Should i jump ship as an “indie” or buy a 2nd truck?long!

[henboy1]

And I have not read through this entire thread, but what are you hauling? Do you have freight already or are you going to depend on the load boards? Who will dispatch the trucks, find the freight and handle all of the paperwork involved with securing a load and setting up new accounts? You will need someone working from home to handle this part of the business, setting up broker and shipper accounts along with billing and payroll. They will need a computer along with a fax, scanner, copier and a phone.

And I think I noticed that you are not factoring? Are you able to pay for fuel for another truck or two, cover any emergencies and make payroll along with advances on a weekly basis? When I hung it up, my average time to pay was out 60 days, that is a long time to carry a company. Because when you get right down to it, that is all we are, a credit company that extends credit to brokers and shippers. And then we have the credit checks, they need to be made religiously for every load you haul for a direct shipper and or a broker. These guys can go t-ts up in the blink of an eye without any notice and really leave you hanging, especially in this economy. I would seriously look into factoring your paper unless you have a few hundred thousand minimum in your bank account. Trust me, that is chump change when you get a small handful of trucks running out here and have to pay for fuel and cover payroll. Think about it, say three trucks, fuel in all of them, payroll, the office gal, your bills, your companies bills, advances, repairs, tires, oil changes, food, etc... Now multiply that out 60 days. And don't expect money to just start flowing in, as you will find it flows out quicker than you can write checks. And those checks are hit and miss, they will tell you the check is in the mail, and you can wind up spending months on waiting for that freshly mailed check.

And stay away from credit cards, they can lead to a slow and lingering death to a small outfit if your cash flow takes a hit.

And to let you know, and this is back before the fuel spiked over $2, we needed to make a minimum of $1.55 a mile clear to break even on our trucks and pay our drivers. And that was for all miles, empty and loaded. Anything over that $1.55 went into the company, anything under, it came out of my pocket. When rates started their collapse and fuel hit $4 we were pretty much finished. We sold all of our equipment off except my truck and two trailers. I just sold the last trailer a few months back and am damn glad to be out of trucking. It sucked the life out of us both financially and emotionally along with my health.

Good advice justtrucking.I am facing some of what you mentioned above.I have called a few times and when they checked me out they said I was too new to deal with.I do understand their point of view.In checking some broker's credit, they also came back ****ty.It goes both ways.2 months ago I had about $8000 out there and I have still never factored.I finally set up shop with a factoring company at 2.5%,$100 processing fee and 90% advance until the invoice is paid.Not many can beat this deal since Apex,Smarttucks,Riviera, D&S Factors all want around $400-$500 processing fee and 4-5% on bills.I did this to protect myself incase I go down the route of getting a second truck.The $8000 finally made it's way to my mail these past two weeks.

2 years ago, when I called about Bobtail insurance on one truck, the quote was $110/month.Your explanantion makes sense since no one would lease on and then pay the same insurance as someone with their own authority.


Just to give you an idea, after calling a whole bunch of Insurance, I signed on with Cooper Insurance(Northland).I wouldn't be sitting here doing this if I had to pay $8000+ for commercial insurance.
My premium is only $4039/yr.They also gave me a quote of $4350/yr for a driver(they ran his MVR) who had 2yrs experience and 1 ticket.This quote is still not bad and I know around how much I will be paying if I do go that route.

I also called OOIDA and inquired on their CMCI(drug consortium).Since I am in the program, each driver will cost me another $100/yr for a drug testing program.I am also seeing that changing out drivers will be costly.Not just to the Consortium fee, but also on my Premiums as GMAN has mentioned numerous times.


Gman, I am leaning more towards the 2000/2001 International 9400 with a Detroit.Which one is the Prostar or Eagle?.I drove them at the auction and they seem ok for what I am trying to do.A mid roof might be perfect for a hauling platform freight.Gman if there is anyone out there, you will be the one with more experience with my first choice of an International.

[no_worries]

As some others have said, you're not going to have much luck finding anybody to lease on at 80% AND have to pay for liability and cargo. In fact, I don't think it's even legal for the carrier to charge back for those items. I used to lease on to a guy for 90% and that wasn't enough to keep me from going on my own in less than a year. You're going to have to be able to offer some good paying freight to keep guys around, otherwise what's the point?

[Justruckin]

In regards to drug consortiums, check around in your local area, you may find it for free. Concentra in Detroit handled mine, put me in a pool and sent monthly letters to notify me if my number was up. Like I said, there were no fees involved, just pay the $35 for the pee test if your number comes up.

[henboy1]

Good advice justtrucking.I am facing some of what you mentioned above.I have called a few times and when they checked me out they said I was too new to deal with.I do understand their point of view.In checking some broker's credit, they also came back ****ty.It goes both ways.2 months ago I had about $8000 out there and I have still never factored.I finally set up shop with a factoring company at 2.5%,$100 processing fee and 90% advance until the invoice is paid.Not many can beat this deal since Apex,Smarttucks,Riviera, D&S Factors all want around $400-$500 processing fee and 4-5% on bills.I did this to protect myself incase I go down the route of getting a second truck.The $8000 finally made it's way to my mail these past two weeks.

