Category: Freight Factors

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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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Freight Brokers Freight Factors Lifestyle

You’re Not On Their Mind, If You’re Not On The Phone

The freight brokerage industry can be highly competitive and volatile. It is your job to secure new customers and develop relationships that will help you keep those customers. However, your customers may be all over the country making a personal relationship hard to develop. You can overcome this by keeping in close contact with your customers and touching in early and often to keep your company front of mind for each client.

Communication…Keep It On Your Mind

Hitting the phones and providing great communication seems like an easy thing to do but far too many of us don’t do it well. There are a lot of situations we can make end up differently if we offer the necessary information our customers need during every step of the process. A great freight broker or transportation agent of any kind knows, “if you’re not on the phone, you’re not on their mind.”

Communication…Staying On Your Customers’ Mind

As a freight broker it may not always be easy to touch base with all your customers all the time. Easy or not it is your role and the reason for freight brokerages. As the communicator between the shipper and carrier you may have to deliver news you don’t want to, play hard ball for better rates on both the shipper and carrier sides, and manage different personalities all while keeping everyone happy with you and your freight brokerage business. Practice different sales techniques to develop your method for juggling all these variables and making sure you are doing what is most important for your business: getting the margin you need and maintaining your book of business.

Communication…Changing Your Prospects Mind

A freight broker needs to consistently increase his or her contact list by seeking out more shippers for continuous business opportunities. It is imperative for a freight broker to continue building their book of business to ensure they can overcome the natural lows shippers goes through during the year. Lows are caused by things like seasonality, changes in the economy, or even just broker selection by the shipper. It is possible to plan for some of these while others come by surprise. Constant solicitation will give a broker a diverse customer base so they stay busy the whole year.

There are a lot of freight brokers out there. Many are much better than others but to a shipper it’s often hard to tell them all apart. It is your job to go the extra mile to prove to your current clients and prospects you are worth the risk. Brokers who can rely on name recognition and a solid reputation often find doors open for them. Those that fight to represent their company well and work to better their reputation every day find those same doors stay open.

http://rightnowloads.com/

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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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Freight Factors

Transportation Industry Update

Just a quick update to keep everyone in the know on what is going on the transportation industry.

Markets continue to deteriorate and with this meltdown truckload rates are plunging to depths not seen in 9 or 10 years. Fuel prices have dropped and stabilized to a point where most carriers and brokers are quoting flat, all in prices as everyone scrambles for scraps of business to keep companies afloat.

Trucking companies are shedding drivers, office staff and equipment in an effort to balance demand with their capacity, and balance expenses with their bottom lines. Their revenues are plunging, but so are their expenses to a certain degree. Certain lanes are worse than others when it comes to depressed rates and we will more than likely see additional trucking companies close their doors this year. The ones that can hang on through our recession will thrive and carry a big stick when things turn and truck capacity falls below truck demand. Companies that have a diverse customer base are situated best to survive these hard times.

Shippers are taking advantage of the markets by sending out as many RFPs or Bid Packages as possible. Times are tough for most companies and I don’t blame them one bit for shopping out their freight. Their transportation costs went through the roof last year with high diesel prices and it might balance things out a little if they can experience cost savings this year.

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Freight Factors

Spot market freight falls in April

TransCore’s North American Freight Index measuring spot market truckload freight volume declined 14 percent in April from March, but was 12 percent higher than in April 2010.

Freight volumes in the South and Midwest were hampered by extreme weather conditions during April.

TransCore said the month-to-month decline from March to April was the time in 15 years when spot market freight volume dropped during that period. From March to April, dry van capacity increased 6.7 percent and freight availability declined 9.5 percent. Refrigerated capacity increased 3.4 percent, while freight availability slipped 5.1 percent. Flatbed capacity and freight volumes dipped, 2.6 percent, and 9.7 percent, respectively.

Freight

TransCore’s monthly North American Freight Index measures trucking freight movements on the spot market, reflecting freight availability on TransCore’s network of load boards in the United States and Canada.

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Freight Factors Trucker News

FMCSA opens utter period on EOBR

The Federal Motor Carrier Safety Administration on April 12 requested additional public comment on its Feb. 1 Notice of Proposed Rulemaking regarding mandatory electronic onboard recorders for commercial motor vehicle operators who must keep records of duty status.In its latest EOBR proposal and in a previous EOBR rulemaking published on April 5, 2010, FMCSA advised it is required by law to ensure that electronic devices are not used to harass CMV drivers resulting from invasion of their privacy, although they can be used by motor carriers to monitor productivity.

