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Business Carriers Freight Brokers Freight Factors

Illegal Brokerage Among Carriers Still Gray Area

On October 1, the FMCSA issued a Final Rule that adopts regulations required by MAP-21. The rule includes the provision which sets a minimum financial security of $75,000 for brokers and freight forwarders, including carriers that occasionally broker loads.

In the Final Rule, the FMCSA states that compliance with the new rule will cost the industry $15.9 million initially. It has identified 2,212 freight forwarders that are impacted and estimates that the financial impact will be $1.69 million in the first year. For the 21,565 brokers on record the initial cost will be $14.21 million.

You’ll notice that there is no estimate for the carriers that need to obtain a $75K bond and broker authority to comply. That’s because the FMCSA admits that it has little information as to the extent of the unlicensed broker population within the motor carrier industry, which makes estimating the costs to this group difficult, if not impossible.

Since this population is difficult to identify, the FMCSA will initially work with industry groups to get complaint information on motor carriers that are acting as brokers illegally through its National Consumer Complaint Database.

The FMCSA also warns that carriers that act as unlicensed brokers may be subject to private civil actions.

So, unless you are moving every load on your own equipment and under your own carrier authority (for at least one leg of the journey), you need to obtain broker authority and the $75,000 bond that goes with it.

If you’re a DAT customer, learn more about a special bond offering for DAT customers through preferred solutions provider Integro.

As we’ve noted before, you must have active operating authority as a broker if you want to post your loads to DAT Load Boards.

For more information on how MAP-21 impacts carriers, read: Surprise! The Broker Bond Affects Carriers.

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Carriers Trucker News

CSA and improving driver respect are priorities in 2014

During his luncheon address to fleet executives at the 2013 CCJ Fall Symposium in Scottsdale, Ariz., American Trucking Associations chairman and president of Bullog Hiway Express Phil Byrd, Sr., said three key legislative focuses for ATA in 2014 are electronic logging devices, rolling back the changes to hours-of-service rules, improving components of the Compliance Safety Accountability program.

ATA is working with Federal Motor Carrier Safety Administration Administrator Anne Ferro to work out some of the “fundamental flaws” with the program, including “having no-fault crashes removed from CSA,” said Byrd.

ATA has been a strong supporter in recently introduced H.R. bill 3413 that would revert to hours-of-service rules that existed prior to the current rules that took effect in July. “I would submit that current HOS rules impede the free-flow movement of goods along U.S. highways an exacerbates congestion in metropolitan areas and will make the driver shortage worse,” said Byrd, who added that he anticipates a hearing at the House Transportation & Infrastructure Committee in the near future.

Byrd says early statistics show a 3 to 4 percent loss in productivity among large fleets, but says the impact on his own business has been greater.

Highway infrastructure funding is also a priority for ATA, but Byrd said until the stalemate between Republicans and Democrats is broken, nothing is likely to change.

“Highways are literally crumbling beneath our trucks and cars,” said Byrd. “[Congress] knows how to fix the problem, but doesn’t have the will to do it.”

Finally, Byrd said improving driver respect is a cause he plans to champion during his tenure as ATA chairman. “These incredible men and women — US trucking fleet drivers — they brave the dark of night, the ice and snow of the mountain peaks, the heat of the desert, the congestion of America’s highways everyday to deliver America’s goods,” he said. “Everything we need, want and desire comes to you by truck. These brave men and women, these incredible individuals, are disrespected at every turn. When they go to our shippers’ door to pick up, their time is disrespected, they don’t have adequate facilities. Then they get that load secured and get that bill of lading in-hand and go out on the public highway system. And because the motoring public doesn’t understand how we operate as an industry, they are disrespected by the people we share the roads with…when they arrive at our consignees to deliver the goods they receive much of the same disrespect when they loaded the freight. We have to change that. They deserve better. I believe that until we restore the respect that our drivers deserve we can’t expect people to come into our industry to be mistreated and misunderstood.”

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Trucker News

OTR vs Regional vs Local Trucking Jobs

When you decide you want to become a truck driver, it’s important that you weigh all of your options. For instance, did you know that you have a choice between over-the-road (OTR), regional and local trucking jobs. Let’s discuss what each of these terms mean and some of their pros and cons.

Over-the-Road or OTR Trucking Jobs

Over-the-road trucking refers to jobs that take you across state lines and all over the country. If there’s a road, and you can drive on it, these jobs will take you there. The good thing about OTR trucking jobs is that they tend to pay quite a bit more than other types of jobs. However, you aren’t home very much and this can put a strain on you and your family.

Regional Trucking Jobs

Regional trucking jobs will take you across a couple of states, but never from coast to coast. So, if the company you work for is based in California, you may take trips to Nevada and Arizona. These jobs tend to pay less than OTR gigs but you will still be home most evenings and won’t be kept away from your family as much.

