Power Only Interstate Dist. Looking for owner ops with own authority,
 

Ok guys, after all the years Ive been on this board, im finally going to use up my one job posting.

Company Name: MDR Global Logistics
Contact: Craig Richardson (Sheepdancer)
Phone: 479-531-6663
Job Description:
Power Only Program
Operating under this business opportunity you maintain your company identity hauling under your own authority and liability and cargo insurances. Interstate’s strong Sales and Marketing team provides consistent year-round freight while our experienced Operations group is the key to keeping you running.

We have freight hauling opportunities in our 48 state fleet, regional fleets in the eleven Western states, and a Southwest fleet that runs in the tri-state areas of California, Nevada, and Arizona.
Key Features 20 day pay cycle
Settlements via wire deposit
$150 advance per day available (for 48 state fleet fee assessed)
Part of our daily truck freight hauling capacity Choice of fleets – 48 states, regional, refrigerated No trailer rental fees

Compensation 80% of gross revenue on all loads in our 48 state fleet, 11 Western state fleet, and Temperature Controlled with experience and Hazmat. 100% of customer paid fuel surcharge

Requirements:
* Contract or Common Carrier Authority Appropriate Licensing and Permits
* General Liability Insurance $1,000,000
* Cargo Insurance $250,000
*Trailer Interchange Insurance $25,000.
* Maximum tractor fifth wheel height of 48”
Pay Rate: 80% of the load, 100% fuel Surcharge

Are you looking for company drivers or Owner Operators?

Syl, you have to have your own Authority.

Sheepdancer, It says no trailer fee....Why would you pay a trailer fee to pull their trailer and freight?

Long time no hear, Sheepdancer. It seems that there are more who are going this route rather than putting more owner operators on. Your old company keeps sending me emails about their program. That seems to be the trend to have owner operators get their own authority.

Gman,

I've run into a few companies that are getting O/O's to get their own authority. They said the reason is a few bad drivers can bring problems to the company, but if the drivers have their own MC then it's the drivers problem and they can eliminate some of the office overhead. The good news for the driver is they can have as many relationships as they want and pick their own freight.

I can see the advantage to the carrier. They eliminate the financial risk and capital investment of running their own trucks. They also throw the cost of insuring their trailers to the new carriers. The last time I spoke with JB Hunt about their program they wanted a 14 day commitment for any trucks that I decided to run under their program. I don't know if that is still the case. I think that they have since dropped their requirement for cartage insurance. It could be advantageous to the owner operator who gets his authority if he can use other brokers for freight. My guess is that some carriers are moving toward this to avoid some of the problems that they had in Washington about having to pay time and a half to over the road drivers who are being paid by the mile. That was a raw deal and those who participated should be ashamed of themselves. There has been something of a move by the IRS to force carriers to pay taxes on owner operators who lease to them as well as being responsible for their workers comp. This could be a way to circumvent this type of extra cost to the carrier. It is much easier and less expensive to act as a broker than to run your own trucks. All you need is a bond, phone, fax and computer other than a few people to make calls. I can see it really making a difference in the overhead.

From what I understand there are power only companies out there that DO charge for use of their trailer.

Yeah...I know a few people still at JB recruiting for the power Only over there. I really dont know a lot about JBs power only, except whenever I get one of their power only owner ops on the phone, its REALLY EASY for me to talk them into leaving JB and going to Interstate...lol.

I tend to try to stay on the owner ops side of things right now. But I still can hire company drivers for many companies

I spoke with some of their power only people about 3 years ago. Those with whom I spoke with seemed to be happy with them, but rates were pretty low. I think at the time they were paying about $1.40/mile with the fsc. I spoke with a guy a few weeks ago who said he was making about $1.70/mile or so with the fsc. He seemed to be pleased with them. I don't know if it is something that I would do, at least at this point.

Whether it is JB or any of the others who are doing this, it would be a less painful way for someone to get their authority and to get up and running without having to go to the expense of buying their own truck. There is little difference in doing the power only than leasing to a carrier. I would think that some are more comfortable with that type of arrangement. What kind of rates are you getting at Interstate, if you don't mind me asking on a public forum?