Getting Shippers when starting out

It depends on whether you put someone in the truck as an independent contractor or employee. Whether someone can be classified as an independent contractor or employee has to do with control. There are guidelines that are provided by the IRS. There is some latitude for this industry, but it can be a fine line. The government would like to eliminate the independent contractor classification because there are so many independent contractors who evade paying their taxes. It would be best to talk to a tax lawyer or CPA near you who is familiar with this industry and labor laws in your state.

 

.90/mi is not bad for a back haul.

So lets say you take a load from Chicago that runs 500 miles. They want you to do this every other day without fail. You get $1000 for the load. Sounds good right? Well not if you run back empty. Now you are getting 1.00/mi

So some broker offers your .80/mi for a load going back to Chicago. That puts your average up to 1.40/mi. Taking backhaul freight at discount prices is not always a bad thing. This is how brokers make their money, finding guys just like you willing to cover their costs and up their cpm on a trip. This scenario works for you and for them. It does not work for the guy who wants that load going into Chicago as a head-haul.

Supply and demand.

 

If you have the cash, you might find a good deal at one of the truck auctions. Most of them are listed on www.thetruckpaper.com. If you plan on putting a driver in your truck your break even will likely be somewhere around $1.35/mile. Everyone has a different break even point. Your costs could be more or less. If you lease to a carrier you should be able to get some fuel discounts at the pump and most pay a fuel surcharge. If you are self motivated you should make more with one of the agent based carriers who pay percentage rather than mileage. I don't see how any of the mileage owner operators can make it, especially if they have a driver in the truck, even when you add the fsc.

 

There is no such thing as a back haul. There is NO way that I would put a load on ANY of my trucks for $0.90/mile. I will deadhead out first. If you can't afford to deadhead out of an area where that is the only freight you can find, then you took the load in to the bad area too cheap. When people take freight that cheap then there is no reason for the broker or shipper to pay a higher rate. You are correct about supply and demand. Some owners are running so close that they are scared to death of either sitting for a day for a better paying load or can't afford to deadhead out of a bad area into a better area. If you take freight that cheap then don't complain about cheap rates.

 

The hell you say!