Local Trucking Jobs

Local trucking jobs usually only have you running about the state, but often even more localized than that. You will definitely be home every evening but you sacrifice the earnings potential that a regional or OTR job would give you.

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Carriers

Define an OTR Driver

An over-the-road driver, or OTR driver, can be defined as a person with a transportation job which involves driving a semi-trailer truck long distances. These long-haul drivers might work regionally, or they may travel to any of the 48 states and to parts of Canada.

Function
OTR drivers pick up and deliver freight, some on dedicated routes which have the same trips each week. Others drive different routes with each new transport order.

Life on the Road
These drivers live in their truck cabs when they’re on the road, which may be for many days or even weeks at a time. During their breaks, outside of sleeping, they might eat at a cafe, chat with other drivers, or get some exercise.

Licensing
Driving a semi-trailer truck requires a class A commercial driver’s license (CDL). Training to obtain the license can be acquired at driver training schools, and some employers provide paid training for new hires.

Payment
OTR drivers usually are paid by the mile. They are legally allowed to drive 70 hours in 8 days, with an 8-hour break required after 10 consecutive driving hours.

Considerations
Because of the payment structure, most OTR drivers prefer jobs in which they can drop off a trailer and pick up a new loaded one, rather than being involved in the loading and unloading process.

Categories
Freight Loads

Flatbed Trucking Jobs

Flatbed trucks are versatile options for transporting outsize loads and items needing little or no protection from the elements. A major advantage of the flatbed truck is it allows offloading without the need for a loading dock, and from any side or from overhead. This allows cranes and forklifts easy access to lift and remove material. The flatbed truck also offers many different job opportunities for truckers, ranging from over-the-road long hauls to local short-drive deliveries.

Oversize Loads
Oversize loads are any material exceeding the width of the flatbed trailer and certain prescribed heights determined by the U.S. Department Of Transportation. Flatbed trucking is useful for moving completed large industrial machine components, constructed structures such as generator houses or small office units, and various building materials. Moving oversize loads involves strict attention to traffic conditions and plenty of clearance when turning, passing and going under and over bridges and viaducts.

Local Delivery
Flatbed trucking for local delivery means getting material to construction sites, homes and businesses. With a flatbed truck, you can make local deliveries and return in less than one business day. An additional skill often needed for the local delivery flatbed driver is operating a forklift with the flatbed truck. The driver can move pallets of material to different locations and quickly offload the cargo with the forklift.

Long Haul
Long-haul flatbed trucking usually involves any distance requiring more than one day to complete. Long-haul flatbed trucking can involve anything from oversize loads to just a small pallet of material requiring expedited delivery. Just as with oversize loads, the advantage of shipping by flatbed is easier offloading when the cargo arrives at its destination. Whether by machine or by hand, having access to all sides of the cargo makes it easier to remove the material quickly and safely.

Lowboy
Lowboy flatbed trucks are used as vehicle transports and often as an alternative to a tow truck. Lowboy flatbeds have hydraulically assisted beds that lift and move from front to back. With an attached power winch, the lowboy can quickly load cars, trucks and industrial machinery. The lowboy offers the advantage of being able to load and unload itself with no additional machinery. Lowboy operator jobs involve training not only in how to drive the lowboy, but also in how to secure and move various pieces of related equipment.

Safety
As with any trucking job, the most important factor in flatbed trucking is safety. Adhering to accepted rules of the road and local laws and regulations is paramount for the truck driver. In any trucking job, including flatbed trucking, the truck’s safe operation is crucial to getting the cargo, the truck, the driver and everyone else on the road to their destinations without incident.

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Trucker News

How to Get Grant Money for Truck Drivers

When applying for available grants, you must be creative with your application and make your idea stand out amongst the others. Open grants change often so make sure to check back once in a while to ensure you don’t miss an opportunity.

Go to the U.S. government grant website, Grants.gov. Search for the type of grant you are looking for. Open grants are constantly changing. If you cannot find a grant to fit your needs, check back in a few weeks. If you are unclear on how to use the search function, the government website has created a tutorial for you. Use the advanced search function. This will allow you to limit your search to agricultural and transportation grants that are available.

Read the specific criteria to apply for the grant chosen. Some grants require you to either complete certain criteria or be involved in the industry. Make sure you are qualified to apply for this grant. Don’t apply for grants you are not eligible for. They will overlook your application and move on to someone who is qualified.

Register on the site. You must register to complete grant applications.Download a grant application package. After clicking on the “Apply for Grants” link, you can download this package.

Complete the grant application package. You cannot submit your application until every field on the form is completed. Use your creativity to make your application stand out. If you have questions about filling out this application, the grant website has a helpful FAQ section.

