Authority Pros & Cons

[Chamberpains]

All business owners know risk reward adages and sorta know how it works. Big risk big reward but also very high probability of complete failure is how it basically goes.

The trucking industry is chaulked full of this. With awful lows as 2008-2010 showed us. Flexibility is what keeps me above water and even keel. I would never live off the load boards or rely on a broker 100% as also I would never get locked into 1 or 2 customers with my own authority. Yes, you own the trucking business (you're the boss) but you are technically ran at the needs and wimms of the customers. They screw up or get lazy on you then often times your contractually locked in for whatever ride they take you on. And I can attest 1st hand when a customer files bankruptcy and they owe you $18,000 and your a small guy.... Well... 10 years and still not a dime and lawyers chuckle when you ask about it. Companies will shut their doors with no warning and if your lucky, you'll get an "I'm sorry phone call". But often times it'll be you showing up and doors and gates are locked with the lights out and the lot empty. It happens fast and literally over night. I've been there 3 times over the years.

Like Waterloo, I lease, pay my own plate, 2290 (heavy use tax) and I also file my own IFTA and carry my own liabilty insurance on the rig. The authority I lease to is responsible to maintain the authority and the paperwork associated and cargo insurance. I know where he LIVES so there is no simply disappearing in a flash. I do have to push him in either direction (for more or currently less freight) but that is as simple as a phone call or a quick ride up to say hi with a face to face conversation. We together have learned flexibility in trucking. He keeps a broad customer, broker, load board and new ventures open at all times. In turn I have a willingness to go anywhere and pull anything at almost anytime on my equipment. That keeps me so comfortably above all the trends and booms and scares that I don't hardly blink an eye or give a 2nd thought of the next crisis coming down the pipe. These all may be things to think of if you decide to get your own authority.

Flexibility at all times will keep that roller coaster feeling like a nice cruise across Kansas with the ability to jump in and out of a heart pounding screaming ride in the wildest places on the planet whenever you choose.