For MFM and anyone else interested in trucking

[Tobin S.]

This is in response to questions by MFM regarding being an independent trucker. I don't have any experience in being an independent so I may not have all of the answers.

I just realized that I haven't a clue as to how the finances are
determined for and by an independent trucker.
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I guess first -- how do you find loads? Are there "hubs" or something
covering a region/city that you contact looking for someone that needs
your service? Do you contact individual companies/corporations? Are
there listings somewhere ("For a good time, call Frigidaire")?

Some independents strictly haul for freight brokers. Others may have a customer or two that they mainly haul for, maybe only using a freight broker for back hauls here and there. If you have a customer that you haul a lot for, you have to develop a business relationship with someone high up on the corporate ladder. A lot of times it may be with the actual owner of the business.
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How do you figure out what to charge? Is there a complex formula or
simple? Weight? Square or cubic footage? Value of cargo? Miles? Lack
or abundance of demand for your services at the moment? Do people
needing your services BID for them? Do they try to (not sure of the
term) lowball you in the hopes that you're desperate for a load of any
kind -- even if it's just to minimize your losses on a return trip?

All of those things go into determining a freight rate. It depends on the type of trailer needed, value of the load, type of freight, size and weight of the load, and the length of haul. You also may be able to negotiate a better freight rate depending on how badly the freight needs to be moved and how quickly it needs to get to its destination. Customers do not usually bid on trucks. It's usually the other way around with possibly several truckers or trucking companies competing for the business. It's the independent's job to get the highest rate possible for his or her services and it is the shipper's job to get the freight moved for the lowest rate possible. A lot of truckers do move freight cheaply to get back to a desired area. Sometimes the only other choice is to sit and wait which can cost you more than hauling a cheap load.
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Are there set amounts offered by those needing your services? Are
there set amounts "agreed upon" in general by you and your peers?
If you're young/new and really HUSTLING, do you give discounts or
cheaper rates to attract more business than your peers?

When you are an independent, there are no set rates. Everything is negotiable. You may be able to get a contract with a customer to haul at a set rate for a while, but at some point that will also be subject to re-negotiation. I guess new independents might try to undercut someone elses freight rate in an attempt to get business. Experienced independents might try that, too, I suppose. There are as many definitions of what a good rate is as there independents. If I were an independent I would try to haul for $2 a mile or better. One trucker might look at that and think it's too cheap. Another might look at it and think that he or she can still be profitable running cheaper.
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Are you paid upfront? On delivery? Some combination?

Sometimes independents are paid on delivery, but I think it's more common for them to have to bill a customer. They usually have 30 days to pay. Sometimes an independent may sell his or her freight bills for a discount to get the money fast. When a customer doesn't pay on time I suppose a collection service may be used.
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Do you know BEFORE going, for instance, to the West Coast... that
you'll have something for the return trip? Do you have to hope that
something will be available? Do you wait, hoping/knowing something
will be needed eventually?

The answer is similar to what I said about my own experience. I would think an independent would be trying to book his or her next load as soon as he or she knows where they are going.
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Do you ever have trouble COLLECTING for your services? Bounced
checks? Reluctant payments? Disputes in amounts due?

Sometimes independents do have trouble collecting what is due to them, and every once in a while they may have to write an entire load off.
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Deadheading, I assume, is travelling without a load -- when do you
decide that you need to do that to get to more work?

Same deal as me as far as independents go. It is sometimes more profitable to run empty a little ways to get a load than sitting and waiting for something close to come up.
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How do your customers know what they're getting with and from you?
Is there some sort of rating service that will tell a business that "Tobin
is very reliable" etc.? Word-of-mouth? Can you get a bad rep from a
single individual or company that wants to screw you for whatever
reason (besides, you know... how hot you look in those bib coveralls)?

I know of no such service to rate independents. You just have to get someone to give you a shot and prove yourself.
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So many more questions. Basically, how do you set your price/get
your work?

You have to set your price high enough to be profitable taking into account your business expenses. At the same time you have to remember that you are competing with a lot of other independents and trucking companies. You can get freight using brokers, load boards, and also by trying to sell your services to companies that you like to haul for.

[Ikonoklast]

1. What's a 'truck'?

I saw that other thread, and you just about got it all right there.

As far as shippers and freight brokers having some idea as to the safety and reliability of carriers, going by the SAFER stats for a carrier usually gives a pretty good idea as to who you are dealing with.

http://safer.fmcsa.dot.gov/

These are statistics on every carrier that has authority to haul freight by the FMCSA, and can be searched by MC (Motor Carrier) or USDOT number.


Whenever I deal with a broker or shipper I haven't contracted with previously, one of the first things they ask for is my MC number, and I can hear them keying it in to check our SAFER stat.

If your safety rating falls below whatever parameter is used by the broker or shipper, they will not hire you. Some brokers are very finicky as the shippers they deal with only want their freight on carriers that have the highest ratings, say, the top 5%.

I've never been turned down by a shipper or broker.

[Tobin S.]

2. I appreciate the info, Ikonoklast

I didn't know about the SAFER stat, but I am not fully independent having leased my truck to a carrier.