Save and submit your package. After you complete all your information in the package, clicking “Save and Submit” will automatically upload your application to the website.

Write down your tracking number. This number will be displayed after your application has successfully been submitted to the website. This will be used to track the progress of your application.

Check the status of your application. You can go back to the grant website and enter your tracking number to view the status of your completed application.

Looking for loads to haul? click here.

Categories
Freight Loads Trucker News

What Can an OTR Driver Deduct on Taxes?

Over-the-road (OTR) truck drivers can take advantage of numerous deductions related to their job. Employees can deduct ordinary and necessary job expenses when filling out income tax returns, according to the Internal Revenue Service (IRS). These deductions include anything that has to do with your business of being an OTR employee that is a common and acceptable expense for your trade. If your company reimburses any expense, you cannot claim it on your taxes.

Office Expenses
Your truck is your office if you are an OTR driver. Typical office supplies deductions include pens, paper clips, folders and envelopes. Also deduct any fees for making copies of your paperwork and postage if you must mail your paperwork to your employer. If you subscribe to any trucking magazines, you can deduct the subscription fees. Deduct business-related cell phone expenses and any long-distance charges from a landline from your taxes. You can also deduct any business-related Internet access charges, including air cards and charges from a truck stop Internet kiosk.

Truck Expenses
Even if your company owns your truck, you can deduct any expenses that you have because of it this includes your citizens band radio, stereo and speakers and if you have them your television and refrigerator. Your truck cleaning supplies are deductible as well as cab curtains and mattresses for your sleeper rig. If you purchase chrome items to place on your company truck, you can deduct the cost from your taxes. Tarps, straps and load locks are also deductible unless you receive reimbursement.

Personal Expenses
Uniforms, special footwear such as steel toed boots and laundry cleaning expenses are deductible. Deduct commercial driver’s license renewal fees and doctor’s fees for your Department of Transportation medical physical. You can deduct the fees for showers and motels while on the road. Prescription glasses are deductible, as is the cost of any nonprescription sunglasses. As of 2012, OTR drivers can claim a $59 per day per diem for any full days they are on the road. You must count the days you leave and the days you return as partial days and prorate your per diem. Retain your logbooks with your tax records for proof of your per diem deduction.

Considerations
Keep all of your receipts for items you buy for your job, truck or self to substantiate your deduction claims in the event of an audit. You must retain records for a minimum of three years, and in certain circumstances, indefinitely. Keep copies of your W-2 forms until you begin receiving Social Security in case the IRS incorrectly documents your wages. The IRS does not specify how you must keep your records, but it recommends that you sort them by year in a manner that will make retrieval of certain records simple.

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Owner Operators

How to Change OTR Tires

Off-the-road (OTR) tires are a specific classification of tires that are used with tractors and other forms of heavy machinery. These tires are large and feature different treads than regular tires to allow the vehicle’s operator to use them where normal tires would fail. Because these tires and the vehicles they are used on are so much larger than a standard vehicle, the changing process requires a bit of extra work.

STEP 1: Park the machine on a flat, level surface. Place tire blocks in front of and behind the machine’s wheels to prevent it from rolling.

STEP 2: Jack up the machine with a hydraulic jack. Place an appropriately sized jack stand underneath the machine to support it during the tire-changing process.

STEP 3: Remove the tire’s valve stem core and deflate the tire.

STEP 4: Drive a tire iron between the outward-facing tire bead and the lip of the tire’s rim. Slide the tire iron back and forth along the rim to loosen about six inches of the bead.

STEP 5: Insert the bead buster between the tire bead and rim. Lock the bead buster to the rim and use the drive ratchet and socket to turn the head on the tool and separate the bead from the rim seat.

STEP 6: Repeat Steps 4 and 5 for the tire’s inside-facing tire bead.

Apply the tire-mounting lubricant to the tire’s inside and outside bead and bead seat area.

STEP 7: Lock the machine’s tire with the valve hole on top and insert two long tire irons between the tire bead and the rim. Pry the bead over the lip of the rim. Work your way around the tire until the entire outside bead is pried over the rim lip.

STEP 8: Remove the tube from the tire.

STEP 9: Insert two tire irons between the inside bead the outside rim of the tire and pry the tire completely off the rim.

STEP 10: Lubricate the inside bead of the new tire and place the tire on the rim so that the inside bead is partially over the rim flange. Insert a tire iron and pry the inside bead over the rim flange.

STEP 11: Insert the tube into the tire and place the valve stem into the valve hole. Slide the tube completely over the rim and put a small amount of air in the tire (about 1 PSI).

STEP 12: Lubricate the tire’s outside bead. Insert two tire irons between the tire’s outside bead and the rim flange. Pry the tire’s outside bead over the rim flange. Work your way around the tire until the entire tire is on the rim. Pull the valve stem completely through the valve hole and secure it with the rim nut.

