Considering trucking as new career, need opinions

[Phil99]

Hello,

I will try to keep this short and not sure whether this post should go in the O/O section...I am thinking about leaving (or partically) the cabinetmaking industry after 30+ years and going to a school or community college for my CDL. Have always thought I wanted to drive as young as 16 but didn't recognize the desire or think about pursueing it. So just went straight out of high school at 17 into the Army for couple years then into the cabinet industry. Then married and four kids later, didn't have time to think about what I wanted to do....just did what I knew. Now kids are gone (or going) and wife finished nursing degree. I am beginning to get burned out with the construction industry and thinking it's time to do what I think I always wanted to do.

The other reason I am thinking about doing this is my youngest son got his CDL last summer when he turned 21 and has now been driving for what seems to be a good company for little over a year. He and I have started discussing the concept of buying or leasing a truck and "sharing" it. He seems to like his job driving but would like to be home just a little more. What's the chance of us working as a "team" only maybe not always together? Maybe he goes out for a 5-7 days and then I give him a break and go for a few days? Not knowing how the industry is set up...is anything like this possible?

As far as I know there are no issues/violations on my driving record for the last three years. Do dread the thought of starting over and the whole "learning curve" but think I am ready to do it. Don't mind being away from home for short periods of time but not interested in long stretches.

Looking for opinions from those with some knowledge....thanks much,
Phil

[Mallaien]

I don't know if becoming a owner operator is a good choice right off the bat. Truck and trailers cost a ton, leases are never in the best interest of the lessor. If you buy used, most likely a truck that is 3+ years old, they have a higher rate of maintenance expense. You will be on your own to purchase the Licenses, Fuel, insurance, and all other expenses. Until the truck is paid for you wont be able to afford to have that truck sitting still.

You Can expect about Half of your income to go back into the truck, and that's a conservative estimate. You will need a load broker, or hire on to a company, in either case they will get there cut.

I would suggest going out for at least a year of driving with a company, learn everything you can about owner/operator, and avoid Lease options at all costs.

[geeshock]

I'll second that. you want to be comfortable driving that truck 1st. mabe you and son can drive together for a company as a team. Once your comfortable, I've seen teams where one driver drives solo for a few days or a week while the other takes some time off. then they drive as a team for a while, then the other takes time off while the other continues to drive solo. I don't know what stipulations diferent companies have on that butyou proposition sound at least partly doable.

[Glad Hand]

Drive a year, preferably two, and then reaccess and see if you want to take the plunge. I have a strong feeling that you won't. Nevertheless, don't jump in before you look to see if there is water in the pool.

[GMAN]

I would also agree that you should wait to buy a truck until you gain some experience. A year or two would be preferable. Unless you plan on getting your own authority you will find it difficult to lease on as an owner operator with most carriers without some driving experience. The better carriers usually require at least a year or so experience before they will lease you on. Waiting will also give you an opportunity to learn what you are doing and give you more of an idea of what to expect. It would also give you an opportunity to see if you and your son could work together on the road. Team driving doesn't work for everyone. It would be good to find out before you start spending money. Who knows, neither of you may like team driving. Each of you may want to buy your own truck or neither of you may want to do that once you spend a year or so in a truck. Having owned trucks for many years I can tell you that sometimes it would be nice to have someone else write the check when I have had a major breakdown.

[geeshock]

heh, I know thats the truth. looking to buy a truck myself but gman and some others talked me out of my insanity till the economy picks up a little

[Phil99]

Thanks guys....you told me what I expected (and needed) to hear. I guess in reality I never thought or planned to jump right out and buy a truck until I first got my own CDL and spent some time learning the industry....and make sure the illusion of a truck driving career is even for me (and ultimately for my wife). I confess, I don't understand the workings of the industry and all the rules and regulations....all kinda muddy at this point.

Can you help me understand what "getting your own authority" is? Is it like running any other business (say a cabinet shop)? I know when I had my own fabricating shop for 15 years I had to have a business license and work with the state and federal gov. concerning all the paperwork and taxes involved. And I agree, it was nice in some ways to close down my shop and just start designing and selling for another company.

When I finally decided to start my shop it was after I spent a few years working in other shops learning the process. I had to go out and buy the necessary tools (that would be a truck in this situation) to build cabinets, go out and contact builders/customers to buy my product/services, then do the work and collect the money. Is the trucking industry something like this?

Thanks much,
Phil

[GMAN]

Can you help me understand what "getting your own authority" is? Is it like running any other business (say a cabinet shop)? I know when I had my own fabricating shop for 15 years I had to have a business license and work with the state and federal gov. concerning all the paperwork and taxes involved. And I agree, it was nice in some ways to close down my shop and just start designing and selling for another company.

