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Trucker News

Cargo Freight Company

Logistics
A big part of starting a cargo freight company is figuring out logistics and costs for moving cargo. Analyze the cost of shipping cargo within the United States by land and water, and into foreign countries. This includes accounting for customs, freight duties and cost of transportation. The general costs for transportation include not just gas, but also vehicle maintenance, driver salaries, tolls and loading and unloading.

Strorage and Shipping
Some cargo freight companies will also factor in the storage of freight in a warehouse during delivery. When freight is shipped, sometimes it ships from one warehouse to another, then is picked up by another driver and shipped to a final destination. This is all part of the complicated logistics solution that you as a shipping company can provide. The companies that do it cheapest are the ones that succeed. Gather information not just on the cost of shipment, but also on warehouse storage. Find several options for storage that you can work into your plan.

Analyze Vehicle Costs
Vehicle costs are another large topic to investigate. Freight trucks must be dependable and fuel efficient. Diesel engines also require specialized mechanics. Hourly wages range from $20 to $50 or more. Find a servicing company that can provide maintenance, or look into hiring a full-time diesel mechanic for your cargo freight shipping company.

Buy a Warehouse or Rent
You will need a warehouse. Look into the prices on warehouses for sale through a commercial real estate broker. They have the best insights into the market and will also give you comparisons on renting a warehouse over buying. Compare the costs and balance your budget accordingly. If you do not want to take on additional assets, renting a warehouse is probably your best option.

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Trucker News

Careers in Logistics

Logistics according to the Council of Logistics Management is ” the process that deals with planning, implementing and controlling the efficient flow of goods, services and information from the point-of-origin to the point-of-consumption in order to meet the customers’ requirements.” The activities in logistics include transportation, warehousing, freight, delivery and customer support. Careers in logistics encompass all these activities. The objective of logistics is to improve the competitive advantage of a company. Corporations in recent years have invested heavily to improve their logistics, thus logistical careers are considered to be a part of a growing field.

Industries

Careers in logistics are available across a broad spectrum of industries. The most common employers include the airline industry, postal service, railways, ports, manufacturing companies and transportation companies.

Departments
Logistical jobs cover a wide range of departments within a company including: purchasing and material procurement, transportation, inventory management, warehousing, distribution, order processing, information systems and customer service.

Job Designations
The common job designations include pilots, drivers, supervisors, managers, distribution service managers, warehousing managers, inventory analysts, customer support workers, logisticians and postal workers.

Skills Needed
Skills needed vary according to the job description, but in common require an attention to detail, critical thinking, people skills and dependability. Basic high school diploma is the minimum required education for many of the jobs within logistics. College degree is required for many supervisory and technical level jobs. Experience is highly valued in the field, though many entry level opportunities are also available.

Additional Training
Improvements in logistics translate to greater efficiency for a company. Therefore companies are investing heavily in information technology to improve logistical efficiency. Training in new technology such as Enterprise Resource Management Systems and information technology are very helpful in pursuing logistical careers.

Apart from technology, companies are also paying more attention to improving customer satisfaction. Training in areas such as customer service and management are also a part of the job description in logistics.

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Trucker News

Electronic log rule

A new electronic log rule could be proposed by September, said Federal Motor Carrier Safety Administration head Anne Ferro Thursday, March 14, at a congressional hearing, testifying to a House subcommittee.

The Highways and Transit Subcommittee — part of the House Committee on Transportation and Infrastructure — questioned Department of Transportation administration heads for two and a half hours wanting updates on progress made to rules and initiatives in the MAP-21 highway funding law from last summer.

The law requires that an electronic onboard recorder (electronic log) rule be made by the time the law expires in mid-2014.

Ferro was questioned by the subcommittee’s chairman Rep. Thomas Petri (R-Ore.) about potential issues of trying to squeeze every driver’s schedule into what he called a “one size fits all” rule, including scenarios of drivers being close to home or close to a destination and running out of hours.

Ferro said uniformity has been a big issue for FMCSA in making the rule, but that uniformity is a must to “ensure a level playing field.” She also said that most companies who switch find electronic logs to be “effective and profitable,” and that most drivers “over time” prefer EOBRs to paper logs.

She was also pressed by Rep. Peter DeFazio (D-Ore.) about the problems presented by detention time to hours of service rules and what the agency plans to do about it.

A study is underway, Ferro said, and the agency is expecting results by 2015.

