Owner Operators and direct loads for growth

I usually use brokers to ship my products, and I do deal with a couple O/O's directly.

The biggest reason I don't deal directly with O/O's is hearing this from them: "Well, uh, I MAY be able to grab that load on Monday, or could be Wed if I don't get a load going to so and so.........um I will let you know in a day or two."

Or I call a broker and they make it happen.

 

Interesting to have a shipper reply and wish more do do, so here is what I think as this post is to help O-O think and approah transport differently:

Return load could be solved by focusing on specific lanes and speaking to shipper, brokers and consulting loadboards.
One member mentioned that shippers could go bankrupt hence vetting shippers and that needs planing before your enter your truck

But this requires to be structered in their load planning on a weekly basis, imagine that you could arrange your loads for the following week or arrange to pickup loads an week in advance after you have spoken to shippers in both directions wouldnt that translate into lower operating cost and more profits if a little bit of hard work was put in place in the beggining? Again what I want O-O to remember your bigger carriers were once O-O aswell and today some have huge fleets.

What do you think could be done to remedy this? or if O-O could be taught how to get customers and then be taught how to maintain them and show them how profitable that would be, would they be will to be taught? If you are an O-O would be helpful to answer as an shipper has mentioned one of the key reasons why they deal with brokers! I garauntee you he is not the only shipper that has that view about O-O'S

So if you as an O-O and small fleet owner could be taught or given the know-how and shown how to make your business more profitable, would you be willing to be taught?

 

For me, a one truck show and that's all my operation will ever be, I fail to see any potential in competing with large fleets who can make better profits on lower margins. Leveraging one truck on the open market is the surest way to get the best rates with a single truck or small fleet.

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Rogue,

I totally and completely understand and appreciate your position. It's tough as a one truck show to give that level of commitment and service. We are at a huge disadvantage in that essence.

You want to know that the load will be covered. I don't blame you. Your shipping dept can make one phone call and what could take him 3 days he is likely done with in 30 seconds if he sends a single email to 3-5 different brokers with a load list. Time and resource management.

A fleet carrier has an advantage that they have several trucks or trailers that allow them to move your load. "hey Joe, can you move this for me?" "Sure, I'll send a guy over this afternoon to pick that up." Dispatches the next or closest empty truck in the area to go pick it up and taken care of.

This personally was biggest and highest concern when I got my own authority. "What happens should I break down and the load is time critical?" How do I still deliver the load?

A fleet company can just re-power the load. I would likely have to repost and second broker the load, rent a new power unit etc. But it's something I strive to address and have.

While we are hesitant to simply commit to the load, it's likely to mean we are under a load right now and not in that immediate area. I have come to the conclusion that communicating that directly to my shipper means the world to them. "Hey steve, I'd love to commit to this, but hey, I am down in Greenbough AL right now and I have to see how fast I can get back to your area.

I've been asked in the past, "What lanes do you like to run?" I have a run "area" put together and I share it. I try to focus on that area. All day runs or less from the house. The best one can say is, "I run a food grade reefer." and load the truck accordingly. Would you load scrap nasty paper or shredded tires into your refrigerator at home? You likely wouldn't put frozen meat on a flatbed either.

So being a one-truck pony show is not all that conducive to direct shipping compared to working with a fleet of any size. One of the biggest drawbacks I see to it is, I commit my truck to your operation and get a liveable wage for me. I focus solely on that. As a direct shipper, you are always looking to cut expenses. Guess which expense is likely to get cut as soon as that fleet comes in looking for work? And now that one-truck pony is no longer working pulling that load.

An o/o provides a valuable service. A dedication to you and your load that is above none other. It's our name and our reputation directly on the line when we show up. We are the driver, salesman, accountant etc


But our business models are not the most conducive to direct shipping setups.

Gotta run

Load came in and I am going home.