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Facts You Do Not Know About The Trucking Industry

December 29, 2021 0MC AuthorityUCR Permits

Many people are aware of the basics of the trucking industry and its importance. But there is a lot more they need to know about the industry. The trucking industry makes a large part of the United States economy, and many people rely on trucking companies to deliver commercial and industrial items. Trucking companies must also adhere to the regulations of the industry to operate across the country. These include obtaining licenses and permit such as MC Authority, UCR Permits, and many more.

If the trucking industry disappears, many people will be left homeless and have nothing to eat. There would also be ramifications in the country.  Read on as Global Multi Services walk you through some interesting facts you do not know about the trucking industry.

TRUCK HAUL MORE FREIGHT

According to reports, trucking companies transport raw materials and goods from one place to another across the United States. Surprisingly, they transport about 70% of these goods and raw materials through trucks. Research has also shown that truck drivers haul around 12 billion tons of goods every year.

Other methods for transporting freight include rail, air, pipeline, or vessel. However, they cannot carry as much weight as trucks when hauling within the United States. That is why the reliance on trucks continues to increase over the years.

MC AUTHORITY IS MANDATORY

Trucking companies need to obtain Motor Carrier Authority and other licenses to transport goods on public roads in the United States. The authority is issued to them by the Federal Motor Carrier Safety Administration. Failure to obtain these authorities can lead to hefty fines and penalties.

THERE ARE DIFFERENT TYPES OF TRUCK DRIVERS

Many people do not know that there are different kinds of truck drivers. These include over-the-road drivers, regional drivers, dry van drivers, tanker drivers, refrigerated freight drivers, and many more.

OTR Truck Drivers: The OTR truck drivers transport freight throughout the United States. They spent days and weeks on the road away from their family.

Regional Drivers: The regional truck drivers haul freight within a specific area. They only remain outside for a few hours and complete their shifts on time.

Refrigerated Freight Drivers: Refrigerated freight truckers deliver perishable goods such as medical products, meats, body products, and many more. They need to know how to regulate their truck’s temperature, keep tabs on any temperature fluctuations, and store the goods properly for the best refrigeration and temperature stability.

Dry Van Drivers: Dry van drivers often operate large single trailer vehicles containing non-perishable products and dry goods.

Therefore, you need to understand how drivers work if you plan to start a trucking company.

SHORTAGE OF TRUCK DRIVERS

The trucking industry is experiencing a severe shortage of drivers, and they are struggling to meet customers’ demands. And one of the leading reasons behind the lack of drivers is age. The average age to drive a truck is twenty-one years, and many young adults often divert to other professions before reaching that age.

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IRP Plates: How To Overcome Challenges As A New Trucking Company

December 27, 2021 0IRP PlateIRP PlatesIRP RegistrationIRP Renewal

Overcoming the challenges, you face as a newbie in the trucking industry depends on what you know and the revenue your company generates. Trucking is a risky business, and trucks are expensive to acquire and maintain. Plus, anyone with a CDL, a few thousand dollars, and an IRP Plates can haul freight regardless of their knowledge of the business of trucking.

You overcome challenges by having a plan when managing your assets. These include preparing for the unexpected, equipment breakdowns, and covering operational costs while waiting for customers to pay. Having a clear vision of building your company’s net worth also helps you stay positive. Read on as Global Multi services take us through how to overcome challenges in the trucking industry.

Determine Your Rate

One of the mistakes new trucking companies make is allowing others to determine their hauling rates. Allowing your competitors to determine your rate is the first step to business failure. No mechanic will ask you what you’d like to pay to have your truck fixed. They always tell you the amount they are charging. Therefore, do not let someone else set your hauling rates. And the only way to set profitable rates is by knowing how to set the balance.

Register For IRP Plates

Trucking companies must obtain IRP Plate to operate across states line in the country. The International Registration Plan is a reciprocal agreement between the continental United States and Canadian provinces to facilitate the collection of apportioned fees from trucking companies traveling in two or more jurisdictions. They must also register in their base jurisdiction, and failure to adhere to this regulation can lead to hefty penalties.

