As an owner-operator, getting freight contracts is crucial to sustaining and growing your business. Having steady contracts means consistent work and predictable income. It also means being able to build long-term relationships with shippers, brokers, and customers.
But with so many players in the freight industry, how can you set yourself apart and secure those valuable freight contracts?
In this guide, One Freight Broker will break down everything you need to know about how to get freight contracts as an owner-operator. We will discuss how to build your business and how to market yourself in order to maximize your business opportunities.
What is an Owner-Operator?
Before we take a look at the specific steps those in the transportation industry can take to get more freight contracts, let us talk about what an owner-operator is.
In the freight industry, an owner-operator refers to a truck driver who owns and operates their own trucking business. Unlike company drivers who work for a carrier and use company-owned trucks, owner-operators purchase or lease their own truck and run it independently.
They either contract their services to freight carriers or haul loads for customers directly. This role gives them more control over their work. It allows them to set their own schedules, choose their routes, and potentially earn more money.
However, this also requires taking on more responsibilities, such as vehicle maintenance, insurance, fuel costs, and other business expenses.
Being an owner-operator can therefore be both rewarding and challenging. While they have the freedom of being their own boss, they must also manage all aspects of running a small business. They need to make sure they are staying compliant with regulations, properly managing finances, marketing their services, and negotiating contracts.
The owner-operator model is often seen as a path to higher earnings compared to company driving. However, it comes with greater risks and financial burdens due to the costs of equipment and the fluctuations in freight rates.
Many owner-operators also face the challenge of balancing work and personal life, as they often spend long hours on the road. With this out of the way, let us take a closer look at freight contracts and how to get them.
Freight Contracts: What Are They?
Freight contracts are agreements between a shipper and a carrier to transport goods from one location to another. These contracts can range from short-term (a single load) to long-term agreements that provide consistent work over months or years.
Securing these contracts as an owner-operator can be challenging, but once you establish a steady stream, your income will become more reliable, and you can focus on growing your business.
Step 1: Set Up Your Business Properly
Before you start seeking contracts, you must ensure your business is legally compliant and properly structured. Here are the essential steps:
Get Your Business Registered
To operate as an owner-operator, you’ll need to register your business. This may involve choosing a business structure (LLC, corporation, sole proprietorship), obtaining a tax ID (EIN), and registering your business with the state and federal government. You may also need specific licenses and permits depending on your location and the type of freight you plan to haul.
Obtain an Operating Authority (MC Number)
To legally haul freight across state lines, you’ll need to get an Operating Authority from the Federal Motor Carrier Safety Administration (FMCSA). This involves applying for an MC number, which allows you to transport goods commercially. Without this number, most shippers and brokers won’t consider you for freight contracts.
Insurance Requirements
You will need to carry the appropriate amount of insurance to meet federal and state regulations. This typically includes:
- Liability Insurance: Covers damage or injury caused to others during an accident.
- Cargo Insurance: Protects the value of the freight you’re hauling.
- Physical Damage Insurance: Covers your truck in the event of an accident.
Insurance is crucial, as many shippers and brokers require proof of adequate coverage before giving you a contract.
Set Up a Recordkeeping System
Managing a trucking business means keeping track of expenses, invoices, fuel receipts, and more. Invest in accounting software or hire an accountant to ensure you keep your finances in order. Maintaining accurate records also helps when it’s time to file taxes or renew licenses.
Step 2: Build a Professional Reputation
Finding freight contracts is simple, but maintaining a consistent stream of it requires building a strong professional reputation. This can be achieved through several key strategies.
First, maintaining your equipment is critical. Reliable and well-maintained trucks reduce the chances of breakdowns. This ensures timely deliveries, demonstrating to clients that you take your business seriously.
Regularly inspect your vehicle for any mechanical issues, keeping up with repairs and preventive maintenance to avoid costly delays. In addition, ensuring your truck meets all safety regulations can help you stand out in a highly competitive market. Clients are more likely to trust an owner-operator with a dependable and compliant vehicle.
Prioritizing safety is another essential aspect of building a positive reputation. Safe driving practices not only protect you and your cargo but also reflect your professionalism. Avoid traffic violations, follow load securement rules, and consistently meet or exceed delivery deadlines.
Building a positive track record involves delivering loads on time, communicating effectively with brokers and shippers, and resolving any issues quickly.
Over time, these practices will contribute to a stellar reputation that will attract more contracts. Satisfied clients will likely offer repeat business and recommend your services to others, further expanding your opportunities in the freight industry.
Step 3: Marketing and Networking
Once your business is up and running and you’ve built a professional reputation, it’s time to actively seek out freight contracts. This involves marketing your services and networking within the industry.
Create a Professional Website and Online Presence
One Freight Broker believes that in order to secure freight contracts as an owner-operator, creating a professional website is important. This is just one aspect of establishing a strong online presence, which is necessary in this age of technology and social media.
A well-designed website serves as a digital portfolio, showcasing your services, areas of operation, fleet capabilities, and customer testimonials. It should clearly highlight your expertise in the industry and offer potential clients an easy way to request quotes or contact you.
Alongside your website, maintaining active profiles on social media platforms like LinkedIn, Instagram, or Facebook can help increase your visibility and engagement with prospective clients.
