Trucking: Trucking company startup in New England, direct shippers, new england region


Question
Dear Jim,
I recently sent this question to Isreal, then realized your background seems more aligned to the question, so I am submitting to you also - thank you both!

I am opening a trucking company/brokerage in New England based on the business model of a successful West Coast (Southern California) trucking company.  Our fleet would be 100% leased owner operators, live loaded only.  Lanes would be 1-3 day runs.  The company pays Cargo and Libility Ins, takes care of permitting and IFTA issues has a leaseback program available after 6 months of service for our drivers. The company is very lean, uses technology effectively and consequently will pay the drivers more, 73% billing amounts plus a .40 cent/mile FSC.  Most freight would be broker freight, at least in the beginning resulting about $1.30 per mile (roundtrip, including FSC) to the truck (to our driver).  Overtime we would mount a sales effort for direct shippers and get better rates.  I am wondering how this business model will fit into the New England region, what challenges would we face here that are different from the west coast.  Thanks very much for your help.  Rich

Answer
Rich, your model seems sound.  I can't really speak to the regional differences since I do not operate in either of the markets you mentioned.  I do know that the Northeast is a difficult environment to operate in due to congestion, weather, labor, etc.  It sounds like you have done your research and have a plan so I don't see why with hard work it would not be successful. Best of luck.  Jim.