New owner operator

If one isn't negotiating the rates himself having that confirmation makes a big deal. A Carrier can claim they're giving their contractors 90 percent but without the proof who really knows?

 

you are absolutely correct my friend, that is why owner ops need to demand from their trucking companies for load rate confirmations to be immediately forwarded to them... only way to know for sure is if you have an open communication with dispatchers, brokers, and customers.. if company doesn't let you see the rate con, or let you talk to their brokers or customers, they are hiding something from you..

 

You could also invoke the "truth in leasing" clause set forth by the FMCSA but I doubt you'd be pulling for them much longer afterwards. I'd love to see this happen one day. Lots of lawsuit money hiding in those dark corners.

 

WHO has the authority?

The company.

The company is legally obligated to cover the cargo insurance - not the owner who is leased to the authority.

Here is why it is this way, the authority is the responsible party for that cargo, not the owner.

So they need to eat the cost because that's their responsibility.

 

Hi, I'm needing some helpful information as to purchasing a good used big rig to haul frac sand out here in North Dakota. My husband is currently working in the oil field as a Water Truck driver, and he wants to start his own business as a Owner Operator Frac Sand Hauler. So, right now I'm just researching and looking for recommendations, if anyone have any info, that would be awesome! God bless!

 

ok there mr attorney, I understand your frustration with the lack of knowledge in this matter, the company is obligated to provide cargo and liability coverage (you are right about that), you as an independent contractor can choose to lease your truck with that company or not, if you choose to do so, company can pay it for you if they want, or they can ask you to pay for it, whatever is in their lease agreement that's the way they do it, there is no law in any state that says who is responsible to PAY for coverage. if you come to this company where I am leased with, and tell them you don't want to pay for cargo insurance , they will show you the door. (no offense) THANK YOU THANK YOU I WILL BE HERE ALL WEEK

 

If I may; I would suggest you first run all the numbers of cost and profit, operating expenses, expected repairs, and where you plan to go with this (if you haven't already). If you just started a business in trucking, you will need to run it as a business or you will be doomed to fail.

Most brokers do not like to work with new authority-you will soon find this out. Some brokers take up to 3 months to pay, some never pay-can you deal with this? Do you have sufficient capital to operate for several months without income from the loads you pull? Factoring costs from around 2-5 percent if you want your money straightway. You will find that some companies try to find every reason on earth not to pay your broker or your factoring company.

Insurance can be obtained easily enought-I used OOIDA-$763 a month for dry van.

As far as you buying equipment; is it paid for or financed? Did you calcuate the bottom dollar on this and the cost of a trailer also. Reefer loads pay more but the cost of running is more. I personally did not like reefer due to the lengthly loading/unloading processes and 1am, 2am, type of appointments.

If I were you, I would; or would have purchased an older DOT inspected cabover for cash. This way you own it (maybe you do own a newer truck in your name) and can do most all repairs yourself, no regen, no DEF, no electronics, and use of paper logs. Furthermore, they have good resale value today. I would not consider getting strung-out on big payments to begin with.

If I was just starting, I would go dry van until I fully understood how freight moves and pays (if you have not hauled it). Dry vans are cheaper to purchase and you have less freight claims and less hassle with lumber fees and such. In your area I know dry vans haul lots of potatoes.

The point here is-make sure you run as a business and can cope with the unexpected, and possible lengthy times (at times) to get paid for loads. Some factors like Loves seem to be better than run of the mill 2 % factoring companies. All in all, you have to make the money youself because no broker or anyone else will do it for you.

Below is a photo of our $6,500 cabover. We ran it from Laredo to NC and never- ever lets us down on the road. Four hundred big cam Cummins with jakes and everything worked. You could get this kind of truck repaired just about anywhere if you needed.It is still pulling freight today from Atlanta to the Northeast.

 

OOIDA will no longer quote insurance on authority less than 4 years old. I called them last week and that was the answer I got.

 

OOIDA is making a mistake. Progressive will.

 

It depends on which state you're in for Progressive. In California where I am, Progressive also won't quote DOT's less than 4 years old. I called them a couple months ago. They're making it impossible to start a new trucking business.