Strive To Improve

Top trucking companies are always looking for new and innovative cost-saving ideas to remain the best in the industry. They ensure their drivers, dispatchers, managers, and salespeople continuously improve. Therefore, you need to keep researching what will help you become a more efficient hauling company. Stay on top of the trends and news from the trucking industry and other trucking companies.

Track Your Cash Flow

You need to know the cash flow when planning for the future. Do you still have money after paying your bills and one-time expenses? If your company is not profitable, you need to why and what you can do to break even. This means your revenue is equal to your fixed and variable costs. Have a profit margin that funds your company and save some money to get through the difficult times.

Manage Your Risk

It is imperative to calculate the benefits of financing your company and the risks. Can you get a loan, and how much should you borrow? Do you need brand new trucks and equipment to operate effectively? Is putting your property or equipment up as collateral a wise decision? Explore all your financing options to find the right fit for your business. Purchasing new equipment often requires down payments, and the interest can affect your cash flow. Therefore, take a strategic approach to manage your assets and cash flow.

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IFTA FUEL TAX RETURN: PERMIT AND LICENSE TIPS FOR TRUCKING COMPANIES

December 24, 2021 0IFTA DecalIFTA Fuel Tax ReturnsIFTA PermitIFTA Program

The trucking industry is one of the most regulated industries in the United States at the state, federal, and international levels. There are numerous rules they must obey to operate across the state. These include obtaining IFTA Permits, IRP Plate, USDOT, Filing IFTA Fuel Tax Return, and many more. Navigating these rules can be challenging for many trucking companies. But they must follow them otherwise, face stiff fines and penalties, or may even lose their authority. Read on as Global Multi Services takes us through permits obtained by trucking companies at the federal and international levels.

PERMIT OBTAIN AT THE FEDERAL LEVEL

The Federal Motor Carrier Safety Administration is the governing body that oversees registrations for USDOT and MC Authority.

  • USDOT NUMBER AND MC AUTHORITY

The USDOT Number is a unique identification number used to evaluate the safety practices of trucking companies. Trucking companies operating interstate are generally required to obtain a USDOT number issued by the Federal Motor Carrier Safety Administration.

MC Authority is a permission trucking companies obtains from the Federal Motor Carrier Safety Administration to transport goods across the United States. They also require a DOT number and appoint a process agent in their base states.

  • COMMERCIAL DRIVER’S LICENSE

A commercial driver’s license is mandatory for drivers to drive a commercial vehicle legally in the United States. They must be above 18years, complete training, and pass a driving test before receiving the license. While the application and testing requirements vary from state to state, most states require drivers to be 21years and above for interstate travel. To qualify for a commercial driver’s license, drivers must pass a knowledge test, a skills test, and a medical screening.

  • UCR PERMIT

The Unified Carrier Registration is a federally-mandated program for trucking companies operating across interstate and international borders. Trucking companies must register in their base state to obtain UCR Permits. They also need to pay an annual fee based on the total number of vehicles in their fleet. Trucking companies whose base state does not participate in UCR must register with their neighboring participating state to obtain their UCR Permits.

PERMIT OBTAIN AT THE INTERNATIONAL LEVEL

  • IRP PLATE

The International Registration Plan allows motor carriers to operate across the province of Canada. Trucking companies must first register in their base state and pay an apportioned fee. The fees are calculated based on the distance covered in a specific jurisdiction and the weight of the vehicles. After registration, they must track and report the mileage travel in each jurisdiction and renew their IRP Plate annually.

  • IFTA PERMIT

The International Fuel Tax Agreement is a cooperative agreement between the provinces of Canada and states of the United States except for Hawaii, Alaska. IFTA mainly aims to establish and maintain the concept of using a single fuel license used by interstate motor carriers. Qualified motor carriers need to register for IFTA in their base state, receive IFTA Permit and IFTA Decal. They must also carefully document fuel usage in each jurisdiction and file IFTA Fuel Tax Return in their base jurisdiction.

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