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Trucker News

File against a broker’s bond

Federal rules pertaining to broker surety filings are in flux following congressional action last year that raised the minimum bond from $10,000 to $75,000. Still, basic procedures for filing are expected to remain.

The most high-profile filing incidents involve brokerages in trouble. If a broker is late on payment, odds are you’re not the only party who’s thinking about filing. If the broker closes and the broker’s bond limit doesn’t cover all debts, claims are paid on a “pro rata” basis – a percentage of what each carrier is owed.

In cases of broker business failure, getting your claim in early may not be particularly helpful. Federal Services Corp., which handles claims against financial institutions authorized as trust providers for brokers by the Federal Motor Carrier Safety Administration, notes it doesn’t file claims on a “first come, first served” basis. Rather, “while this practice may be followed by some of our competitors,” the company says, “it just encourages premature claim filings – sometimes even before loads are delivered!”

FSC notes that in 95 percent of claims it receives, “the broker pays the claimant after being informed a claim has been filed against their trust.” This avoids what it describes as a time-consuming process of mailing out documents for the carrier to complete and return, detailed below.

How to file
Determine when it’s time to file. After a broker has not paid within a reasonable or contracted time, you can file. Contracts often state 30, 60 or 90 days after delivery.
Find the broker’s surety provider.

• Visit li-public.fmcsa.dot.gov, FMCSA’s public licensing and insurance information site. Click through the disclaimer page and choose “Carrier Search” from the pull-down menu at top right.

• Supply as much information about the broker as you can by using the fields for DOT number, legal name, DBA name, base state and docket filing number. Brokers typically will have an “MC” prefix. “FF” refers to freight forwarders, which last year’s MAP-21 legislation for the first time also put under the requirement for a bond. Click search. (If you didn’t already know the broker’s MC number, save it for future reference.)

• When the broker you’re filing against comes up, click the “HTML” button to view licensing information on the web page or “Report” to download a pdf. On the pdf, the surety provider is listed under “Active/Pending Insurance” near the bottom. If you’re viewing the HTML report, click the “Active/Pending Insurance” hyperlink for the surety provider’s information.

Have this information ready to file: Broker’s legal name and MC number, as well as your own and relevant contact information; amount owed to you; load date (or oldest load date if more than one); commodity hauled.
Contact the surety provider.

• You may need to do further searching to find phone or website information for the provider. Several pulls of broker licensing reports showed neither phone or online points of contact for the listed surety provider. A simple Google search for company name and location, in most cases, will bring up the provider’s website and contact phone numbers.

• When you make contact, follow the provider’s claims process. Some companies, such as the Pacific Financial Association, will send you to a web page to fill out a preliminary form. Most sureties, however, will handle this step via a telephone call to their office. From there, documents will be mailed to you to fill out and return.

• If luck’s on your side, you’ll get paid by the broker after notification of the claim from the provider. If not, follow the provider’s claims process to the end and hope the bond or trust isn’t exhausted by similar claims if the broker’s business is failing. If some broker groups’ efforts to derail the new $75,000 minimum bond requirement are unsuccessful, at the least you’ll have a better chance of getting more money in such cases fairly soon. MAP-21 directed FMCSA to establish the new requirements of brokers, freight forwarders and surety providers by Oct. 1.

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Business Trucker News

Measuring Logistic Cost & Performance

Maintaining a low logistic cost, while ensuring a high product performance is key to making your production business profitable. Logistic costs include all costs beyond the basic production costs for a unit. This includes service costs, transportation costs, inventory costs and warehouse costs. Companies focus on these costs because they devalue a product after production, essentially adding costs to the production of materials and decreasing the production performance of a company. Reducing logistic costs is an important business focus for improving the overall performance of a product.

Assess your sales in terms of total sales revenue subtracted by the total cost for production, including cost of materials, labor, utilities and space. Refer to this value as profit, as this represents the gross profit during a specific time period, before you calculate the logistical costs. Note that the logistical cost and profit reports start with the profit value and then represent the loss of profits based on logistic complications like service, transportation, warehouse and inventory costs. For instance, if you have $225,000 in total sales revenue and $45,000 in production costs, you can calculate (225,000 – 45,000 = 180,000).

