Owner Operators vs. Lease Operators

[chevy454]

how much money should someone have in the bank to get started in being a o/o?

 

[just5mouths2feed]

how much money should someone have in the bank to get started in being a o/o?

Twice as much as you have to lose.
Sorry but the truth isn't always what we want to hear.

 

[Cerberus]

the only way to make a dollar in trucking now days is to start out with 2$.

 

[chevy454]

whats the main difference between being a o/o and a o/l

 

[SilverSurfer]

whats the main difference between being a o/o and a o/l

I will presume that you are referring to lease operator with the o/l. The main difference between an owner-operator and a lease driver is the ability to take loads independent of the company you're contracted with.

Owner-operator contracts must contain language seperating them as a company employee, and part of that language must contain full control in the hands of the owner-operator. This includes the ability to decide what loads are accepted. The downfall, or give for use of the carrier's authority, is the requirement to pay a percentage of loads not originating with the carrier contracted with. This is where being an independent has some benefit.

Here's the basic breakdown...
A lease operator is a contract driver, tied into the carrier through the lease to haul their loads, and can not haul loads independent of the carrier they are leased to.
An owner-operator is a contract driver with full control over the loads hauled, but does not have authority. O/O's use carrier authority.
An independent is a contract driver with full control and authority to haul any and all loads. Independent's utilize hauling agreements (customer contracts) rather than carrier contracts.

Hope that helps you understand the basic differences. But do understand that it's the contract you enter into which dictates how you operate. This is the critical reason you never sign any contract without fully understanding every aspect of it. The contract is what dictates and governs everything in your business operations.

-ss-

 

[FlatBroke]

Here's the basic breakdown...
A lease operator is a contract driver, tied into the carrier through the lease to haul their loads, and can not haul loads independent of the carrier they are leased to.
An owner-operator is a contract driver with full control over the loads hauled, but does not have authority. O/O's use carrier authority.
An independent is a contract driver with full control and authority to haul any and all loads. Independent's utilize hauling agreements (customer contracts) rather than carrier contracts.

-ss-

A lease operator is just a glorified company driver. Meaning he/she can go home anytime they want to and can turn down loads.

 

[Tn. Truckers Wife]

the only way to make a dollar in trucking now days is to start out with 2$.

hahahaha... that's a good one Cerb...

 

[bigrig]

A lease operator is just a glorified company driver. Meaning he/she can go home anytime they want to and can turn down loads.

don't forget they also get the privilege of making the trucking company's truck payment for them...

 

[FlatBroke]

don't forget they also get the privilege of making the trucking company's truck payment for them...

10-4 that is probably the biggest reason these companies do this.

 

[ModernDayMuleSkinner]

I lease my truck, and after 2 months of not getting enough miles (and little or NO paycheck some weeks), the company had me sign a new contract that allows me to run loads for "the public" (the old contract said I could run loads for "the company"). I was totally stoked.. at first. Then I realized that I'm pretty much screwed. In order to run loads off the boards I'll need my own authority and cargo insurance, I'm thinking (from reading lots of stuff online), or I will have to sign on with Landstar or JB Hunt to run under theirs. But then I guess that I can't run loads for my regular company. So my company, in effect, becomes my "bank". God, I'm so confused. Anybody out there have any advice for me? I'm over my head. :crazy:

 

[SilverSurfer]

I lease my truck, and after 2 months of not getting enough miles (and little or NO paycheck some weeks), the company had me sign a new contract that allows me to run loads for "the public" (the old contract said I could run loads for "the company"). I was totally stoked.. at first. Then I realized that I'm pretty much screwed. In order to run loads off the boards I'll need my own authority and cargo insurance, I'm thinking (from reading lots of stuff online), or I will have to sign on with Landstar or JB Hunt to run under theirs. But then I guess that I can't run loads for my regular company. So my company, in effect, becomes my "bank". God, I'm so confused. Anybody out there have any advice for me? I'm over my head. :crazy:

The first thing you need to do is fully understand the parameters of the new contract. Does the new contract turn your relationship with the company into a truck lease agreement or a contractor hauling agreement? The reason I ask this is you mention needing your own authority and insurance. This should not be the case...you should be paying a percentage of haul for use of authority and primary. But it sounds like no negotiating was done and you signed a document you did not fully understand...and now find yourself in a predicament you're unfamiliar with.

Brother, this happens to a lot of individuals. My advice is for you to thoroughly read and understand the new contract you've committed yourself to. You need to understand what you can and can't do before any decisions can be made.

-ss-

 

[Truckman]

Lost

I lease my truck, and after 2 months of not getting enough miles (and little or NO paycheck some weeks), the company had me sign a new contract that allows me to run loads for "the public" (the old contract said I could run loads for "the company"). I was totally stoked.. at first. Then I realized that I'm pretty much screwed. In order to run loads off the boards I'll need my own authority and cargo insurance, I'm thinking (from reading lots of stuff online), or I will have to sign on with Landstar or JB Hunt to run under theirs. But then I guess that I can't run loads for my regular company. So my company, in effect, becomes my "bank". God, I'm so confused. Anybody out there have any advice for me? I'm over my head. :crazy:

With the lousy state of our economy, there is no money to be made runing loads off the boards. Go check out all the greif the O-O's are posting about brokers. Jumping ship at this time is the worst thing because it is not good anywhere. You may have made your move to truck ownership ahead of your experience level. Truth is you may not make it, do to the econmic situation our counrty is working it's way through.

Do you hold title to this truck (with the bank of course) or is this truck leased to you from a motor carrier?

 

[misterbreeze]

There is a new O/O forum. OwnerOperatorTalk.com