When Using A Broker

NO.
Depending on who you are and what you do you could have thousands of agreements with different brokers.

 

You are speaking of a set up packet ie; approved. Many carriers are set up with numerous brokers.

So no, you don't have to "cancel" one broker to haul for the other.

 

Your 'sign on' with the broker is just basic information the broker wants on the carrier (and possibly the driver) before you start booking load:

W-9 for tax purposes
Copy of insurance certificate (usually naming them a certificate holder)
carrier info (MC/DOT, equipment available, where you're permitted)
contact info (physical/mailing address, phone/cell/fax/email, etc)

They don't just give out loads 'blind'. And, that's just kept on file for any future loads you take for them. Also gets bank info for auto/direct pay, some do fuel cards, etc.

 

Can setting up with a new broker be done from a truck stop with fax and over the phone? How long does the process typically take from initial contact until you have a load confirmation?

 

It can vary from a few minutes to about an hour. Most will process the paperwork and get the rate confirmation back to you within about 20 minutes or less. They have to check your authority and make sure your insurance is up to date before sending the rate confirmation. It is also in your best interests to check out their references and credit before taking the load. You can do everything from a truck stop, but it will be very expensive to pay for faxes both ways. Most truck stops charge from $1-3 per page. Some broker packets can run over 20 pages. Typically, you will pay $3 for the first page and $1 for each subsequent page. It will pay you to buy an all in one printer for the truck and get a laptop, if you don't already have one. You should also get internet access, such as with a data card and subscribe to an internet fax service, such as eFax or MyFax. The fax service works through email and will cost about $10/month. It will save you lots of money to be able to do everything from your truck. You should be able to buy an all in one printer for less than $100 at most office equipment stores or WalMart. You will break even after 2 or 3 broker packets. Besides, you will need to be able to send in paperwork for billing purposes. Some use Trip Pak and others will allow you to fax in bill of ladings. Before I bought an all in one printer for the truck I have paid over $40 for faxes just to get set up for just one load with a new broker.

 

Thanks for the info g/man, that is exactly the setup I will be setting up. I am a recently new owner operator, I bought the truck in Oct2011 and trailer in march2012. Truck payment is about 2000/month. Trailer is 1200/month. Trailer payment is flexible month to month (thanks to bank of dad). I am running under the authority of the company I was a company driver for from July 2009. My driving career started march 2007. I saved about 40k and figured this was next step in trucking for me. I was bored of driving for someone else and being told where I'm going all the time. My goal is to be a one truck one trailer operation.

A question about insurance .. Mine currently renews this coming July. If I do another year at this company I will be on the hook for the full price of the year (so they tell me). It is taken off my cheque at about $850 a month. I really feel I can do better on my own, as far as more efficiently dispatching myself. I feel the urge to go independent, but at the same time I'm thinking it would be a safer move to stay under someone else's authority for a little while longer. I currently get 80%, use company fuel cards, all my insurance premium and plates and ifta and permits, everything, I am responsible for. My boss says he can't go more than 80% because he holds the receivables and I will get my money every time, regardless when or if he collects.

The problem I have with this is I have a few regular brokers that call me direct and ask me when I am ready to go again. I am basicly dispatching myself. One of them is COD and the others have large contracts for grocery warehouses, regular freight, have been around for a very long time, and I don't forsee them closing their doors. All of the brokers I deal with said they would take my own under my own name and give me loads no problem. I also called some major ones (chr, tql) and they also said they accept new authority carriers. I know most of the authority paperwork can be done easily, but i am planning on hiring a service. I live in Ontario Canada (not far from toronto) and haul mainly produce. I also plan to use transcore's load board as I see it as a must have tool.

Sorry for long post and the mish mashed ideas

 

I would not want the payments that you have on your truck and trailer, gokiddogo. Your insurance premium seems high to me. That is more than double that I pay. I know that reefer insurance is more expensive than what we usually pay with other types of freight, but it still seems high.

It sounds to me that you are running your authority and giving 20% of the revenue away to someone else. If you are paying your own IFTA, insurance and booking your own loads, about the only thing that would be different is that you would be doing your own IFTA quarterly filing. You can hire a service for about $25-35/month or just do it yourself in about an hour each quarter. If you buy software specific to the trucking industry or use a spreadsheet to track your fuel and miles, then it is a piece of cake to do at the end of the quarter.

There could be a little more paperwork crossing the borders, but you are probably already familiar with that. If you run in the U.S. you will need authority here. I think that you may also need authority for Ontario. It has been a number of years since I ran into Canada. If you check with OOIDA, they should be able to tell you everything that you will need.

Running your authority is not that difficult. It does take a little more time and attention to paperwork and details. You will need to do the paperwork for new brokers with whom you plan on doing business. That doesn't take much time and is a one time deal with most brokers. Contracts tend to be perpetual. It takes about 3-6 weeks to get your authority in the U.S.

Before making a final decision you may want to check on insurance. I have seen a wide range of rates. Not all insurance companies write insurance for reefers. I do think that you can beat the rate you quoted that you are currently paying your carrier. As long as you have at least 2-3 years of experience an have not had any claims and your abstract looks good, there is no reason to expect that you cannot qualify for a lower rate on your insurance.

I will say, however, that some people prefer leasing to another carrier rather than running their own authority. They simply don't want to deal with all the paperwork. I never found it to be very daunting. I would not rush into anything. Take your time and check around. It sounds like you are making some plans and contacts. If you already have contacts that you have been working then it will be a much easier transition.