Stay leased on or find a broker/load board?

49players

Well-Known Member
Thread starter #1
I am currently leased on to a small company getting 78% of gross. His 22% includes fuel surcharge, detention and any lost load pay. I use his trailer and he gets between $1000-$1500 a week from me. Seems like quite a bit to loan me a trailer and dispatch for me. I have been with him a year now and haul primarily CH Robinson, Coyote, Vector,and Nestle Purina. How bad will a new MC# hit me and for how long?
 

Blood

Driveler Emeritus
Supporter
#3
I am currently leased on to a small company getting 78% of gross. His 22% includes fuel surcharge, detention and any lost load pay. I use his trailer and he gets between $1000-$1500 a week from me. Seems like quite a bit to loan me a trailer and dispatch for me. I have been with him a year now and haul primarily CH Robinson, Coyote, Vector,and Nestle Purina. How bad will a new MC# hit me and for how long?
Your 78% would amount to $4500 - $6800 per week if the numbers in your post are accurate.
Based on 40 weeks per year that would come to $180,000.00 - $272,000.00
Based on 45 weeks per year that would come to $$202,500.00 - $306,000.00

As a new carrier you can probably add $15,000 - $20,000 for liability/cargo insurance for starters and go from there so you would have to project gross revenue of $200,000 - $300,000 to break even without allowing for lost time due to hustling loads, billing, etc.

It's not always as easy as it sounds...
just sayin'
 

49players

Well-Known Member
Thread starter #4
Im just over 190 for the year. I gross anywhere from 3000-7500 was my best and took a couple weeks off. Just seems alot considering I pay all plate fees 2290 and all insurance on truck and cargo. I am just trying to see if its worth the hassle to do it all. I live in the midwest and freight doesnt seem to be as much of an issue. I do appreciate all input.
 
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ironpony

Professional Pot-Stirrer
Supporter
#5
Also, trucking is an expensive business. Not including operating cash so you're not paying a factor to front you money, can your bank account withstand a major repair bill? If you need an inframe, new tranny, emissions repairs, blow an engine... you can plan on the shop holding your truck until you fork over the cash to pay the bill.
 

49players

Well-Known Member
Thread starter #6
I have found out about expenses. I spent $8000 the first 2 months on DEF system and a total of $12,000 in 7 months only to lose a motor at 360,000 miles. I am right at $40,000 in a new motor before I put the warranty on it, another $4600 for 5 years and 500,000. I figure I am due for good luck or just keep my head down and keep pushing along. LOL
 

krelithous

Well-Known Member
Supporter
#8
with as much $$$ a business can make is as much $$$ the business can suck out of it and at the end of the day you'll be lucky to get a cold :beer::stare1:
 

Mike

Well-Known Member
Staff member
#13
Shop around for insurance, and if that is affordable, get your own numbers. There may never be a better time to do this, IMO.

Rates are up, and everything indicates toward the next couple years at least continuing that trend.

My cargo/liability is $6800. Have to go and actually look to make sure, but I think my renewal dropped it to something like $6600. It's with OOIDA, and they have a few mediocre brokers they don't work with, but I see that as a good thing.

Get in while the rates are really strong, bust your hump, and get equipment paid off (or at least payed way down). You will well established in no time if you do things right and never need to look back.

All of this, of course, hinges on having good business sense.
 
#14
It doenst seem like you have it too badly- but it is a good time to go on your own. With 12/18 looming, rates are sure to go up and demand will dictate this. You are right in the Midwest the numbers are good, but the insurance and other costs are items to consider. I have a spread sheet that I can send to you. Shoot me your email and I will send it over.
 

Injun

Rabid Squaw
Staff member
Supporter
#16
Im just over 190 for the year. I gross anywhere from 3000-7500 was my best and took a couple weeks off. Just seems alot considering I pay all plate fees 2290 and all insurance on truck and cargo. I am just trying to see if its worth the hassle to do it all. I live in the midwest and freight doesnt seem to be as much of an issue. I do appreciate all input.
78%/22%?
With you paying for base plates and insurance, seems a bit steep to me.

If you like not hassling with authority and all, you can easily find another carrier that will be more fair. You may have to buy or lease your own trailer, but you'd still come out ahead.

Hit up @JunkYardDog5958 or @Ranger_375 about their deal.
 

JunkYardDog5958

Well-Known Member
#17
78%/22%?
With you paying for base plates and insurance, seems a bit steep to me.

If you like not hassling with authority and all, you can easily find another carrier that will be more fair. You may have to buy or lease your own trailer, but you'd still come out ahead.

Hit up @JunkYardDog5958 or @Ranger_375 about their deal.
I like it. 87% and everything is pass thru on cost. Has good fuel card with discounts. And @mndriver will help you if he can if something comes up. Saved my butt when engine went kaboom!
 

49players

Well-Known Member
Thread starter #19
It doenst seem like you have it too badly- but it is a good time to go on your own. With 12/18 looming, rates are sure to go up and demand will dictate this. You are right in the Midwest the numbers are good, but the insurance and other costs are items to consider. I have a spread sheet that I can send to you. Shoot me your email and I will send it over.
rmouser1@hotmail.com
 

49players

Well-Known Member
Thread starter #20
My issue to begin with was I didnt have much OTR, been driving 14 years but local and 6 years drop lot. I just see 700-1500 coming out weekly to use his trailer and dispatch. I do appreciate everyones input.