EOBR

FMCSA said in light of recent litigation brought by the Owner-Operator Independent Drivers Association challenging the agency’s treatment of driver harassment in the first EOBR rulemaking, it wants to ensure that interested parties can comment on the issue in the current EOBR rulemaking.
The first EOBR rule is a final FMCSA action and remains under review by the Seventh Circuit, but FMCSA argued the rule properly protects drivers from harassment. The agency also will continue to accept and consider comments on all other issues within the scope of the proposed rule.

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Freight Factors

Impeccable Factoring Service by RTS

To get the needed working capital for making rapid progress and business expansion, factoring is a great way. It can boost your company with needed cash flow. This is not a loan type which banks normally offer. It is just paying you for your bills earlier than you would otherwise get it from your shipper. In this current world and economic condition its very effective and a great alternative for banks. For owner operators and small truckers freight factoring has become a very beneficial and reliable financing tool.

Freight factoring is a service which is provided by RTS and it’s a much featured service of them. Many extreme benefits are introduced by the company. The most promising features are:

  1. The invoice processing system is digital and also has a very easy account set up system.
  2. The credit card issued by the company has unlimited access and also has the access to the customers reporting services.
  3. Every customer can have their own and single account representative who will keep the record of their every transaction on factoring. The account representative of yours will always be at your service.
  4. There are no hidden fees. Every transaction is open to customer so that customers can know where they are charged and where not.
  5. The RTS factoring rates are highly competitive.

RTS can also provide many financial facilities for the trucking companies. It understands the necessity of capital in this field of business.  As trucking companies have a lot of expenses like fuel cost, insurance, payroll etc. So they may need immediate cash at many times. In their critical condition RTS can help them by providing immediate cash. The company will purchase the freight bills of the owner operators and will provide the needed cash flow for the owner operator jobs.

There are many businesses which fail to come out with their ideas only because of not having sufficient cash in hand. RTS Freight factoring is a great solution for them. There is no debt incurred on you in return of fast and reliable service. You can find information about them online and also can find many effective links there like transportation publications, load boards, weather info etc.

RTS has a wide range of publication all over the world. Many international companies are linked with them for their featured services. Thus the company is playing a vital role in the global economy. It is very much proficient in their work field.

The company is still developing in many sectors as it strives to strengthen the position more and also expand their market position. Because of its services many international companies have become successful in achieving their goal and are still on their way with RTS. The need of working capital to make any freight and trucking business successful can be fulfilled by acquiring the freight factoring services by RTS. The company is known for its fast funding. The company also provides funds for fuel if needed. They can become and act as your collection partner to tackle the tough shippers.

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Freight Factors

Factoring with Orange Commercial Credit

If you are an owner operator or running a small trucking business, then this article will be very helpful for you to bring proficiency in your business and skills. Most of the time shipping and trucking companies face cash interruptions as they wait for the enlisted companies to whom they have provided the trucking services to pay for their work. Therefore to maintain continuous cash flow to your business, as an owner operator you can utilize factoring facility. Efficient freight factoring services is provided by many finance companies today.
By utilizing the facility of factoring, truckers get the payment immediately after the delivery of the goods. The payment is not dependent on the payment done by the shippers. The invoices of the trucking company are first purchased by the factoring company. The company does the payment against the bills to the trucker. This step is essential for small trucking business as there are many regular expenses to be tackled such as fuel, truck maintenance and repairs. Factoring can help you to get payment on time to full fill all these on going expenses.
In this world of technical advancement the factoring facility is also available online. You can utilize the factoring facility by simply connecting to the internet. Among the online factoring companies the name of “orange commercial credit” is well known because it is the name of trust and reliability.
Orange commercial credit is a company which provides very affordable rates of factoring which is less than 1%. And it is very quick cash providing company. So you don’t have to wait for 20 to 30 days to get your bill to be cleared. The Company provides different factoring programs depending on the size of the trucking business and the size of the trucks which are being utilized in the business.
Orange commercial credit provides the good credit management and credit information service. Through orange commercial credit you can also get the information of highest paying shippers and brokers by getting access to its load board. The load boards will also let the shippers contact you for their delivery order. The credit checking facility provided by the company is completely online. You can access the information of credit stored in a balance sheet. Company has the professional account operators to ensure the quality of the service provided. There is no debt incurred on you when your avail their factoring service. The company also provides invoice processing and collections services for your benefit.
Factoring facilities provided by the orange commercial credit can be easily availed by registering through their website. There is no registration fee or start up fee. You just have to fill up the form available and get an access to its freight factoring services. The company will provide you with immediate cash to keep your business going.
Orange commercial credit is providing the factoring facilities since 1986 so there is no doubt about its proficiency and reliability. The qualifying process is also easy thus making the whole factoring experience for the owner operators very quick and hassle free.

