While going through some old files yesterday I found an old list I made for “carrier shopping” back before I had my own authority. It is by no means complete, but if you are a new O/O or even if you have had your own truck for a while but not driven for a lot of companies, this list covers most of the questions you need answered to compare different companies. Sadly you will find a lot of recruiters who cannot answer half of these questions. I was always suspicious of those companies because I couldn’t fathom how you could be trying to lease people on and NOT know the answers to any questions on this list. Here it is:

-- Pay Rate (cpm or %)? Loaded & Empty? Load / unload Pay? Detention pay?

-- Does 100% surcharge go to the O/O, or is it paid at a rate per mile? Paid loaded and empty? How and when is the rate calculated? How do I find out when it changes?

-- Who pays tolls?

-- Direct deposit? Is there a Fee?

-- What is the requirement for tractors (age, weight, etc.)?

-- Are trailers provided and if so, at what cost if any?

-- Fuel discounts? Can I purchase fuel at carrier's terminals?

-- Can I use carrier's wash bay if it has one and if so, what is the fee, if any?

-- Do you offer discounts on tires, parts etc. and do I have access to your shop? What is the labor rate?

-- What fuel card do you use and is there a per use fee?

-- What kind of weekly mileage can a good solo driver or team expect to average?

-- Any drop & hook? What percentage of loads?

-- Kinds of freight most commonly hauled (avg. weight)?

-- Will I be required to go to NYC, Canada or Mexico often or at all? Is there extra pay for going to these locations?

-- Qualcomm? Do I have a choice? Is there a fee for it?

-- How is paperwork sent in to the company (e.g. TripPak, Transflo, etc.) and who pays for the service?

-- Do you provide PreePass, NorPass, GreenLight Transponders and is there a fee? What about EZ Pass?

-- Does the company provide logbooks and if so, is there a fee for them?

-- Does the company pay for the annual DOT safety inspection on tractors?

-- Who pays for the pre-employment drug screen… what about random or reasonable suspicion tests?

-- How long is orientation and will I be compensated for my time?

-- Are tractor base plates provided? If so, who pays? If I have my own base plates? What about when the lease is terminated?

-- Who pays IFTA and various state road taxes? How will my IFTA tax be calculated… will you use the fleet avg mpg or my own?

-- Do you require any escrow accounts? For what purpose and what rules govern these?

-- Longevity or performance bonus to O/Os? Sign-on bonus?

-- How hard will it be to get a load close to and back out from home? Can I take a trailer home?

-- How long am I expected to be out at a time and how long can I stay home?

 

That is a very comprehensive list, Musicman. It looks like you put a lot of thought into it.

There is one more thing that came to mind when I read this.

-- Do you offer advances and if so is there a fee? :thumbsup:

 

As of to owner operator, you shouldn't be "required" to go anywhere, you doesn't want to.
The second part of the question is legit tho.....
I wouldn't except any answer, but;-as long as you want to.

 

Thanks GMAN. In all my years of driving as either a company driver or leased on o/o, I do not believe I’ve ever taken an advance. Many companies charge a fee for that service and I do not like the idea of spending my paycheck before I get it. I therefore never considered adding this question to my list. I do agree though that for many this would be a good question to ask.

 

While I agree with you on this, many companies do not. In a way, I can see their point. If you are leased on, they should be able to count on you to get the job done as much or more than a company driver. If you are leased to a company that goes to these places, then you can expect that at some point you may be asked to go. When I was leased on, I preferred to lease to companies that absolutely didn’t go to NYC. That way, I didn’t have to worry about having to create a feeling of ill will when they asked me to go and I refused. As long as I wasn’t going to lose my butt, I WOULD go a couple of times a year (if asked) just so they couldn’t say I wasn’t a team player. There’s nothing worse than a driver or o/o with a reputation of being a whiner or being difficult to work with.


Again, you need to look at things from the perspective of the carrier. As an o/o, they are paying for your primary liability and usually cargo and sometimes trailer physical damage insurance. As a carrier, I wouldn’t be happy if you barely ran enough to cover what you were costing me. If I’m paying $600 - $800 a month for your insurance, you’d better be making me enough money so I can cover that bill and make some profit. If you want to go home every week and then stay there for two weeks at a time, you probably are not making the carrier enough money to cover its expenses.

 

I think most owner operators get an advance from their carrier, especially starting out. In some respects I think that it is a good idea to run on your own money. Some don't ever have the money to buy a tire if they blow one. If the carrier has a fuel card that has good discounts, it might be good to get advances starting out. The fuel savings could offset any advance charges. You are right that if you get an advance it seems like you are making less money than if you got your settlement all at one time.

 

Most of these questions can be answered by obtaining a copy of the carrier/owner operator lease agreement. If they're not willing to show you it before you're ready to sign, run as fast as you can.

 

I would add asking who pays cargo and liability insurance while under loads. Quite a few companies are now expecting (in contract) O/O's to pick up that cost, which I would never do.

 

It seems to be a trend for some carriers to charge a fee for cargo insurance. Some may charge a flat fee such as $5/ per load. Where some get the owner operator is in all the little fees that they charge. Revenue and profits are down with most companies. They are doing what they can to offset some of those losses. If an owner operator is expected to pay liability and cargo insurance he would be better off getting his own authority. If you are paying the full cost of insurance there is no need to give another carrier 25% or more of the revenue, depending on the type of freight hauled and whether the owner operator has his own trailer.

 

And they won't be disappointed, but first i should accept that run. Other wise i couldn't call myself owner operator. And IRS wouldn't think so either. BTW I practically never refuse the load cause of difficulty, only based on a profitability. That's my business after all, and i should be able to run it, as i see fit. I might help them in a bind, once in a while, but only as a favor.