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Business

How to Start a Freight Contracting Business

A freight contractor serves two kinds of customers: the truckers who rely on the contractor to find jobs and the businesses who turn to contractors to find qualified truckers to successfully haul their loads. Some contractors charge a percentage to the truckers for their services, while others work on retainers for large corporations that use only brokers for their trucking needs.

Develop a business plan that spells out the procedures your company will follow, the amount of financing needed to get the business off the ground, lists of trucking industry contacts that are potential clients and goals that determine the pace of growth over one, three and five years. Hire a consultant well versed in the freight industry to develop the initial plans to make sure you have all your bases covered.

Invest in training courses designed to teach all the ins and outs of the freight brokerage industry. Programs such as those from the DOT Authority can show you how to develop clients, write contracts, negotiate fees and apply for a freight broker license and processing agent documentation (BOC-3) for every state in which you will operate.

Design a website or hire a company familiar with job boards and bidding sites to create a site that you can market to truckers. Use search engine optimization techniques to attract visitors. Begin to market your services through truckers associations, radio stations, industry associations and trucker publications.

Apply for the three legal documents you need to operate in the U.S.: a freight broker license, from the Federal Motor Carrier Safety Administration (FMCSA, $300); a minimum $10,000 bond to protect your contracts; and processing agent documentation from the FMCSA ($50). The latter document designates who will act as your processing agent in case you are served court papers while doing business as a freight broker.

Purchase freight broker software to manage your accounts and tap into the many job boards and carriers who are available for work. Systems provided by companies such as Load Pilot provide brokers with access to Internet-based job boards where they can post jobs, check on truckers’ credentials and manage agents.


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Business

Becoming a Pilot Car Driver for Oversized Vehicles

A pilot car driver is an important part of the team that transports an oversized load from place to place. This lead escort vehicle warns the surrounding or oncoming traffic that the truck’s load exceeds the normal width or weight. The oversized load carrier relies on the pilot car to help provide safe lane changes and to help the load carrier navigate winding curves or tight bridges.

Contact the Oversize Permit Unit or Pilot Car Unit of your state’s department of transportation. Apply for a permit. Inquire about certification or special classes required for your state. As of June 2011, Washington, Arizona, Utah, Colorado, Kansas, Oklahoma, New York, Virginia, North Carolina and Florida require pilot car certification. Complete a program and receive certification as an escort vehicle operator. Many states recognize certification from other states.

Insure your vehicle for business use as pilot car. Discuss the premium increase with your insurance agent. You will need to factor this into the price you charge for your services.

Ensure that your vehicle is in top condition with excellent tires, comfortable seats and a wheelbase of at least 102 inches. Purchase a CB radio and antenna. Equip your vehicle with the appropriate warning lights, flags, flares and “Oversize Load” signs and identification placards that comply with your state’s vehicle code. Purchase an orange safety vest, cell phone, map books, GPS device, hard hat, fire extinguisher and first aid kit.

Research companies that are hiring pilot car drivers. This can be done on the Internet or in the yellow pages. Apply for a position. Produce your certification if required. Alternatively, start up on your own as a sole proprietor. You will need approximately $700 to $1,000 to set your vehicle up as a pilot car.

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Business

Ways to Secure Truck Loads

Pickup trucks serve as an efficient way to transport goods. When you drive a short distance or with a load that perfectly fits in your truck bed, you typically don’t need to worry about securing anything. However, most items don’t fit perfectly into pickup trucks. You can secure your goods using ropes, bungee cords or mesh covers.

Secure large items using a rope. Tie a rope around the item. Tie the other end of the rope to the holes in the sides of the truck. This will not keep items from sliding somewhat, but it will keep them secure.

Secure small or medium-sized items with bungee cords. Place the item on the bottom of the truck bed. Run a bungee cord across the item, diagonally. Run a second bungee cord across the item to make an “X.” Attach the cords to the grooves in the truck bed floor. For additional security, install D-rings into your truck bed floor and attach bungee cords to the D-rings.

Use bull rings and ratchet straps to secure large appliances. Attach bull rings to your truck bed. These will prove very useful if you move large items frequently. Attach the ratchet straps to the bull rings and tie them around the appliances. Tighten the ratchet to secure items.

Balance loads to keep them safe. Place items on your truck so that they are as low to the bed as possible. Do not stack items. Instead, place all items so that they touch the bottom of the truck bed.

Pull a mesh truck-bed cover over your entire load. These covers will not prevent small items from sliding around the truck bed, but will prevent them from flying off the truck.

