NEW TO THIS BUSINESS?
As a brand new carrier who just received MC Authority or planning to do so, it is very important to insure that your truck or trucks are running consistently generating revenue every day for you and your business. However, as you may have already discovered many dispatch firms will only work with carriers who have been in business for at least 6 months or more. There is a logical explanation for this. You see, there are a lot of brokers who will not take a chance by booking a load with a newly registered carrier and risking potential cargo loss or damage. Therefore they will prefer a carrier who managed to stay in business for some time and will present a lower risk. For a dispatch firm, this translates into more work trying to find brokers who will work with a newly registered carrier. Here at Alfa X, we believe that everyone has to start somewhere! We have relationships with many brokers willing to work with newly established transportation companies and we are willing to service new carriers even though it may require additional effort on our part for the first 6 months or so. In return, we usually get a fully “accredited” client who will continue doing business with us in the future! Also during your first year, we will guide and assist you in a form of consulting.
If you are new to this business you probably have a lot of questions and you probably realize that you will encounter unforeseen challenges related to the operation of your business. With our experience in transportation, we will not only take care of booking your freight but will also share our opinion related to issues and problems you may encounter. As long you remain our client Consulting is free to you.
Q: Do I need my own Motor Carrier Authority?
A: Yes. Unless you are leased to a carrier and just need assistance dispatching your current shipments.
Q: How do I get paid?
A: Since you are running under your own Authority you will be billing (and receiving payments from) individual brokers and shippers directly! You can also use a factoring company for faster payments and we’ll be happy to do credit checks for you.
Q: What kind of company requirements do you have?
A: We prefer time in the business of 6 months, but do not require it. Other than that your authority and insurance must be active.
Q: Do you have a broker license?
A: No. We do not have a broker license and book everything under your authority. By doing so, we can not "cut" your rate as some broker-dispatch companies do!
Q: For what type of trailer can you book freight?
A: Dry van freight is our specialty. However, we also work with reefer and flatbed carriers.
Q: I have found a dispatcher who charges less. Can you lower your fees?
A: No. We believe that anyone who is charging less will have to run more trucks to sustain their business, which in turn will degrade service quality and lower rates booked for the carrier. We have a rule of "no more than 5 trucks per dispatcher" to insure our client is getting the highest available rates on the market. And by doing so, we make our service much more affordable than the competition.
Q: How long does it take to get set up?
A: If you provide all necessary documents, within 2-4 hours.
Q: What areas can I run?
A: We can run you in all 48 states or within the area you specify. Most of our clients run in Southeast, Midwest, and North East regions.
Q: How long do I have to stay on the road?
A: This is entirely up to you!
Q: What rates can I average?
A: Average rate for a loaded mile in 2020 is $2.74 per mile. Our absolute average for loaded and empty is $2.48 per every mile driven. However, this depends on your time in business, your safety rating, and the number of states you can run.
Q: Can I run local/regional?
A: Yes, as long as you are comfortable running fewer miles (1000-1800 per week). On the other hand, depending on your location you can average $3.50-$5.00 per every mile running a short distance.
Q: What kind of freight can you book for me to haul?
A: We book all kinds of freight from watermelons to airplane parts. If you have a specific request please let us know.
Q: How will you bill me?
A: We accept all major credit and debit cards. With weekly plan, a recurring charge will be set up so you don’t have to worry about sending in payments every week.