Getting your own authority ( Pro's -Con's)

To start with, I would not pay someone to go through the paperwork to get my authority. It isn't that difficult and should not take more than 30-60 minutes and you can do it online. OODIA does offer the service. There are also others. I don't recall what any of them charge.

Starting out some brokers may ask for some hauling references until you get established. When you get your authority you will need your insurance in place. That is a rather high cost to not use it. Other than your current carrier there are several major carriers that use outside carriers to haul their freight, much like an owner operator. JB Hunt and PTL are a couple that come to mine. Unless you go with one of these types of carriers you need to have your own trailer. There are ways in which to get started, but everyone has to go through the same process. If you don't want to deal with the paperwork then you need to stay leased to a carrier. There are brokers who won't load a new carrier. I think the main reason is that there are some who will go out of business and start up under another name after taking tens of thousands of dollars or more from brokers. After you have been in business for 6-12 months you will have a track record and they can easily check to see if you have had any problems.

There are advantages to running your own authority. One main reason is the flexibility to get freight from more than one source. If you are a good negotiator you can also run for higher rates. If not then you could be running for cheaper loads than if you leased to a carrier. When you run your authority you are totally on your own and must rely on your own resources. When you lease to a carrier you will have a larger company to back you up if you have a major breakdown or problem. You will be responsible for all compliance issues when you run your own authority. Leasing puts the burden of compliance on the carrier. You can take freight from a single broker but you don't lease to a broker unless they have motor carrier authority.

Personally, I think that you either need to lease to a carrier or take the plunge and go for it. You will never know if you can make it on your own until you try. I do recommend that you have a significant cash base before venturing out on your own. I would also set up with a factor unless you plan on only running for brokers who offer quick pay. You spend a lot of money on fuel and other expenses on the road. You will need cash flow. I prefer running under my own authority. Some prefer leasing to someone. There is no such thing as one size fits all in this business. You will need a different attitude when you are totally on your own. It will be sink or swim. And you will usually not be able to get insurance until you have a truck. Insurance companies want to make sure that you are not running multiple trucks without paying for the insurance.

 

When using a companies authority.. Can you take as much time off or will they throw you off?

 

That depends upon the company, as well as your dispatchers and how often you "take time off". Companies are usually more flexible with O/O's in regards to time off, because the O/O is the one bearing the burden of having his equipment sit....not the company. If they are swamped with work and need all available trucks rolling to cover the loads, they might not be too thrilled with you taking time off...but if it is slow and they have drivers sitting due to lack of work anyway, if you want to take time off it generally won't be a problem. It doesn't cost THEM a dime when you park your truck for a few days.

Of course that isn't necessarily the case everywhere...but if you've got a reputation as a hard worker, you can get by with a lot more than if you're known as a slacker.

 

as far as the insurance thing goes,I just signed a lease earlier today with a friend former employer of mine. He has never had a lease operator before and I will pretty much haul for only one of his customers.It is a flatbed account and he runs a reefer operationand none of his company guys want to mess with it.this has and will continue to be a learning curve for both of us.Anyway the insurance company needed my VIN number to give him a quote,He got a copy of a lease from OOIDA, He had never saw a lease before. We sat down and cut that lease into two pages ordered door signs and and agreeded on terms.With that being said I am not sure if you can get primary liability and cargo insurance with out having a tractor to put it on.My insurance is gonna be over 55 hundred dollars a year, that would be a lot of money to throw on a tractor you do not have,and what about a trailer if running on your own you would surely need some type of trailer would you not ?.