How to make it as an owner operator

HOW TO HIJACK FREIGHT AND GET PAID:

I think this is time for a little update. The heading above pretty much says it all.

Most O/O's dont realize just how much leverage they are afforded under the federal statutes (laws) regarding the interstate transport of freight.

As this year comes to a close, I have to admit that I have been in several situations where I have had to take possession of a load and exercise my right to DEMAND payment in full prior to making delivery. Yes, I know this is a tricky road to go down and that some will say NEVER to do this. I say HOLD YOUR GROUND!!

In both of the situations I have come out ahead, but I have to say that this will not always be the case.

Sometimes, especially on a Friday or going into a holiday, an unscrupulous broker will hide the fact from you that the delivery of the load you just picked up will IN FACT not be deliverable until several days AFTER the original date that they provide you on the Rate Confirmation.

In this case you will have to decide whether to sit at the shipper for several days with no assurance of getting paid for any accessory charges or you can take another approach.

In most large cities , there are whorehouse services that will off load you and place the freight in a warehouse for a fairly minimal fee. Before you start throwing around a lot of expletives, make some calls and see if there is a nearby warehouse that will take the freight and put into storage for 30 days. The fees associated with this may be much less than you might expect. I was loaded with roll stock and had no problems finding a warehouse facility which had the capibility to handle the large rolls of paper and was willing to take the load and store it for less than $300 for 30 days, no questions asked.

After arguing with a broker in a situation where they expected me to tie up my equipment over the Easter holiday, I decided to do just this. When I faxed a letter to the broker letting them know of my intentions (they were refusing to take my calls or give me a good e-mail address to use) I suddenly found myself talking to the owner of the company. I am pretty sure they realized the error of their ways when I included the contact information for the warehouse I was planning to use. I think they assumed that since I had roll stock on the trailer that I would not even think of off loading it. WRONG Mr. BROKER WRONG!!

After a quick conversation with the owner, I received a bank wire transfer into my account within an hour for the original amount of the brokered load along with the revised accessorial charges I had requested for holding the load for 3 days. Originally I had only asked for a very reasonable charge, but when they began to play games with me, I played back. I played hard ball and in the end I charged them 4 times the original offer due to the way they had handled the situation. I should point out that the final charges were still well within industry standards for such a Tariff.

Moral of the story: Don't let a schmuck broker push you around!!! Stand your ground!!!

As a carrier, every owner operator is afforded much more power and leverage than a broker would EVER like to admit. For me, in this situation, I had already written off my chances of getting paid AT ALL no matter what I did, so what did I have to loose? Well, what I had to loose were the additional charges that I was owed based on the situation and based ON WHAT I DID FOR THE BROKER! I DON'T WORK FOR FREE PERIOD!!

TRUST NO BROKER IMPLICITLY!! They will ALWAYS try to take atvantage of a carrier, ESPECIALLY the dirty brokers. SO stand your ground and hold for your rate! Also hold for your accessorial charges!

 

Originally Posted by CaptainKirk
Hey Gunz, just read through your big thread on o/o and have to say you are the straightest shooter i've ever heard. If you're really running successfully with this approach (and i fully believe you are), then I have definitely chosen the right career. Just have a few questions...

#1. I know that brokers are required to hold a bond and it jus went from 10k to 75k. Are o/o's required to hold this bond also?? Can you create a relationship directly with a shipper without bond?

#2. Have you had any success working directly with local shippers or are you mostly hauling what you pick up after posting available truck on dat,getloaded,etc..?

#3. How often do you get 'fresh' rates from DAT and are there better/more up-to-date places to find this before dealing with brokers?

also, i know it's probably on here somewhere, but is there a service you use for 24/7 maintenance/breakdown issues? sort of like AAA for truckers?

hey thanks for your time and insight. it is invaluable.




RESPONSE FROM GUNZ: Thanks CaptainKirk for letting me post this private message for the benefit of the rest of the board members!!

#1 Carriers or O/O's are not required to carry a similar bond as a broker. This is a requirement put in place to weed out the riff Raff. I totally agree with increasing the bond amount but watch out as this goes into effect. Many brokers will have to bail out of the business, especially the small ones. The question I have now is how many will get bitter over the issue and take a bunch of carrier money with them when they go under.We don't have to carry a bond and I guess this is because we do all the work! It is also because under the federal laws, we HAVE POSSESSION and control of the freight once we pick it up. This usually does not come into play until you get into a situation where a broker is trying to take advantage of you. I have had to exercise my right to demand payment PRIOR to delivery from only one broker in the last year because they sent me in on a delivery which got messed up and I was "expected" to sit at a receiver over a holiday for 4 days. I said no way. I demanded a revised rate sheet with some reasonable extra charges to sit, but they refused. I took the freight with me on my already planned vacation and they eventually paid me 3 times what I had originally asked for because I was about ready to pu the freight in a warehouse for 30 days for a couple hundred bucks. usually, you are screwed in these situations, but I was on the winning end this time. It always pays to call in advance of taking a load to make sure all the delivery details are legit. In short, we have a lot more power than most brokers realize under the law.

#2 I have not really had a lot of luck working directly with shippers. One guy with one truck really does not have a lot to offer a shipper. This is just my opinion, but it is based in reality. I take spot freight off the boards and I am VERY VERY picky and I always hold for my rate. If something sounds too good to be true, I always just keep looking. There is always a catch. The faster they talk, the faster I hang up and move on.

#3 I get my rates by posting my truck and taking calls and making calls. This is how I make sure I know the current spot rate. The spot rate changes from day to day and even hour to hour depending on the lane and the time of year. I post my truck in places a lot to just test the water. Nobody knows where your truck really is so you need to take advantage of this fact. I dont feel it is deceptive or anything like that, I just think it is the smart thing to do, especially in a place that you have never been into.

4# for breakdowns I use my personal tech- ME! LOL!! Really I think the best thing to do is pay for a towing contract. the other thing to do which is important is to get equipment and get very intimate with it. I don't rebuild my own engine, but I replace other small things like exhaust parts and alternators. You cant underestimate the value of knowing your own equipment very well. I also have the software that the dealer has so I can trouble shoot my truck on the road and figure out what is wrong and what needs to be done when I do have issues. This is expensive, because you have to invest in technology, but It is the only way to go in the long term. We may be simple truckers, but that doesn't mean we have to be untrained or completely in the dark on the mechanical stuff. If you had a fleet of 50 trucks you wouldn't think twice about making sure your in house mechanic had the tools to do the job. If you are the mechanic, then you need the tools. Even if you only have one truck and one trailer. My advice is always to by solid used equipment and invest in the tools to maintain it and put a wad of cash in an account for repairs. A new truck with a warranty will still make you go broke if it is a lemon no matter who pays for the repairs. Warranty does not replace lost revenue. If I ever buy a brand new truck, you can bet I will keep my old truck as a sort of insurance plan to cover me if I get a new truck that has to spend 4-6 weeks in the shop.

 

Its just like AAA

You pay a fee in advance and they are supposed to pay someone to come tow your ### to a shop. The CO doesn't actually do it (the towing), they act like a broker and find someone who will (add 8-12 more hours on the side of the road).

BROKER !! Blahhhh !! I don't like that word. For some reason I dont think it will work out when I need to use them but only time will tell.

Anyway, you can find them in the trade magazines or do a google search for heavy truck towing. Make sure you use a good company and check them out with the BBB. I use one but I have no reason to really believe thay will do what they say so I wont recommend anyone at this time. It is kind of like insurance. Watch out for exclusions and mileage limitations.