Load Boards vs. Contracting with a Single Company: Pros and Cons for Truck Owner-Operators

Introduction

For truck owner-operators, choosing the best way to secure freight is a critical decision that impacts income, job stability, and overall work-life balance. Two common options are using load boards or contracting with a single company. Each approach has its own advantages and disadvantages, depending on the driver’s priorities, financial goals, and operational preferences. In this blog post, we will explore the pros and cons of both methods to help owner-operators make an informed choice.

Using Load Boards

Load boards are online platforms that connect truckers with available freight from multiple shippers and brokers. These boards allow owner-operators to find loads that fit their schedule and preferred routes.

Advantages of Load Boards

1. Flexibility and Independence
   • Owner-operators have full control over which loads they take, when they work, and where they drive.
   • There are no contractual obligations to a single company, allowing truckers to pivot their business as market conditions change.
2. Potential for Higher Earnings
   • By choosing the highest-paying loads and optimizing routes, truckers can maximize their revenue.
   • Owner-operators can negotiate directly with brokers and shippers to secure better rates.
3. Diverse Freight Options
   • Load boards provide access to a wide range of freight types, allowing truckers to diversify their income streams.
   • Truckers can select loads that match their equipment and expertise, whether it’s dry van, flatbed, or refrigerated transport.
4. Market Exposure
   • Truckers can build relationships with multiple brokers and shippers, opening doors to long-term contracts and repeat business.
   • Gaining experience across different markets can help owner-operators refine their business strategies.

Disadvantages of Load Boards

1. Inconsistent Freight Availability
   • Load boards are highly competitive, and there’s no guarantee of securing a load every day.
   • During slow seasons or economic downturns, it may be harder to find profitable freight.
2. Rate Volatility
   • Rates on load boards fluctuate based on supply and demand, meaning earnings can be unpredictable.
   • Brokers take a percentage of the rate, reducing the overall profit for the owner-operator.
3. Deadhead Miles and Inefficiency
   • Finding loads that align well with preferred routes can be challenging, sometimes leading to deadhead miles (empty return trips).
   • Time spent searching for and booking loads could be used for driving and earning instead.
4. Administrative Burden
   • Owner-operators must handle their own invoicing, collections, and negotiations.
   • Managing paperwork, permits, and compliance can become overwhelming without dedicated support.

Contracting with a Single Company

Many owner-operators choose to lease their truck to a single carrier, securing a steady supply of loads under an agreement with that company.

Advantages of Contracting with a Single Company

1. Steady Income and Load Availability
   • Truckers receive consistent freight, reducing downtime and financial uncertainty.
   • Some companies offer guaranteed miles, providing a stable paycheck.
2. Reduced Administrative Work
   • The company handles most of the paperwork, invoicing, and compliance requirements.
   • Owner-operators can focus on driving without worrying about securing individual loads.
3. Fuel Discounts and Maintenance Support
   • Many carriers offer fuel surcharge programs, discounts, or even fuel cards to reduce operating costs.
   • Some companies provide maintenance assistance, helping to lower repair expenses.
4. Access to Company Benefits
   • Depending on the agreement, drivers may receive perks such as health insurance, retirement plans, and safety bonuses.
   • Leasing onto a company can provide stability, especially for those with families to support.

Disadvantages of Contracting with a Single Company

1. Less Independence
   • The carrier dictates routes, schedules, and load assignments, limiting flexibility.
   • Owner-operators may be required to follow company policies and procedures.
2. Lower Earning Potential
   • Contract rates may be lower than what could be earned independently through high-paying load board freight.
   • Companies often deduct fees for dispatching, insurance, and equipment use, reducing take-home pay.
3. Limited Growth Opportunities
   • Since drivers are reliant on a single company, there is less opportunity to build independent relationships with shippers and brokers.
   • Owner-operators may struggle to expand their business beyond the contract’s limitations.
4. Contractual Restrictions
   • Many agreements include non-compete clauses that prevent drivers from hauling for other companies during or after their contract.
   • Breaking a contract early may result in penalties or legal complications.

Which Option is Best?

The decision between using load boards and contracting with a single company depends on the owner-operator’s business goals and personal preferences:

• For those who prioritize independence and are willing to manage administrative tasks, load boards offer greater freedom and potentially higher earnings.
• For those seeking financial stability, predictable loads, and reduced administrative burdens, contracting with a single company may be the better option.

Ultimately, some owner-operators choose a hybrid approach—starting with load boards to build relationships and then transitioning to a dedicated contract once they find a suitable partner. Others may contract with a company but still use load boards during slow periods.

Conclusion

Both load boards and contracted agreements offer unique advantages and challenges. Owner-operators must assess their risk tolerance, financial needs, and work-life balance preferences before deciding which path to take. By carefully evaluating each option, truckers can choose the model that best supports their long-term success in the trucking industry.