Calculate the service-level costs by determining the unmet consumer demand based on industry restraints. Include production restraints, such as the inability to meet large orders due to time constraints or lost production days. Include ordering delays, such as the time it takes to process an order, delivery time and managing backorders. Include malfunction costs, such as products damaged during deliver, production errors and returned products. Determine the service level costs by subtracting the actual number of products sold without return from the total units ordered. As an example, if you had 5,500 units ordered, but were only able to fulfill 4800 orders, you can calculate (5500 – 4800 = 700 lost sales).

Determine the transportation level costs. Divide the total transportation costs by the total sales on the transported products to determine the percentage costs for transportation. Include all transportation costs in this equation, such as payroll for transportation staff, fuel use, insurance costs and maintenance costs. For instance, if you have the $180,000 in profits during a month and $18,000 in transportation costs, you can calculate (18,000 / 180,000 = 0.10 or 10 percent transportation costs).

Calculate the warehouse costs as the cost of long term storage for produced merchandise. Include the land costs, building costs, utilities, payroll and special costs if your products require special storage conditions, such as cooling. Also, include any additional warehouse space used for out of stock items, which are often stored so your company can reuse them later for parts. Present warehouse costs in terms of a pure cash value, or represent them as a percentage of your total sales by dividing your warehouse costs by your total revenue from sales. As an example, if your warehouse costs were $27,000, you could calculate (27,000 / 180,000 = 0.15 or 15 percent warehouse costs).

Determine your inventory costs, as the cost of short term storage for produced merchandise waiting to be shipped and merchandise at your store waiting to be sold. Include the space costs, utilities, labor costs and special arrangements for your products, such as cooling necessities. Present inventory costs in terms of pure cash value or as a percentage of your profits. For instance, if your inventory costs were $9,000, you could calculate (9,000 / 180,000 = 0.05 or 5 percent inventory costs).

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Lifestyle Trucker News

Box Truck Business

Box trucks are used by renters to move boxes, furniture and over-sized appliances from one location to another. The cubed storage space of a box truck is ideal for stacking and arranging packages neatly for safe hauling. The biggest names in the box truck business are rental companies such as Ryder, Enterprise, U-Haul and Mayflower who rent their trucks to individuals and corporations. You must understand the nuances of the box trucking industry including pricing, insurance coverage and maintenance before starting your business.

Refine your box truck company’s business plan with detailed analysis of competing businesses and budget projections. Devote an entire section of your plan to the pricing, vehicle selection and moving products offered by competitors to contrast with company. Calculate your start-up costs for trucks, liability insurance and advertising as well as available funding to create a one-year balance sheet.

Apply for a commercial loan from a local bank to start your box truck business on sound financial footing. Approach your loan officer with a business plan, an ideal loan amount and personal financial information to smooth the loan application process. After your loan application is processed, seek investments from local businesses to bridge the gap between the loan and your initial expenses.

Seek truck and general liability insurance from Western Truck Insurance Services Inc. to cover your box truck fleet. Truck liability insurance is coverage for medical and legal costs if your box trucks are involved in accidents during rental. General liability insurance is vital for box truck businesses because it protects the company from financial damages due to renter negligence.

Negotiate monthly payments for a fleet of box trucks from truck sellers such as Jukonski Truck Sales. Mix lightly used and new box trucks to keep your overhead costs low. Inspect used vehicles for current mileage, engine performance and condition of the cockpit to invest your money in the best trucks possible.

Fill your box truck office with tape rolls, furniture mats, hand trucks and other moving supplies before opening your business. Place these products on wall displays with a price list available on each wall to help consumers make informed decisions. Purchase your moving supplies from wholesalers such as U.S. Box Company; add a modest markup to earn a small profit.

Limit your office staff to a handful of part-time counter clerks and a mechanic in your company’s first year. Your counter clerks should be capable of handling reservations, reviewing truck inventories and answering rental questions. A mechanic experienced in handling wide-ranging problems such as broken door latches, engine troubles and body work can help keep your trucks looking good.

Print hundreds of rental forms for customers to complete before renting your box trucks. Your rental form should lay out clearly the per-mile rate, requirements for fuel levels upon return and sample charges for damage done to box trucks. Require renters to put down credit cards with these forms to protect your business from stolen and excessively damaged trucks.

Create an inventory form for your box trucks that will be used by counter clerks to check box trucks in and out. The inventory form should feature a silhouette of a truck where pre-existing damage can be marked before a box truck is rented. Include details about hand truck and furniture pad use to charge customers in case of damage.