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Carriers

Finding a Good Trucking Loads

As freight volumes drop, finding the right load is no longer just about locating those that pay the most. The most important factor to consider is finding a return load. This is the key to making a profit. Load boards are a valuable resource when it comes to finding loads and planning trips, but you need to exercise your judgment to make good use of all that information. It’s best to provide services to a targeted market depending upon the capabilities of your truck. This narrows down your hunt and allows you to concentrate efforts on building up your services to cater to the specific requirements of clients.

Trucking load boards provide access to a wide range of information; of which, matching loads to trucks is an important aspect. Visit websites like Getloaded, 123LoadBoard and Internet TruckStop. Doing some research into the way these load boards function so you can get the most value from use.

Select the right load board. Find out if they have a free trial period and make use of it. Compare the features of each service to find the easiest to use and most reasonably priced. Read testimonials provided by people who have used the load boards. Ask friends in the trucking community their opinion. Select the load board that’s most meets your needs and sign up by paying the monthly fee.

Select the right load. Log on to the load board and search for available loads. Consider the capabilities of your truck and personnel while choosing a what loads to haul. Find loads that pay reasonably. Don’t blindly jump at ones that are highest paying — consider the more important criterion of finding a return load, which can drastically cut your costs. Use the tools provided by the load board to match outbound and return loads.

Once you’ve found a load that appears to meet your criterion, research the shipper. Visit the websites of companies you’re interested in doing business with. Find out how big the company is and details of the products they ship. Again, it’s a good idea to canvas other trucker friends get their input and experience hauling for a particular shipper. Was pay timely? Where they made to wait to load, unload freight. Were their trucks overloaded? Were delivery expectations reasonable? Get the scoop from other drivers wherever possible.

Get in touch with customers who have loads that work for your business. Send an email providing details of your truck service and your contact information. Fix an appointment to discuss business. When communicating with potential client, present relevant information about your truck service. Ask questions regarding the type of cargo hauled to be sure you have the proper equipment to handle the job. Inquire about the frequency of loads, the value of the freight, lead time and payment terms. Use this information to determine your quote.

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Carriers

Applying for Interstate Trucking Authority

Decide whom you want to work for. A common authority lets you work with the public with a moving company, for instance. To do interstate trucking for businesses, you’ll need contract authority.

Determine what goods you want to transport. You need household goods authority to work as a mover. General commodities is appropriate for work with trucking companies. To arrange transport between states without taking responsibility for the cargo, get a broker authority.

File for a USDOT number. This is issued by the Federal Motor Carrier Safety Administration (FMCSA). They regulate safety measures for commercial transportation activities.

Fill out the OP-1 form with the FMCSA for obtaining interstate operating authority. This shows you’ve got adequate insurance to cover property loss or damage and personal injuries.

File the BOC-3 form. This designates you have a process agent in all 50 states who’s willing to receive and forward legal documents to you.

File the BOC-3 form. This designates you have a process agent in all 50 states who’s willing to receive and forward legal documents to you.

Expect the interstate trucking authority registration process to take at least 30 days. Once you get your license, you must register it with the Single State Registration System. This is something you’ll have to do yearly.

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Carriers

Trucker’s Safety

Truck driving can be a very demanding profession. Drivers are required to pick up and drop off loads at designated times that sometimes do not allow for much rest. Since truck drivers are primarily paid by how many miles they drive, it is important for them to get their loads delivered as quickly as possible, so that they can move on to the next job. While fast delivery is important, truck drivers should also consider safety the No. 1 when on the road.

Trucker Fatigue

A large safety concern for truckers is suffering trucker fatigue. This is when a driver becomes very tired while driving due to lack of sleep, resulting in a possible loss of coordination and response time. While it is very important for drivers to deliver their loads on time, it is also important that the driver factor in enough time to sleep. When a driver feels tired, he should pull over and either take a nap or rest. Do not try to push through or supplement little sleep with energy drinks or pills that could cause you to experience a sugar crash, thus making the fatigue worse.

Inclement Weather

Truck drivers are very often required to drive deliveries through ice, storms or other inclement weather. Before departing for your delivery destination, check the weather for your chosen route so that you will be aware of any potential weather hazards. Do not try to drive through heavy rain or bad road conditions as this could cause an accident. Pull over and wait for the bad weather to pass or choose a less hazardous route. If the hazard cannot be avoided, make sure that all safety equipment on your truck, such as snow tires or chains, radios and windshield wiper blades, are in good working order.

Radios

Because many truck drivers work alone, it is important that they have and use a CB radio. This radio will allow the driver to communicate with other drivers as well as receive emergency dispatches. Emergency frequencies can be used to contact local authorities in case of an accident or to receive important weather alerts. You can use the radio to talk with other drivers to help alleviate some of the symptoms of fatigue, as well as to warn them of any hazards or accidents that you may have already encountered on your route.

