Independant Contractors
 

I was wondering if someone could help me with some questions?
First...what do I need as in tags, and liscense to get started in my own truck.

second......I have 4 tickets on my record, but would like to buy a truck and work as an independent contractor. Can someone tell me how this works....
my tickets are not from my truck, but my auto, and they are all over a year old, but still within 3 years.

Thanks for any help
Dave

It is going to be really hard to obtain insurance to drive a big truck with that many tickets that is the first thing you need to check with an insurance company if they will even insure you

Insurance companies could care less if those tickets were on a skateboard. They were moving violations that you were convicted of, end of story.

On top of that if you do not have any driving experience in a Class A vehicle you are going to find it hard enough to get insurance with a clean driving record but with 4 tickets in 3 years you will probably find it impossible. Even if you did find an insurance carrier you probably could not make enough to pay for th truck, fuel, insurance and other operating expenses and still have any money left to pay yourself.

Your best bet is to let 3 of those tickets drop off, go get your Class A liscense through a CDL school, then hire on as a company driver for 2 or 3 years to learn the ins and outs of this biz before jumping into the deep end of the pool as an O/O or Indy.

And just so you can not say no one tried to answer your question you will find 99% of what you want to know about liscencing and such HERE and the other 1% you can learn by contacting your state department of motor vehicles and the commercial vehicle enforcement office of your state police.

Unless you have a substantial amount of cash, you are setting yourself up for failure, with no experience in this business. Right now, there are a lot of small underfunded independents and owner operators losing their shirts. If you do decide to pursue this you will need a base plate, SSR, IRP, IFTA. The cost will depend on where you live and license your truck. I would expect to spend from about $1,600-2,200. Before you will be allowed to get these items, you will need to pay a Heavy Highway Use Tax (2290), cost is $550, prorated from July. The first thing you will need is Motor Carrier authority. The cost is $300, but you will need liability and cargo insurance. You can check with Progressive for the liability. There have been some on this forum, with no experience, who have been able to get restricted insurance with them. I hope you have deep pockets. With no experience and so many tickets, it will be costly. Insurance companies look for at least 2 years experience and a clean MVR.

My suggestions would be to call Progressive right away and get a quote. They are the only company that will insure a person without experience. If your tickets are a problem they will be the first to shut you down and that could be the end of the story. If you make it past them go for the cargo which is the hardest to get. If you pass those two obstacles, you should have no problem with the rest.

If, by "the rest", you mean obtaining starting capital, a decent customer base, business sense, a lighter right foot, etc. :roll:

Be a company driver - it's where you belong, Dave.

I hope you have a substantial income(other than trucking), to support that "rest"! :lol:

I should edit the end and put "if you have the money". The customer base should not be a problem as I found out already. Many loads out there on the load boards and they only thing they care about is you having your authority and insurance.

Give the guy something to work towards. 4 tickets is a problem, but maybe he has capital and customers and just wants some opinions, you guys are definitely giving him opinions.

Dave, when you got your cdl, you became a professional driver and a target. You have to protect your cdl which is your livelihood. A good rule to follow especially with 4 tickets is to change your driving habits, in and out of the truck. Good luck and go for it!!! Trucking is not as easy as it looks, but it is a rewarding way to make a living.

Dave,

If you're in CA you can get Assigned Risk insurance from the State. It's around 8-10k a year.

If, by "the rest", you mean obtaining starting capital, a decent customer base, business sense, a lighter right foot, etc. :roll:

Be a company driver - it's where you belong, Dave.[/quote]


Customer base?
What about the load boards? I see literally hundreds of loads moving in and out of everywhere everyday. Especially on Getloaded.com. Seems to be ALOT of work out there without needing a "customer base".

If you are relying on load boards to keep your truck moving, you have failed before you have even started.

You're right about one thing - there is a lot of work out there. But you would be shocked at the amount of it that won't even cover your costs.

If you are relying on load boards to keep your truck moving, you have failed before you have even started.

You're right about one thing - there is a lot of work out there. But you would be shocked at the amount of it that won't even cover your costs.[/quote]

So your saying load boards alone, you can not succeed? If the truck is kept moving 4,5,6 days a week then why not? Could you explain in more detail?
[/quote]

It isn't about keeping the truck moving. It's about moving the truck for a rate that justifies it, and most loads off a load board do not justify it (on a regular basis)

First, let's take a load off a load board. The shipper is paying $1.22 per mile, plus $0.26 FSC. The broker is going to take a 35% cut of the per mile rate, dropping it down to $0.90 per mile.

Based upon 3500 miles per week
_______________________________
FUEL @ $3.00 PER GALLON x 6 MPG = $0.50 PER MILE
TRUCK PAYMENT OF $1500 PER MONTH = $0.11 PER MILE
INSURANCE = $0.095 CPM
TRAILER PAYMENT OF $500 PER MONTH = $0.036 CPM
PLATES, 2290, IFTA, ETC. = $0.012 CPM
DRIVER WAGE = $0.40 CPM
_____________________________________________
TOTAL COST PER MILE = $1.153 CPM

I can run 7 days a week at $0.90 per mile, plus $0.26 per mile FSC, running 500 miles per day, and earn $3,150 for the week, and earn $4060 per week, and have expenses of $4035.50 per week, giving my business a net profit of $24.50 per week.

__________________________________________
OR, how about this? Let's take that 35% that the broker from the load board is going to take off the top, and haul it directly for the shipper.


