01-12-2021.jpg

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.


01-11-2021.png

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.


22-12-2020-1200x890.jpg

The trucking industry is one of the fastest-growing and most regulated industries in the United States. Establishing a trucking company needs thorough research on how the industry works and considering various compliance obligations. Trucking companies need to obtain permits and licenses to operate across state lines. They also need quarterly and annual filings to stay in compliance. Examples of these filing are IFTA Fuel Tax Return, IRP Plate, UCR Permit, and many more. The filing is done through the Federal Motor Carrier Safety Administration and other operating bodies. Continue reading as Global Multi Services explains filing trucking companies needs to stay in compliance.

Designation Of Process Agent

Filing the BOC-3 form is mandatory for trucking companies operating in the United States. Trucking companies need to file Designation of Agents for Service of Process when applying for authority. The process agent represents the company when sued. Trucking companies must renew their BOC-3 filing every year. The filing costs between one hundred to two hundred dollars, and it’s filled annually to stay in compliance.

Unified Carrier Registration

The Unified Carrier Registration Renewal is mandatory for trucking companies engaged in interstate commerce. The renewal process is easy and provides smooth operation for commercial motor carriers with no delay. Trucking companies can complete UCR filing through the Department of Transportation in their state. The filing fee depends on the number of trucks in their fleet. Failing to apply for your UCR Renewal on time may lead to fines and penalties.

IRP Plates Registration

IRP is important for trucking companies operating across the Canadian province, the District of Columbia, and the United States except for Alaska and Hawaii. The International Registration Plan facilitates one license plates and fees collection from trucking companies engaged in interstate commerce. Trucking companies must register for IRP Plate in their base jurisdiction and pay an apportionable fee, calculated based on the miles covered in each jurisdiction. IRP has filed annually through the Department of Transportation in each jurisdiction.

IFTA Fuel Tax Return

The International Fuel Tax Agreement is an agreement between the Canadian province and the United States except for Hawaii, Alaska. IFTA establishes the concept of using a single fuel license and simplifies fuel tax collection for motor carriers operating interstate. Qualified motor carriers must register and obtain an IFTA license and two IFTA Decals in their base jurisdiction. Trucking companies must keep records of mileage covered in all participating jurisdictions and gallons of fuel purchased in each state. They must also file IFTA Fuel Tax Returns for every fiscal quarter.

The Bottom Line

Trucking companies must comply with federal, state, and local taxes to avoid penalties. They must have an IFTA account to file IFTA Fuel Tax Report. They must also report quarterly driven miles of their motor carriers to ensure the accuracy of their filed tax. Global Multi Services helps process IFTA permits and file IFTA Fuel Tax Returns.