Can you lease and still retain own Authority?

[csramsey640]

Is it possible to lease on to a carrier, and still retain your own authority? A relative has a good account that he works with, but its usually pulling hair trying to get back to the customer. Can one retain thier own authority when they need it, and lease to another carrier when they dont?

[GMAN]

Most carriers are not going to want you to have your own authority while you are leased to them. I don't know why you would want to go to the extra expense of keeping your authority if you plan on leasing to a carrier. If you already have your authority it seems to me as though you would be better off staying independent. If you stop to think about it, it isn't really fair to expect the carrier to pay your insurance if you are going to take business away from them. A carrier must pay a premium for every truck they have leased to them. There may be some who would allow it for a percentage of the line haul. Then you are back to where you were before leasing on to them. Or by the time you give them their cut, you would be better off running the load through your carrier. I leased to one carrier who would allow me to haul loads outside of their network if they didn't have anything available. I had to pay them $0.10/mile for what I hauled. I had to do all billing and collecting of money on the load. They took their cut out of my next settlement whether I have been paid or not. I believe this carrier has since changed their policy. They raised their fee structure after I originally signed on with them. Why would you want to lease to a carrier if you have your own authority?

[Uturn2001]

There is nothing illegal about it that I know of. I do know a few drivers who had their own authority but the headaches of doing it all themselves was not their cup of tea and went back to leasing on with a carrier but kept their authority for future use.

Keep one thing in mind though. If you are pulling a company trailer it is possible to get in some really big trouble if you use that trailer to pull any freight other than what is authorized by that company.

[sidman82]

I have a fellow contractor that has his own authority. It works out very well for him. We are both leased on to the same carrier. I will be getting my own authority also fairly soon. My carrier will actually help you get your authority.

I can say that the insurance money and other fees you save will be about $200- $300 a week. (Being Leased onto a carrier) The advantage for me to have my own authority is being able to do my own thing without giving them a percentage. I will finish my dedicated run, weekdays, during the day, with is under contract, after that I am no longer obligated to them and do whatever I want. I do not need to hear them say, go do this load for next to nothing. I just say no thank you, I have something else lined up.

Like the other fellow mentioned, you cannot use their trailer unless you pay them a percentage. (Usually) So, if you go this way you will must have your own trailers to use. Also, to justify the added expense you will need to be doing extra work to cover enough to make it worth while. That's my take on it.

[GMAN]

It is highly unusual for a carrier to assist an owner operator in getting his own authority. Do you plan on leaving your carrier and running exclusively under your own authority?

[sidman82]

I do. I will be going down to Georgia next year. I will be completly on my own. I think the reason my carrier is doing this, is because when times are slow(which is alot lately)
they don't have to worry about keeping you busy. They just say it's your job to do that. Also the turnover rate is so high, so it is in their benifit to have guys with their own authority. It will lower turnover rate when a contrator/owner operator leaves. Less responsiblity and work for the carrier to handle. Less expense for the carrier also. More money in the carriers pocket.

Just think if everyone leased on with their own authority, the carrier would be paying no insurance premiums :shock:

[heavyhaulerss]

it is not illegal. i know of a few here who do it. i guy i know is leased to a company called easton.to be exact. it is a flatbed co. he has his own authority, but the ins was too high so the co pay's the ins & the driver gets his own loads. the co gets 10 % on every load he hauls. he gets 90 % . i think thats pretty good for the o/o who pays 10 % but not the high ins. the co get cheaper rates cause of their size & they get 10 % off all his loads. but noe this guy has all his own customers & runs 4,000 mi min a week. so the co makes good of him as well. as far as questions about why he cannot afford ins with all his own customers & running over 4,000 miles a week??? well he was just cleaned out by his ex & his divorice. which left him with a lot of money to be made ,but a lot of debt too & has to start all over. but hey whatever works... 95 % of the people i talk to would not go the way i went. but it worked for me.

[GMAN]

It depends on who's name is on the door. If you run under their authority then their signs need to be on the door. If you run under your own authority then you should have your name on the truck. If your carrier's signs are on the door, then they are supposed to have you insured.

[coastie]

I know of a company that is leased on to a company and have their own authority. They haul their own loads out, and their backhauls are for the company they are leased to.

[yoopr]

Sure you can keep your Authority but run on a companies Authority but why have your own authority if you're not going to use it?

[pepe4158]

Hmmm how about just temporarily suspending your authority, according to OOIDA they are going to do it in December for me for 4 months or so while I go overseas. Hmmmm this time you could use to see if you will like leasing to this company, and if not just re-instate your own authority.

[GMAN]

You can suspend your own authority. It will cost $80 to reinstate it.

[person]

GMAN, Is that all there is to that. Any more info one might want to know about it if they were ever going to do it, like rules and regs?

[GMAN]

Anyone who has authority can have it voluntarily suspended or revoked. All you need do to reinstate or reactivate it is to file a form with the Feds and send them a check for $80. I believe you can do this on line. You may be required to file a new PCS 150 form, depending on how long it has been since your authority was active. The Feds require you to update this form every 2 years. Some states may require it to be updated annually. There is not charge for updating the form.