05-1-2022.png

What Does It Cost To Start A Trucking Business?

January 5, 2022 0MC Authority

Many industries rely on the trucking industry to transport goods and raw materials from one place to another in the United States. These have presented a business opportunity for many trucking companies. But they need to obtain MC Authority and other permits to operate interstate.

The trucking business is lucrative once it starts running because of its high demand. However, the cost of starting a trucking business is intensive. The capital is expensive, with multiple operational costs associated with your business model.

Starting a trucking business also requires many costs related to trucking specifically and the ones incurred through the Federal Motor Carrier Safety Administration. In this blog, Global Multi Services will break down the cost of starting a trucking business.

Trucking Related Cost

Trucking-specific costs are paramount and assertive when starting a trucking business. It gives you independence and step into more management roles when compared to only collecting income from driving. Trucking costs are one of the largest expenses categories unique to the trucking industry. And the first costs you should be concerned with when establishing your trucking business.

According to trucking reports, one mile costs approximately $1.38 for a semi-truck, which is incredibly high for someone just getting into the business. But it can be lower depending on the type of trucking niche you plan to venture in.

The Cost For Trucking Equipment

The trucking industry is incredibly capital intensive because safety is paramount, and you need quality equipment to operate safely. Having the trucks, proper coverage, and other equipment is necessary to carry out business. And the cost of your trucking equipment is dependent on your market niche. Two options are involved when purchasing trucking equipment:

  • Purchase trucks and hire truck drivers to drive them.
  • Hire drivers that must provide their trucks.

Although the first option is often lucrative, it requires a lot of money to purchase all the equipment.

Truck Maintenance Cost

In addition to purchasing trucks and other equipment, you will also need regular preventive maintenance. These indicate issues from the trucks and keep them in good working condition to protect drivers, freight, and other road users.

Truck parts that need proper maintenance are brakes, alternator, wheel, batteries, airlines, and others. Taking care of your trucks avoids future expenses. But they are costs you need to consider when running your trucking business.

The Cost For MC Authority

MC Authority is one of the legal requirements mandatory to operate your trucking business in the United States. Motor Carrier Authority is a license issued to trucking companies by the Federal Motor Carrier Safety Administration, allowing them to transport freight on public roads.

Trucking companies also need to file paperwork to stay compliant with the trucking industry. These include applications for other permits, licenses, and fees. It also prevents them from paying hefty fines and penalties.

The Bottom Line

As you can see, establishing and running a trucking business is not a cheap endeavor. It also requires many equipment, high operating and maintenance costs to keep it running successfully. Therefore, do thorough research and prepare well before venturing into the business.

15-11-2021.gif

IRP Plates: The Responsibilities Of Trucking Companies

January 4, 2022 0IRP Plates

Trucking companies are responsible for transporting raw materials and finished products from one location to another in the United States. Hence, they need special licenses and permits like IRP Plates, UCR Permits, MC Authority, and many more to operate across state lines. They must also follow all the rules governing the trucking industry. These regulations are issued by the Department of Motor Carriers and enforced by the Federal Motor Carrier Safety Administration with help from State Police Departments throughout the United States.

The purpose of the FMCSA is to create uniform travel standards and promote safety by helping to prevent accidents. The FMCSA also ensures the trucking companies and their drivers comply with the regulations. Read on as Global Multi Services takes us through the responsibilities of trucking companies.

Better Logistics And Fleet Services

Trucking companies transport goods and products from one place to another in the United States. They provide logistics and dedicated fleet needed for each shipment, saving time, energy, and money by eliminating excess inventory. They also offer better flexible payment options, so you don’t have to worry about having enough capital every time. With their services, you will never stress over late orders, delivery delays, missing packages, and many more.

Proper Maintenance And Repair services

Trucking companies must ensure their trucks, trailers, and equipment they use are in good condition mechanically and safe to drive. That means trucking companies must perform routine inspections and schedule regular maintenance to identify and repair any potential problems before the truck hits the road.

