Complete NOOB questions... serious answers only please

Finding loads at all right now can be tricky and findin ones that pay enough to get by on is even harder.
Your numbers seem to add up but in actual fact they do not. Your not taking int account any of the other expenses involved.

Other expenses your missing, afer all there is a lot more than just Fuel. I'm not an O/O myself but I had thought about it at one point and did the research. Here are some of the other expenses I can think of off the top of my head:
1) Truck payments
2) Insurance figue on at least $8,000 per year. (If you can get insured at all with no CDL exp)
3) Plates
4) IFTA
5) Repairs / upkeep
6) Tolls

The list goes on and on. And if your running your own authority like it sound you want to, there is likely more that I'm not aware of.

Like you said you have a lot to learn. At least you did the right thing and are trying to do some research and get avice from guys on here. This board can be a great source of knowledge and there are plenty of experienced guys on here that can give you the right info.

I'm not trying to be a downer on your plans, but you have to be realistic. It's not as simple as it sounds. It's not impossible either but you need to look at all the info not just the small parts of it.

 

I'll try to answer what I can:
2) Most truck motors were designed to run 1 million miles before needing a major ovehaul. However that is under Ideal conditions and with no extra abuse.
3) see my previous post.. Count on at least $8000 per year (if you can get any at all)
4) This all depends on if it's new or used and what kind of shape it's in new can run you $110k - $120k no problem. Used will be cheaper but you may spend more time under the truck than in it.
5) Avg pay per mile is a hard oneto answer as all freight pays different but I'm hearing that most of the stuff on the load boards now is going for about $1.20/mi but that isn't enough for me to want it.

 

Other things to think about are freight where I live. Freight in Florida going out sucks. Its a consumable state. Freight comes in and not much comes out. Sometimes when you lease on used truck maybe too old for their likings which forces you to a newer truck. Even being a company driver in Florida is hard with companies won't hire south of I-10 (no freight to get you out)been there done that.

 

Seems to me you're rushing into this headlong without the slightest idea of what you're getting into. Again I say you'd do well to learn the industry from first hand experience in a company truck before making this kind of leap.

That said if you want to steal a truck for a good price it's a buyers market right now. Freight is weak and doesnt seem like it's gonna get better any time soon. The lots are full of good used and mostly overpriced (imo) trucks. I'm looking to buy one myself soon and hoping to get something with around 400K miles on it for about $25K cash in full. I see them priced in the 35K to 50K range with those amount of miles all the time. Might be wishful thinking on my part but cash is king and you never know until you make an offer.

You could buy yourself a truck now, park it in the backyard, then do a company driver gig for a while learning the ropes. Then when the freight picks back up you've got a truck ready to roll and not paying an inflated price for it when the market is to the dealer/sellers advantage. On the other hand if you find that trucking sucks from your company driver perspective you could always sell that truck at a time when you'd get your money back out of it or maybe make a few thou extra.

 

in "good times" or "normal times" does it cost much to be hooked up with several freight services to find freight to take? do they have ones where you can quickly pick and choose online and have all the details you need to make an informed decision on whether or not you want to take that load?

i wouldnt want to run the same thing back and forth all the time. i would want to have the freedom to go different places all the time

 

No, not a good time to go indy. And what tells you that 3rd quarter 09 will be any better? The trucking ####!

Back to going indy. You need a truck, trailer, insurance, permits, plates, etc. You get your authority after you get your insurance. Figure at least $8000 a year for insurance, you will need 10% down to start, then wait at least a month for the authority to kick in. Plates, figure $1800 for the tractor. Then all of the time getting IFTA, KY, etc.

Now freight. How will you get freight? Will you use the load boards like GetLoaded or Internet Truckstop? Lets do a 100 mile radius search around Chicago for vans, flats and reefers.

Here goes.

This is a 100 mile radius around Chicago at 8:45am on 12/16/08.

Vans.................82 loads
Flats................135 loads (half of these are double and triple brokered, figure about 60 actual loads here)
Reefers.............48 loads



Now lets look at your neighborhood, Chattanooga TN.

This is a 100 mile radius around Chattanooga TN at 8:48am on 12/16/08.

Vans................21 loads
Flats..................8 loads
Reefers............11 loads

I am simply doing this to give you an idea of what is going on out here. These numbers make me sick, I have never seen it like this out here. And to top all of this off, rates have been slashed to around $1.20 avg (or lower) on these boards. Think about it, how are you going to make money out here at $1.20 a mile or less, once you figure in your dead head and overhead?

Then you will run into problems with allot of brokers and shippers with a new MC number. Allot of scammers and thieves out here right now stealing or holding loads hostage. And many of those guys are running new MC numbers. This has gotten to be a real problem out here in the past year. Many brokers will not give a new company the time of day.

And then we have the brokers! Brokers that also like to run scams by double brokering or just not paying. You will need to do credit checks, and do it religiously! You are now a bank extending credit. Something very few realize when they get into this racket.

And how will you get paid? Factor your bills? Or can you wait up to two or more months to get paid? Think about this when it is time to pay for your fuel. My average length to pay was 54 days, unless I moved something for one of the big boys that had quick pay or one of my direct shippers. And good luck finding a direct shipper to work with. Not saying it is impossible, but a one truck show does not garner much attention. And in this economy, ain't much moving. My directs used me for the overflow, no more overflow, and if there is, it ain't worth hauling.

Fuel? How will you buy fuel? You will need some sort of fuel card or lots of cash. I would advise against using a credit card, as paying up to .10 more per gallon will get expensive real quick. If you get a fuel card, you will more than likely need to pay your bill every week. That is about as long as any of the fuel card companies will extend credit to a new company out here. And allot of that will depend upon your personal credit. I hope you have good credit.

