Why obtain your own authority?

It's not my revenue, it is their revenue. Of the gross revenue I get my contract percentage and the carrier gets their contract percentage. Mine is not theirs and theirs is not mine. They pay their costs from their revenue and I pay my costs from my revenue and neither one crosses over.

 

the OP's question was what is the benefit of having your own authority ?

Maybe the better question would be, "What can I do as an independent O/O with my own authority to benefit my brokers and shippers ?"

I try to sell them the concept that every load I haul is my number one priority. With me, you will talk to the same person every time you call or email. You don't have to deal with three different agents, a driver, and accounting. The buck stops here. I'm still not sure what the best way is to communicate that. Some brokers seem to get it, but many of them still think it's some kind of a joke or something when I tell them they're talking to the driver and the dispatcher and the booking agent and the accountant.

As mentioned in several posts above, there are many advantages to leasing on as well. Strength in numbers, access to company loads, a team effort, etc... It's tough to compete with all that as a one man show, but I do think an independent O/O brings something to the table that a company can't. And I think there are certain shippers and brokers who can benefit from the services of an O/O with their own authority over a company with lease drivers.

 

I lost count a long time ago on all the loads I missed out being leased on because I was higher than independents. You have that ability up against a leased driver negotiating their own loads. This is not to say you or they are running cheap, just that you get a solid rate for a little less because there isn't x" amount percentage coming out of your linehaul. I don't lose sleep over it. One strength a company with numbers, even if only 10 or 20 trucks, it gives access to better freight and special partner carrier relationships that no single o/o will ever get access to.

 

Where do you find all of your shippers? I am running household for atlas vanlines at the moment leased on to them. I want to become completely independent. I have never hauled general freight befor so I don't know anything about it. I do know its survival of the fittest out there. I would love to get into flat bed and heavy haul but I don't want to lease on to anyone. I think the best thing is to start with dry van or reefer. I calculated the other day that I would need about 1.60 a mile and a minimum of 2000 miles a week to breakseven. I don't want to pull the trigger on this thing until I have a solid idea of what I am hauling and how many miles I have access to. Any advice would be greatly appreciated. I also have a brother that may be interested in running team with me.

 

If you want to run team, you would be better off with a reefer or van. You don't see a lot of tams doing open deck freight. If you want to do heavy haul and flats, it would be much better for you to lease to a carrier and learn about that type of freight and securement rather than having to learn as you go. Most will start with a flat, work into a step and then go with an rgn or double drop. They then start expanding the number of axles as they gain more experience. Open deck hauling is much different than pulling a box around. Once you get into over sized and heavy haul, things are much different. It usually takes several years to go from flats to heavy haul. No two loads are the same. It is a constant learning experience. A mistake with heavy haul or OD loads could cost thousands of dollars.

 

Not to mention the chance someone could get killed.