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Freight Loads Trucker News

How to Calculate Trucking Rates?

Over-the-road trucks transport everything from food to electronics to construction equipment. Truckers get their loads from companies and brokers, even other truck companies. Regardless of where the load comes from, the company must set a reasonable rate for the load. When trucking companies are asked to transport a load, they often quote a per-mile rate. For example, if a broker states that she has a load from Miami to Los Angeles, the trucking company will state that they need $2 per mile to run the load, while the shipper will quote an overall price for the load. Trucking rates are calculated on a per-mile basis.

Calculate the mileage between the starting and destination points. For this example, the trip begins in Atlanta and ends in Miami.

Divide the overall rate by the number of miles from the start to destination. The rate in this case is $3,100, and the mileage between Atlanta and Miami is 680 (3,100 / 680 = 4.56). The per-mile rate is $4.56.

Calculate the cost of transporting the load. On average, the truck gets 5.5 mpg. The truck will use 123 gallons of diesel for the 680-mile trip, and $3 is the cost per gallon of diesel (123 x 3 = 369). The transportation cost is $369.

Multiply the truck driver’s hourly rate by the length of time needed to complete the trip. The truck averages 60 mph. The 680-mile trip will take about 11 hours (680 / 60 = 11.33). If the driver pay rate is $12 per hour, the cost for the driver is $132 (11 x 12 = 132).

Add the gas cost and the truck driver pay ($369 + $132 = $501).

Divide the total cost of the trip by the number of miles in the trip (501 / 680 = 73.7). The cost of the trip is 74 cents per mile.

Subtract the per-mile cost of the trip from the per-mile rate to arrive at the per-mile profit of the trip ($4.56 – $0.74 = $3.82). The per-mile profit is $3.82.

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Lifestyle Owner Operators

Financial Help for Owner Operators

Over the road truck operator-owners are small businessmen just like anyone who runs a small store or service provider. Occasionally, money is scarce, which merits a need to seek financial assistance. Although people generally advise against borrowing money to pay creditors, it can be good business sense to borrow money to make more money. An owner-operator can pursue various avenues, with varying amounts of risk and reward. When seeking financial assistance, however, always remember to have everything in writing. Financials, projections, obligations and receivables are required.

Any business needing cash will probably need to put up collateral for the loan. Of course, the owner-operator has a readily available piece of collateral: the truck. Don’t be too hasty, however, to sign away the truck unless the potential for reward using the financial assistance is almost guaranteed. Without the truck, there is no more business. Also, be hesitant to put up a personal guarantee because this will involve all the assets the owner-operator possesses. It’s a very delicate balance between risk and reward to assign collateral to any loan type.

A quick source for needed money is factoring. Quite simply, the owner-operator sells any receivables to a third party at a reduced rate. The rate is negotiable, but expect it to be significant. The buyer can’t make money if paying too much for your outstanding invoices. Factoring is good because it can raise quick cash to buy diesel fuel or new tires to make a cross-country run that will make the year. The risk is selling an account balance to what is essentially a stranger. Your customer will get bills and requests for payment from someone unknown. You get the money, but you may lose a customer.

A quote loan is a loan on an accepted quote to do business. Farmer’s and merchant banks are great places to seek this type of loan. These types of banks do the loans constantly with farmers: loan against the future sale of the harvest. You’ll be requesting a loan against the future payment of a completed load. Don’t expect a loan for the full amount, but possibly between 25 and 30 percent and a fair interest rate. The loan comes due with the invoice. The loan is due whether the invoice is paid or not.

Leaseback is the same concept as refinancing your house: You get a lease against your truck, the leasing company pays you the difference for the value of the vehicle and you pay over time. The advantage is you can deduct the lease payment from your taxes as an expense, a low interest rate and payment over time. The disadvantage is the leaseback will only be for the market value of the truck less any liens. If the truck is paid for, you might get a decent amount. If it is not paid for, and the existing loan value is high, you might not get back your application fee.

