Why obtain your own authority?

What extra benefits do you get from having your own authority?

What extra responsibilities does it bring?


"Liberty once lost is lost forever" -John Adams

 

Now, this is a can of worms!

 

big can of worms.

 

2 posts?
One cannot answer this question without knowing history of the OP......and the reasons for this question.

 

I just like not being told what to do


But in answer to the OP, plain and simple..

1-NONE

2-ALL

 

Benefits: you call the shots (for better or worse)
Extra Responsibilities: EVERYTHING. You are responsible for E V E R Y T H I N G. There is no extra. It's all you.

 

Off the top of my head

Extra Benefits -
You are your own boss
May be able to make more money. Emphasis on may

Extra Responsibilities
Taxes, Insurance, IFTA, Repairs, Fuel, Payroll, Dispatch, bookkeeping

It can be a lot of extra work to operate with your own authority. And many soon find out that you dont make that much more for how much more you are responsible for. Some do but a lot don't.

 

I'm not going to fall for the banana in the tailpipe!

 

You have the flexibility of finding loads outside of what a carrier offers, providing you lease to someone. You receive all of the money on loads rather than a percentage. If you are a good negotiator, you could make more than if you leased to another carrier.

The downside is that you pay your own insurance, compliance costs, IFTA (some pay this even if leased to a carrier), file all state filings, pay insurance (cargo and liability), get your own loads, bill and collect from customers, bookkeeping, etc., Depending on whom you lease, some have a base of customers which could provide more consistent year around freight. Some carriers will finance your base plates and permits. A few will furnish them at no cost to the owner operator. Most carriers have dispatchers assigned to owner operators that can help you find freight and keep your truck moving. Leasing to a carrier could provide discounts for fuel, tires, etc., Discounts are usually not available to independents running their own authority.

You can start by leasing to a carrier and get your authority later, if that is what you want.
I do better running my own authority than I would leasing to most other carriers. I prefer running my own show. On the other hand, I could lease to another carrier and earn a very good living. Whether you lease to a carrier or run your own authority, you are in business for yourself. Both have their good and bad points.

 

Haveing your own authority means you can work direct with shippers which is where 95% of my freight comes from. Make more than leasing to a carrier atleast for me. You have to do all your own paperwork and compliance which is realy nol big deal. I've bin 100% independent since i became an O/O in 94 and its the only way i would go. Just me but i like doing everything myself and being in total control of my operation.