Trucking: Business Model for East Coast Trucking Co, direct shippers, coast trucking


Question
Dear Isreal,
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
MR Rich, I'm sorry I'm unable to give an answer on this subject. I live in the Southeast and know nothing about the New England area. I'm sure there is a lot a differences between the Northeast and the Southeast as would be with the West Coast. I would suggest sending this question to Jim Bowers.