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Freight Loads Lifestyle

Advantages and Disadvantages of Inter modal Freight Transportation

Intermodal freight transportation involves moving freight by using two or more modes of transportation. Typically, transportation modes include truck, railroad and steamship. Although transportation by air also is possible, the method is costly. Intermodal freight transportation positively influences our global economy by controlling the way we move our goods. Nevertheless, some factors need to be kept in consideration to avoid restricting the value of intermodal fright transportation.

A truck moves an empty container to the shipper. The shipper loads the container with goods. The truck transports the loaded container to port. At the port, the container is loaded onto the steamship, which is forwarded to the port of destination. The container is driven to the warehouse of the receiver shortly after being discharged at the port of destination.

Intermodal freight transportation gives you flexibility with how you want to move your freight. Additionally, you have the opportunity to be creative in finding the most efficient way to move your freight. Generally, this process involves at least two modes of transportation. The more efficiently you plan, the more money you will save.

Intermodal freight transportation may be costly depending on the number of modes of transportation. Some downfalls to intermodal freight transportation involve the high costs that are associated with moving freight by using several types of modes of transportation. Lack of communication and idle time of equipment will increase transportation costs. Similarly, equipment that moves from one location to another empty also adds to the costs.

A supply chain is defined as three or more organizations that are directly linked upstream or downstream in the flow of products or services as they move from the source to the customer. Intermodal freight transportation plays a major role in enabling organizations in a supply chain to respond to market changes by providing them with options. Organizations within a supply chain use intermodal freight transportation to cooperate and assist each other in maximizing profits. This cooperation is achieved by sharing information and communicating their needs to each other.

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Business Freight Loads

Elevated Methods of Moving freight

Several different types of equipment move freight from one location to another. Depending on whether you are moving freight inside a building or outside in a storage area, you should use the best equipment to stack the freight.

Elevated freight equipment uses chains and hooks to pneumatically lift the freight high off the ground. Workers should engage in safety practices and have the required training concerning the equipment they plan to operate to elevate the freight for movement.

Move freight inside the warehouse with hoisting equipment. This hoisting equipment consists of a mechanical crane elevated above the warehouse floor that can be moved by a hoist operator. Attach the freight to the hoist with lifting cables and hooks.

Push the button on the pendant control to hoist the equipment off the warehouse floor. Guide the hoist with the freight by using the pendant control, which is a control box on a long cord that operates the hoist above. Lower the hoist and freight once you have moved it to a new location in the warehouse.

Move the freight from the warehouse with a telescoping boom attached to a forklift. Slide the lifting cables around the freight and hook the chain to the telescoping boom at the rear of the forklift. Ensure the freight is stable and centered on the forklift to prevent the machine from tipping over by the sheer weight.

Drive the freight to the necessary area. Lift the freight to the required height and stack it. Detach the chain and lower the telescoping boom to a normal height.

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Business Trucker News

How to Replace a Lost or Stolen California Driver License or ID Card

If you recently lost your California driver license or state ID card, you can easily replace it by following some simple steps.

Your California driver license will have to be obtained in by first setting up an appointment at a DMV office. Before you set up your appointment you must have your social security number and a phone number where the DMV can reach you.

Next fill out the DMV appointment system form. You will need to select the California office where you want to make the appointment to complete the required paperwork. Check the box “Apply for Replace or Renew a California, driver license, identification card”. Fill out all portions of the form and select the available date and time for the appointment. Appointments at the DMV office can be made up to 30 days in advance. You cannot make a DMV appointment for the same day.

Complete a California Driver License or Identification Card Application form DL 44 or DL 44C. (An original DL 44 or 44C form must be submitted since copies are not accepted.) If you need a duplicate driver license for a minor, they must have parents’ or guardians’ signatures on the DL 44.

Pay the required fee to replace your lost California driver license or ID card. This replacement regular license fee is $22. The replacement commercial driver license fee is $27. The replacement regular ID fee is $24. Reduced fee replacement ID cost is $7.

Provide your thumbprint when asked by the DMV worker. Pose for your license photo when asked by the DMV worker.
You will the receive a temporary ID card/ interim California drivers license that is valid for 60 days. You replacement California driver license or state ID card will then be mailed to your address.

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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.

Categories
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.

Categories
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.