[patsyk]

I would appreciate any advise from experienced Owner Operators about whether to Lease on or not. I have about 2 years experience operating a flatbed with my own authority. I do not work all year as We have a Family Farm and I am very involved in it. I typically do 2 weeks out and one week at home.
It is currently costing me $11000 to cover Insurance, Plates etc and with load board rates (I use load boards all the time) what they are I'm thinking of leasing on to Admiral Merchants, Mercer, Jones or some Company that does Flatbed work. What are the pros and cons....Thank you

[FreightLogisticsAgent]

I have been a company driver, owner operator, operations manager, and now currently an independent Freight Logistics Agent. I have not personally leased onto a company. I understand what it's like to always spend time looking on load boards trying to find the right paying loads. I also have friends and family that are owner operators leased onto a company and they always talk about getting their own authority so they can make more money. I work for Owner Operators and small carriers to handle all loads, paperwork, negotiations, and invoicing. There is No Contract so if you choose to run any of the loads I have that's completely up to you. We charge 5 % for every load you haul and 24 hr payment to you upon proof of delivery which is handled by transflo. I have tons of flatbed loads daily. I hear some companies charge owner operators 35% plus the mileage pay is low. If you are interested in obtaining more information. Please feel free to contact me via email at [email protected] Looking forward to speaking with you soon.

[GMAN]

Originally Posted by patsyk

I would appreciate any advise from experienced Owner Operators about whether to Lease on or not. I have about 2 years experience operating a flatbed with my own authority. I do not work all year as We have a Family Farm and I am very involved in it. I typically do 2 weeks out and one week at home.
It is currently costing me $11000 to cover Insurance, Plates etc and with load board rates (I use load boards all the time) what they are I'm thinking of leasing on to Admiral Merchants, Mercer, Jones or some Company that does Flatbed work. What are the pros and cons....Thank you

There is no reason you should not be able to run the way you want with any of the companies you mentioned. The advantages to leasing to a major carrier aree that they usully have a freight base, some with long term contracts. That can help keep your truck moving. Some may have dispatchers that can work with you to find loads and help you to find your way around their system. Most carriers offer fuel cards with discounts that you might not be able to get with a single truck. The carrier pays the insurance. Currently, you pay your own insurance. If you want to maintain your own authority, you might check around for better rates. When you lease to a carrier, they keep track of all IFTA miles and file all reports. Running your own authority requires you keep track and file reports. Running under your own authority, you will be responsible for negotiating with brokers or shippers for the best rates. Leasing on you will no need to deal with brokers, for the most part, at least with some carriers. There are varying degrees of flexibility on either side. When you lease to a carrier you no longer need to worry about collecting your money.


I think you need to ask yourself why you would want to give up your authority and lease to another carrier. What do you expect to accomplish? If it is finding good paying loads, that is a matter of either making calls on shippers or building relationships with brokers. I can usually do much better on rates by not using the load boards. I rarely use a loadboard. In fact, I have only subscribed to one loadboard for the lst several years and I doubt that I have used it for more than half a dozen times during the last couple of years. I usually have shippers and/or brokers call me or I will make a couple of phone calls and tell them what I am looking for and thy will usually com up with something and with a decent rate. But, I have been in business for a number of years and have developed some relationships with various people. Running a trucking business can be challenging. Not everyone is cut out to be in business or run a trucking company. It takes a lot of capital and initiative. I think you also need to enjoy running your own business. When you have your authority, you don't have a safety net. Leasing on you have the backing of major entity and that could help in getting discounts on tires and parts for your equipment. Some carriers also have relationships with equipment manufactures that may offer discounts to owner operators who are leased to them. With all the ups and downs of the economy the last several years, I still find it better to go it independently than to lease to a carrier.

[mndriver]

Check around for a better agent, not just insurance.


I got my agent to match the rate at one underwriter and another agent with my current provider and company. The reason, I liked him and the service they provided. When I had a question, they got it answered and got back to me. The other company gave me a low ball quote and when it was time to bind, jacked the rate up $2000 on me. Got my original agent to get $750 knocked off the rate and he kept a customer.

In your case, you spend 1/3 of the time off the road. Might be better to lease on with someone as that like 4 months of the year you are not using your authority. Tuff to stomach that one.

Now.. As a carrier, who's basically paying that same insurance and irp plate expense on you, as sson as I heard you wanted 4 months off a year, I'd wish you a nice vacation and ask you to send me a post card. Next.

That expense is still there and its not much different whose authority you are running. But if you lease on and don't generate the revenue to cover that cost and a profit for the carrier, why should they put you in the fleet.