Trucking is one of the most regulated industries in this country. We are required to maintain a lot of records and belong to a drug consortium. We are required to keep track or our time and cannot legally work more than 70 yours in an 8 day period of time. There are regulations about securement, weight, and many other things in which we must deal on a daily basis. We come under federal, state, county and local regulations in some cases. In order to haul freight you must have operating authority. You either lease to a carrier who has authority or obtain your own authority. Authority is basically permission to operate in interstate commerce and is granted by the U.S. government. Intrastate authority is granted by some states for those who only operate within their borders or pick up and deliver the same load within a particular state. I believe there are about 11 or so states who have intrastate authority. You only need interstate authority if you operate across state lines. You obtain interstate authority by applying to the feds. There is a one time filing fee of $300 and it takes about 3-6 weeks from the time you apply until you receive your authority. The cost of intrastate authority varies from state to state. California and Texas are two of the most expensive. In order to get authority there are minimum amounts of insurance which they require. This is where many have a problem. Most insurance companies require from 1-2 years of driving experience before they will cover you. Progressive will cover you for the liability part with some restrictions. Insurance is one of the most expensive aspects of getting your authority. The more experience and the better your MVR the better your rate. There are some who pay in excess of $12,000 per year for motor carrier insurance. I recall one poster who was quoted $36,000/year for insurance, but I think that he lived in New York. I pay about $3,700 for liability and cargo, but I have been at this for many years and have a good track record and MVR. Most shippers and brokers require $1MM liability and $100M cargo insurance. Where you live and run has a lot to do with your rate as does the type of cargo you haul.


When I finally decided to start my shop it was after I spent a few years working in other shops learning the process. I had to go out and buy the necessary tools (that would be a truck in this situation) to build cabinets, go out and contact builders/customers to buy my product/services, then do the work and collect the money. Is the trucking industry something like this?

Thanks much,
Phil

When you are a motor carrier you get freight from shippers or brokers. While running a truck isn't complicated, it does take time to learn the basics and how to successfully operate a trucking company. That is true whether you lease to a carrier or run your own authority.

There are primarily two reasons most businesses fail, lack of capital and lack of experience. Trucking is a very capital intensive business. It can cost a lot of money just to fill your tanks. A breakdown can cost hundreds, if not thousands of dollars. Unless you have the funds or credit to make repairs when your truck breaks down you are out of business. I had one truck that I spend over $11,000 on repairs last year. That is not the norm, but it can and does happen. A blown engine can run from $10-18,000. I put a transmission in one truck last year and by the time I paid the wrecker, motel for my driver and repairs I had spent over $8,100. A blown turbo a couple of years ago cost me $2,700 including parts and labor. I paid over $1,300 to put in a clutch earlier this year. Breakdowns will occur whether the truck is new or older. Even a new truck may have repairs that are not covered under warranty. And while the truck is down you have no income. The transmission that I replaced had my truck sitting for 5 days waiting for parts.

Take your time and learn all you can. This can be a rewarding business. But it is also a demanding business. People come from many different backgrounds. There are those with a high school diploma to Ph D's out here driving. This is not something you can learn out of a text book.

[Phil99]

Thanks GMAN...very helpful...beginning to understand a little more. Authority=permission...that makes sense. I will keep researching but sounds like my next/first logical step is to locate a school or community college to obtain my CDL. Then hire on to a company for 1-2 years min. to learn the system and decide from there.

You guys have been very helpful....I will hang around and keep reading.

[GMAN]

A community college that has a vocational school which offers driver training would be your least expensive way to obtain your CDL on your own. The down side is that it will take a little longer than going to a private school. Most will assist you in finding a job after graduation whether it is private or state. I hesitate to mention this but there are a few carriers that will train you to drive but you will need to make a time commitment to them or pay them for your training. Personally, I would opt to get a CDL on my own rather than committing to a carrier. Anything can happen and if you leave you will be responsible for thousands of dollars in training. Having your CDL prior to starting your training will give you an edge over those not having a CDL. In addition, some carriers have stopped training drivers who have not yet obtained their CDL. Good luck.

[dle]

I would also second the notion of not starting out with your own truck. It is good that you recognize that as well. Just remember some of the old sayings - the grass looks greener on the other side because it sits on top of a very large septic tank.

The learning curve is going to be very steep. You will have to learn how to do many things all in a very short period of time. As also has been said this is not a read it in a text book and learn it kind of business - it's more of a dive in and learn it. Yes, reading books will help but it will not prepare you for the fact that many different entities interpretations of the rules and regs. Pick one reg and go to your state DOT and ask for their interpretation, then go to the county, then go to the city. Then for the kicks go to another state and do it again. I would venture to guess that they will all interpret it differently.

You have some business decisions to make. While in school can you leave your business to others? What are you planning on doing with your business? Can you afford to go without income coming in, and for how long? How are you going to pay for the training? Even if you hear 'company paid' training you will in the end wind paying for it. What are your 'outs", should things not go as you hoped? Have you identified your potential failure points?

Have you talked to your family about what they feel about this? When I say talked to I don't mean just one time over dinner or while driving to/from somewhere, I mean several times.

Good luck.

[GMAN]

If you need to continue working while training you may want to check around to see if anyone offers a weekend training program. I believe some previous posters found something in their area where they could get training on weekends while still working.