Lease On or Own Authority

It's best to get your own authority. The 27% is normally higher after they take what you don't see. If you can find a company that pays everything and has plenty of high revenue freight that doesn't take a larger percentage isn't a bad way to go either.

 

If you're comfortable you have enough in your maintenance fund to cover your breakdowns and expenses while you're waiting to get paid, I say go for it, no point in being leased to someone (taking that kind of cut anyway) if you're just pulling broker loads.

 

You sound like me, I probably have 400lbs of tools on the truck There's nothing to filing IFTA, if that's all that's standing in your way, do it.

 

You had better have $10,000 or more available for everyday expenses because these brokers and 3pl's have a habit of not paying for 90 days or longer.... there are exceptions. Find them.

 

Where are you finding these brokers that take so long to pay, bin O/O for 21 yrs and never had a broker take longer than 45 days to pay and for the most part there 15 to 30 days and if you cant waite that long most offer quick pay. For the most part i haul for direct shippers and they all pay within 15 days. As far as leased on or own authority if you dont minded finding your ouwn freight and doing your own paperwork i would get the authority and go it alone but i recomened finding a few direct shippers and not using brokers for all freight.

 

Be kinda careful doing that. I think a lot of brokers have it in writing that you're not allowed to do that. Better make sure before you try to pull one over on anybody. A lot of shippers and brokers have a very good relationship. The very first phone call the shipper might make after you make your pitch is to the broker to repeat your conversation. Then, you might as well cross that broker, and shipper, off your list of available people to haul for.

I watched this happen to a neighbor of mine. He tried to go behind so many broker's backs that he has a hard time finding anything and is in the process of leasing on to a container hauler just to pay his bills. He's REALLY damaged his reputation. It got him banned from a few of the larger brokers and the smaller guys are either ticked off at him or afraid of him.

Don't think you are the first one to think of that. Look at it from the shipper's standpoint. You're a guy that they don't know from Adam. They have seen small carriers come and go. They just want their freight moved and they are not going to damage their reputation with a broker for a guy starry eyed about owning a truck. You might be the best owner operator running his own authority that ever moved anything, but they won't take that chance, in many cases. If they went behind the brokers back with you and then you went belly up, they'd be hung out to dry with a broker. Possibly, they'd have a bad name with other brokers. They are in this deal just like you are....to make money. They'll do whatever they need to do to ensure that it happens and they need to move their product to make that happen.

I wish you lots of luck, just be careful and don't forget that many have come before you and failed. Take the advice of the guys who are still kickin' and payin' the rent.

 

most of carrier agreement's i have signed have a back solicit clause for a period of 1 year.