Trucking: Own Business - Contracts, proper paperwork, business contracts


Question
Dear Mr. Bowers,

Probably this question has been asked a million times but this is my first time finding this site. Being a driver who wants to eventually have his own trucking company, what is the best way to go after hauling contracts? Is it better to work through brokers or go after companies on your own? One last thing and I do apologize. When you do finally get that hauling contract from a company, where could I find the proper paperwork for the contract between the company and myself. Thank you for your time and I do appreaciate any assistance.

Sincerely,

Manuel Ansoleaga  

Answer
Manuel, most small trucking companies have a mix of business.  Some directly from shippers and some through brokers.  In general you will get a better margin dealing directly with the shipper but then you will need to use brokers to fill in the empty lanes.  You will not be able to go directly after any shippers that were first brought to you by a broker without triggering a penalty of some kind.
When you deal directly with the shippers you will need operating authority.  For details see:
http://www.fmcsa.dot.gov/registration-licensing/NewEntrant-faq.asp
A good place to learn about contracts is the ATA NITL Model TL Contract:
http://www.nitl.org/ModelMotorCarrierShipperwithGeneralInstructions.pdf
Many shippers will offer you their contracts so you need to be familiar with the terminology and consult an attorney if in doubt about what you are asked to sign.
Good luck with your business.
Jim