2 years ago, when I called about Bobtail insurance on one truck, the quote was $110/month.Your explanantion makes sense since no one would lease on and then pay the same insurance as someone with their own authority.


Just to give you an idea, after calling a whole bunch of Insurance, I signed on with Cooper Insurance(Northland).I wouldn't be sitting here doing this if I had to pay $8000+ for commercial insurance.
My premium is only $4039/yr.They also gave me a quote of $4350/yr for a driver(they ran his MVR) who had 2yrs experience and 1 ticket.This quote is still not bad and I know around how much I will be paying if I do go that route.

I also called OOIDA and inquired on their CMCI(drug consortium).Since I am in the program, each driver will cost me another $100/yr for a drug testing program.I am also seeing that changing out drivers will be costly.Not just to the Consortium fee, but also on my Premiums as GMAN has mentioned numerous times.


Gman, I am leaning more towards the 2000/2001 International 9400 with a Detroit.Which one is the Prostar or Eagle?.I drove them at the auction and they seem ok for what I am trying to do.A mid roof might be perfect for a hauling platform freight.Gman if there is anyone out there, you will be the one with more experience with my first choice of an International.

I decided to restore this thread so that I wouldn't have to elaborate more on where I am.
So LS is gone and the authority is done.LS is even sending me mail to come back since freight picked up.I wouldn't turn back until CSA gets me.


I have a tough decision to make in the next 3 months.I talked to another O/O on here to help me decide what to do and he gave me clues.




1 month ago I saw a 2003 Columbia with 500HP Det. on ebay.The seller could not sell the truck at the reserve he set.The second time, he gave up on ebay and had it parked at the house.He had the truck for only 1 1/2yrs and stopped running it when he went out of business.His wife emailed me asking me if I wanted it at a set price.I agreed, and went to LA with my stepdeck.Since my FLD would be legal height on my step, I decided to haul my truck on my deck and drive that truck down to GA.To speed things up, after doing an OIL SAMPLE, i bought that truck about $2000 lower than the reserve.
Let me really speed things up.

I now have 2 trucks with all the platform set up in place.I was thinking of Leasing this old FLD to another Carrier that hauls containers locally(sc,nc,ga,al and tn).I have a driver waiting for me to start him doing this container stuff.I called a bunch of container outfits locally to see if they need trucks and also to talk about the gross revenue.One place told me they gross between $500-$2500 after fuel(net).Then again that is what they say and my problem is that the margin/difference is way too much.Baer in mind that I used to haul containers before I started with LS, so GMAN, please tell me something I havn't heard.
The question is, should I keep this truck under my authority with a driver in it or should I lease it on another carrier?.Mind you that under my MC, weekly fuel will be around $1,000-$1200 weekly and the truck will gross between $4000-5000/week.But then again, my insurance will be $4072/year plus all that IFTA,permit and all the fixed cost that comes with this business.Whether I lease it or not I am still going to maintain and pay my own base plate.




I am not sure what the container guys are truely avergaing nowadys, but I am heading home to talk to some of these conatiner O/O and see how much they are grossing with a specific carrier.Hyperthetically speaking..........The truck leased on will gross$1800- $2500(gross before fuel).One outfit told me they charge $60/ month for bobtail and they pay for cargo and the trailer. I will asume physical damage will cost around $100/ month on this old truck with them.
I am not sure, but I probably need to run OOIDA cost per mile spreadsheet and compare both expenses before making a decision.



This 2 scenarios boils down to this.....................This FLD put me where I am at.It has a 1.4mil miles without any inframe that I know of.Only the Lord knows what these trucks are made of.It has never given me any engine problem except a bull gear 2 years ago.I have been doing oil samples in the past 1 year and it has always come back clean except for the time it needed the Bull gear.It boils down to me having confidence in this truck to keep running OTR with with it.That was why I am deciding to make it run "local" but under someone else' authority.Any opinions out there?BTW, someone might say, why can't this truck run local and still under my MC?Running local under ones authorty does not pay unless you have a direct shipper feeding you with freight.For example I make $520-600/day when I am home, by delivering to Home Depot locally, but when I need to gross $5000/week, I hit the road.This gig is only seasonal
Thanks for reading, please give input.

[rank]

I now have 2 trucks with all the platform set up in place.I was thinking of Leasing this old FLD to another Carrier that hauls containers locally(sc,nc,ga,al and tn).I have a driver waiting for me to start him doing this container stuff.

How well do you know the driver and how much do you trust him?

The question is, should I keep this truck under my authority with a driver in it or should I lease it on another carrier?.Mind you that under my MC, weekly fuel will be around $1,000-$1200 weekly and the truck will gross between $4000-5000/week.But then again, my insurance will be $4072/year plus all that IFTA,permit and all the fixed cost that comes with this business.

