Any guys here pay for cargo insurance when leased on?

I pay 2.5% of line haul for cargo. I also haul night value items.

 

I know guys that are leased on to a company that pays them 90% (supposedly) and they pay everything. Their insurance runs them approximately $1,000 a month for truck, trailer & cargo insurance. With a $2,500 deductible on each of those 3.

What I've seen over the years is that no matter how these lease deals are structured, the lease operators are paying it all in one way or the other.

Lot of smoke & mirror deals out there.

 

I don’t make 90% but I do make 89%. I pay 10.00 a week for cargo depending on what you haul it most likely will be higher. I also agree no matter the percentage you receive you are paying for everything. I may see things differently than others but if you lease to a carrier have your own truck and trailer you should get at least 85 percent of the load.

 

I worked at a company where we were charged back for cargo and I was paid 89%. I can't remember exactly but it was something like $1,500 a quarter charged back to me for cargo. We also had to cover any shortage or get credited for IFTA every quarter. I paid for IRP. There was a $1 swipe fee every time I used the fuel card. Then I had to provide my own bobtail insurance and liability on my dry van which is about $2,000 a year. That was it. I booked freight from brokers and negotiated every rate. I got 100% of accessories pay and detention pay. They took 11% from the line haul rate.

Current arrangement I do not have any chargebacks for liability. I get 87% and also get paid a fuel surcharge broken out of whatever I book. That was 35 cents a mile the last I looked. I get 100% of accessories and detention. Sometimes the surcharge and accessories can make it end up 90%+/-. No fuel card swiping fee. I carry the same bobtail and liability on my dry van for $2,000 a year and also have $1,750 a year cost for OCC/ACC. I pay any shortages on IFTA or get any credit and pay for IRP. There is a $1 fee for loading up EFS checks to pay lumper fees. That's everything how it pays and what I am responsible for. If I pull one of the company's trailer the take is 77% and they cover maintenance, wash outs, and reefer fuel. I negotiate every rate and am getting paid exactly as outlined.

Neither one of these arrangements is bad although I agree there are a lot of bad 90% deals that are smoke and mirrors. I like the one I'm under now better. It nets more @ 87% than the old arrangement did @ 89% and it also pays in 24 hours of me submitting paperwork which is how every company should be paying their leased operators imo.

 

Just got to call around and ask. Like said before, it’s usually built in one way or another. I worked with a small company once that paid 87% , then it was like $280 a week for cargo/liability insurance. Seems like the higher percentage lease on deals charge for the insurance

 

Either you pay it via them taking it out your settlement or they keep it out of there percentage for some the discounts you get from a Landstar on parts and service plus the supposedly higher rates are worth the lower percentage. For me it’s not I’d rather have good rated pay the insurance and keep the extra percentage but that’s me

 

I pay my carrier %10 plus insurance of $190 a week.

I pay for everything else myself. I own my truck and trailer.

He pays every Friday for the week before work. Supply’s a shop with all the tools I could want along with any parts and tire discounts passed through to me. I park on his site about 13 miles from home. I can book my own loads or they will dispatch me. Nothing is forced on me. I always get a copy of the rate-con. Mostly load board freight.

It is clear that his 5 trucks come first in a pinch but it was understood before I leased on with him. I like him and his family. My wife even worked there for a couple years. I currently have no reason to change anything.