February 9, 2021
Being an owner operator means that you have to partner with a trucking company. With thousands of companies to choose from, how do you filter those not worth your time?
Well, you can spend months filtering trucking companies, or you can read this guide and save time. You can then use the time saved to talk to and vet potential trucking companies.
Sounds great? Let’s start.
In this article, you’ll learn how to choose the right trucking company. From looking for certain features to vetting, we got you covered.
● Compensation
● Flexibility
● Business Expense Policies
● Insurance
● Permits
● Detention & Layover Policies
● Truck Services
● Fuel Tax Collection
Being an owner operator means that you have unlimited earning potential. However, this potential can go down the drain if your partner trucking company doesn’t compensate you well.
Most trucking companies compensate owner operators based on the number of miles covered. They also have other charges. While this is a good system, there’s an even better one― a revenue-sharing model.
This model doesn’t charge nor pressure you from covering hundreds of miles per month. Instead, the revenue is shared between you and the trucking company.
Full disclosure: This is the model we use at CargoX. In particular, we offer a significant percentage of the revenue, so you’re never forced to be on the road more than you’d like.
Many trucking companies advertise themselves by saying how flexible their schedules are. However, many can’t keep up to this promise. As a result, owner operators are sometimes forced to be on the road.
The right trucking company shouldn’t do this. It should never pressure nor force you to be on the road.
Partnering with the best trucking company means that you can work anytime you want. It also means that the company must care enough to let you spend time with your loved ones.
Full disclosure: CargoX allows you to choose your own schedule. With lots of loads every day, there’s always one that suits your needs.
Fuel, tire change, and maintenance are just some of the business expenses an owner operator has to cover.
It’s crucial to know whether the company you’re partnering with offers help covering these business expenses.
Are they going to pay for your fuel? Are they going to help you with maintenance? These are just some of the questions you have to ask the trucking company.
If you just started, it’s best to find a company that can cover everything so you don’t have to shell a lot of money out. Remember, the best trucking company helps its team members in any way possible.
Full disclosure: CargoX covers all of your expenses.
As an owner operator, you must have your own insurance. However, not every owner operator can afford all the necessary insurance plans.
Necessary insurance for owner operators includes occupational accident, auto liability, cargo, trailer interchange, and general liability.
The right trucking company must help you with this. In particular, they must at least help you secure insurance or connect you with an agent.
Better yet, go for a company that already includes insurance.
Full disclosure: CargoX offers all the necessary insurance plans mentioned above. Occupational accident insurance is optional. The other four are fixed and included for free in our compensation package.
You can have a truck, but if you don’t have the necessary permits, that truck isn’t going anywhere.
As an owner operator, you must have the permits to legally operate your truck/s. However, the best trucking company must have all the permits needed for them to operate in different states.
Thus, it pays to check if the truck company has the necessary permits to let you operate wherever they send you.
Full disclosure: CargoX has all the necessary permits for your hassle-free journeys.
Delays and layovers are inevitable, especially in the trucking industry. But what if you arrived on time only to wait for the cargo for hours? What if the layover took longer than expected?
The best trucking company must compensate you for detention and layovers. They must understand that you didn’t cause these events.
If the trucking company you’re eyeing doesn’t compensate for detentions and layovers, it’s time to look for another one.
Full disclosure: CargoX offers compensation for detentions and layovers.
Maintenance, tire change, and other truck services are needed by any owner operator. While these are usually your business expenses, the right trucking company must at least offer them.
Think about this: a trucking company offering lots of business to a truck service provider usually gets a huge discount. Thus, owner operators pay less.
If you want to pay less, partnering with a trucking company that offers discounts on truck services is a huge blessing. And huge savings, of course.
Full disclosure: CargoX allows offers discounted truck services. We also offer weekly maintenance for a minimal fee.
Both owner operators and truck drivers must undergo training. Without training, you won’t be able to satisfy your clients.
With around half a million trucking accidents occurring per year in the US alone, truck safety training is crucial. Cargo handling and employee discipline are crucial as well.
So go on, ask the trucking company about their training program. Ask whether they educate their fleet about these things. If they do, put them on top of your list.
Full disclosure: CargoX offers a comprehensive training program that equips owner operators with the necessary skills. This program also helps them be more confident and disciplined.
As an owner operator, you must know how to choose the right company to partner with. When you get this right, things will fall into their proper places (including funds into your bank account).
Remember, the right trucking company is crucial to your success. Speaking of success, we’re looking forward to yours!
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