The Pros of Becoming an Independent Contract Carrier
Becoming an independent contract carrier requires a lot of consideration. It’s not a job for everyone, but it can be rewarding for those who take the leap. Overall, the most significant advantage to being an independent carrier is having more career autonomy— but what does that really entail? Below are some of the pros we found to be leading deciding factors.
The difference between being an independent driver and an employee
Company drivers are employees of a specific carrier. They operate a company truck, drive assigned routes, and get paid either by the mile or hour. Companies typically manage fuel and truck maintenance expenses, and many carriers guarantee a minimum weekly salary. It can be an excellent choice for drivers with specific needs, such as a family at home that relies on a certain amount of money each week. However, it doesn’t have the flexibility of being an independent carrier.
Independent truckers are in the same general family as owner-operators or lease contractors, but there are some substantial differences. Unlike a lease contractor, drivers buy or lease their vehicle from a third party rather than the carrier. But unlike an owner-operator, you won’t operate under your own DOT authority. In most cases, independent carriers won’t need to worry about fuel taxes, permits, or load insurance, since the carrier typically handles those. When you contract with one or more trucking companies or owner-operators under their DOT authority, you’ll generally have the freedom to choose your loads and manage your own time.
High entry-level pay
If you’re new to the industry, it’s an excellent opportunity to make a higher salary without hefty education requirements. The timeline will depend on your specific training and the kind of vehicle you intend to drive but compare that with the handful of years it takes to get a college degree, and it’s nothing so severe. In many cases, you can make more as an independent trucker than a company driver due to the ability to control costs and not consider salary caps. Furthermore, you’re your own boss.
Choose your schedule
One of the best parts about being an independent trucker is controlling your schedule. If you want to take time off after driving cross country to spend some time with loved ones, you can easily do so. When you’re a company driver, you tend to have less control over the hours you’d like to be on the road. You may need a few weeks to recuperate after driving a long haul, so take it.
Travel
Being an independent carrier also allows you to drive locally or choose to drive countrywide. Driving cross-country is not only financially rewarding, but it gives you a chance to experience countless natural wonders firsthand. This includes living anywhere. You won’t be stuck in one area if you’re a truck driver. You can take a job where you live now, move, and still have a job. That type of freedom is rare.
Risks to consider
Like any independent endeavor, risks are involved, and we wouldn’t feel right without disclosing them. However, any worthwhile journey has its road bumps. If you’re willing to adapt, you can achieve great things.
The most significant risks you’ll face as an independent carrier fall into two categories: paperwork and finances. Although there are many opportunities to write off certain expenses for taxes, this requires keeping detailed records and receipts. If you don’t keep the proper records, you won’t be able to deduct your expenses from your taxes. You might not get paid what you need if you have missteps while negotiating contracts and don’t get everything in writing. Don’t worry, though; this is where partnering with a freight broker like Sparrow proves beneficial. It (sometimes literally) pays to have someone in your corner, and brokers will do all they can to ensure everyone wins.
Ready to hit the road?
Being an independent truck driver entails having an entrepreneurial spirit. You’ll need to be willing to take some risks in exchange for potentially greater rewards. With grit, tenacity, adaptability, and a bit of business savvy, an independent carrier’s hard work can equal a very fulfilling lifestyle. Of course, finding what’s suitable for you depends on your individual needs and goals.
Partner with Sparrow
Having a broker who understands your goals, pressure points, and the complexity of the shipping industry can be crucial for saving time and money. Sparrow works for you and on your behalf, so your success is our success. We do everything we can to deliver on every service and price we commit to.
Are you interested in getting a free quote or connecting with our team? Contact us today!