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Freight Factors

Factor Loads: Factoring Solutions

Freight Factoring is a process by which the trucker can be paid immediately after delivering the load he has just transported. Independent truck drivers or smaller companies hire a factoring company to handle the collections on invoices. The factoring Company pays a portion or full amount of the freight bills minus their fees up front. Sometimes the factoring company holds the remainder in an escrow account, which cannot be touched until the company gets the receivables. This gives the trucker the needed cash for expenses he has incurred or will incur on the way home or to haul another load. The factoring company is then responsible for collecting on the bill. It might incur hiring legal help to collect on this debt or the customer may not pay for months at a time. By having a factoring company to handle all this, the independent trucker is free to get back on the road with further assignments.
Factor Loads factoring company is not a bank. They know it is important to keep truckers on the road. It is important to have a factoring company who understands how your business works otherwise they could not handle the finances of your business properly. Factor Loads is a master in the field because it is set up by the industry experts. They decided to fill the need of fellow truck drivers and owner operators like themselves.
The account management program offered by Factor loads can be found on their website and viewed at any time to keep the record of the account anytime you require.
The company offers non-recourse factoring programs that are mostly focused on owner-operators and small trucking companies. With non-recourse factoring, you will be paid on the same day the freight is factor through Factor Loads. You need not fear of the losses if the customer pay or does not pay as the bad debts will not be reverted to you.
Benefits of working with Factor Loads as compared with traditional freight factoring companies is that Factor load provides customized factoring service which is based on customer by customer and load by load. This will enable you to transact your reliable customers yourself and others you can get factored. You can access the database of your customers which are pre-approved. The factoring company will make the process very convenient for you with no freight bills requirement, no hidden fees and no monthly minimum bills to be factored. It is ideal for owner-operators and small carriers who are unable produce same volumes every month. Larger companies can use the services in the time of deficit.
The company offers new incentives as the fuel and maintenance discounts for your carriers. The spot factoring feature of the Factor Loads will help you to concentrate on the key areas of your business. This will give you the liberty of which invoice is to be factored at what time to maintain the efficient cash flow to your business. By factoring with Factor Loads you also get a complimentary loadboard account to ensure owner operator job flows.

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Freight Factors

A Trusted Name in Freight Factoring

With the economic uncertainty today, getting the payment for the work you have done is really important. The easiest and the safest way to get the payment in the trucking industry today is through factoring. When considering freight factoring let us discuss the factoring services by 1st Commercial Credit LLC. This is the most reliable and best factoring services providing company in the United States.

A brief on what freight factoring is? Freight factoring is basically for the truckers or the trucking business. These truckers can immediately get the payment after completing their work through freight factoring even if the shippers who are using the trucking facilities have not paid the shipment charges. The freight factoring company releases funds for the carriers by purchasing invoices of the shipping company. Therefore, the interruption of cash flow is avoided for the survival and growth of the trucking business.

Choosing 1st Commercial Credit LLC as the Freight Factoring Company for You

Logistics and Freight Factoring have become so popular that you can easily get a good factoring service online. Online freight factoring company provides fast and efficient processing with minimum paper work. This way you save both time and money.

1st Commercial Credit is an online freight factoring company providing financial assistance to many owner operators, small and medium fleet businesses. The company is the largest of its kind providing varied asset based financial services such as equipment leasing, freight factoring, inventory financing and purchase order funding for new as well as old businesses.

1st Commercial Credit is expert in judging the capacity of your business and the long haul charges according to it. The company will provide funding for the fuel, maintenance, repair and other related charges of the trucks being used. This will avoid taking loans for such issues by the small businesses and owner operators. With the factoring and financial services by 1st Commercial Credit, the truckers will not suffer loss when the payment is delayed by the shippers.

1st Commercial Credit doesn’t require any financials and provides the factoring facility at a very affordable rate of 1.59% for 30 days for all sized trucking companies. The company provides free credit checks and facilitates the credit checking with in 15 minutes for new loads. There are no administration charges and application fees when you transact with 1st Commercial Credit. Broker and customer references are also provided on request. The initial funding is set up by the company in just 3 to 5 working days. The company would provide same day funding to the shippers and brokers who are already credit approved. Containerized freight and Intermodal hauling is also factored by the company.

Thus we see that 1st Commercial Credit is the company that knows in and out of the trucking industry and can assist in providing cash flow to your business instantly. Your long stuck freight bills can now be cleared within 24 hours and you can also indulge to haul more loads with increased cash flow. The factoring service of this company can be availed for businesses with just 1 truck to the one with more than 2000 trucks. The factoring amount per month ranges from $5000 to $10 million.