My story, we had five trucks, liquidated 2 years ago. One truck and trailer left, all paid for. We were specialized/expedite with a flat bed/conestoga. Things started getting bad this past summer. Leased truck and trailer on at Jones Motor, did great for around two weeks, and sat for another two months (no freight) while trying to figure out what to do. Said screw it and leased on at Schneider pulling one of their wagons. This time last week, Jones Motor had 115 loads in the entire country.

So, think long and hard about this decision. The days of jumping in a truck and making money are currently long gone. My gut tells me we will be in this shape for at least the next two to three years, if not longer. We shall have to wait and see if the new administration still plans on raising taxes on the producers. If they do, I think we are looking at at least six years to get back to where we were say this time last year. That is, if we are lucky.

Mike

 

Well as far as dump trucking, most of the biggest most succesful companies around here were started by people that didn't know a thing about trucking. My boss was a heavy equipment operator, bought a truck one day and at his height was running around 45 trucks. He's getting old so there down to about 15 but there ya go. All these mid-sized fleets and large 1000+ fleets started somewhere. I'm no expert though, just my opinion.

 

Dump trucks are a bit different. Your boss was already a heavy equipment operator, so he had some background and knowledge already. Also, that was apparently quite awhile ago when he started that. It's an entirely different scenario these days.

 

meccariello,

Boxcar was nice enough to repost one of my posts from another thread regarding the same basic question. Read it.

Mike

-------------------------------------------------------------------------------

No, not a good time to go indy. And what tells you that 3rd quarter 09 will be any better? The trucking ####!

Back to going indy. You need a truck, trailer, insurance, permits, plates, etc. You get your authority after you get your insurance. Figure at least $8000 a year for insurance, you will need 10% down to start, then wait at least a month for the authority to kick in. Plates, figure $1800 for the tractor. Then all of the time getting IFTA, KY, etc.

Now freight. How will you get freight? Will you use the load boards like GetLoaded or Internet Truckstop? Lets do a 100 mile radius search around Chicago for vans, flats and reefers.

Here goes.

This is a 100 mile radius around Chicago at 8:45am on 12/16/08.

Vans.................82 loads
Flats................135 loads (half of these are double and triple brokered, figure about 60 actual loads here)
Reefers.............48 loads



Now lets look at your neighborhood, Chattanooga TN.

This is a 100 mile radius around Chattanooga TN at 8:48am on 12/16/08.

Vans................21 loads
Flats..................8 loads
Reefers............11 loads

I am simply doing this to give you an idea of what is going on out here. These numbers make me sick, I have never seen it like this out here. And to top all of this off, rates have been slashed to around $1.20 avg (or lower) on these boards. Think about it, how are you going to make money out here at $1.20 a mile or less, once you figure in your dead head and overhead?

Then you will run into problems with allot of brokers and shippers with a new MC number. Allot of scammers and thieves out here right now stealing or holding loads hostage. And many of those guys are running new MC numbers. This has gotten to be a real problem out here in the past year. Many brokers will not give a new company the time of day.

And then we have the brokers! Brokers that also like to run scams by double brokering or just not paying. You will need to do credit checks, and do it religiously! You are now a bank extending credit. Something very few realize when they get into this racket.

And how will you get paid? Factor your bills? Or can you wait up to two or more months to get paid? Think about this when it is time to pay for your fuel. My average length to pay was 54 days, unless I moved something for one of the big boys that had quick pay or one of my direct shippers. And good luck finding a direct shipper to work with. Not saying it is impossible, but a one truck show does not garner much attention. And in this economy, ain't much moving. My directs used me for the overflow, no more overflow, and if there is, it ain't worth hauling.

Fuel? How will you buy fuel? You will need some sort of fuel card or lots of cash. I would advise against using a credit card, as paying up to .10 more per gallon will get expensive real quick. If you get a fuel card, you will more than likely need to pay your bill every week. That is about as long as any of the fuel card companies will extend credit to a new company out here. And allot of that will depend upon your personal credit. I hope you have good credit.

My story, we had five trucks, liquidated 2 years ago. One truck and trailer left, all paid for. We were specialized/expedite with a flat bed/conestoga. Things started getting bad this past summer. Leased truck and trailer on at Jones Motor, did great for around two weeks, and sat for another two months (no freight) while trying to figure out what to do. Said screw it and leased on at Schneider pulling one of their wagons. This time last week, Jones Motor had 115 loads in the entire country.

So, think long and hard about this decision. The days of jumping in a truck and making money are currently long gone. My gut tells me we will be in this shape for at least the next two to three years, if not longer. We shall have to wait and see if the new administration still plans on raising taxes on the producers. If they do, I think we are looking at at least six years to get back to where we were say this time last year. That is, if we are lucky.

Mike

 

Dump truck business is primarily dependent on construction of some type or another. Now, with construction at a low point, is probably not the best time to try to go that route.

You have been given some good advice about going to school, and working for a company before trying to go out on your own. Of course, YOU are the only one who will make the decision, or perhaps you and your wife. In any case, YOU (and your wife) are the ones who will have to live by the decision you make. Frankly, the odds are not in your favor right now.

OK, I understand you don't like working for somebody else. I really do appreciate how strongly your feelings may be on this. But you do need to go to school. You do need to get experience.

I'm not saying there is NO WAY you could make it on your own right now. I'm just saying the odds are very much against it.

Remember, you learned to crawl, before you learned to walk. You learned to walk before you learned to run.

Good luck with whatever you decide!