Using search engine optimization (SEO) strategies ensures that your website ranks higher in search results, making it easier for businesses to find you. These digital tools not only help you reach a wider audience but also build trust and credibility—critical factors for securing long-term freight contracts.
Leverage Freight Load Boards
Freight load boards are online platforms where shippers, brokers, and carriers post and find loads. While many owner-operators use load boards to find individual loads, you can also use them to work on your long-term relationships with brokers and shippers. Some popular freight load boards include:
- DAT: One of the largest load boards in the industry with a wide range of freight.
- Truckstop.com: A comprehensive platform for owner-operators to find loads and access tools like rate comparison.
- 123Loadboard: Offers a range of features, including load searching, document management, and fuel discounts.
While these boards may charge a fee, the investment is often worth it for the access to loads and opportunities to connect with brokers.
Reach Out to Shippers Directly
Networking is essential when trying to secure freight contracts as an owner-operator. One effective approach is to directly reach out to shippers, which involves identifying businesses that consistently need to move goods.
Start by researching local manufacturers, distributors, and retailers. Compile a list of potential shippers in your area. Create a professional portfolio highlighting your services, reliability, and safety record, which can be shared with potential clients.
Additionally, cold-calling, sending introductory emails, or attending industry-related events can help build connections. Offering competitive rates and a personalized service can also make you stand out from larger trucking companies, increasing your chances of winning direct contracts.
Building relationships with freight brokers is another effective way to secure consistent work. Brokers act as intermediaries between shippers and carriers, making it easier for you to find freight without having to deal directly with shippers.
To get started with brokers:
- Join industry associations: Organizations like the Transportation Intermediaries Association (TIA) or the Owner-Operator Independent Drivers Association (OOIDA) provide networking opportunities, industry resources, and broker connections.
- Attend industry events: Trade shows, conferences, and networking events provide opportunities to meet brokers and other industry professionals.
- Develop strong communication: Brokers often work with multiple carriers, so being responsive, professional, and clear in your communication can help you stand out.
Step 4: Leverage Technology and Tools
Technology can play a significant role in helping you secure freight contracts and streamline your operations. Just like load boards, owner-operators may use freight management software to streamline the process of connecting with shippers, brokers, and other industry stakeholders.
With freight management software, owner-operators can easily find available loads, compare rates, and optimize routes. The software often includes tools to manage contracts, track shipments, and ensure timely deliveries.
By utilizing such technology, owner-operators not only enhance their chances of securing consistent freight contracts but also increase their operational productivity, reducing downtime and boosting profitability.
Optimize Routes and Fuel Costs
Fuel is one of the largest expenses for owner-operators. Use route optimization software and fuel card programs to reduce costs and maximize profits. Route optimization tools can help you plan the most efficient routes, reducing fuel consumption and delivery time. Some useful tools include:
- Google Maps: For basic route planning and traffic updates.
- Trucker Path: A navigation app tailored to truck drivers, offering information on truck stops, parking, weigh stations, and more.
If you want to reduce expenses and maximize profit, route planning is important. Use route planning software to find the most efficient paths and avoid traffic or delays. Also consider fuel optimization by using apps that help you find cheaper fuel prices along your routes.
Additionally, maintaining a well-serviced truck will minimize fuel consumption and operational downtime, further improving cost efficiency and reliability, which your clients will love.
Step 5: Build Long-Term Relationships
As One Freight Broker mentioned earlier, the freight industry is built on trust and relationships. Once you have secured a contract with a shipper or broker, focus on providing excellent service to ensure repeat business.
Deliver Consistent, High-Quality Service
Contracts can often be renewed or extended, especially if you deliver consistent results. Keep communication open, deliver on time, and address any issues promptly to build trust with your clients.
Ask for Referrals and Testimonials
Satisfied customers are often happy to refer you to others or provide testimonials that you can use to attract more business. Don’t hesitate to ask for a referral after completing a successful contract.
Continue Networking
Even once you’ve established a solid base of clients, continue to network within the industry. Attend conferences, join associations, and stay active on freight load boards to keep your pipeline full.
Choose One Freight Broker
Securing freight contracts as an owner-operator may seem challenging at first, but with the right strategies, you can build a steady stream of business.
By setting up your business properly, building a professional reputation, marketing your services, and leveraging technology, you will be well on your way to finding consistent, profitable freight contracts.
In this highly-competitive industry, persistence is key. Over time, your efforts will pay off as you build long-term relationships and grow your trucking business. While success in the freight industry doesn’t come overnight, hard work and smart networking can drive you toward greater opportunities in no time.
If you want to work with a reliable freight broker that is already well-established within the industry, work with One Freight Broker.
Since our founding in 2013, we have significantly reduced shipping costs for our clients, amounting to tens of millions in savings, by reducing their dependence on intermediaries. One Freight Broker’s unique and inclusive approach helps shipping partners establish direct, beneficial, and enduring connections with carriers. This allows them to boost the profitability of asset fleets.
Working with One Freight Broker guarantees that you receive personalized support from our dedicated team. We offer an unprecedented depth of strategic insight and reliable freight transportation services. From LTL to FTL, domestic to international, and expedited shipping options, One Freight Broker offers a wide range of services.
Contact Us Today
Ready to simplify your shipping experience? Contact One Freight Broker to discover how our expertise can benefit your business, ensuring your cargo is in safe hands every step of the way.
For more information on how we can assist your business, visit our website at 1fr8.broker.
