Can you explain the difference between O/O Lease on vs An independent getting freight from a broker?

by Chris
(New Oxford PA)

My name is Chris, I live outside of Gettysburg PA. I work as a professional fireman outside of Washington DC.

Im looking into trucking because of salary cuts. I work 9 24 hour shifts in a month with 21 days off. I am looking into being an independent trucker.

Im looking to run a successful business and Im not looking for job security or benefits because I already have that. Im interested in running dry vans and reefers approx 3 days per week or 3500 miles per week and I have other fireman that want to drive for me as well.

Looking to run teams for reefers during high volume produce periods.

Can you explain the difference in leasing on with a major carrier and running as an independent trucker who uses a broker like Total Quality Logistics?

Right now I see the pay per mile is .92 cents with a major carrier and I was quoted $1140 from TQL for a reefer load for a 400 mile run. I believe that is $2.85 per mile?

What are the advantages and disadvantages of both? I have already talked with truckers in my area, talked to my insurance company, calculated fuel, IFTA tax, tires, oil changes, and ran the numbers on starting my own authority.

The numbers look good to me, but I'm afraid I maybe over looking things!

I hope you can help shed some more light on this subject!

Thank you for your HELP!

Sincerely:
Chris

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Mar 09, 2011
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O/o vs Lease
by: Hervy

Ok Chris in addition to what Jimmy said here's some more info for ya.

There are other options at trucking companies for your owner operators now. Not all will force dispatch. Some like Landstar Logisticsat will give you access to the loads available on their loadboard.

They usually have pretty good paying freight. Actually they have a pretty good business model and opportunities.

Especially for someone like you a little older with a some capital because you can go deep as you want with their options. You'll have to check them out to see what I mean. Landstar.com

Anyway... with them or an organization like them, your authority and insurance and you run like you want.

For other companies like Jimmy said, it's much stricter. Even with governing your truck's speed.

I talked to many DART drivers. Most said they like it there and they make money. I can't remember if they are forced dispatched or not but I know they use a load board DART.net. They have a deal with Highwaysales and you can get some pretty good tractors for $995 or you can bring your own truck over.

There are many, many options for owner operators now. So the differences are not as black and white as they used to be.

With either of the two options above or similar option leasing on to a company, they will handle most of the business aspect like Jimmy said.

If you decide to try and do your own thing you will of course have full control, but also not have the affiliation of a large established network. Where you will get fuel breaks, and shop discounts.

Unless of course you join some other network to get those benefits which are available, don't know how reliable they are.

Of course industry organizations like OOIDA(Owner operators Independent Association) provides much of this also.
OOIDA

So it really boils down to how aggressively you want to deal with the business aspect.

What you don't want to do it lease a truck from one of the major carriers and put someone else in it to drive. There is not enough profit margin after what they will charge for the truck. Plus I have heard many of the drivers complain about sitting while company trucks roll. No way you will make money with a driver in it. You don't want to lease on to them either if you have other options. Most people that go to those companies go there because they can't get a truck off the lot with their credit.

Now you can also do absolutely everything yourself and get your own shippers and receivers which means you'll keep all of the money. But it's a lot of leg work in developing customers.
There is training for this. You local community college might have the training or go to a private school.
freight brokering.

Mar 08, 2011
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So, what's the difference?
by: Jimmy

If you buy a truck (power unit only) and lease on to a carrier, you will pull their trailer and they will find the loads. They charge a % for this service, and you pretty much take the loads they give you. If you try to pick and choose the loads, they will let you sit, and you will do battle with them.

If you buy/lease from the company you are leased on to, you are at their mercy, since they do all the bookeeping as well as the load findings etc.

If you buy your own truck/trailer and get your own authority, you are in complete control. Work if you want, accept or refuse loads with no consequences. However, you will be negotiating with brokers and shippers and running your whole business as well as driving.

It depends on you. A lot of O/O's can drive, but are lousy at actually running a business. Jimmy

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