How Do You Find Loads As An Owner-Operator?
When planning on starting your own trucking business, you absolutely need the ability to find loads.
There are proven methods to getting these loads, though they have their advantages and disadvantages. Some may cost you upfront, while others may require more time and effort to sort through all options.
The most common methods to find loads are:
- Hire a dispatcher
- Work with freight brokers
- Utilize load boards
- Call companies directly / load prospecting
- Government contracts
- Networking
Best Ways To Find Loads As An Owner-Operator
While there isn’t a method that works better than the other, its recommend that new motor carriers find a dispatcher. This is because they are going to work directly with you to find brokers who will work with new owner-operators. They can also help you manage trips across the country and back. There are other options as well – load boards and load prospecting are other methods that may help you find loads. Lets review.
Dispatchers
There are two options for owner-operators who go the dispatcher route – they can either hire a personal dispatcher directly or contact a trucking dispatching service for help. Dispatchers will connect you to shippers, in addition to managing the flow of your freight, helping with paperwork, doing accounting work, etc. for your small business. Depending on the dispatcher, they will also record transportation expenses like mileage, fuel use, and repairs. Most dispatchers charge a flat rate or take a percentage from each load.
Freight Brokers
Owner-operators who are not looking to work for a company can find loads with a freight broker. Freight brokers can connect truckers to shippers, and also determine load rates, times and locations. Freight brokers can typically take about 15-25 percent of the profit from the load. Brokers will negotiate with a shippers to obtain the highest price they can on a load and then find an owner-operator who is willing to move it at the lowest rate possible. The broker gets the margin in the middle.
There are services like Carrier411 that can help you steer clear of unqualified, non-compliant and unsafe carriers as well.
Load Boards
Load boards are often free and have a variety of freight for owner-operators to choose from, for deliveries all over the continent. The caveat here is that they can be unpredictable and the loads can be low paying. Finding a load board that works for you may take some trial and error. Even better, many load boards have mobile apps that can help keep things easy on while on the road.
Here are some popular load boards, as an example:
Cold Calling / Load Prospecting
Prospecting for loads can also be referred to as cold calling. Owner-operators can research shippers in their area and see if they need help hauling their goods. If this method works, it is a great way to establish lasting relationships with businesses, but the time investment to get started is great. Try to get in contact with shipping managers, and discuss how you might be able to help each other.
Government Contracts
Government entities (Federal, state, and local) often outsource their transportation needs to private contractors and owner-operators. In order to move government loads, an owner-operator has to register on the U.S. General Services Administration (GSA) website as a company. Registering as a government contractor can help an owner-operator find loads pretty quickly within their own city/area. Obtaining contracts can vary depending upon the security clearance required for winning the bids. A contract with government entities like the USPS can bring in consistent work and also offer solid pay. Government contracts are a great option for finding loads for an owner-operator.
Networking
Just like any other business, networking can be a key step for ensuring an owner-operator’s visibility and possible growth in the industry. Creating friendships can lead to prospective clients. Getting involved in associations like the American Association of Owner Operators (AAOO) or other local events can help in professional connections that may be a great pathway for getting loads. It not only helps in staying informed about news in the trucking industry, but also helps in tips and guidelines to grow business.
Tips to Get More Loads and More Work
There are a variety of things you can and should be doing to grow your company, acquire more loads and generate more work for you and your fleet.
Prevent dead-head miles by taking loads to a location and back. Dead-head miles, also known as “empty miles”, describes the situation of a truck that is returning back to home base empty after delivering their load. This can be a local trip back home or one that crosses the entire country. Its also helpful to understand your cost-per-mile. This can determine how much money you make per load after the expenses of operation.
Don’t take loads that actually lose your company money. new owner-operators will often take these jobs to help establish themselves, but ultimately it can hinder the success of your business if you’re losing money. Use a combination of methods to find loads and keep your company on the road. Think of it as diversifying your portfolio. If you do decided to work with a broker, find more than one broker to work with to keep loads coming, once again diversify.
Always be professional. Companies are willing to work with new motor carriers if they prove they’re honest and trustworthy. It may take a little while to get higher paying loads when you’re new. You have to build trust to earn the better loads. This might seem very basic, but name your company something people can remember to increase your chances of getting called back for other jobs, always carry business cards and stay consistent when both looking for and delivering loads.
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