QuestionHello John,
I am asking for some quick help on a matter. An OWNER OPERATOR company named "Refrigerated Transport Express" called here, expressing they would set me up as an owner operator hauling refrigerated goods to retail grocery stores within 350 mi. radius of Nashville, TN...said they had NEW contracts with 28 more stores. Dedicated run with around 3 drops per night; all palletized. Leave 9:00 p.m./home by 7 to 9A next morning, plus weekends off...Just what I've been looking for..IF it's LEGIT! Said I could leave the tractor at their terminal every day...also, fuel card provided and stickers starting out.
They said run should GROSS around $2800.00 per week and I'd have no down payment. I'm supposed to go to their office between 1 and 2 tomorrow afternoon and talk.
If he is LEGIT, it sounds like some hot contracts they're trying to fill fast or they might lose them. Maybe they can't get enough regular OWNER OPS to run at night.
Can you tell me from your own experience, 1st hand or otherwise, anything I should be aware of before lease purchasing a truck through these people? How will I know if they are honest, and how do I keep from getting skinned? Is there any thing they might offer or say where I'd KNOW for sure to scat out of there?
I'd appreciate a reply A.S.A.P., as this may save me from getting really burnt or passing up a good opportunity tomorrow.
Their website I am told is "Internet Transport Industries". I'm going to try and go there now and do some research.
Thank you so much for any advise!
Sincerely,
Michael D. Eidson
AnswerMichael, I am not an expert on the operations side of transportation; however, was at Landstar System, Inc. for 11 years so I have a sound understanding of an owner operator business model.
Speaking generally of the industry, right now most transportation companies are starved for capacity. By capacity I mean qualified driving professionals. So, from this perspective, it doesn't surprise me that the recruiters are out hustling. I mean that in a good way, not bad.
I believe that leasing on with a company is one of the few ways that driving professionals can survive. You almost have to be part of a large group in order to survive the ridiculous costs of liability/cargo insurance.
If I understand you correctly, I am assuming that you will be leasing the truck from them ? If so, look very carefully at the terms. Recruiters tend to exagerate about what can be made. I would look had at your break even costs and pay special attention to the insane fuel prices. Make sure that your B/E allows for slow weeks.
I am not personally familiar with the company. I would get on one of the trucker mesaage board websites and ask for opinions. Please bear in mind that you should expect a couple negative responses with the positve comments.
Finally, the lease contract should have some kind of out for you in the event the company is unable to keep you loaded throughout the week. Your largest exposure appears to be that you could be saddled with excessive lease payments with too few loads.
I hope I helped. Please feel free to ask me to clarify if I have done a poor job of answering your questions.
Warmest Regards,
John Sabol