Compliance With Standards And Regulations

The trucking industry is governed by regulations designed to keep drivers safe on the road. These include Hours of Service regulations, DOT Registration, Weight Restrictions, and many more. Failure to adhere to these regulations can create catastrophic dangers for truck drivers and other road users. It can also cause accidents and injuries.

Safety programs are also put in place to ensure compliance with various safety requirements of the regulations. Trucking companies must demonstrate it has adequate safety management controls to ensure compliance with the Federal Motor Carrier Safety Administration.

Registering For IRP Plates

The IRP is a reciprocal agreement established between the continental United States and the Canadian provinces in 1994. The plan facilitates apportioned fees collection from commercial vehicles traveling across two or more jurisdictions. The apportioned fees are calculated based on the mileage covered in each jurisdiction and the vehicle’s weight. Trucking companies need to register in their base jurisdiction to obtain their IRP Plates and fill their IRP Plate Renewal which varies from state to state.

Performing Background Checkups On Drivers

Trucking companies must perform a background check of commercial driver licenses on potential drivers. The drivers must also undergo drug and alcohol tests because of the high-risk nature of the driving jobs. Additionally, drivers with multiple driving under influence convictions or certain traffic violations in the past are ineligible for the position.

Some trucking companies often overlook these testing and background checks to fill vacant positions as quickly as possible. These can lead to hefty penalties and license cancellation from the Federal Motor Carrier Safety Administration.

29-11-2021.png

UCR Permits: Things To Consider When Choosing A Trucking Company To Haul Your Freight

January 3, 2022 0UCR Permits

Many industries use trucking companies to deliver raw materials and finish products across the United States. They are critical for reducing costs and satisfying their customers. They also impact their business and keep it running smoothly. Therefore, they need to know if they have all the mandated permits such as UCR Permits and license to operate across state lines.

Whether you need them temporarily or regularly to deliver goods at the right location on time and safely, the right trucking company will be of great help. But, before hiring a trucking company, you must ensure they are reliable and the right company that can work effectively and meets their daily operations. Read on as Global Multi Services explains things to consider when choosing a trucking company.

Good Reputation

Building a reputable trucking company takes years and can be destroyed in seconds. And trucking companies understand their reputation and connections are what drive their business. Therefore, before hiring a trucking company to haul to freight, check their compliance, Safety, and Accountability from the Federal Motor Carrier Safety Administration website. You can also ask the company for references if you cannot find any background information.

Security And Experience

Getting your freight to its destination undamaged and on time is very important in every business. Hence you need a company that prioritizes safety. They must carefully check the packaging before and after shipping to ensure that your freight is undamaged and intact. And trucking companies with years of experience can fulfill this. However, you must ensure they have rich experience in the areas of your interest. They should also be well-versed in handling all the technical, legal, and other related issues that come across during transportation.

UCR Permits

The Unified Carrier Registration is mandatory for trucking companies operating interstate in the United States. They must register in their base jurisdiction to obtain URC Permit and pay annually based on the total number of vehicles in their fleet. Therefore, it is vital always to check if the trucking company you want to hire is up-to-date with their UCR Permit. These also show their competency, capability, reliability, and compliance to the Department of Motor Vehicles.

Industrial Expertise

The trucking company you choose must be knowledgeable enough to handle all your queries related to your freight transportation. They should have the necessary information and expertise in intrastate, interstate, and international hauling. These include state-of-the-art equipment, technology to access real-time information such as live location, satellite tracking, route information, and many more about your freight. They should also provide shipment information in just a few clicks on a computer or smartphone.

Good Customer Service

Customer service is key to reliability and reputation. It is a top priority for many trucking companies, but others often neglect it. When inquiring about the trucking company, try to know whether their commitment to their customers runs deep within the company. Notice the first person you speak with on the phone, meet in the office to the other staff. You may want to look elsewhere if you find any red flags or feel dissatisfied with the service.

Newer Posts

Older Posts