Comments By Marc Lee AKA The 100k miles Champ

Factoring companies charge between 1.5% to 3% depending on your volume of loads.... Landstar for example offer their own factoring for 1.5%. They set you up with a fuel card that gives you a 15% discount at the pump.... most loads go for 2.15 cpm ...if you are using a dispatching company they charge you 13% for the dispatching and handling of all your paperwork, uber freight charges 1% otherwise you can sign up with brokers directly if you are operating under your own authority

Another thing not mentioned in the article: FLOAT.

As in - most accounts-payable are "Net 30", and the time and expense that comes with having to CHASE YOUR MONEY.

Many O/O's choose to use "factors" - that is, people who will essentially pay off your BOL's, for a 10% fee. Usually only from "approved brokers or shippers". There's also CHARGEBACKS, BOL's that end up NOT PAYING - which results in your factor taking the $$ they advanced you BACK. Most factors will require you to be EXCLUSIVE TO THEM (no "multiple factoring companies") which means you can only take loads that THEY APPROVE (which are loads they have a high confidence will ACTUALLY PAY THEM). So knock another 10% of that gross revenue fee. It's a VICIOUS WORLD out there - between competition, shady brokers. And if you think you get used/abused by shippers as a company driver for a major company - O/O's end up even lower on the totem pole.

Also find the $1.85CPM from brokered loads might be a "little high". Spot rates from brokers are running a bunch lower now (haven't been on the load/brokerage boards in awhile). A lot of the rates are dependent on location. And many "slow lanes" are significantly less. You will NOT SEE $1.85 coming out of S. Florida - and many folks won't even come INTO S.Fla without a rate over $2.00 - so they can just turn around and deadhead out.

As far as a "rookie", just buying a setup and jumping in - most insurers will only insurer a "new guy" with INTRASTATE insurance for year one - which means NO OTR. Even that was incredibly expensive (upwards of $15K).

I did EXTENSIVE RESEARCH a few years ago at the possibility of purchasing a setup and getting on the road as an independent. Even with FULL CAPITALIZATION (as in $200K liquid) and a business plan approved my my accountant and attorney - the risk to reward ratio just DIDN'T JUSTIFY THE EXPENSE.

It's called: BUYING A JOB - and not a good paying one. The "return on investment" was so low, I would be better off putting my $$ in a CD or money market account...

For every GOOD REASON someone thinks they want to go O/O, there are THREE that say you shouldn't. Not to say that there aren't O/O's that aren't making a decent living (and I know a few) - but these are SEASONED VETERANS, not newcomers.

Rick

Its 0.04.... but i have seen tickets such as having alcohol in a CMV even though the bottle was closed and the driver was not drinking. i have also seen a driver who was ticketed for possession of alcohol during his 34... he had just purchased it and the minute he got into the truck the police pounced on him.

Packrat says

You consent to a field sobriety test, and register at a 0.02%....

That's a DUI in a CMV.

is it .02 or .04?I know ANY amount is Out Of Service for 24 hours and likely out of a job.

Or you can say that companies are excited to snatch all these already trained drivers

Companies are really stepping up big time to help out the Celadon drivers. What a great brotherhood in the trucking industry despite all the competition. Saw this on today’s zip recruiter email

Sadly shes not much to look at but shes all I've got. She sticks with me through thick and thin, richer and poorer, never complains, does what shes told and is always there for me. (Feel free to edit or delete if too crass)

That deal is for owner operators , they dont let them drive more than 400 miles which is why they are on set pay.... that sector is booming somehow ....i have clients with the Amazon contract and they went from 1 owner operator to 50 within a year.... Amazon pays for the fuel, does the dispatching and a lot more so a lot of owner operator run to them

Those $600-800 per day numbers have to be wrong unless its just for owner operator's. Who wouldn’t jump on that deal? $3k-4k a week for 5 days, $150k per year on low end? Even if they didn't offer health insurance or 401k and you had to get your own, you would still be making a small fortune after taxes

The guy in article says his pay went down as a result of set pay per day system. Even if he was at 60 cpm, at 3000 miles previously he should be bringing more $$$ home at $600 a day

I have a lot of trucker clients that have it, that is how they fight off their tickets and DOT violations, i have seden a lot of violations be DataQed

Anybody have one? From my understanding they take a few bucks a week and if/when you need an attorney they take care of finding some in the area the litigation will take place. If you have one what are the pros and cons?

I would think from a long term financial standpoint it's better to put that money into a savings account and use it for that purpose if/when you need it but just looking for opinions. I was quite surprised to see what attorneys are charging.

Congrats and good luck

Passed physical strength tests and drug screen. Will have a call and email with details Friday. Training with Veriha starts in Marinette, WI on Monday 11/11.

I dont know which insurance company you went to, but in my 10 years in the trucking insurance field it is my first time to hear such. 90% of the companies require 2 years of experience which is why i advise people to get at least that full year of experience before venturing out. Some companies will do 0 year of experience with a hefty surcharge

Hello, I will possibly be switching insurance companies next year and when I went to get my quote they mentioned that if I hire anybody to drive under my authority, they would need a minimum of (9) nine years of experience for them to cover. Yikes.

Have a nice day folks and be safe out there.