Promote your box truck business using truck wraps and targeted advertising before renting your first truck. Each truck wrap should feature daily rental rates, your office location and available truck sizes to inform prospective customers. Post advertisements at college campuses, apartment buildings and condos to maximize the impact of your initial marketing blitz.

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Lifestyle Trucker News

Truck Driving Tax

Over-the-road expenses for truckers must facilitate travel, be appropriate for travel and be required to conduct business. Many expenses are deductible; however, you must keep records, important documents, receipts, permits, statements, log books and other supporting documentations to substantiate your expense deductions. It is also important to keep your log books, licenses and permits current.

Warnings
The trailer, pulled by the cab, holds the cargo.
Fines paid for violating traffic and weight laws are not deductible. Expenses reimbursed by your employer, personal expenses and personal grooming expenses are not tax-deductible. You cannot deduct downtime for doing repairs on your truck.

Direct Vehicle Expenses
As a truck driver, you can deduct direct expenses such as diesel, gas, oil, vehicle fluids, maintenance and repair, tires and replacement parts. You can also deduct liability insurance, vehicle-related insurance, weight charges, licenses, permits and registrations. You can deduct expenses to clean, wash and wax your vehicle such as truck washing services and pressure washing. You can also claim parking fees and tolls incurred on the road. You can claim depreciation on your cab, trailer and their associated equipment. Depreciation allows you to deduct the cost of the cab over a period of years.

Supplies
Cleaning supplies such as window cleaner, paper towels, cloth towels and squeegees are deductible. Office supplies such as pens, log books, briefcases, paper and notebooks are also deductible business expenses. Personal protective equipment such as gloves, hardhats, special boots or shoes, safety glasses and hazardous material suits are deductible as well. Office equipment such as laptop computers and their accessories can be depreciated over five years.

Room, Board and Meals
Hotel and truck stop expenses are tax-deductible expenses; meals are deductible but subject to a 50 percent limit. Incidental costs such as tips paid to servers, porters, baggage carriers and hotel personnel are also deductible business expenses. Use the per diem rate for the area where you stay as a guide to see what rates are reasonable. Long-distance telephone calls from the hotel, business use of your cell phone and Internet access fees paid while away from home are deductible. Finally, laundry, dry cleaning and laundry supplies used while away from home are deductible business expenses.

Tools and Equipment
The cost of tools and equipment to do repairs and maintenance can be depreciated over several years. You do not have to depreciate the cost of tools if it is expected to be less than one year. Fees for emergency towing, GPS services, traffic and weather tracking services are tax-deductible business expenses. Costs to rent, lease or buy equipment such as CB radios, antennas, GPS systems, traffic and weather tracking systems are also deductible. Finally, safety equipment such as flags, flares, emergency kits, jack straps, tarps and load chains are tax-deductible.

Taxes and Interest

Interest you pay on loans for your truck, trailer and equipment are deductible. If your truck is more than 55,000 lbs. gross weight, you may have to pay the Heavy Highway Vehicle Use Tax. You may deduct this tax and other excise taxes as required. The 12 percent retail excise tax for trucks and diesel taxes cannot be deducted since they are considered part of the price.

Other Fees

You can deduct the costs of trucking subscriptions, uniforms and dues paid to unions and associations. Maps and Atlases are deductible as are ATM fees while away from home.

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Lifestyle Trucker News

Fleet Cleaning

Cleaning fleets of trucks is becoming a lucrative business, because the way a truck looks says a lot about how a company runs its business and how it delivers and ships products from place to place. While it used to be done painstakingly with a hose and a crew of people washing, truck fleet cleaning has now become a streamlined process, Businesses all over the country specialize in different types of cleaning for different types of trucks.

Saving Money

Truck Fleet cleaning services help those who own truck fleets save money in a variety of ways. They save on driver down time: A truck can be dropped off at a cleaning center after the driver has done a delivery. It also saves on truck down time, because they are washed after deliveries, when they were going to be out of service anyway. Using a fleet cleaning service means you don’t have to hire people or buy cleaning supplies.

Washing Tools

Most truck fleet cleaning services use high-powered pressure washers to remove grime, dirt and soot that has kicked up onto the truck over long cross-country jaunts. Some pressure washers are strong enough to take graffiti off the side of a truck if necessary. Some centers have hallways with pressure washers mounted from ceiling to floor, like an oversize drive-thru car wash. These pressure washers deliver water mixed with soap and chemicals ideal for removing just about anything from a steel truck cab and trailer.

