Forced to be an O/O
 

Long story short. I severed my foot, and can't push a clutch and walk just enough to get me by (the way its going to be for the rest of my life). The only company that would hire me was US Xpress (they are the only co with clutchless trucks and dont have to unld or ld freight). 3 months later with them, no $ & more aggravation than I need and no miles after going up to the top to complain. I'm now looking to get my own truck. I am looking to get a small business loan (have meeting with the ppl tomorrow am) I'm trying to get all my facts and #'s straight.
Why can having your own authority be a prob? I've looked into leasing on with several companys but it just seems that your just a glorified company driver and back in the same position to depend on a dispacher and get constatnly get screwed or potentially get screwed.
I figure if I'm not bringing home the $ then it's no one elses fault but my own b/c I'm the one in charge of getting my own freight and keeping myself moving. Not some dumb no driving dispacher that sits behind a desk and doesnt give a rats behind if you get a paycheck or not just as long as they get to go home at the end of thier shift.
If anyone can help with links or info with obtaining authority, IFTA,Hut and ppl who can help with filing 1/4 taxes and state fuel taxes,that would be great.

You should consider joining OOIDA, the Owner-Operator Independent Driver Association. They can provide you alot of help/info. I'm not yet an O/O myself, but many here can answer your questions and give you advice. I find this particular forum to have more objective, serious members as opposed to some of the others. I'm sure they will chime in soon. Here is a link to OOIDA:

http://ooida.com/

You can find every answer to every question you have within this forum. Just start reading the O/O posts and pay particular attention to anything GMAN has posted. Good luck!!

Right now I would go with leasing as an o/o to a company
The rates on the boards stink. big time and then we are going into a slow season

The rates are really horrible, 15 out of 20 loads are under 1.35/mile , then there are the loads paying 1.50/mile (from .85/mile).... PU fridays, deliver mondays..... :? it's unbelievable :shock: i dunno whats going on.....it's very frustrating!!!

I agree.
I expected some kind of Christmas rush or a reefer shortagte due to Thanksgiving turkeys,not so.
There is plenty of freight in the lanes I run but prices are off quite a bit over last year and what's even stranger is that most of the brokers I used last year don't have the same accounts anymore. Some of my favorite shippers have new brokers and cheaper rates.

I can give you this advice.
Having your own authority requires a lot of experience as a leased o/o.
This part of the industry is not for everyone and really is not the big money maker you would imagine.
There are an awful lot of problems that come up that you need to see solved by someone other than you.
Thats why when you lease to a carrier they take care of the headaches.
After you see how many things get screwed up on a daily basis as an o/o you may want to reconsider going on your own.

Re: Forced to be an O/O
 

So, you'd rather be "screwed" by brokers? :roll: :wink:

I am sorry to hear about your foot, sore foot. You may be able to get a prosthetic foot which may help you. I think I would have tried to stick it out with US Xpress, if possible. There are a few companies which have automatics. I don't recall some of them. It isn't a big deal to get your authority. It is financing it and making a profit that is the challenge. It is very difficult and expensive to find a company who will insure someone with less than 2 years of driving experience. Most carriers will require at least 6 months to 1 year of otr experience to lease on to them. I have leased to a couple of carriers and run my own authority. The problem you are in right now is that you want a quick fix. You are about to make a major business mistake. You don't have enough experience in this business to properly be able to evaluate what you really need to get started. You can do a search and find much of what you want to know on this forum. As someone previously mentioned, OOIDA is a good resource. It would be in your best interest to find a carrier that you can work for a year or two, so that you can get some solid experience. This is a business fraught with aggravations. Unfortunately, it is a business with a lot of turn over and failures. There are also a lot of success stories. I don't know you or your personal situation, but when you own a truck, you will break down. You will spend a lot of money. I have a truck that has less than 200,000 on an overhaul. I had a miss, which I thought was an injector. As it turned out, it was something much more serious. I have a lifter problem. Instead of costing about $700 to replace an injector, I will now need to spend $6,000. The engine is no longer in warranty. I keep my trucks up, but things just happen. I was under a load I picked up in California going to New York. When you own your own authority, there is no one to turn to but yourself. Fortunately, I own another truck. I switched trailers, left the broken truck to be repaired and am on my way to complete my delivery. While this is not something which happens every day, it can happen. About a year ago, I had a driver in in one of my trucks and the rear end went out in Nevada. The final bill came to over $4,500 plus putting the driver up in a motel. Fortunately, I had the funds to make the repairs. I had replace the front power divider the previous summer for much less at home.

