to mention my liability insurance is lower, my truck payment is lower, my trailer payment is lower, etc, etc, etc.

 

I know there's a small dose out there that are doing well and still profit much after all the B.S. involved. Most just consider this as a job instead of a business. I don't want to sugarcoat facts for the new entrants coming in. There's just too much truck capacity and relying on spotmarket/loadboards is not really the wise way of doing it. Even having your own "customers" is becoming more of a challenge because too much underbidding is going on, and good reliable service is worth nothing anymore.

 

Yes I've been doing it for years.

 

It's a whole lot more than 10 percent. And a rate in any particular lane for us will differ than being leased to some company. It all depends how much you grossed with miles ran.

 

I see. So, regarding my #11, I'm a single truck & trailer owner operator with my own authority. Is the additional 20k a year plus on my bottom line worth my handling everything on my own?

 

Which is why I used the example as an all things being equal.

 

That averages about $1,666 more monthly on your own. I don't think it's great personally. I think the majority might net around that or less and still be ok with it. I guess as long you don't have any major expenses and just want to net a little more than being leased on, go right ahead. Some are happy with it. Different strokes for different folks.

 

Not only will they be calling you they will send you some rather official looking letters about compliance.

 

One of the pluses about having your own authority is that if you are leased to a company that pays percentage and you have to pay all the insurance for your truck, then you have to also pay bobtail and unladen liability that covers when you are not hauling a dispatched load for the company you are leased to. No bobtail insurance necessary for your own authority.

 

Bobtail ins is dirt cheap..