Trucking: Hot Shot hauling, racing sailboats, hot shotting

Question
QUESTION: Hi Bob,
Welcome back from vacation!  I have a few questions for you regarding hot-shotting and the basics of the business.  A few years ago, I worked with a sailboat hauler, moving racing sailboats around the country that were generally light (under 10k), but fairly high (around 13'6") and almost always overwide.  The largest load I have hauled is a 47' sailboat on a 40' flatbed (don't ask, it was extremely illegal, as I learned later).   All of the boat hauling I did for this company was in an F-350 Powerstroke.  

I'm looking to get back into hot-shot hauling in the Washington state area and, from what I have learned, to do this part-time would mean that I ought to lease on with a local hauler.  I'm willing to invest in a late model diesel pickup and I'm willing to move loads locally to start, maybe expanding a little as I get back into the industry.  I'm right in the heart of Seattle, so I won't have a place to stash a trailer.  

As I don't have any experience with leasing on with another company, I would like you to provide some insight regarding what expenses I would be responsible for as an owner/operator and what expenses I should expect the company to cover.  I would love to work for myself, but part-time work probably will not cover the annual expenses of liability/cargo insurance, DOT/MC registration, truck payment, etc.--am I correct in this assumption?  I love to drive, but I'm just not sure I'd be able to make any money in the situation that I speak of here.

Whaddya think?

Thanks,
Casey

My second question for you would be which direction I ought to look if I want to get back in part-time?  Should I look to RV dealers, auto hauling, LTL (not sure what LTL means, exactly.  I'm thinking it generally refers to flatbed hauling).

ANSWER: Hi Casey,

Sometimes, when it shows I'm on vacation, I have to get in a truck and drive.  It was more of a working vacation and I have to keep my customers happy if I'm down a driver.

As far as leasing out, it could be your best option.  You expenses for being an independent is an issue, but furthermore, you can't service regular accounts part time.  So, you'll have to use a broker and they get their cut anyway.  Every company offers different benefits to leased drivers.  You will run under their DOT numbers and they should supply you with cargo insurance and permits.  Truck insurance, truck maintainence expenses, fuel, etc. will be your responsibility.  Every company is different, the more they offer, usually the less of a cut you get.  Write down what each company offers and what they pay, then you can make an educated decision.

Finally, with the economy the way it is (at least until the election), I would think RV and boat hauling is slow.  Auto hauling may be the way to go.  Again, do some research and see what companies offer.  Make some phone calls (or stop by) and talk to the terminal managers.

LTL means Less-Than-Trailer load.  It can be any type of freight, flatbed, van, refridgerated, etc.

Good luck!

Bob Stephens

---------- FOLLOW-UP ----------

QUESTION: Thanks for the great info and sight.  In light of the points you mentioned in your answer, would you take a shot at getting into part-time hot-shotting, hauling locally (mostly within Washington state, maybe Oregon, Idaho, Montana)?  With a full-time job during the week, I'm essentially looking at weekend trips and the occasional run after business hours during the week.  One of my fears is that I won't be able to cover annual commercial insurance costs, truck maintenance, and fuel as an owner/operator.  

Another question I have for you pertains to the CDL.  Will I most definitely need at least a class B CDL to obtain commercial insurance?

Thanks again,
Casey

Answer
Casey,

Running during the week is really hard.  Many places quit receiving at 5 pm and what if your stuck under a load overnight?  Now you have a job to get to at 8 am and a load that needs to be delivered at the same time!  Probably won't work.  The insurance costs would be the other big issue.  I would call around some local trucking companies and see if you can run under their authority and do weekend work.  You may also find work hauling for road contractors who do mostly night work anyway.

You don't need a Class B to get the commercial insurance, but depending on the weight you haul, you should probably get it anyway.

Good luck!

Bob Stephens