There are some things you need to ask yourself before jumping into this venture. First, how much cash do you have in hand? You should have a good cash reserve (not borrowed) in hand along with money for a good down payment (usually 10-30% of the purchase price). If you run your own authority you will need to purchase a trailer along with a truck. Your authority only costs $300. However, before you will be issued authority, you will first need to obtain insurance. For someone with little or no experience, it can be rather expensive and will likely have limitations of a 300 mile radius. There are a few on this forum who have gotten their authority with no experience. You might address them with what they have gone through and some of the costs they have incurred. I have heard rates as high as $21,000 for liability and cargo insurance. A number of factors enter into an underwriter and their decision as to whether they will insure you. Steve Booth received a very good rate, for someone with no experience starting out. Some of that could be the area of the country where he lives, credit rating, MVR, age, etc., The area where you run will have an impact on what you pay. Most of those I talk with who plan on starting with no experience pay in the range of $8-12M. Keep in mind that you will have a 300 mile driving radius restriction, which can impact your ability to find better paying loads.

Banks don't particularly like to make loans on class 8 trucks. Some may make one to an individual if they have a good relationship. When most truck lenders look at those wanting to purchase a truck a number of factors come into play. Experience as a driver and as an owner operator will have an impact on their decision. Your credit score is certainly a factor. Previous truck purchases are a plus. You will likely need to have a lease with a carrier before they will loan you the funds, provided you will be leasing to a carrier. If you choose to run your authority, you may need to have shippers or brokers signed up so that they will have some confidence that you will be able to repay the loan. Without experience, you may also need to pledge additional assets, such as your home or other real estate. That would be a bad idea. If you fail, you lose everything.

One other thing. We are heading into a slow time of year for trucking. It has been unusually slow since July. While things have improved somewhat, things are still slower than usual. It is not a time to get into a lot of debt. When times are slow, you hunker down, hang on and lower any debt you have as quickly as you can. Things should improve around spring. This could have been the problem with US Xpress. Some traffic lanes are just slower than others. Carrier's don't like to deadhead trucks.

I don't want to discourage you from buying a truck, if that is truly what you want to do. I would like to see you wait until you are ready. From your posting, I don't think you are ready. There is much more to running a truck than writing a check.

CFI runs automatics, too.

There are a couple of others that I hear are getting into it. As a matter of fact, I think I heard one driver say that Swift had a bunch of automatics.

My liability cost me $4,000 and my cargo was $1,100 for someone with no experience. Progressive is about the only company that will give liability to a newbie. They don't do cargo so you'll have to go some place else. The cargo was the hardest to get.

ughh
 

I've checked into other companies.. With exception to USX every other co that has automatics expect you to unload/ld freight which I can't do or will ever be able to do.
Funny how there are drivers at USX that are getting a steady 3-4k miles a week even when it's slow. Just that no one told me where I need to go by these "knee pads" to get these miles.
You can't live in NJ, pay current bills, + 8 months of medical bills and eat on $455 a week. (mind you I moved back in with parents b/c I'm broke)
As far as getting me started, I've contacted the Small business Association. They said there are some loans where I DON"T need collateral (thats good cuz I don't own a damn thing exept a pick up truck). They said they could finance 200k which I figure to be just enough for truck/trailer, base plates, permits,ins, accountant, and money left over for emergencycs and fuel to start out with till I get my first settlement.
I have a few reliable sorces for freight to keep me moving of all different kinds of commodies at a decent price to keep my head above water and to draw a paycheck out of it every week. 1 being CH Robinson which I didn't think was a bad idea to get me started with for a while sice I delt with 2 of thier people in my last company (which I thought to be good since they know that I'm a reliable driver for thier freight).
Am I still seeing this all wrong? I'm not looking to become a millionare off this industry just enough to make a living and still enjoy the career. I need to do something b/c right now I have my USX truck where I live and honestly I don't even want to get back in the damn thing.
My options are extreamly limited due to my foot. If it weren't for that I'd still be at the Company that I Loved that payed great, treated me great and gave me all the miles that I could handle. :(

It sounds like you are in a bad spot. If you go through this, you will likely be in a worst spot. You don't need to borrow $200,000 to start a trucking business, unless you plan on buying several trucks and trailers. The worst thing you can do is start a business when you are broke. Work for US Xpress, or some other carrier and get yourself to where you can earn a living. You don't need to start a business when you have no money of your own. Unless things have changed, the Small Business Administration doesn't lend money to purchase a class 8 truck. I would talk to your dispatcher and anyone who would listen to make things work and stick it out until you have at least 1 year of experience. Most companies will change your dispatchers if you request they do so. You cannot borrow your way to prosperity.

