Question for the Independents

There's a boatload of variables there. Really, really hard to compare unless you pulled the same loads.....in my operation with all the little direct shippers and will-call work........a "major" carrier would never even see those loads so it's hard to draw a direct comparison.

In many scenarios I don't think being 100% independent is an asset at all.........but for me, my type of work, and the areas I run......there's noone I COULD lease to and do the same thing!! LOL So it works for me. I've never been one to say don't throw away that overhead percentage by leasing....... for some guys it's a plus.

And I didn't answer your question at all. Sorry Oscar. I'm not sure there IS an answer in my case.

 

In my case I am way further ahead. I was giving up 20% of gross load amount, paying 100% of insurance, paying plates, ifta, all road taxes, and an administrative fee of 2% on top of whatever I ended up owing for ifta or NY hut etc. Not to mention the fuel card provided only gave cash price everywhere plus fees. Not sure if boss was pocketing any fuel discounts or is actually paying cash price ...

Now I do it on my own, have a card has excellent discount for when I'm in Canada and is accepted pretty well everywhere in USA, I do all my own filings so I save the admin fees and keep all the money on top of that. I would never go back to driving under someone else's authority.

Another question might be is the % given up worth not having to do all the paperwork ... And what would be a fair amount for that ...

 

Thanks for understanding my predicament!!! I have 3 trailers at present......and for me the flexibility to go and solicit and do as I please has paid off in spades.

For the sake of you illustration above; my gut says little to no advantage; leased hand MAY be better off in fact. That's my gut; no hard math involved!!! Right now my gut is saying one more Sam Summer too........for what THAT'S worth LOL

 

Oscar, when I had my own authority, the only time I did better was with the few small direct customers I managed to get. The other 90 percent off the time I was going from load boards, negotiating the best rate I could. Sometimes the broker would pay big money cause he had no choice, but most of the time he wasn't.

The important thing is, I net more today being leased.

 

To answer that question u first have to determine what the completely independent guy have to pay extra,break it down to a cpm then compare.

 

situations vary as usual, but 15-20% more net in my case. Really wasn't a tough decision. Prob leaning more toward 20%

 

I should also note I am now more effectively dispatching myself rather than running around trying to keep my former company's customers happy.

 

I never liked breaking things down to a cpm model. I use variable and fixed costs. My mileage just varies so much. Some weeks it's as low as 800. Others as high as 3000 or more. fuel, and to a lesser extent tires and oil changes are about all that I can put in cpm figures.