Getting your Own Authority,or Leasing on with Company ? Just The Facts !

Nobody wants to hear that Autocar. They want to be free!! Then they pay for insurance, factoring, IFTA and logbook auditing, drug testing compliance, authority compliance, and some of them even pay someone a ridiculous fee to find them loads (dispatch service).
IMO, as I've stated many times before, it's hard to beat hauling direct freight for a carrier like LS, Mercer, etc compared to working the load boards. I've been off since 12/19 or so and I haven't been in contact with LS at all. Now if you have odd situations like little experience, too many tickets, etc, your own authority may be the only way to go, but you will pay for that in sweat and dollars. If your 6-12 month plan I to go after direct shippers that you think you have a shot with, then your authority also makes sense. I've done it both ways, and if you plan on just hauling load board freight and only having one truck, you'll make more with a carrier.

 

Yep, you and I have both travelled the same roads and seen the same sights and came to the same conclusions.

 

well i do very well with my own auth....

 

Some do, some don't and doing well is all in an individual's perspective.

 

amazing you have a answer for everything.....some day i can only hope to be as knowledgeable as you.....

 

Knowledge comes mainly two ways, personal experience and paying attention to other's experiences. I've done plenty of both and still learning more.

 

I have leased to carriers and run my own authority. I have done better running my own authority. The truth is that some owners earn more running their own authority while others make more leasing to another carrier. I don't see paying someone to do my IFTA or other services that I can do myself. With current software, there is no need to pay someone to perform that service for you. If you get with a carrier that has a strong freight base, good rates and pays percentage, you should be able to do well leasing to someone. Many brokers have quick pay and will pay you within a couple of days for a discount on the rate, so you don't necessarily need to factor your loads. However, starting out, it would probably be a good idea to set up with a factor if you decide to run your authority. You will also want to subscribe to more than one loadboard, especially starting out.

I think that it would be easier to lease to a carrier if you have never owned a truck, at least starting out. If not, you should have a good bankroll. There is a little more paperwork running your own authority. You will need to plan on paying for everything to get up and running, such as insurance and base plates. Leasing to a carrier means that they pay the insurance, other than collision or bobtail, and most will finance or furnish your base plates. By the time you pay insurance and base plates, you can easily front $4,000-5,000 or more. That doesn't include the cost of fuel and running until the checks start coming into the bank. Leasing, you should be paid within a week and most will allow you to get about 50% of the rate up front once you are loaded. That will help you to get started making money without all the upfront costs. You may still need to pay for your base plate, but the carrier may finance them and take out about $100/week until paid. They may also add a little for the use of their money. If you don't like dealing with the paperwork, such as IFTA, the carrier will do that for you, as well.

It isn't cheap running your own authority. If something happens on the road, you are completely on your own. Leasing may afford you some discounts on tires and repairs, while running your authority you may not be able to get the discounts. Fuel is another area where most of the larger carriers can receive discounts. Independents rarely receive much in the way of fuel discounts.

One of the major advantages of having your own authority is the freedom and flexibility. If you are a single truck operation and want to sit for 2 months, there will be no one calling to see when you will be running again. Some carriers will work with you in the same manner, but not all. There are carriers who require you to run a minimum each month in order to maintain your contract. The costs go on whether you are moving or sitting. Leasing to a carrier means that you only run freight that they offer, although some may allow you to find a brokered load if nothing is available. Running your own authority, you are free to run for anyone you wish and can also solicit direct shippers.

It boils down to what you want to do. Look at both sides of the issue and act accordingly.

 

I find this funny.... I have found a direct local shipper that is willing to utilize an asset based carrier as myself .... And I load right next to guys leased to the brokers I used to broker through (I never loaded from this shipper) .... We get the same rate, and I am positive of this because we all get the same e-mail list ... Except they get -25%

Now say the load pays $1,000 (example only) you do one load per day Friday I get $5,000 Friday Kaplan or whatever carrier gets $1,250 off your back my cargo/liability is only $360 and the rest is just being some type of organized.

I don't knock the guys who lease to carriers and I am sooooo sick of the loadboards ... But I have found a spot and hopefully I can keep it, but I will always choose to run under my own authority IF I have a tractor AND trailer

 

thank you clasix1055 you said it perfectly.

 

That is a good deal.
But not everyone is cut out to follow that route. Especially someone just starting out, or with little experience.They need a little hand-holding for a while.
Experience is needed before you dive in head first.