Category: Lifestyle

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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 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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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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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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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.

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Lifestyle Trucker News

How to Repair a Truck Tarp

You can repair a worn and torn truck tarp to secure and protect your load while in transit. Truck tarps are available in a wide variety of sizes and designs to fit the beds of large and small trucks. The majority of truck tarps are made of a woven canvas or plastic polymer blend that is lightweight and durable. Extensive exposure to high speed winds may cause damage to the connection system or the truck tarp itself.

Instructions

1

Trim the frayed edges of any torn sections of the truck tarp so they are clean and flat.
2

Hold torn edges together and apply a strip of tarp tape that is four inches longer than the tear to both sides of the truck tarp damage. Press the tarp tape to the truck tarp surface so it completely adheres.
3

Punch new holes in the edges of the tarp with the grommet tool in an undamaged location near where other grommets have failed. Crimp a new grommet onto the newly created hole using the grommet tool.
4

Secure the repaired tarp by hooking a few bungee cords into the newly placed grommets and attaching them to the truck bed.
5

Look in the rear view mirror to see the way the truck tarp is moving at high speeds. Add more bungee cords to secure the tarp down onto the load so snugly that it barely moves to avoid further damage.

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Lifestyle Newbies

How to Use Transportation Expenses as a Tax Deduction

Small business owners who file Schedule C may deduct all business-related transportation expenses. Employees and independent contractors may use their job-related travel as a tax deduction by filing Form 2106. Other types of transportation expenses may be deductible on the forms for which their underlying purposes are deductible.

1
Keep a small notebook or calendar booklet in your glove compartment to enter all deductible automobile travel, including distance traveled, starting and ending odometer readings.

2
Include the purpose of trip and expenses paid for gasoline, oil and maintenance.

3
Check the Instructions for Schedule A to determine the destructibility of your transportation expenses for purposes such as making charitable donations, attending job-related educational programs and going to the doctor or the hospital. Use these related transportation expenses as a tax deduction by including the expenses, according to the applicable instructions, when you take the deduction for the underlying purposes.

Use Schedule C to Deduct Business Transportation Expenses

1

Fill out the information section on your car in Part IV of Schedule C and total your business car and truck expenses on line 9 of Part II.
2

Record other business travel expenses, including train, air, taxi, parking, public transportation and leased or rented vehicles as part of your total for line 24a. This total may include other costs such as lodging.
3

Complete the rest of Schedule C and file it with your Form 1040 to deduct your business transportation expenses.
Use Form 2106 to Deduct Employee Transportation Expenses
1

Complete Parts A through D of Form 2106 to calculate your vehicle expense. You may disregard Parts C and D if you opt to use the standard mileage rate instead of calculating actual expenses.
2

Enter your vehicle expense from line 22 or line 29 at line 1 of Form 2106.
3

Provide the total of all other non-overnight employee transportation costs including parking, tolls, mass transit and train travel on line 2 of Form 2106.
4

Finish filling out Form 2106 and file it with Schedule A and Form 1040 to take your deduction for employee transportation costs.