Based upon 2500 miles per week
_______________________________
FUEL @ $3.00 PER GALLON x 6 MPG = $0.50 PER MILE
TRUCK PAYMENT OF $1500 PER MONTH = $0.15 CPM
INSURANCE ($16,000 per year)= $0.13 CPM
TRAILER PAYMENT OF $500 PER MONTH = $0.05 CPM
PLATES, 2290, IFTA, ETC. = $0.017 CPM
DRIVER WAGE = $0.56 PER MILE
_____________________________________________
TOTAL COST PER MILE = $1.407 PER MILE

I can run 5 days a week @ $1.22 per mile, plus $0.26 FSC, covering the same 500 miles per day, and earn $3700. My expenses will run me $3517.50, giving me a net profit of $182.50 for the week.

And yes, I know I did not include maintainance or repairs in either scenario, even though they would have been higher for the first one. Consider that one a free pass. :wink:

99.9% of the time, you will get a better rate by working OUTSIDE of a load board. Why give a middleman a cut, if it is possible to go directly to the source (the shipper)?

I'm not completely dissing load boards - they can be a godsend in a pinch. But when you are constantly giving what amounts to ONE THIRD of your income away to a broker, then it just doesn't make sense.

Run smarter, not harder.

Could not have wrote that any better. Great response!!!

BTW its going to be a long season for the Pack. Sad way to end a All Star career.

TFMOTORS stick to following football, since you dont know trucking :!:

I have seen load on the different load boards ranging from about $0.90 to more than $10/mile. Granted, the $10/mile load was specialized and not everyone could haul it, but it was there none the less. That particular load paid $13,000 for about 1,000 miles. I will add that this was not a typical load. I have managed to find loads near or around $2/mile on a fairly consistent basis, until recently. There are certainly more loads at $1.50 than $2.00. It often takes a lot of work to find the better paying loads, whether they are on a load board or direct. Dealing direct with a shipper can be better in some ways, but it is difficult for someone with a single truck, who also drives, to find the better paying loads. Rates will vary according to time of year, region and number of trucks needing a load. Getting good paying loads is often a matter of having good negotiating skills. There seem to be some shippers using the load boards lately. However, most are brokers. If you don't have a roster of shippers it is a good way to start, as long as you don't take the cheap loads. It can also help get you out of an unfamilar area. So, to answer your question. You can make a living using the load boards. It is up to you whether you make a good living or scrimp by. :wink:

I browsed through getloaded.com a few days ago and found SEVERAL loads from CA to some place in Missouri (dry van) for 93 and 94 cpm, and few other quotes elsewhere for around a buck. Who hauls that crap? I took in over $3/ to my rental truck including deadheading home bobtail 20 mi each way sometimes.

Load boards are a great resource, but shouldn't be the bread and butter of your operation. :wink:

Thanks for responding with all that info Rev. Thats good info to have.
In short, then what would you suggest is the least per mile rate one should accept if going off the load boards? I do see some that pay pretty good but how many do is the question.

Thanks again.

GetLoaded doesn't deal with too much cheap freight, they just make it seem that way. AS far as the rate/mile, I'd say $1.60/mi for a longhaul in a van, and $2.20 a mile longhaul on a flatbed, and even more when you have stops and accessorials.

Coolbreeze, it shouldn't make a difference whether you get loads from the load boards or direct. Your minimum is your minimum, regardless of where you find the loads. No one can establish a minimum haul rate for you. That is something that only you can decide. Before you can make that decision, you need to do some leg work and find out what your actual operating costs run. Everybody is different.

But that would be like going into Macy's and demanding T-shirts 3 for $5.00, when you know that you can only get that at Wal Mart. There are certain places where loads are consistently cheaper, and the load boards are the place, because you are feeding an extra mouth on the rate. By eliminating that extra mouth, you are giving yourself more power in setting the rate, because you are eliminating the markup that has to occur to feed that extra mouth.

GMAN, you've admitted yourself that the load boards currently have cheap rates, yet in the same breath you say that you can make a living on these load boards. You bring up a $10 per mile load, and then in the same breath say that this isn't typical, and requires special equipment. You can't have it both ways - so which is it?

It is both, Rev. You apparently didn't read my entire post. As I stated, the $10/mile load was specialized and would have required a specialized truck to haul the load. That load is NOT TYPICAL of load board freight, but was use as a comparison. There are fairly decent paying loads on the load boards, but there are also cheap loads. You will need to work harder to find the better paying loads. If you take the first cheap load offered, you may not make a decent living from the load boards. Shippers and brokers are both taking advantage of the slower economy and glut of trucks in some areas. Most of the rates I have seen lately on the load boards are lower than they were 2 or 3 months ago. Some brokers typically have cheap loads. I don't bother talking to them. There is no need to waste my time or their's talking about a load both of us know's that I will never carry. If all he wants to make is $1.30/mile he will be pleasantly surprise at the rates found on the load boards. If he expects to find a number of loads at or more than $3/mile, then those are more difficult to find. They are not impossible. You don't see a lot of $3/mile van freight. I have received calls on loads ranging from $1.30 to about $2/mile during the last week or so.

Most single truck operators may find it more difficult to solicit and service shippers direct. They don't have the resources. Notice I didn't say impossible, just difficult. In that respect, some could benefit from having a sales force, such as a broker do that work for them. The rub is that some brokers will try to rape you on the rate. Just as not all brokers are honest, not all carriers and owner operators are dependable.

It boils down to what you want to do. Unless you are willing to take the time to make sales calls yourself, you will need to either hire someone to sell your services or use brokers. Either way, you will pay a fee.

If people were not making a living using load boards, they would have gone out of busines long ago. Just because a rate is offered doesn't mean that you have to take it. It is ultimately up to the carrier or owner operator as to which load they take or let sit.

As GMAN would say, that is like comparing HHG and dry van - no comparison. :wink:

If it were easy, then everyone would be doing it. Kind of like going to a load board to get a load. :wink: