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Business Lifestyle

What Is Contingent Cargo Insurance?

People ship cargo out to different regions on trucks, ships, trains, planes and other vehicles. This lets them do business with different people and companies even if they are far away. However, shipments don’t always reach their destination. This is where contingent cargo insurance can prove itself a true asset to a broker.

Contingent cargo insurance is a type of insurance that freight brokerages carry. It is a secondary insurance that covers some or all of the cost of handling, storing, getting rid of or replacing cargo that’s refused, damaged or lost. It pays only if primary insurance doesn’t pay out. It is called contingent cargo insurance because it covers unexpected expenses that aren’t covered in a primary insurance policy.

Significance

There is no law that requires a broker to cover contingent cargo insurance. However, carriers usually won’t work with brokers who don’t have this insurance. Brokers usually forward claims to their carriers if something happens to a shipment, but if the carrier’s policy won’t pay out, someone still has to pay expenses. If you don’t have contingent cargo insurance as a broker, your shippers — the people who hired you to find someone to ship their goods — can blame you for the loss even if you can’t be held liable. Your relationship with your shippers consequently can suffer. Carriers understand this and prefer not to work with brokers who are willing to take such risks.

Coverage

Coverage under a contingent cargo insurance policy will vary based on where you get the policy. However, some standard protections are for theft, vandalism and accidents.

Benefits

Having contingent cargo insurance lets you compete with other brokers and establish good relationships with carriers without paying for losses out of your own pocket. It also aids the consumer; if anything happens to a shipment, you still can get goods to others without too much disruption.
When It’s Needed

There are two instances when having contingent cargo insurance is imperative. The first is if you sign an agreement with a carrier that transfers liability to you. The second is if the carrier you select doesn’t have proper carrier’s insurance. Ideally, this shouldn’t happen, but carriers sometimes neglect premiums unintentionally or simply don’t have a policy that covers as much as you’d like.

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Carriers Freight Factors

How to Start My Own Freight Trucking Business

A freight trucking business can take a variety of forms. You can specialize in large fleet logistics, or transport vehicles and move single loads for consumers and businesses. Secure the proper permits and insurance certificates before you open, no matter what kind of trucking operations you offer. State and federal authorities regulate the trucking industry, but there is always a demand for licensed, qualified trucking services.

Form a Limited Liability Corporation (LLC) to protect your personal finances and to set up the boundaries of your business. You will need to incorporate your business plans and operational guidelines in the paperwork, which can further help define your direction.
2

Increase your credibility and prepare for interstate work by applying for Interstate Operating Authority permission through the Office of Motor Carrier Safety Administration. Register for intrastate permission with your state Department of Transportation (DOT).
3

Make arrangements to obtain the required level of insurance for the various types of materials you will be hauling. High-risk loads, such as explosives and other hazardous materials require a higher level of coverage. FM Global offers insurance for any type of cargo as well as risk management and loss prevention consulting.
4

Get a USDOT number from the U.S. Department of Transportation for each of your vehicles. This number must be posted in the truck and available for inspection. All commercial motor vehicles must display this number.
5

Develop a plan for bidding on contracts. Take into consideration your time and the price of fuel. Newcomers to the industry may want to underbid the competition to build a stream of referrals. Build a reputation before raising prices.
6

Register with a website that acts as a third-party broker service. Individuals and businesses that need freight hauled post their requirements and transporters may bid on the job. Many sites sell their services on a commission basis while others are fee-based. Sites such as eFreight Lines utilizes experienced logistics professionals to match clients with the company best suited to serve their clients. They operate on negotiated fee rates with carriers.

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Lifestyle Trucker News

How Does a UPS Driver Spend a Workday?

United Parcel Service is a global packaging delivery service most recognized by their signature brown vans and uniforms.
Most UPS drivers report to work by 8:30 am, dressed in the required brown uniform. The uniform consist of pants, a button down shirt and brown derby jacket, all of which are provided by UPS. If the driver chooses to wear shorts, he is required to purchase UPS approved brown socks.

All drivers arrive at the warehouse, also known as “The Barn,” in their own personal vehicles. The warehouse is where the packaging trailers are sorted and processed for delivery in their area. Drivers check all the packages in their van, which have been preloaded the night before. In the “preload,” as it is called, the packages are mapped based on the route schedule, keeping in mind regular stops, priority deliveries, and bulk items.

Before drivers leave the “The Barn,” they attend a morning stretch. This was implemented to help prevent the drivers from injuring themselves when they carry heavy packages. After the 15 minute stretch, they attend a morning meeting to discuss general business, safety and any new rules and regulations. All UPS drivers must have a good driving record and attend monthly road safety meetings given by the Department of Transportation.

All of the UPS drivers are required to drive off the lot in a caravan. It usually happens about 5 to 10 minutes after their morning meeting. Once off the lot, drivers pull over and do a safety check to make sure there are no nails, holes, or problems with the vehicle.

On the Road Again

Most first stops are bulk stops, where they may have a large delivery. This is done first to allow more room to work in the back of the van. It is also coupled with priority stops. Most UPS drivers try to keep a routine because customers expect to see the UPS drop offs around the same time each day.

Depending on their route, UPS drivers either have a business, business residential or straight residential route. Most of the business deliveries happen first. The residential ones are done later. On a given day, a UPS drivers can make anywhere from 130 to 150 stops between the hours of 9:00 and 5:00.

A driver’s basic duties are to remove package from the truck, walk them to the door and get a signature, if required. If a signature is not required, drivers leave each package in a safe place. They often leave a note for the recipient that indicate where the package is. Each driver has a “dial-board,” that has the information for each delivery. That is the large electronic tablet that the recipient signs. It also tells the driver where he is going next.

Most UPS drivers work in the same area every day. There can be anywhere between five and six drivers in one zip code. After all the packages are delivered, the pick up route starts, ranging from 10 to 40 pickups a day, depending on the area.

They then take everything into the warehouse, making sure all priority deliveries are processed and sent before 6 pm.

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Carriers Trucker News

How to Start a Small Trucking Business

Starting a small trucking business is the dream of many drivers who are behind the wheel of a big rig. This dream is obtainable for most, and even though it will require a lot of hard work, it is not as difficult as most people assume it is. If you have ever thought it would be great if you could start a small trucking business of your own, keep reading to find out exactly how to do it.

The first step for anyone wanting to start a small trucking business is to simply register the business. If you live in a small town, this will likely be done at the local Court House. You can get appropriate information from the County Clerk’s office as to how to go about getting your business registered. If you reside in a larger metropolitan area, your city will most likely have special divisions set up to facilitate the process. In this case, a quick call to the local Chamber of Commerce will point you in the right direction. Getting the business registered is usually as simple as filling out a form and paying the filing fee, although the process may very slightly from State to State.

Decide what kind of freight your trucking business will handle. Some freight may require specialized refrigerated trailers, while other freight may require the use of flatbed trailers. Most types of freight can be shipped using a standard truck trailer, but if your freight does require a special trailer, it is important to identify this before you acquire any equipment.

Think about whether you would like to hire your own drivers, or subcontract the routes out. If you subcontract the work to other Owner/Operators, then you will spare yourself the upfront expense of buying trucks and trailers. However, if you go this route, remember that the driver you use will be a reflection of your company, so make sure they have a reliable truck that will not break down and cause your trucking business to look bad.

Taking into account the decisions that you made during Steps 2 and 3, you may need to purchase or lease trucking equipment for your business. Most small trucking businesses only require one or two trucks and trailers, rather than a large fleet. The advantage to having a small fleet is that it is easier for you to afford to have an extra trailer that is equipped for special jobs.

Make certain that your trucks, or in the case of sub-contracting, the driver’s trucks, are all properly licensed, insured and carry appropriate permits. The licenses and permits you will be required to have for your trucks are USDOT Numbers, MC Numbers, IFTA Decals, IRP Tags, 2290s and Fuel Tax Reporting. You will also need to make sure that all drivers have a valid Commercial Drivers License (CDL).

Build relationships within the supply chain. Keeping your trucks loaded and on the road is the key to the success of your small trucking business. Although obtaining the contracts to deliver goods may sound like the most difficult part of the business, it doesn’t have to be. There are companies all over the country that specialize in hiring small trucking companies to deliver freight. Scroll down to the Resources section for links that will get you started in the right direction for building relationships with these freight brokers.

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Lifestyle Trucker News

How to File for U.S. Trucking Authority

U.S. trucking authority is the licensing and permitting that trucking companies need to operate on U.S. roads and highways. The Department of Transportation (DOT) also governs the operation of other types of commercial vehicles such as buses, passenger vans and limousines. Each vehicle must be properly registered with DOT in order to legally operate. DOT has specific steps you must take to ensure that you properly register any trucks you intend to operate on the roadways, according to the specific type of vehicle you are

Instructions

1

Complete the online questionnaire to determine if you need to apply for a USDOT Number, an Operating Authority (MC Number), Hazardous Materials Safety Permit, or a Cargo Tank (CT) Number. The questionnaire asks you questions about the types of commercial vehicles you will be operating, if you will be transporting people or products across state lines, if you’ll be transporting hazardous materials, and other questions related to your shipping and transportation intentions.
2

Obtain the forms you need based on the completed survey. When you finish answering the questions in the survey, a list of the documents you need to complete and submit to file for a U.S. Trucking Authority appears.
3

Download and complete each form. You can download the forms, one at a time. A popup screen will appear so you can complete the forms one at a time. Follow the prompts in each form to complete the information as completely and accurately as possible.
4

Submit payment online with each form. When you complete each form, hit the submit button. When you do this, the payment screen will prompt you to submit your credit card information to cover the fee for that particular form.

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Lifestyle Trucker News

How to Get Your DOT Number Today

Your company needs a U.S. Department of Transportation, or USDOT, Number if you haul cargo or transport passengers across state lines. Some states require all commercial motor vehicles to acquire a USDOT Number. Companies receiving a number for the first time are enrolled in the Federal Motor Carrier Safety Administration, or FMCSA, New Entrant Safety Assurance Program. The FMCSA program requires passing a safety audit and maintaining good roadside safety performance. Your USDOT Number acts a unique identification number for government safety inspections, audits, investigations and reviews.

Register with the FMCSA online at its website. Answer a series of questions about your company to determine which form you need to complete. Skip online registration if you want to submit your application by mail.

Download and complete either the MCS-150 or MCS-150B form. Motor carriers requiring a Hazardous Materials (HM) Safety Permit need to complete the MCS-150B form. If you don’t need a HM Safety Permit, complete the MCS-150 form. These forms can also be acquired from your local FMCSA field office. The MCS-150 form requires information about your drivers, the number of vehicles that you operate, total mileage and information about the cargo you transport.

Print the form to keep a record for your company or if you want to submit the form by mail.

Submit the application form on the FMCSA website. FMCSA will immediately inform you of whether your application is approved. Successful applications immediately receive a USDOT Number. Alternately, you can mail the application form to the Federal Motor Carrier Safety Administration. Mailed applications take an average of 4 weeks to 6 weeks to process.

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Carriers Trucker News

What Is an Intrastate DOT Number For?

If you run a business that involves moving people or goods, you probably need to apply to the U.S. Department of Transportation, or USDOT, for an identification number. Transportation firms also need to register with the USDOT’s Federal Motor Carrier Safety Administration. The USDOT uses this information to keep track of a firm’s safety records.

The federal government requires all companies that move goods across state lines, and all companies that transport hazardous material within state lines, to file for a USDOT number. Many states require all companies that operate commercial motor vehicles to get a USDOT number. Each company has a unique USDOT number covering its vehicles.

Interstate vs. Intrastate USDOT Numbers

Intrastate business occurs within one state’s boundaries. Interstate commerce involves moving goods or passengers across at least one state line. When registering for a USDOT number, businesses must report whether they will be operating within (intrastate) or across (interstate) state lines.
An intrastate USDOT number classifies the business as operating within one state.

Changes from Intrastate to Interstate Status

Firms can change the status of their USDOT numbers to interstate from intrastate by filing an update with the Department of Transportation. A business retains the same registration number when it changes status, but its classification changes. Companies do not need to file separately with the USDOT for intrastate or interstate registration, so an intrastate USDOT number is not wholly distinct from an interstate USDOT number.

Purpose of Intrastate DOT Number

The federal government has an interest in keeping safety records regarding companies that transport hazardous materials. Some states require registration with the USDOT to help with their own record-keeping, and because some automated registration systems use the federal USDOT number as the standard means of identification.

States That Require USDOT Registration

These states require all commercial vehicle operators to register with the USDOT: Alabama, Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, New York, Nebraska, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Washington, West Virginia, Wisconsin and Wyoming.

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Carriers Trucker News

How to Make Money With a Dump Truck

If you’re looking to make money with a dump truck, building contractors, landscaping companies and homeowners are your target clients. Get a commercial driver’s license (CDL), set up your business and spread the word.
1

Prepare for business. Get your CDL, which will enable you to legally operate a dump truck. Check your local ordinances for any additional training or licensing requirements for operating an independent dump truck business before you can begin to solicit jobs.
Contact the IRS to obtain a tax ID number for your business and open a business bank account. Have business cards and letterhead printed for your company that you can mail or leave with building contractors, landscape supply managers and homeowners. You will make a more professional impression if you leave your contacts with relevant pricing and contact information, along with a copy of your credentials. Better business impressions translate into more money for your business.
2

Contact landscape suppliers in your area, advising them that you are available to move dirt, mulch and other landscaping materials on a contract basis. Talk to the store managers in person, leaving them a packet with your business card, rate information and certification documents for owning and operating the dump truck.

3

Run an ad in several local papers and in the yellow pages describing the types of work you are available to do with your dump truck. Homeowners who enjoy do-it-yourself landscaping or renovation projects need your services to haul in or remove materials as they excavate or remodel. Advertise on Craigslist and other online sources for free exposure.
4

Make money with your dump truck by working with local builders as an independent contractor. New construction projects always need the services of a dump truck to move debris to the landfill as well as moving dirt and other landscaping materials. Contact the builders personally by phone or at a job site. Follow up with the same printed materials you left with the landscape supplier.
5

Contact your local city transportation services to inquire about winter snow removal jobs or other contract positions it may have available. You can also contact other snow removal companies to let them know you’re available for their overflow.

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Lifestyle Owner Operators

How to Reduce Transportation Cost

Transportation is a sizable expense. On average, the cost of driving accounts for 10 to 15 percent of personal income in America. Making the right decisions about car purchases and using public transport can save you big dollars.

Instructions

1

Research carefully if you need to buy car. Pay attention to safety, insurance, gas mileage, registration, repairs and maintenance. Make decisions to buy a car based on the long-term cost, not just the sticker price.
2

Avoid financing your car. A car depreciates substantially over time. It is not an investment. So it does not make much sense financially to borrow money to pay for a car. If you have to buy a car, buy a cheap one that you can afford. Buying a good used car is cost-effective since you pay less for the car and for the insurance. Leasing a car is also not recommended since the cost for leasing often exceeds borrowing money to buy a car.
3

Sell your car if it is too costly to operate due to insurance, gas or costs of repairs or maintenance. Keep the number of cars you own to a minimum.
4

Service your car regularly. This will reduce the cost of repairs or unexpected breakdowns in the long run.
5

Use carpool, bus or train to get to work. Driving during rush hours is not only costly but also unpleasant. Take into account commuting costs when you consider where to live or to work. If you live close to the office, you can bike and walk to work instead.
6

Research parking options before you drive to a certain location. In many places, parking is expensive and difficult to find. You may find a much cheaper parking lot just two blocks away from where you want to get to.

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Lifestyle Trucker News

Canadian Transportation of Dangerous Goods Training

Transportation of dangerous goods training in Canada falls under Transport Canada, a department of the federal government, which regulates the transportation of dangerous goods by road, rail, water or air and sets out training criteria for companies transporting dangerous goods. Transport Canada does not accredit specific courses or training centers, but enables companies to use whatever methods are best suited to their operation and the needs of their employees.

Scope

Transport Canada’s definition of adequate training includes having sound knowledge of all topics related directly to the required tasks and specific kinds of dangerous goods a worker moves, offers to transport or handles during the course of their work. Topics that training may cover include dangerous goods safety marks requirements, safe handling and transportation practices for dangerous goods, and how to operate equipment used to handle or transport dangerous goods. Other important topics include reasonable emergency procedures to reduce or eliminate danger to public safety that results or could result from an accidental release of dangerous goods.

Trainees

Transport Canada requires workers who handle, offer for transport or transport dangerous goods to be trained and possess a training certificate in handling or transporting dangerous goods or only perform tasks involving dangerous goods while under the direct supervision of an employee who does possess a training certificate in transporting dangerous goods. Handling encompasses loading and unloading, packing or unpacking and storing materials and covers jobs such as cargo handler, lift truck operator, dock worker, shipper/receiver, freight handler and warehouse operator. Examples of workers whose jobs include offering for transport include dispatchers, office workers who prepare documents, shippers, freight forwarders and billers.

Training Delivery

Training in the handling and transportation of dangerous goods can be delivered through formal classroom training, on-the-job training or experience gained under the supervision of an adequately trained employee.

Training Certificates

Employers who are reasonably satisfied that their employees are sufficiently trained to perform duties related to that training are required to issue those employees training certificates that include the name and address of the employer’s place of business, the employee’s name, the expiry date of the training certificate and the aspects of handling or transporting dangerous goods that the employee is trained for, including specific topics.

Those who employ a person who is a member of a ship’s crew may have a reasonable expectation that the employee’s certificate of competency, issued under Marine Certification Regulations, is acceptable evidence of adequate training. In this case, the employer does not have to issue a training certificate. Training certificates are valid for three years, except in the case of transport by aircraft, when they expire after two years. Training certificates or copies of them must be provided to inspectors immediately upon request.