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Business

Best Trucking Safety Plan

Trucking can be an exciting yet dangerous profession. Your key to long-term success in the trucking industry is to have an up to-date and effective trucking safety plan. This plan should be updated constantly and required for all of your truckers. How to reduce the likelihood of crashes and basic truck safety procedures are a good place to begin. A safety orientation should be required for all new drivers and yearly update courses must also be required for your experienced truckers. Train everyone and keep on training.
Safety Orientation

A trucking safety plan should contain a robust safety orientation for all drivers. This section covers road safety and defensive driving techniques. How to prevent accidents as well as preventive maintenance for your vehicle should also be covered. Avoiding distractions and maintaining the proper rest is also vital for the safety orientation section of your trucking safety plan. All new drivers should be required to complete this program before driving, and veteran truckers should receive an update every year, with mandatory attendance required.

Hazardous Weather

Bad weather affects us all, and it causes a great deal of trouble for truckers. From ice and snow to wind and rain, drivers encounter difficult weather on almost every trip. Techniques for handling skids and maintaining a safe distance in bad weather are important modules for your safety training program. Handling high winds, rain and flooding on the road are also essential and should be taught to every trucker. Sessions should be filled with practice and ample time for discussion.

Preventive Maintenance

Inspecting your vehicle prior to driving is also an important section in your trucking safety plan. Learning how to properly check tires for wear is often overlooked, yet it is one of the most important topics to discuss in your safety plan. Fluid levels and mirrors must always be checked before hitting the highway. Frequent inspections of brakes and other systems that can wear easily go a long way toward preventing issues before they occur. A solid preventive maintenance program is essential for a successful safety plan.

Drugs and Alcohol

Modules on the dangers of drugs and alcohol must also be included in your safety plan. Ample evidence indicates that even small amounts of alcohol and drugs can impair driving ability, and the effects of both need to be included in your safety plan. The dangers of using alcohol and drugs are great and all truckers must understand the consequences of using them. Your safety training plan does not need to scare anyone, but it must include the results of using drugs and alcohol while driving.


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Trucker News

Tips on Driving:How to Survive Hazardous Conditions

Check windshield washer fluid before setting out to be sure that the reservoir is filled. Do not fill the reservoir with water, as it will freeze. If you already have water in the reservoir, add at least 50% windshield washer fluid. Also, make sure that there is enough antifreeze in the vehicle’s cooling system.

Inspect the windshield wipers. The blades should work well enough to wipe the windshield clean. Given that most driving decisions depend on unimpaired vision, replace worn wiper blades immediately.

Use a snow-brush and scraper to remove any ice or snow from the windshield, windows, and mirrors before starting out. Clean the vehicle’s headlights, taillights, and brake lights so that others can see your vehicle if visibility is poor. Don’t forget to check the turn signals and emergency flashers. All lights on the vehicle should be in good working condition. The heater and defrosters should be operating properly as well.

Let someone know where you are going, especially if stormy weather is forecast. Tell a family member when you are leaving, and at what time you expect to arrive at your destination. Better yet, check on area road conditions before pulling out of the driveway.

Keep the gas tank at least half full at all times. Do not allow the tank to get below a quarter of a tank. You don’t want to be running out of gas in bad weather when slippery road conditions may cause travel delays or road closings. A full tank also prevents the gas line from freezing in frigid temperatures.

Take your vehicle to be serviced regularly throughout the winter months. Test the battery to make sure that it is fully charged. Cold weather drains a battery of its charge, and a weak battery can affect the performance of a vehicle’s engine. Inspect the brakes. If you notice that it takes the vehicle longer to stop, don’t drive it again until you can have the brakes checked by a mechanic.

Use a tire depth gauge to measure if you have enough tread on your tires. Tires must have enough traction to push the vehicle over wet pavement and snow. Front tires should have a minimum of 1/8-inch tread. Back tires should have at least 1/16-inch tread depth. Check the tire pressure, too. Have tires rotated every 5,000 miles and check the air pressure in all four tires at least once each month. Always carry a good spare in the trunk.

Drive slowly on snowy or icy roads. Avoid accelerating quickly or making sudden stops or turns. Leave more distance between your vehicle and the vehicle directly ahead of you. You should maintain a driving distance of at least 3 or 4 car lengths behind. Adjust your speed to the road conditions. If the road becomes too slippery to travel, stop at the first safe location.

Keep emergency supplies in your vehicle in the event of a breakdown. You should carry jumper cables or a portable battery charger, a flashlight and extra batteries, road flares, maps, a fire extinguisher, small shovel, first aid kit and a charged cell phone. Basic tools you may need include pliers, hammer, wrench, ratchet, utility knife, screwdrivers, and electrical and duct tape. Keep a warm blanket, dry change of clothing, bottled water, and food snacks in your vehicle during the winter months.

