How to become a O/O Help

better look and see if you can get insurance most ins cos want a cpl years exp and the ones that dont will probably cost you close to a grand a mo

 

No, not a good time to go indy. And what tells you that 3rd quarter 09 will be any better? The trucking ####!

Back to going indy. You need a truck, trailer, insurance, permits, plates, etc. You get your authority after you get your insurance. Figure at least $8000 a year for insurance, you will need 10% down to start, then wait at least a month for the authority to kick in. Plates, figure $1800 for the tractor. Then all of the time getting IFTA, KY, etc.

Now freight. How will you get freight? Will you use the load boards like GetLoaded or Internet Truckstop? Lets do a 100 mile radius search around Chicago for vans, flats and reefers.

Here goes.

This is a 100 mile radius around Chicago at 8:45am on 12/16/08.

Vans.................82 loads
Flats................135 loads (half of these are double and triple brokered, figure about 60 actual loads here)
Reefers.............48 loads



Now lets look at your neighborhood, Chattanooga TN.

This is a 100 mile radius around Chattanooga TN at 8:48am on 12/16/08.

Vans................21 loads
Flats..................8 loads
Reefers............11 loads

I am simply doing this to give you an idea of what is going on out here. These numbers make me sick, I have never seen it like this out here. And to top all of this off, rates have been slashed to around $1.20 avg (or lower) on these boards. Think about it, how are you going to make money out here at $1.20 a mile or less, once you figure in your dead head and overhead?

Then you will run into problems with allot of brokers and shippers with a new MC number. Allot of scammers and thieves out here right now stealing or holding loads hostage. And many of those guys are running new MC numbers. This has gotten to be a real problem out here in the past year. Many brokers will not give a new company the time of day.

And then we have the brokers! Brokers that also like to run scams by double brokering or just not paying. You will need to do credit checks, and do it religiously! You are now a bank extending credit. Something very few realize when they get into this racket.

And how will you get paid? Factor your bills? Or can you wait up to two or more months to get paid? Think about this when it is time to pay for your fuel. My average length to pay was 54 days, unless I moved something for one of the big boys that had quick pay or one of my direct shippers. And good luck finding a direct shipper to work with. Not saying it is impossible, but a one truck show does not garner much attention. And in this economy, ain't much moving. My directs used me for the overflow, no more overflow, and if there is, it ain't worth hauling.

Fuel? How will you buy fuel? You will need some sort of fuel card or lots of cash. I would advise against using a credit card, as paying up to .10 more per gallon will get expensive real quick. If you get a fuel card, you will more than likely need to pay your bill every week. That is about as long as any of the fuel card companies will extend credit to a new company out here. And allot of that will depend upon your personal credit. I hope you have good credit.

My story, we had five trucks, liquidated 2 years ago. One truck and trailer left, all paid for. We were specialized/expedite with a flat bed/conestoga. Things started getting bad this past summer. Leased truck and trailer on at Jones Motor, did great for around two weeks, and sat for another two months (no freight) while trying to figure out what to do. Said screw it and leased on at Schneider pulling one of their wagons. This time last week, Jones Motor had 115 loads in the entire country.

So, think long and hard about this decision. The days of jumping in a truck and making money are currently long gone. My gut tells me we will be in this shape for at least the next two to three years, if not longer. We shall have to wait and see if the new administration still plans on raising taxes on the producers. If they do, I think we are looking at at least six years to get back to where we were say this time last year. That is, if we are lucky.
re post by Mike

 

Amen Brother! You hit the nail on the head! Im an o/o as well with 3 trucks pulling vans and its rough right now. When the loads started dropping down to $1.00 to $1.20, first i thought it was just me and i was picking bad loads but then i started talking to other drivers like yourself and it seems to be common.

I subscribe to a few diffrent transportation analysts and they call say rates are averaging 1.45 to 1.60 for the last 30 days for dry van. I wonder where they are getting this information from because the brokers sure arent giving that out. Im sure its the shippers direct but like you said, a guy with just a few trucks is just a one trick pony to the big shippers and waiting along time to get your money gets old fast.

In this market, its all about finding a niche. Something that is gonna work for you for as long as it can. I hooked up with a guy thats going to give me his old route pulling reefers from the west to east paying pretty good so im gonna check that out till the dry world turns around.

For the new guy, keep doing your homework, dont jump in just yet, wait till the freight picks back up and it will. Study the diffrent trailer types, purchase and operating costs for each one. Study the availablity of freight and average rates for the type of trailer you want to pull. ( dry, reefer, flat ) I would recommend dry or reefer for just starting out. You can make more money with flats and specialized, but there is alot more work involved and you really have to know what you are doing.

These were my start up costs:

Down payment on truck and trailer: 10k ( first time owner ) ( $1000 truck note and $450 trailer note ) ( paid off now

Insurance Down Payment: $2000 ( 25% of the policy, $685 per month, 1 million liability and $100k cargo )

TXDOT: $200

USDOT /MC : $300

BOC-3 Filing: $50

48 State Registration: $1300 first year / about $1700 after that

Nicknacks for the truck: $500 ( tools, work clothes, laptop for gps, printer, internet, cb, etc..

All and all about $15k before i even hit the road


Dont listen to the analysts that tell you what rates are, they are off sometimes. Listen to the drivers on this board, you will get the scoop. About 95% of what i knew about trucking i learned from this board before i bought my first truck. Stop by a truck stop and find the old guy drinking coffee in the restaurant watchign the news, a trucking veteran, thats where you will find your best advice also.

See you at the top!
Mr Win Big

 

Why get temporary authority ? It would cost the same . You can cancel your authority at any time . Hopper bottom is o.k. but the rates are low . You might do o.k. if you can get a good used tractor . I've seen IH and Ford cabovers pulling hoppers . How long ago did they stop making them ?

 

I can't imagine how you got that quote. I'm in the same position as you with no recent verifiable experience and the ONLY quote I can get is $12,900 for a 500 mile radius without physical damage. With PD it is $15,886. Maybe Florida is higher. I've called at least 50 or 60 companies looking to lease on but the recent experience problem is preventing me from being leased, probably because the market is in the crapper. I do have a few options working and hope to get on with a decent outfit soon. My last option is to hire a driver that qualifies to run as a team and be the co driver until I have enough recent experience to run solo. For the record, I had 10 years experience and can't imagine starting out now with none.My suggestion is to go through one of the driver training mills, learn the ropes and see if you want to take it to the next level.