Farm2Fleet/Covenant Fleet - O/O's

Discussion in 'Trucking Jobs' started by BigBadBill, Jan 13, 2014.

Thread Status:
Not open for further replies.
  1. Jhustle76

    Jhustle76 Bobtail Member

    16
    4
    Aug 9, 2015
    0
    So do f2f do l/p that dispatch yourself??
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Gypsy27

    Gypsy27 Light Load Member

    118
    87
    Oct 11, 2015
    0
    Excuse the newbie question, but if you have to find your own loads, what are you getting for the 20%?
     
  4. barroll

    barroll Road Train Member

    1,096
    543
    Nov 23, 2010
    Southwest Michigan
    0
    Dispatch office (so brokers can bother someone when you leave your phone in the truck), factoring, accounting, fuel advance, driver development, compliance handling, etc.

    When you find your own loads you negotiate the rate you want on the load you want when you want it with no middleman, and can say "no thank you" and end the call whenever it doesn't sound like something you want to do. Having someone else find your loads sounds completely backwards for an O/O.
     
  5. barroll

    barroll Road Train Member

    1,096
    543
    Nov 23, 2010
    Southwest Michigan
    0
    I believe we work with at least one leasing company you can get a truck through. Haven't heard anything about it since MATS.
     
    Jhustle76 Thanks this.
  6. rollin coal

    rollin coal Road Train Member

    11,066
    17,765
    Mar 29, 2008
    TN
    0
    The thing is anyone that needs help finding loads only have to ask for it and the office will gladly help with that. For someone who's never booked freight before it can be a little intimidating at first. The best things imo for the money are the marketing of your truck by the office 7/365 via email lists telling everyone we've worked with exactly where, what type of equipment, when it will be empty, and the driver's cell # so they can contact that driver and possibly work out a deal on a load. That generates incoming calls to your cell phone. And incoming calls are what you always want.

    I've never heard of another company with a similar model that does this. Most just kick back, collect a cut, and are really strict about who you can work with. We are set up with just about anyone you could randomly pick off a load board which means you can book quickly without having to worry about losing the load due to an hour long back and forth set up process. Another key thing is access to some really good paying 3PL freight from time to time that would never go out on a load board. Granted that is not every single load. During peak holiday season we get some really good opportunities put before us by the company usually in a partnership with UPS not via someone like Landstar, CHR, etc.

    Of course a majority of what you will score is from the same as open sources from everyone else. We do have good established working relationships with I don't know how many brokers out here that trust us. We are a known quantity there and trusted to do a good job. Many of us have put in years of hard work establishing that stellar reputation.

    I know some guys say it is stupid to lease on at a company and pull loads from brokers but I could never convince a guy like that of the real benefits and not even going to try. They're not going to get it. I can give an example of a couple of us F2F guys sitting in a marginal market one day and an independent we know was in the same metro area, we were getting phone calls on our posted trucks and he was not getting near as many. If you are intent on getting your own authority some day this company is a good stepping stone for that and will get you familiar with the basics of that.

    Now lastly, things are really slow right now everywhere and it is a really difficult market. You most definitely want to be on sound financial footing before you choose to go here, on your own, or at any other company. Good luck whatever you choose.
     
  7. MidWest_MacDaddy

    MidWest_MacDaddy Road Train Member

    9,489
    13,245
    Feb 21, 2015
    South Carolina
    0
    I am relatively new to the industry and have heard the term "factoring" a number of times but I don't have a clue what it is... Anyone care to enlighten this newbie.... Much Appreciated.
     
  8. rollin coal

    rollin coal Road Train Member

    11,066
    17,765
    Mar 29, 2008
    TN
    0
    Payment terms from direct shippers, 3PL's, and brokers vary but on average you can expect to get paid about 45 days after you've delivered any given load. So you're extending credit to everyone you work with. Basically when you deliver that load you send your freight invoices not to the shipper or broker for payment but to another party, the factoring company, and they cut you a check for the amount of that invoice minus a fee. It's a service.

    The factoring company then sends a bill to the shipper or broker and wait 45 days (give or take) for the money to come in. If the shipper or broker goes out of business and does not pay them will owe that factor the money that they advanced you on that load. Factors will influence who you can or can't work with but generally if they won't factor a certain broker you wouldn't want to be extending that broker credit anyway.
     
  9. MidWest_MacDaddy

    MidWest_MacDaddy Road Train Member

    9,489
    13,245
    Feb 21, 2015
    South Carolina
    0
    So I didn't understand... Who ends up writing off the debt if no payment is received? Does the factoring company take the hit since they are paid the fee to factor it or does it still come back on the O/O?
     
  10. MidWest_MacDaddy

    MidWest_MacDaddy Road Train Member

    9,489
    13,245
    Feb 21, 2015
    South Carolina
    0
  11. rollin coal

    rollin coal Road Train Member

    11,066
    17,765
    Mar 29, 2008
    TN
    0
    The factoring company does not lose money. The trucking company will be on the hook for any money the factoring company doesn't collect. The factoring company is not in the business of taking on your risk. They simply advance you money asap for a fee so you can cash flow and don't have to wait a month, two, three or longer to get paid.

    3PL is 3rd party logistics. A shipper or receiver has their core business and it is not trucking. They need trucks but they don't have any of their own and prefer to outsource. Some contract with 3PL to manage their whole supply chain. So they save money buy outsourcing what for them is a big headache that they don't want to deal with. The 3PL deals with any/all carriers moving shipments for that customer. They may even cross dock, warehouse, or provide a myriad of other services. The 3PL may or may not be a trucking company themselves.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Thread Status:
    Not open for further replies.