Could a shipper lease on owner operators?

Discussion in 'Ask An Owner Operator' started by Bobtsu50, Feb 14, 2025.

  1. Bobtsu50

    Bobtsu50 Bobtail Member

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    If you were a shipping company and you wanted to save on freight why not just lease on owner operators directly driving instead of dealing with a broker or carrier? Get your own DOT numbers, have the drivers run under shippers authority and save on the carrier split mark up and pay the owner operators directly at the same pay a carrier would? Assuming of course you had the freight to justify it, like on a wal-mart scale maybe?
     
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  3. Arctic_fox

    Arctic_fox Experienced mx13 execrator

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    Many do. However, a lot of shippers have only a small number of loads, inconsistant loads, or too many loads that make it hard to justify an owner op. For instance one place i deliver to is both inconsistant and can only take so much material at a time.

    Having a contracted owner op makes no sense for them. Sometimes they need a load every single day due to high volume required to keep up with demand. Other times they only need a load a month. And many owner ops or very small fleets simply cant be that flexable to drop everything and grab a load. And many owner ops cant afford that volitility.

    Ergo brokers and carriers. And loads that need a custom solution that would be hard to deliver from an owner op or small fleet mke up a suprisring percentage of loads. Hence why there are so many brokers and carriers. They are also useful for when you need an extra unplanned load and your usual carrier(s) cant accomidate you.
     
  4. Ridgeline

    Ridgeline Road Train Member

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    There is no real money savings. It isn't simple and there is a huge liability involved being a carrier shipping your own product.
     
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  5. Bobtsu50

    Bobtsu50 Bobtail Member

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    I think in theory it could work but it would have to be on a massive scale with a company that has distribution centers, factories, and stores all over the country. That is both sending and receiving freight on a daily basis. On a small scale it couldn’t work at all. Because a normal shipper doesn’t typically have consistent backhaul opportunities to get a driver back. But on a massive scale and where you have so many hubs to get the driver around without a lot of deadhead… it seems like it “could” work. For example the driver picks up from the Equate factory in Dallas, hauls it to the Walmart distribution center in San Antonio and then back hauls a load from the the distribution in San Antonio back to one of the Wal-Mart Supercenters in DFW. Calls it a day. Why wouldn’t that work?
     
  6. Ridgeline

    Ridgeline Road Train Member

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    Because many companies do not want the hassle. it isn't all that simple and the management of the fleet is more than the amount of money saved and even if it is a large company, the insurance cost would put it in the red as a project.
     
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  7. wulfman75

    wulfman75 Road Train Member

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    Dude even wal mart gets others to help move their freight.
     
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  8. Bobtsu50

    Bobtsu50 Bobtail Member

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    Then how does the carrier or broker make any money with the insurance and management of the fleet? They have to pay that also don’t they? A carrier charges a shipper $1200 to haul the load to a certian destination, then they pay the driver $800. Why can’t the shipper just pay the driver $800 and then dispatch and manage the fleet themselves? In other words, if a carrier can make a profit at $400 a load while managing, dispatching, and insuring a fleet. Why wouldn’t there be enough savings in saving $400 a load while dispatching and managing the fleet as the shipper? If one is possible then the other has to be too.
     
  9. M22 rockcrusher

    M22 rockcrusher Road Train Member

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    The only way is for the shipper to build in a tractor reposition fee back to them. Other wise it's not worth while messaging with it.
     
  10. Dino soar

    Dino soar Road Train Member

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    Companies make whatever product that they make.

    That's their business.

    The trucking of their own product is a burden to them unless maybe they were a trucking company.

    Even if they only hired on owner operators:

    They still have to have management, dispatchers, compliance, payroll.

    Someone has to coordinate all of those loads and if the owner operators have problems someone has to cover all of that and they have to be able to cover whatever loads they don't have enough trucks to cover besides that.

    And someone needs to answer the phone 24/7 that is able to solve problems.

    Plus liability.

    If they hire a broker, they send him list of loads and when they have to go, and the rest is his problem.

    One or two phone calls is all they need to make with a broker.

    The trucking is a giant headache most businesses don't need or want.
     
  11. rollin coal

    rollin coal Road Train Member

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    Yeah the core business ain't trucking. And trucks, especially of the owner operator variety, are a steady drain on resources.
     
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