Sorefoot,

I once saw a covered wagon parked in the handicap space at a TA and I thought, "What kind of lazy SOB needed to park in this space near the entrance" As I opened the door to the building, a guy is coming out with the crutches that brace around the forearms and he is pretty much dragging his legs. I held the door and watched him go to the covered wagon. I thought WOW!! I went over and asked what he was hauling, he had onions from California going to the east coast. I did not comment on his disability, but I always remember this guy when I dont feel like driving or one of my drivers has the sniffles and acts as if he is dying.

I dont know your situation, but you need to get in a truck and live in it for a while save all of your money even if you do start your own company. Live like a hermit /miser. Do not start making some money and get hillbilly rich or ghetto fabulous because you will soon go broke. I have seen it over and over and over and over......... Do not make bad decisions, they cost dearly. Do your homework here, run someone elses truck to test your theories. Get back in the USX truck and request to run team or bacome a trainer, you will get the best of USX that way. You cant kiss ash or suck to get loads. The guys that get loads understand how to manipulate dispatch to make their fat paycheck, some of us dont know how to manipulate dispatch. Threatening, ranting and raving is not the way.

Good Luck!!

Also,

Dont start a trucking company because you want a paycheck. Start the company because you have a valuable, dependable service to offer a shipper, not a broker. If you build it shippers will come, drivers and o/o's will come and so will the money. I know your parents want you to succeed and so do we. You're not living in our house though. :D :D :D

Thanks
 

thanks guys for your imput..

I would definitely listen everything that these guys have told you, Load it and Mr.gMAn who has i think the kind of prospective about this job as i do. It has been said, DO NOT buy your truck if you are not ready for it, the fact that you have couple of connections here and there is good but to make it in this business you need to have allot more, these guys can confirm it a million times over. My suggestion is not to buy a truck if you don't have AT LEAST 10.000$ in savings!!! I ran 48 for 1 year and some five months to get to a point where i was confident enough to get into buying my truck, i saved 45.000 with trucking and what i had saved beforehand working in a grocery store( 5000), put down 30.000 on my 2007 Columbia and was left with rest to take care of my base plates and start up costs which no1 will tell you about.....I have a 100.000.0 in insurance coverage for which i had to pay two months in advance and 1 month down payment totaling around 1000. Also you have to be confident enough in yourself that you can pay all of this crap, working really hard and having to deal with allot of stress. When you run your own authority you don't have anyone scratching your back(dispatch), no1 to help when a tire goes out on that trailer at 2A.M. somewhere in Mojave and you're grossing 44 and no T.A. service centers to fix it, no1 to lean back on, its all on you!!! Dealing with the Brokers is something totally differed from what a lot of guys experience while driving under a company's DOT #, different kind of ball game for which you my dear friend, no offense, don't have experience for.. I do though like the fact that you are thinking about this earlyer in you carieer so when the time comes you'll know what to do, also, C.H. Robinson is a good way to go, i know some people who only run for them under their-own authority offcourse and are not complaining................Listen to these guys when they tell you to stick with USX for some time until you get your experience and some money saved up, you can buy a decent truck for around 40-50K, its just that first time buyer thing will kick you hard in beginning. if you have problems financing i can maybe steer you in a direction which can help you, if you decide to go that way that is, that's is if you have a good credit rating..

PS
When i acquired about my own authority earlier in the year my quote for 750.000 insurance policy with 100.000 cargo and everything else insurance related was 1200 monthly which goes to show and confirm what these guys already told you about how expensive it is to run your own DOT......



Its on you....

sore foot
 

Just my 2 cents worth im currently with us xpress and you can take this for what its worth call and ask for karen stone shes out of medway ohio very nice and has kept me 2x busier than when I was with jb hunt hahaha, I now avg. 2,600 3,200 a week over jb's 1500-1850 a week.
tell her your story and tell her vince says that your a friend this may help cant be any worse right?

good luck

vince/ xracer

Does your experience include only 3 months of driving at USX??

Also, going to the top may have caused you to step on someones toes :wink:

Sore Foot,

It sounds like you have quite the chip on your shoulder. Getting your own truck is not going to solve your problems, it will probably make them much worse.

I can tell you right now, a guy with an attitude will not go far in trucking, be they a company driver or a full blown independent o/o. It is to bad about your foot, but don't expect any pitty from anyone in the trucking biz.

Clean up that attitude, find a company with an automatic truck that will hire you, and save up some money while getting some time under your belt. And quit the bitchin, which will get you no where. Just suck it up and do your job, with the intention of learning all you can so that you can own a truck one day or do something else.

Hell, it took me 2 years to even see a paycheck over $500 net, and I lived in the truck. My ex took everything but my clothes and an old car, she wiped me out. The only reason I got into trucking was that it provided a roof and three squares a day, and the friend of the court took almost all of my pay.

I now have my own trucking company, and one more child support payment! But back then, I was happy with what little I had, and kept a positive attitude that this to shall pass. And it did in a big way.