I am now in the process of getting my DOT Authority. I contacted OOIDA and the process I was told that I needed to do was to get my LLC, then apply for authority, then get a truck, base plate, insurance, permits, etc...and finally I would be ready to find a broker.

I was sitting around thinking about a broker and who I could pull a load for and thought I might call around and discuss rates and business with some brokers. The first I called was Schneider. They tried to connect me to their brokerage in Atlanta, GA. After playing phone tag for about 10 minutes, I got connected.

The lady I spoke with would not discuss rates over the phone. She said it's a load by load and week by week change in rates. They are never the same and it changes with areas, freight, and fuel prices. I pushed a little to get more information about rates and she asked how long I had my Authority. I said I did not have it yet and I was in the application stage. She then said call us back in 6 months after you have your authority. She said they had a policy of not letting a company pull a load for them unless the company has had authority for at least 6 months.

Is all brokerages like this? If so where can a new company find a load to pull?

 

I have contacted around 6 brokers now since I posted this. All with the exception of Landstar say the same thing. You must have your authority for 6 months or more or no loads.

One broker asked how many trucks and trailers I was going to purchase and I said 1 truck and 1 trailer. She said the company she worked for had a rule of this. No loads to companies with less than 3 trucks and they must have authority for a minimum of at least 1 year. Sounds like to me it's getting tough out there.

I might have to reconsider my stand on becoming and O/O and leasing onto a company with authority.

 

You better...

 

You can always POST your truck and let shippers come to you. Get the authority and lease to a carrier but post your truck regularly on load boards - maybe some shipper will be interested in dealing with you. I myself am leased to a carrier with own truck and trailer but I'm thinking of getting my authority in the summer.

 

There are kinds of brokers out there, whom will load your truck with their freight.







Some of them will even pay you the agreed upon rate.




A lot of them won't. Those ones will just fade away into the internet.

 

I recently found out a GREAT friend of mine that I haven't talked to much lately became a freight broker for a major brokerage firm.

He told me their strategies, and I may make a post about it in the future if he says it is ok. I'll say a few things about brokered loads after looooong conversations with him.

If you're in an area with a surplus of trucks, he'll pay 90cpm and o/o's fight for it.

If a load is going into a desolate area with no frieght, you're in the driver's seat (not just literally). You can negotiate beyond what they're offering, up to almsot the full rate they are getting. He's admitted to breaking even on a load, and rarely, LOSING money on a load to get it hauled.

Brokerage firms make money via their customers, and the o/o's. He says his firm greatly respects the drivers as much as the customers, but also knows the supply and demand in areas all over. But without shippers that use them to move loads, they don't have business. Truth be known, he says their LTL division is doing so great, they have had meetings telling them to get the TRUCKLOADS moved quick with good drivers, even if they break even on them. Their strategy is to be more competitive and steal business from a large competitor that will go nameless, but any independent here could name in 3 guesses...MAX.

But, as said above, if you're willing to go where others won't and/or areas with no freight you can get some great rates.

Examples he gave:

A place on the east that would surprise you as a populated area to S. Cal, he's pying $2.10 a mile for van freight.

East or Midwest to Idaho pays pretty well, but that figure I'll keep a secret.

Some freight lanes, his van and flatbed freight gets moved with ease for $1.10 a mile.

Some tips:

He says he absoultely HATES dealing with load finders for major carriers ( no need to post the names, you already know...aka Kooleeeeze ). He says they have rate sheets and simply will not negotiate based on their set rate sheets issued to them by their management. He says the independents are more negotiable in either direction from sub-standard lane rates to over lane rates depending on situation. Also, he pushes the detention time, although he said it is usually $50/hr after 2 hrs.

So, to answer your question partially, they load trucks without minimum months in service. Anything looks fishy or you sound like a dumb booty and they will skip ya, or give ya the run around until the load is taken by someone else or you give up with them. He says it is rare, but, again, customers are how they make the money and the driver is the counterpart.

To answer your other question or idea about leasing to a carrier... it may be a wise choice if you select a carrier with a great client base and pays a decent mileage or percentage may be the way to go for a while, especially in this economy. Learn where the freight is. What pays the best, where is it consistent, even where is it the LIGHTEST and still paying the same.

Hope my insight gave you something to ponder. I'm slowly learning about getting authority and how to be successful. I don't see myself doing it in the future, or even ever, as I got a decent gig going for me leased onto a carrier.

And I'd give the contact info for a few like Gman or Rank that have their own authority a while. They got some decent rates. Steve Booth need not apply!!!!!!!!! (jk- you're my boy Steve!)

 

So wait, if you have previous truck driving experience but just becoming an O/O with own authority and stuff, brokers wont allow you to pull any of there loads??? i thought as long as you have insurance and cargo insurance you be fine.. someone please explain cause that was going to be my plan..

 

supply and demand, if there are plenty of trucks to haul freight they will care, if no one is around they will care much less.

 

Pretty much, at least with them. They aren't the major player in the brokerage game though. Start using the bathroom at the shipper and not flushing the toilet or running over the owner's car at the recieving end and you may get a phone call. he didn't mention if they have a "naughty" list.

He explained that it is like picking people in Dodgeball sometimes. They will field calls and pick the best candidate at times. Hauling for them before would be a factor. What you're willing to haul for superceeds (sp?) anything.

Sounds like drama, but a good amount of money if you figure and play their game right. I don't know much about other brokers and their practices. Usually, anyone with the correct paperwork gets the load and it is smooth like strawberry ice cream I guess.

From what I can tell, GMan is right about o/o's that are independent to sticking to their guns for the higher rate, as my 90cpm from the midwest to Cali may support.

I don't know the game that well, this is just what I pecieve. Where the HELL are you Gman?????

 

I read somewhere online a tip about getting good rates: pick 2 areas - one where you live and the other where you'd like to travel; and then contact DIRECT SHIPPERS in those areas via mail or email. The freight broker who advised this said that with this method you can avoid the "backhaul" rates and charge RETAIL both ways. According to him, you have to specialize in a LANE - if you run all over US and Canada, people won't take you too seriously.