Carriers 101: Research Before You Sign

Beth Gish

February 10, 2017

Looking for a carrier to sign your truck on with or a company to drive for can be confusing and a bit overwhelming if you don’t know what you are reading.

Keep in mind when you’re reading the ad or speaking on the phone.

There are more driving jobs out there then drivers. Carriers need you! You are in demand. Especially the owner/operator,

Not that there is much room to negotiate your pay (there is notoriously low profit margin in trucking), but you have to be aware of… the sell. Larger carriers will try to bring you in (onboard you) as much as they can. They have a quota they may need to meet. Sometimes recruiters work on commission. They make money off of you and your truck before and after you onboard.

Recruiters are sometimes paid on commission and don’t have to deal with the repercussions of signing on “the wrong fit.”  It is YOUR job to make sure you get the answers you need. 

Questions you need to ask

Where does the company load most frequently? Will to company place you with a team driver even though you began as a solo? Is direct deposit available? What about road side assistance? Will dispatch help you through equipment crisis? Does your carrier allow pets or riders? What are the bonuses for referrals and do they have safety recognition? Does the company have a cash advance program for your travel needs? How do they dispatch? Do they utilized email, text messages, or do they provide a technology unit such as qualcomm? Do they have a plate program? Do they offer lease-to-purchase?

There are literally hundreds of questions that may need to be asked to see if the carrier is a good fit you? It is all in what YOU need. What is most important to you?

I can’t give you the answers to these questions because the answers are what matters to you as a driver. There is no right or wrong answer. It’s all in how the carrier is set up.

There are all different sized carriers out there. 

The Big Bad Carriers

Larger carriers will have more perks because they have the budge to have them. You can probably find more cash advance options, in house insurance companies, cash advances… and so on. They have the money to throw at you and they will because they can. They also tend to hire driver’s with less experience.

What large carriers can’t do is keep you consistent. They hire and hire and hire. Large carriers will make sure they have the trucks to cover every single possibility. If all the terminal’s trucks are in service and the industry (not the company THE INDUSTRY) hits a slow period, you’re gonna sit. No easy way around that.

…and you’re probably just going to be a truck number to dispatch. It’s possible that you will have to talk to a different dispatcher every time you call in. It may even be difficult to get someone on the phone when you need to.

Smaller carriers have perks too

Small to midsize carriers do have perks. You will get to know your dispatchers; develop a rapport with them. Your dispatches will be more consistent, less trucks to move.  You are more than just a truck number. You will get more one-on-one personal attention to policies and you will probably get your questions answered faster. 

Smaller carriers need to make every truck count. They can’t spend money to bring in the trucks that they can’t work with. Yes, it cost a lot of money to bring on a truck or hire a new driver. They aren’t going to onboard you if they know they can’t utilize you.

It's easier to resolve concerns that come up when you work for a smaller carrier. Less red tap. In some trucking companies, the president or owner of the company is very present and has a very hands on approach to their business.

Small carriers want to keep you, they want to retain you, and they will do everything THEY CAN to do so.

There is a carrier for every owner and driver out there. 

Whether you could fit better in a large carrier or a small carrier the choice is yours and yours alone.

You should be making the decision; it’s your job, your livelihood. If it doesn’t feel right, don’t do it. You should never be ready to sign on after the first call, even if you ARE. Take a night to sleep on it. Remember you are in control.

The Lingo

Before you can even begin to understand what the ad is offering you have to get through the lingo of the ad.

O/O – This indicates that the carrier is looking for owner operators (drivers who own one or more trucks.) This could also be displayed as O/OP

OTR – Stands for over the road. The trucking company is looking for a driver to be out for days to weeks at a time. Do not expect to be home every night. Dispatchers do their best to get you home when you need to be, but give them plenty of heads up.

Company Driver – This could mean that you will be driving a company truck or an owner’s truck. You could be paid per mile, per day, or per hour. Remember to clarify this during your phone interview.

Small Fleet – The carrier is looking for you to bring (typically) 3 or more trucks to the party. They may be looking for you to have your own authority.

Authority – Your own DOT/MC number. This allows you to look for your own dispatches and really be your own boss. You will need to carry more insurance and it takes a lot of time and effort to research load boards. 

Settlement – How a contracted driver is paid.

Dedicated Run – Think of this as your schedule. This is a set dispatch, every day. You may or may not need to call into dispatch to begin. You may or may not have to run a logbook depending on how far the run is. If the route is short enough, you might be expected to call into dispatch at the end of your run to pick up extra loads dispatch needs to cover. Your start time may always be the same, but your “clock out” time may vary from day to day. 

Sign On Bonus – Consider this a longevity bonus. Typically this isn’t paid out until you’ve been contracted for a period of time. It is rarely paid immediately or in its entirety in one lump sum. Typical payouts begin at 30, 60, or 90 days. It could extend out for as long as 24 months. If you cancel your contract or leave early, you may be obligated to pay it back. If you see a high sign on bonus, make sure you ask how it’s paid out. 

Deductions – This is the amount that will be deducted from your settlement each pay period. 

Escrow – This amount is deducted from your pay (or settlement) until it reaches an agreed upon amount. Typically $1000-$2000. I would be skeptical of anything higher than that. Some carriers will delay the deduction. By law, carriers must retain this amount in an account. It doesn’t have to accumulate interest and it is payable back to you after you meet carrier’s requirements and after a waiting period. Typically this required credentials, certificate, and technology units to be returned before its payout. This process could take up to 90 days. 

Sign on fees- These can include placard removal (if necessary) and application, technology installation and/or set up, administration fees, inspections, physical or drug screening. These can be negotiable and its always wise to get these waved or paid back to you upon a set period of time. I never understood why you should PAY someone to start working for them.

Fuel Program – The owners/company is usually provided a fuel card that offers discounts at the pump. Your entire fuel bill for the pay period is deducted out of your settlement.

Accessorials – This is money paid out in non-driving incidents. This could be detentions, lumpers, lay over pay, scaling, tolls. These are usually paid late and it requires documentation from the driver. Make sure you understand your carrier’s policy or risk losing money.

Detention – (with the exception of containers) this is time waited for the customer to load/unload your trailer. Typically starts after 2 hours of free time. 

Lumper – someone paid to load/unload your trailer.

Lay over fee- Money paid to you in the even that you have to sit on a load or within a dispatch or even between dispatches. Make sure you understand your carrier’s policy.

Deadhead – Should be a per mile rate you are paid to reach your first leg of the dispatch (sometimes called empty miles). This should be in your contract and should be paid.

There are so many terms out there. Some are not universally known and some have different meaning to different carriers. The key is to continue to ask questions until you find the answer you are looking for.

The Right Carrier

The right carrier for you is a decision you need to make with the help of a trusted business partner or colleague or friend who has your best interests in heart. You can’t and you shouldn’t always trust the person on the other end of the phone. 

In any event, the right carrier will always be the honest carrier.

How do you find the honest carrier? 

They are out there, and they are not too hard to find. I’ll go over honest carriers next…..