Dispatch Services For 26Ft Straight Trucks - New Start Up Business

I am just starting a new business in the 26 ft box truck line. I have zero experience in dispatching, but leaned to drive trucks in the Army many years ago. I have two trucks I am negotiating on currently, ad plan to buy soon. I have applied for my authority, have all other required paperwork in order. First, I'd like to say that I can't believe the cost of insurance in this business. I owned a small construction business for twenty two years and was paying half of what this industry charges even though we were charged for work up to three stories high. I closed the construction business because of covid19 related lumber price increases (went up 500% in price) and workers claiming to have covid19 underlying conditions that could use a doctor excuse to stay off work and collect over $1,000 a week in unemployment. Basically, couldn't get ANYBODY to work! So here I am, getting into what I am told is a recession/pandemic/unlimited employee proof business. On to my questions...

1. Being new to the business, should I hire a dispatch service? 2. Can they keep box trucks busy with freight? 3. Who would you folks recommend? 4. What should I be cautious of if I decide to hire one, basically the pros and cons?

Thanks for any guidance!

I am just starting a new business in the 26 ft box truck line. I have zero experience in dispatching, but leaned to drive trucks in the Army many years ago. I have two trucks I am negotiating on currently, ad plan to buy soon. I have applied for my authority, have all other required paperwork in order. First, I'd like to say that I can't believe the cost of insurance in this business. I owned a small construction business for twenty two years and was paying half of what this industry charges even though we were charged for work up to three stories high. I closed the construction business because of covid19 related lumber price increases (went up 500% in price) and workers claiming to have covid19 underlying conditions that could use a doctor excuse to stay off work and collect over $1,000 a week in unemployment. Basically, couldn't get ANYBODY to work! So here I am, getting into what I am told is a recession/pandemic/unlimited employee proof business. On to my questions...

1. Being new to the business, should I hire a dispatch service? 2. Can they keep box trucks busy with freight? 3. Who would you folks recommend? 4. What should I be cautious of if I decide to hire one, basically the pros and cons?

Thanks for any guidance!

Howdy, Brad . . . and welcome to our Trucking Truth forum!

We don't do a whole lot of working with hotshot companies here, but there may be a few O/O's that can chime in with some pertinent info.

ie: PJ, anything?

Also Brad, you could look up posts by Jerrod (we miss him, btw!) Our resident recruiter/dispatch manager on our site. He's a 'higher' (hire?) up at GOE (Greater Omaha Express) and may have a bit of info for ya, on that end of the spectrum.

In Ohio, the Unemployment is going back down to the $300 and requiring 'proof of work' attempts bi weekly (don't 'quote' me on that; I'm not Mike DeWine, haha!) or something of that nature.

I wish you well; here's a link to Jerrod's (Jrod's) posts. He's a great guy, and his info is in his bio.

Jrod at G.O.E.

Hope this helps, a bit! Wish you well, good sir~

~ Anne ~

You would most likely get the help you need at OOIDA. We are a site and community with the aim of helping people get started as company drivers.

Good luck.

am told is a recession/pandemic/unlimited employee proof business. 

Who told you that? It's not entirely true. Jump on indeed and you'll see all the bonuses being thrown at people because they can't find anyone either.

The truth is that this business is more cut throat than any other, including construction. Businesses want companies with experience and that can get their Freight from point A to point B in the condition it was shipped, when it's supposed to there and on time. Sometimes, on time means just that (not early). You'd be surprised how often someone is sitting outside of a building for a day because they're early.

Dispatch services are going to want a cut. Between insurance, employees, maintenance and truck payments you'll have very little left over for yourself let alone a third party dispatcher. Brokers usually want someone with experience because their trusting you with their reputation. Would you hire a plumber on a construction job that just went out and bought some pipes and tools?

Like construction, the bidding here goes down. The best price for the most services. Most trucking companies operate in single digit profit margins.

I wish you luck, but I think you're jumping into this just because you want to own a business and somebody (or the internet) gave you bad information. I think you should do some more research before getting yourself in debt.

I was a contractor for many years. My workers comp rates were outrageous. I looked into starting a box truck business before I started down the path of driving. At the time, I had to carry commercial auto for my clients anyway. I have my own authority and DOT number. As was said above, If you thought construction was cut throat, the trucking industry is worse. The straight truck market, as least locally in the Denver metro area is over saturated and in a matter of weeks Amazon completely dominated it and essentially absorbed most of the companies here. In doing so, it bottomed the prices and stagnated it. You would still have to incur all the normal expenses, licenses and insurance yet if you want work you would at some point be hauling for Amazon at essentially the same rate as an employee, the only way to survive is through high volume, which means increased overhead which then means investors, so on and so forth. Another issue is that straight trucks dont really get any better mileage than a full semi so its not cost effective to use them for anything other than local. Expedited rigs are custom set up for it and rare.

There are a ton of videos out there about some guy that went from flipping burgers to becoming a box truck millionaire overnight. They are much different than the old infomerical with the guy on the boat that had all the women on it. Im sure a few people got in at the right time, right place and profited, but its rare. How many times did we hear about some guy making a mint as a contractor only to see him out of business the next month or year?

*..."They Aren'tmuch different than...

There’s another thread talking about the current state of the economy and things to come. Now is absolutely not the time to start up a new business, especially in trucking which is risky enough when things are good.

This. I would save your money and be poised to start up when the economy resets after a lot of others have been squeezed out of the business.

There’s another thread talking about the current state of the economy and things to come. Now is absolutely not the time to start up a new business, especially in trucking which is risky enough when things are good.