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  #1  
Old 05-02-2004, 07:19 PM
rongway
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Default own authority

this here message is for all o/o that have their own authority. i am seriously thinking of gettig my own authority and going out on my own. #1 how much does it cost to get started? (icc,ifta insurance,ect...)#2 is freightliner select trucks a good way to get started buying a truck wise.#3 how much $ should i have set aside from the getgo#4 is their any grants that could help me outi've been otr for a couple years and i do not want to lease on to a company. i know my way around a diesel engine and a desent part of the truck itself (barring transmission). i have a good business attitude and want a good stable buisness for my wife and myself. in short i believe i can succeed at this. all information will be helpful and appreciated. thank you
  #2  
Old 05-02-2004, 09:45 PM
icantinaturner
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Default U R headed the wrongway, rongway

You'll have to pardon me, because, although I'm an O/O, I definitely do not have my own authority for several good reasons.

But, with no putdown intended, if you are absolutely determined to go it alone you need to become an O/O and lease on to a company first. I say that for several reasons. The main ones are that you need to learn a little about running your own company and how trucking companies operate. Knowing your way around a diesel engine is not a qualification for doing what you intend to do.

Seems that everyone thinks that it is a breeze to go buy a truck and start making the big bucks right off the bat. Yes, we hear those "large money" stories all the time and usually they're from guy who don't know the difference between gross, settlement and net income. The reality is that there is very little difference in *net* compensation between O/Os and company drivers and in some recent years, the O/Os actually did worse. Most O/Os would kill to make close to the money that union guys do.

If you join OOIDA (you definitely should) and pore over their magazine Land Line, you see what I'm saying. Read their yearly surveys of what experienced O/Os are making. Read the articles such as the one about how the average small operators, with their own authority, get beat out of about 15% of the money owed them.

Think about it. In the last several years, literally thousands of trucking companies large and small have gone out of business. Many had years of experience behind them and an actual customer base, yet you think you can start from scratch, during times of sky high fuel, and beat them at their own game. I don't think so.

I know this isn't what you want to hear and it might hurt your feelings. You wanted to hear: 3 grand, no, 10 grand, no, in response to your questions, but that info is worthless to you at this point. Sorry about that, but I think you're on the verge of making a big mistake at the worst possible time.
  #3  
Old 05-03-2004, 08:12 AM
illinoisroadrunner
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Default Own Authority

Icantinaturner gave excellent advice.

I've been operating under my own authority for many, many years. My equipment's almost paid for (you never get everything paid for) and I can't make what most company driver make (net).

Fuel, insurance, regulations, and my number 1 favorite, CHEAP RATES, make it impossible for the independent to make anything other than a meager wage.

Don't be misled by some that tout the big money you can make as an independent . . . it can't be done today. The cost of operation is too great compared with the rates being offered.

It used to be that you could contact shippers and contract to haul their freight at a fair rate. But, today, the large guys have beat rates down so far that you, as an independent, can't compete.

And I won't even get into what what brokers like Robinson, Intransit and Cargo Master do.

The bottom line is DON'T DO IT because you won't survive.

This may not be what you want to hear, but it's good advice from someone who's been doing it for years and knows what it's all about.
  #4  
Old 05-03-2004, 11:03 AM
crusinangel
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Default Own Authority

When considering applying for your own authority consider these points.......

1)Every trucking company out there today from the large carriers to the single O/O are using the same brokers and load boards to fill their trucks

2)Trucking companies and brokers already have contracts with all of the existing shippers and consignees. In today's market it is next to impossible for a single O/O with their own authority to be the first at the door with new companies looking to sign haulage contracts with trucking companies.If you as an O/O with your own authority do approach a potential contract who already has a contract with another carrier and attempt to offer them service you will have to offer a rate so low to get that contract that it will not be financially worth your while in most cases.

3) Start up costs to have your own authority are astronomical today.You not only have the licensing but also the insurance ( and most insurance companies will not grant hazmat or private bonding insurance today and those that do charge an outrageous amount), equipment purchase, a business account with enough backup money (suggested $10000.00 per truck or $5000.00 per truck if you have an excellent credit history) for a cushion,etc,etc,etc

4) As mentioned by others here the O/O's with their own authority also lose several thousand dollars per year due to loads hauled and not paid. The costs to ensure you are dealing with shippers, consignees and brokers who are reputable and have a good credit standing are also astronomical. To have an accounts payable/research company on retainer can cost you in the thousands per year. Added to that cost is the cost of retaining legal council in the event you need to pursue a non-paying contract.

The bottom line here is that today's trucking industry and economical market are not condusive to having your own authority. While some do succeed they are very few in number.Those who are successful today have either had their authority for several years or have been in the industry a long time and have the finacial backing to support running their own company.

As also mentioned here already there is more to running a trucking company (and yes 1 truck with it's own authority is a "company" just the same as a carrier with 8000 trucks)than just getting your authority and running freight.Not only do you need to educate yourself about the trucking industry but also and just as importantly you need to educate yourself about business.Words like tax base, overhead, expenditures,investment securities, rate ceiling and so much more have to become words you are just as familiar with as the words broker, shipper and consignee.

Before you decide on your own authority research the top 10 companies you can lease to as an O/O then do your homework about having your own authority. That way you will be making a thoroughly educated decision before you leap!!

Whatever you decide I wish you the best!!();-)

  #5  
Old 05-04-2004, 03:51 PM
yesman
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Default rightway

can't disagree with any post, including yours.

get the wife a decent job, gives you footing.

get to know the basic steps to be taken, updated info from OOIDA.

don't, please, don't let these steps distract you they may appear illusive but if you take them YOURSELF you will get to first base, with foundation.

i can not be exact. money depends. you know your situation. make the calls, find the rates. you have most likely compiled figures.

this is not to distract from the other post.

my opinion, you will be best off going with the biggest company in your area, forget the brokers, get the haul direct. a contract might not be possible, my thoughts, nor needful.
someone familiar with you, might give you some hauls. until then, stay with what you have going for yourself.

you make several calls to insurance brokers in your area, take it from there, even go outside your area.

the tough part to my post would, of coarse, be that it is essential that you get a contact(not contract) with a company(one only) that you know can(not will) keep you loaded within reason.

i don't see luck involved as much as patience.
AND OBJECTIVITY.

my opinion, your rates will mean more to you than they will mean to your customer. i.e. don't go low. this may seem contradictory but if you have the right co. as a customer, they won't turn you down on price.
 

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