Quote:
Originally Posted by GMAN
We can fix your old name if you want. Just let me know. As to what you should do about getting your authority that is another matter. If you have confidence in this broker and he will guarantee the rate then that might be a good way to go providing he can keep you busy year around. Even if you turned around and deadheaded back to where you pick up you would not be any worse off than you are now. About the only difference is that when you have your authority you will need to pay your insurance. The advantage of running your authority is that you are not limited in whom you can get freight. When you lease to a carrier you are usually limited to freight they get for you. That can work to your advantage in some instances if they have a good freight base. You have an opportunity to negotiate better rates when you run your authority but you could also lose your shirt. It depends on your comfort level.
I have two good friends who have been in this business for many years. Both recently gave up their authority. Neither is doing all that well leased to other carriers. One leased on to a carrier for what he felt was the greater availability of freight. The other due to high insurance costs. Both may go back to running their authority. Neither are doing that well with those to whom they are leased. One is on the fence as to going back to running his authority. The other I expect to get his authority as soon as he can afford to reinstate his insurance.
There are pros and cons to both. I have been discouraging people from getting their authority right now due to the economy. You seem to have a good opportunity that would double your income. If I felt comfortable with the broker as to the freight consistency and felt that I would not have to worry about my money, then I would probably go for it if the freight was consistent enough. If he doesn't have return freight you can always find something to take back. Whatever you get is better than you are doing now. I should not try to influence you either way. We are in a very troubled economy which is of concern to us all. I would suggest that you sit down and think it over very carefully. Get some insurance rates and look at what additional costs you will incur running your authority. One major concern is when you can get paid. Bankruptcies are rampant. I will caution you on one thing. It can be very dangerous to rely solely on one shipper or broker. If they go out of business or decide to go with someone who will carry their freight for less then you could be out of business without a back up plan.
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GMAN, Thanks for offering to fix my old username, but that's ok, the other guy was way to blindly optimistic, and he picked the worst time to get into trucking. We'll just leave him buried.
I forgot to mention I have my own authority (on hold), or otherwise, I probably wouldn't even consider it right now.
Alan, I really don't want to mention the carriers name on here and cause the bashing to begin, and also because, they have been real good to me. I go where I want, when I want and go home at the drop of a hat. Of course it's on my dime if there is nothing going that way. As far as the rate goes, it is the same as a dozen others hauling for the same customers (refrigerated).
The difference is, it's a square deal lease with no hidden or bogus expenses. I own my own truck, but their truck lease doesn't look that bad either. They are a debt free company and very conservative financially. They will not cut their rates, and I've been told, will walk away till the customer comes back. One of their managers told me they will be the last man standing when more carriers fold due to excessive debt. They have good customers. I also have a good working relationship with dispatch and planning. About the only thing that could make it better would be a better rate and direct access to their boards. Oh well....
I cannot access internet truckstop without renewing my insurance so I am in the dark on rates right now and I am really shocked at what you guys have been quoted.
If I had to make the decision today, I'd stay put, but jonboy keeps telling me to go for it.
I sincerely appreciate all the advice.
btw, insurance quotes came in at $8000.00 for 1 million liability, 100,000 cargo (refrigerated or whatever) , 30,000 on the truck. That's with my two years of driving. It was $14,000 last year for 48 states. This is the other reason I leased, to let some time pass. For some reason the two year mark is significant???
slacker
What would you do?