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Trucker News

Trucker Jobs

Truck drivers are responsible for delivering a wide range of goods throughout the country. All drivers who operate vehicles that carry over 26,000 pounds or transport hazardous or over-sized loads must have a commercial driver’s license (CDL) for the state in which they live. Licensed truck drivers have a variety of job options available to them, and their choice may be affected by whether they prefer an interstate or local driving route.

Long Haul Drivers
Long haul drivers usually drive trucks that hold over 26,000 pounds. Their routes can span several states, and some may travel to Canada and Mexico. Long haul drivers typically plan their own routes and determine the best course to get their cargo to its destination on time. They must keep logs of the driving that they do because they are subject to federal regulations which limit the amount of hours that they can drive without resting. In some cases, long haul drivers work in teams, so one can drive while the other rests. Long haul drivers are often paid by the mile, though they may receive bonuses if they are able to save money for their company. According to Simply Hired, the average annual salary for long haul truckers was $29,000 as of July 2010.

Local/Delivery Truck Drivers
Local or delivery truck drivers make deliveries to homes and businesses in a specific area or neighborhood. They may work for national package delivery companies or local stores or businesses. Some delivery drivers load their truck once in the morning and make many deliveries throughout the day. Others may return to the warehouse or store throughout the day and carry multiple loads. Some delivery truck drivers have assistants who help them with loading and unloading. They may also be responsible for having customers sign delivery confirmations or proofs of receipt. Some delivery drivers may also collect payment. According to the Bureau of Labor Statistics, the median hourly wages for delivery truck drivers were $13.27 as of May 2008.

Specialized Truck Drivers
Specialized truck drivers carry over-sized or unusual loads. This may include cars, liquids or hazardous materials such as chemical waste. In addition to a CDL, specialized truck drivers must also receive a special endorsement, which requires drivers to submit to a background check and fingerprinting by the Transportation Security Administration. According to the Bureau of Labor Statistics, specialized freight drivers had average annual wages of $38,870 as of May 2009.

Route Drivers
In addition to driving responsibilities, route drivers, also known as driver/sales workers, have sales duties as well. They typically deliver goods to grocery and convenience stores, and speak with store managers in an attempt to convince them to try new products or increase their orders. Some route drivers may also be responsible for securing new customers on their route. The median hourly wages for route drivers, including commissions, were $10.70 as of May 2008, according to the Bureau of Labor Statistics.

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Carriers

Car Carrier Jobs

The car carrier industry is a booming business, with high growth due to Internet sales of vehicles. These transactions between sellers and buyers all around the United States mean a higher demand for vehicle transport than ever before. Car carrier companies are hiring truck drivers, dispatch operators and customer service representatives.

Function
There are many opportunities in the car carrier industry for truck drivers because these long-haul jobs can require being on the road for two weeks at a time, and many drivers do not prefer that sort of schedule. Car carrier companies nearly always hire drivers with previous truck driving experience because of the complex nature of this work. The drivers typically follow complicated routes around the country, picking up and delivering cars and other vehicles at numerous locations. They are also responsible for the actual loading and unloading of all the vehicles. Some drivers put in nearly 3,800 miles a week.

Considerations

Car carrier drivers must have a Class A commercial driver’s license, or CDL, which requires drivers to pass a written test and a driving skills test with a commercial truck. People interested in becoming a truck driver can obtain training from a truck driving school, and many commercial trucking companies offer paid training for their new hires. Since car carrier companies nearly always hire experienced drivers, acquiring training and some experience at a commercial trucking company is an excellent option.

Types
Other car carrier jobs include dispatch and customer service. Customer service representatives respond to emails and phone calls from potential customers asking for quotes, then take customer orders. They explain the system to people who are unfamiliar with how it works, and also answer questions from current customers about shipping dates. CSRs must be friendly and polite, with good communication skills to impart information about vehicle transport. Dispatchers schedule the shipping orders, creating the most efficient route possible, often arranging pick-ups and deliveries for one driver across the entire country. Because the work is so complicated, dispatchers must be well-organized and have a solid familiarity with U.S. geography.

Benefits
Average annual earnings for auto transport drivers in 2008 was about $31,000, with the highest salaries topping out at about $41,000. The median hourly rate for customer service representatives in the transportation industry was about $12.50, and for dispatchers about $14.50. Most positions are full time, although some part-time dispatch opportunities are available, and some employers allow dispatchers to work from home. Full-time positions provide health insurance, paid vacations and holidays, and a 401k plan.

Warning
Because companies vary in reputation, potential applicants should investigate customer reviews of the companies they are interested in before applying. At least one car carrier company has been convicted of fraud and forced to pay nearly $100,000 for reimbursement to customers, while several have only 1 1/2 or 2 stars out of 5 possible in numerous reviews. See the Resources section below for a link to car carrier reviews.