Naive questions about how O/O business works

1) Some owner operators work under their own authority and some work under someone else's.

2) From Brokers on load boards unless they decide to solicit direct Freight from shippers.

3) Because an owner operator has his own authority does not necessarily mean he makes more than someone that is leased on to a carrier. That is a very individual situation.

4) It depends on whether the carrier has his own trailer and how much office work they do for him meaning do they do the billing and IFTA and all of the other things involved. It could be 70 to 90%.

 

When we I had my own truck I had it leased to Landstar and they basically do all the paperwork and permit and insurance for you. You pick loads from them and they even give you a trailer. They took like 35% of the pay

 

Did they have bandanas over their faces and a gun on you or some ####? That’s criminal. I pay my Lease/Ops 80% if they’re pulling my trailer 85% if they pull their own. Used to be 87% with own trailer but costs were getting to where I had to adjust it. I make money on those trucks. Not a lot, but enough to make it worthwhile, and I have motivated guys with well maintained trucks. My business model isn’t running Lease/Ops broke and getting new ones. I’ve only hired 2 in my life, and they’re still here. One of them approached me recently asking if there was room for him and his son to bring another truck on and get the boy going. I’d rather drive my ‘04 Ranger and have things like that happening than be out in my new Mercedes looking for fresh people to rob all the time. I sleep better this way.

 

Landstar probably still charges the same today. They would pay 7% more if you had your own trailer if I remember correctly. They did have good deals on tires and fuel discounts. Not sure it would make up for the big % they took. Some people do good at Landstar but I think more people don't and. If you look at most of the truck most O/O have at Landstar you don't see many new trucks. I meet one guy he had band new truck he was making good money hauling load out of Laredo TX. That did not make any sense but his wife was also and agent. So she always gave him her good loads.