STEP 13: Lower the machine so that the tire is centered on the rim. Slowly inflate the tire to seat the beads into the rim. Do not inflate the tire to more than 35 PSI. Once the beads are seated, deflate the tire completely and refill it to the manufacturer’s specifications.

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Trucker News

How to Drive a Big Truck

Automobiles range in size from compact cars like the Honda Civic to full-ton pickup trucks like the Ford F250 or tractor trailers like the 18-wheel semi-truck. Generally, it is harder to drive and control a vehicle the larger it gets. You must use an extra level of care to ensure the safety of the driver as well as the other vehicles on the road. Adjust all of your rear view mirrors to eliminate any blind spots. The likelihood that the truck will contain a blind spot goes up as the truck size goes up. In addition, the size of the driver himself can cause more blind spots than normal. While driving, always remember that it you cannot see the other driver, she cannot see you.

Make wide turns, specifically when turning to the right. Big trucks are longer than cars, and for this reason, you will not be able to cut corners as closely as before. Drive up slightly past the corner, and make a more squared-off, almost 90-degree turn to prevent hitting the curb. This may cause you to go partially into the other lane when turning, so make sure to go slowly and watch out for other drivers who may impede your turning radius.

Know the height of the big truck you are driving. Depending on the size of your truck, particularly if you are driving a semi, the truck may be too tall to go under all overhangs. Knowing the height of your truck before you reach one of these barriers can prevent you from damaging the top of your truck, delaying traffic or getting stuck. Watch for signs that will clearly state the height of the upcoming overhang before you reach it.

Avoid unnecessary distractions by getting a truck with an automatic transmission if possible. Continually having to shift with one hand and steer the truck with the other can limit the amount of control you have over your vehicle. If your truck does have a manual transmission, try accelerating slowly so that you can remain in a lower gear longer without having to repeatedly shift up.

Apply the brake earlier in a big truck. A larger vehicle will weigh more than the average car and will thus take longer to come to a complete stop. Begin applying the brake 100 yards before your intended stop; this number will also increase with extra weight, either passengers or cargo. If you are in a stop-and-go situation, drive under the recommended speed limit to make it easier. This will not only help you stop better, but will also extend the life of your truck’s brakes.

Categories
Trucker News

How to Clean a Driving Record

Is your driving record less than stellar? Well, you’re not alone. In the United States, approximately 30 billion tickets for moving violations are issued each year. It can be tough to clean up your driving record particularly if it contains serious violations such as driving under the influence (DUI) or a hit-and-run accident. In many instances though, there are steps you can take that may make your driving record a lot more palatable.

Check with your local Department of Motor Vehicles (DMV) periodically to see what convictions or citations it contains and to make sure the driving record is accurate and current. In most instances, you can get the driving record from the DMV office, in person or in writing. In some states you can do this on the Internet.

Know that all states offer driver improvement programs, defensive driver programs or traffic schools that you can attend in person or on the Internet. If you complete the coursework and pass required tests, points will be taken off your driving record or, if applicable, you may be able to avoid having your license suspended. Before enrolling in one of these programs, make sure it is court-approved and will be recognized in your case.

Consider that if you believe you have just grounds for fighting a ticket, you can plead “not guilty” and either hire an attorney to represent you or defend yourself. If you choose the latter, check the details of the law you’ve been charged with breaking. Take notes about the incident. And be thoroughly prepared before the court date. If an obstructed view had a role in your citation, take photos and a diagram of the road to court. If you’ve swerved to avoid a pedestrian, bicyclist or out-of-control vehicle, you may beat the ticket. Again, provide the court with a diagram and witnesses, if possible. Check the police report. If it’s inaccurate or false, you may have grounds for dismissal of the case. If you’re very lucky, and the officer who issued the ticket doesn’t appear, the case may be dismissed.

Be aware that the following are not acceptable excuses for violating the rules of the road: “But I didn’t know the law.” “Other drivers were going even faster.” “I’m late to work.” “But everyone does it.”

Be aware that if you are able to clean up your driving record with the DMV, it’s likely that the information is still available on a plethora of databases. An attorney or companies (see Resources) will contact these data services and see that they’re updated to reflect your new and improved driving record.

Slow down, drive safely and keep your record clean. Many states reduce points from your record for good driving behavior over time. A bad driving record makes you more than a member of a large club. It’s likely you’ll pay significantly higher auto insurance rates. Fines for infractions and annual surcharges for drivers who have accumulated excessive penalty points can take a deep gouge out of your bank account. Prospective employers and other transportation licensing bodies can access your driving record. And having your license suspended can negatively impact your job and lifestyle. If you have reasonable grounds to fight a ticket, you may come out ahead by taking your case to the court.