please explain Owner Operator why lease to a company?

No I am leased on to a small carrier. We have about 23-25 trucks. To me that would not even make since to lease on to someone else with your own authority. I don't even think it is legal. I would think You would end up paying double the cargo insurance. You would have to have it for yours and they would have to add you to their on policy. Like stated above you may have your own authority and contract to another to haul exclusively for them but I THINK they would at least have to have a brokers license to do that. If not it could fall under brokering loads without a license.( somebody correct me if I am wrong on that). Also if they got loads from a broker and then brokered them out to you I would think that would fall under double brokering. In my mind you either have your own authority and get your own loads either direct or through a broker or you get direct freight from a shipper. Or you lease on to another motor carrier and you would get your loads through them or they may even allow you to find your own loads.

 

It is legal. If it it wasn't I don't think Megas would do it. The company we were leased onto while owner operators allows it. We would not pay for their insurance we have our own. We would take loads from them, they are not a Brokerage. They pay more to company's with their own authority who contract through them. I was asking if the money if good than why not? I see no reason to not

 

If a carrier with authority simply wanted to lease to another company, for whatever reason, all you have to do is contact FMCSA and put your authority on hold. You will not be required to keep your own insurance active while your authority is on hold, and you will not lose your authority. Simply reinstate it when and if you ever want to. If you decide at a later time you want to give it up, contact FMCSA and they can cancel your authority. I would never cancel it until I felt that I was more comfortable leased under another company, for what ever reason.

 

When I gave up my authority, My insurance wouldn't allow me to drop until receiving acknolegement letter from FMSC of authority on hold, so I end up paying for insurance for extro 22 days. Was told from OOIDA, that this was the normal for insurance.

 

that is not the way I am reading kw600. Sounds like he is saying leasing an active carrier onto another active carrier, which doesn't make since to me but if it works for him go ahead.

 

$25,000 a year for plates and insurance? Are you talking about a gasoline tanker or something? Dry van annual cost should be around $9,000 give or take.

 

Do you have a link to what you wrote?

 

To answer the OP's original question...
It can be a win/win either way you go
If you 'lease' on with a carrier...You are at their mercy on what kind of revenue you can make(many offer no forced dispatch)
If you operate as a carrier with your own authority..The sky is the limit..You Dictate what you make....As opposed to leasing on..
Sure Brokers will make things tough.....You MUST have a Pool of your own customers that send you daily e-mails or faxes on available freight....
You can Make GREAT money as a TRUE owner-operator with your own authority.......Many of these guys that oppose pure independency failed because it was too much work and responsibilty

 

I don't get why no one is understanding my question besides mc. I don't need to cancel my insurance to contract to another company. In fact the mega requires if you have your own authority you must have insurance. You lease your company to them. Xxy Trucking LLC leased to xyz truckinginc

 

The difference is that if you "lease" to a company, you "must" run under their authority and insurance. You can "contract" haul for another company using your authority and insurance, much like a power only system, even if you offer your own trailer.