QuestionQUESTION: Mr. Dorsey
I want to start a trucking business and i am new in this business. I have $23000 to start and i would like to work with a truck load broker in order to find contracts and hire a driver.
Can i make good profits working with a broker and a driver?
What kind of trailer type (truck), weight, size i should start with to be interesting for load brokers? What is the best truck to start with?
p.s : There is a list of trailer type
Auto Carrier
Boat Carrier
Dump Truck
Flatbed
Hopper
Hot Shot
Lowboy
Pneumatic
Power Only
Reefer
Step Deck
Straight Truck
Tanker
Van
Walking Floor
THANK YOU VERY MUCH
ANSWER: I will have to assume, not being from Canada, that trucking is similiar their to what you would have to consider if operating in the United States. $23,000 is not sufficient to starrt a business-one major at-fault accident, could wipe you out! There is a significant degree of risk and exposure operating a trucking operation. I have never dealt with load brokers-at many major truckstops, you can find them with an office. My suggestion would be to to contact a reputable company either their or in the US and get some solid advice and guidance. There is a large
Quebec-base trucking company, whose name escapes me, that could talk to you. Here in the US, starting a trucking operation, in this weak economy, poses major risks for failure. There is more drivers then there are freight. Many companies have gone out of business and the majors are just barely hanging on. Not sure about Canada but knowing we are your largest trading partner, I assume its not much better. Relying on a broker does make better sense because you don't have to hire a dispatcher and pay them salary and benefits. Your overhead is substantially
lower as well. You didn't let me know what type of freight you want to haul, or size of trucks, or if you want to operate outside of Quebec, including the US. If you want to be a local delivery outfit, purchasing a straight truck would be just fine-easier to navigate in large cities like Montreal and are cheaper then purchasing a commercial tractor, like a Freightliner, which can cost as much as $100,000 new. I've driven all types of equipment and pulled a variety of trailers in my 18 years. If you are interested in a tractor-trailer operation I would offer this suggestion to minimize costs: Contact your local Penske or Ryder Commercial Truck Centres.
Lease a truck and trailer from them and see how your business developes. I worked for a company back in Philadelphia that leased all their equipment from Penske and fueled at their terminal. They even provided maintenance on the trucks/trailers. Load planners or brokers can be found in the yellow pages or truckstops as well. In terms of profit, its very small. At one time, trucking companies would charge around $1.10 a mile-after pay drivers, overhead expenses, a company could expect to earn .01 or .02 cents per mile. As I mentioned, the economy has had a direct impact on trucking more then any other business. Then you have to factor in the cost of diesel fuel which, after salaries, is the largest expense. Going in with a legitimate partner, with substantial more capital, is another option to consider. After saying all of that, if you still want to purchase a truck and trailer, I would suggest either a Volvo or Freightliner tractor. Both have excellent specs and are known for their comfort and reliability. When purchasing a trailer, get a 53' with airride suspension for easier handling. 53' trailers are the standard anymore. Trailmobile, Dorsey, and TripLease trailers are great. I hope that helps you somewhat and I wish you much success.
---------- FOLLOW-UP ----------
QUESTION: Thank you for your quick answer.
To be more specific: I am interested in starting an operation for a straight truck for Montreal and around.
But i have hard time choosing what kind of straight truck should i choose and for what kind of service.
I am looking for a truck with potential for rentability .
If you could give me the same kind of advice for a straight truck, i would appreciate.
Thank you very much that is very kind of you
ANSWER: Hello Claude! I would recommend you call either Ryder or Penske: Ryder's phone number is 514.353.7070 & Penske is 514.643.1422 They lease straight trucks and probably perform maintenance and fueling all at their Montreal terminals. They are either going to be freightliners or International trucks more than likely. Both are excellent trucks to drive. If you don't want to lease, then go to either a Freightliner, International, or Volvo dealer in and around Montreal. To be honest, because of enhanced technology, todays trucks are so fantastic compared to just 10 to 15 years ago! Starting out as you are, though, leasing makes so much more sense. I didn't drive straight trucks too often except for a leasing company that did business in New York City. I much preferred driving straight trucks in New York than a tractor-trailer!!!
If I remember, they were Freightliners. I've even been to their main factory outside of Portland, OR many years ago. Of all the different manufacturers, my favorite truck to drive would have to be a Freightliner. They are the largest truck manufacturer but, like I said earlier, the quality of all trucks are about equal. The competition is fierce so they have to be! Overall Claude, I strongly feel that by leasing to either Ryder or Penske you will have more peace of mind and not have to worry about upkeep and maintenance and they definately take care of their equipment-they have new and older models you can lease, and you can have your driver probably leave the truck at the end of his shift, at their terminal, where it will be safe and secure. I'll be interested in what you decide to do! Good luck!
---------- FOLLOW-UP ----------
QUESTION: If i understand, you said:
1)It is better for me to lease
2)I can have a driver and still make profit in a leasing operation
But what type of truck has more potential to find contracts?is it a stake truck, a refrigerated truck or a straight truck?
http://canada.ryder.com/rental_truckspecs.shtml
Thank you
AnswerHi Claude! Leasing is more advantegeous than owning. I would recommend that you go to this website and you will find a wealth of information concerning leasing a truck. Go to WWW.Brossard.com or calll them at 800.361.9720. This company has different locations and terminals throughout Canada and the US. This one is located in Dorval, QC. National Leasing is
highly profitable and been around a long time! They can help tailor a programme for you in the area of trucking your most interested in. Refrigeration or reefers is a great option since people have to eat! If your only interested in local deliveries around metro Montreal, I would consider leasing a straight truck. Panther trucking is large in North America and drivers lease on to them, driving straight trucks they provide. I used to see them all over the country. Panther Trucking only leases straight trucks. You can lease one of them and have your driver drive one of their trucks around Montreal. I would first call National Leasing in Dorval and discuss your goals and see if they can be of any help to you. As I mentioned earlier, I have worked for leasing companies and they certainly made money. You don't have to worry about lots of expensive overhead, like maintenance operations, safety director, fuel pumps, logistics, and wash bays. Leasing companies do it all for you so that you as the owner of your company, can concentrate on making sure you are profitable! If you really want to minimize your risk and exposure, and make a decent living, leasing is the best way to go! Another thing to consider Claude, is that National Leasing and others, is like one-stop shopping-they can not only provide the above services, but also handle your permits, insurance and accounting operations as well.
Obviously, it comes with a price, but considering everything, its still a much better option for you, especially for one, like you, that is just starting in this industry. Claude-good luck to you and wish you all the best! I had a very good friend from Montreal and loved going there!
