please explain Owner Operator why lease to a company?

I think the problem is terminology, lease vs. contract.

 

Maybe the op is confused due to trucks with two names on them? For example: Bobs trucking and "leased to" big carrier abc

 

Typically Yes ^^....I understand what the OP is saying.....
Here is the Deal...
When you see 'Bobs Trucking' Leased to 'XYZ transportation'......the actual "carrier" is xyz....
Bob's Trucking is just the owners name for Tax and Legality purposes...it hoilds no water for Business transactions with Freight movement....Because 'Bobs trucking' doesnt have the authority and insurance to
haul under contract ....
it gets confusing for some folks when they see that...
Best way to tell which name will matter ? Look for corresponding USDOT# or MC# within the vicinity of the name on the truck

 

When you contract loads from the larger carrier, you have your own insurance own truck own authority. Will you have to put the larger carriers name on your truck? This is for a small fleet contracting to a large carrier. Not an owner operator leasing his truck to the larger carrier.

The original question revised..
Why or why no is it a good or bad idea to contract loads out from a larger carrier if the numbers are good?

 

If the numbers are good, great. I almost did this for a small glass carrier. If you're talking about JB HUNT, it won't be a good deal and the numbers aren't good either, and yes, I do know what I'm talking about.

 

Not JB Hunt i was just using them as an example. I plugged in all the numbers in excel and it has not lied to me yet. The larger carrier pays 11 cents more to companies with their own authority contracting loads through them. That 11 cents covers the cost of authority plus a profit, so why not. Leaning towards giving it a try

 

Have fun. You'll learn, maybe.

 

in this scenario you are not leased to jbhunt. You, you have signed a contract with them to pull for them exclusively. You give up all the benefits of having your own authority, have none of the benefits of being leased, for 11 cpm? As I said before, the carrier gains a lot, the truck owner loses a lot.

 

11 cents MORE than their owner operators are paid. Not 11cents per mile . why isn't anyone understanding me?

 

Because you don't know what you're doing. The above poster was merely stating that for that extra 11 cpm, you handle everything to do with compliance, insurance, no fuel discounts, etc. It's not worth it.