Mobile Fleet Cleaning

Many fleet cleaning services will go to where the truck is being stored and clean it there, on-site, much like a maid would come and clean a house. This saves the company that owns the truck fleet a lot of money, because otherwise the driver would have to take it back on the clock, costing the company even more money. These mobile cleaners provide their own power washers, soap and chemicals and guarantee a good wash of just about any truck cab, from a five-ton 18-wheeler to a small fleet of cube trucks.

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Lifestyle Trucker News

Valentine Gifts for Truckers

You love your truck driver and you want him to be as comfortable as possible while he is on the road, away from family and friends. Purchasing creative Valentine’s Day gifts allows him to take some of the comforts of home along. There are a number of Valentine’s Day gift ideas that make life easier, or more comfortable, for truckers. Some of the Valentine’s Day gifts require a cigarette lighter to operate.

Espresso maker
Portable espresso machines are an ideal gift for truck drivers. Espresso machine manufacturers, such as Bertone and Velox, produce lightweight, plastic espresso makers that plug into a truck’s cigarette lighter. They come with long cords so the machine rests safely on the floor, between the seats or in the bunk area of the truck.

Massage Cushions

Massage cushions and massaging seat toppers are among the practical Valentine gifts for truckers. The Shiatsu Vibrating and Kneading Massage Cushion, from HoMedics, requires a vehicle’s cigarette lighter to operate. This Valentine’s Day gift idea straps directly onto the driver’s seat. It has four massage nodes that roll up and down the trucker’s back, providing a Shiatsu-style massage. It also has a vibrating massage option. The 10-Motor Massaging Seat Topper, from Brookestone, also attaches directly to the driver’s seat. The remote-controlled, heated massage cushion has three massage programs that massage the upper, middle and lower back. It also massages the upper and lower thighs.

Hot and Cold Snack Box
Mini-refrigerators often serve a dual purpose as Valentine’s Day gifts for truck drivers. The Hot and Cold Snack Box, manufactured by Sharper image, has a nine-foot long cord so the compact unit can safely rest in the truck’s bunk. It weighs eight pounds and measures 16 1/2×91/2×7 ½ inches. A larger size is available. The portable cooler is programmable so it can keep food warm and beverages cold. For drivers who prefer to keep the mini-fridge in the front of the truck, the cooler has a slide proof lid with two cup holders. The Wagan 2260 is a similar product. However, it also comes with a shoulder strap and a padded cover so it doubles as an armrest.

Ionic Breeze Dashboard Ionizer

Among health conscious Valentine’s Day gift ideas for truckers is a portable air purifier. Truck drivers spend many hours sitting in the cab of the truck inhaling fumes. The Sharper Image Ionic Breeze Dashboard Ionizer and Surround Air XJ-600 capture auto exhaust fumes, dust and tobacco smoke. These air purifiers circulate fresh air back into the truck cab. The Ionic Breeze Dashboard Ionizer has a pass-through socket so another device can share the power source.

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Carriers Owner Operators Trucker News

What Is a Bob Tail Truck?

A bobtail truck refers to a semi truck without a trailer attached. This is a general term for a truck that is used to transport cargo.

Cargo

A bobtail truck may carry bulk liquid, pressurized gas, vehicles, valuables, cash, concrete, livestock, logs and many other things that need a powerful engine to haul. Truck drivers choose which items they are willing and not willing to haul. Refrigerated bobtail trucks are specifically designed to keep cargo at a cool temperature for transporting food and other temperature-sensitive items.

Jobs

Certain jobs, like logging and construction jobs, require drivers to travel narrow mountain roads. In a large bobtail truck, this can become very difficult and even life threatening under certain conditions. Other truck drivers, such as tow truck drivers, work hard hours and stay on call all day and night. They never know when someone will need to be towed from an accident scene or pulled out of a ditch. Any of these extreme conditions may provoke a bobtail truck driver to refuse certain jobs or cargo.

Driver Responsibilities

Drivers for these heavy duty vehicles must have a separate truck driver’s license in order to get behind the wheel of a bobtail truck. In addition to the driver’s license, truckers must maintain and operate this big rig. This includes loading and unloading, keeping a log book with trip details, navigating hazardous roads and performing weight calculations.