Fuel is only 25% of revenue?

It boils down to me having confidence in this truck to keep running OTR with with it.That was why I am deciding to make it run "local" but under someone else' authority.

OK here are my thoughts whatever that's worth.

1. Ya really, really have to have alot of faith in your driver. A bad driver can literally bankrupt you. You will need t stay on top of him and watch stuff real close. Might want to have a way of tracking the truck. And no family members IMO.
2. How much of your time will be consumed by the 2nd truck/driver? The extra income it makes may take away from your ability to earn if you are baby sitting and fixing all the time.
3. What if the FLD goes down? Will you be in a position that you having to fix that truck to honor you lease or honor your commitment to the driver?
4. If that driver runs under your MC, think about the damage a driver could do to your safety rating. You might wind up getting inspected all the time because of his screw ups.
I have never been leased, so pardon my ignorance on this but if you are leased, does the safety rating of your trucking company (i.e. the one that is leased to the carrier) take a hit in the event that the FLD/driver runs into DOT problems?
4. What if that driver kills someone? Can you be sued and lose everything?
5. Should be able to make money if revenue = 4x fuel cost, but it needs to be worth the risk.

If you can set it up so you have limited risk and if the 2nd truck runs itself without your truck losing revenue and if you have no problem laying the driver off when the FLD craps out, then yeah lease it out.

If you decide to run your own MC, Might want to look into getting a new MC for the FLD.

[henboy1]

How well do you know the driver and how much do you trust him?


Fuel is only 25% of revenue?



OK here are my thoughts whatever that's worth.

1. Ya really, really have to have alot of faith in your driver. A bad driver can literally bankrupt you. You will need t stay on top of him and watch stuff real close. Might want to have a way of tracking the truck. And no family members IMO.
2. How much of your time will be consumed by the 2nd truck/driver? The extra income it makes may take away from your ability to earn if you are baby sitting and fixing all the time.
3. What if the FLD goes down? Will you be in a position that you having to fix that truck to honor you lease or honor your commitment to the driver?
4. If that driver runs under your MC, think about the damage a driver could do to your safety rating. You might wind up getting inspected all the time because of his screw ups.
I have never been leased, so pardon my ignorance on this but if you are leased, does the safety rating of your trucking company (i.e. the one that is leased to the carrier) take a hit in the event that the FLD/driver runs into DOT problems?
4. What if that driver kills someone? Can you be sued and lose everything?
5. Should be able to make money if revenue = 4x fuel cost, but it needs to be worth the risk.

If you can set it up so you have limited risk and if the 2nd truck runs itself without your truck losing revenue and if you have no problem laying the driver off when the FLD craps out, then yeah lease it out.

If you decide to run your own MC, Might want to look into getting a new MC for the FLD.

Good info to think about.

[GMAN]

so GMAN, please tell me something I havn't heard.
The question is, should I keep this truck under my authority with a driver in it or should I lease it on another carrier?.Mind you that under my MC, weekly fuel will be around $1,000-$1200 weekly and the truck will gross between $4000-5000/week.But then again, my insurance will be $4072/year plus all that IFTA,permit and all the fixed cost that comes with this business.Whether I lease it or not I am still going to maintain and pay my own base plate.

I doubt that you will average $4-5,000/wk with a driver, especially with this economy. I would expect more likely around $2,800-3,500/wk. If you plan on running a truck while having a driver in the other one then you will either need to spend time finding freight for both of you or lease to another carrier. Finding freight for another truck will likely reduce the revenue on the truck that you are driving due to the extra time required to find loads for both trucks. I have done both. I made more running my trucks under my own authority, but did well leasing to another carrier.

There are some things that you can repair yourself when it is your truck. When you put a driver in a truck your maintenance costs will likely go up due to having to do them while on the road. Most drivers don't do minor repairs such as replacing a blown light. You will need to use truck stops or shops on the road which will be more costly than if you did those repairs yourself.

You should do what you can to protect yourself and equipment. There are some who will sell your fuel, steal from you and tear up your equipment. You should try to check your equipment regularly. Even when you check out a driver you will get some bad apples. No matter how well you treat a driver they will still think that the grass is greener on the other side of the road and you should expect turnover. Your truck will do some sitting between drivers.

If you use a fuel card it is easier to track your truck and keep a closer eye on the fuel expenses. If you lease the new truck and driver to another carrier they will help you to find loads and keep the truck moving. They may also help to keep an eye on your equipment and assist you in finding drivers. You may also be able to get some discounts on fuel and parts that may not be available to you as a small carrier.

Running under your own authority you may be able to get better rates than if you lease to a carrier. I have known of some who have made more when they lease to someone rather than running their authority.

There are pros and cons to either way you choose to operate. It is much easier to keep the trucks moving if you have drivers in both while you do the dispatching.