Motor Carrier Renewal Archives - Global Multiservices

The trucking industry is massive in the United States, with different sectors involved in various areas of the industry. Trucks transport 70% of the goods in the country, which makes the industry a massive market share. With the essential nature of the industry, why do many trucking companies fail? The trucking industry is highly regulated and staying compliant is very important. Trucking companies need to obtain their motor carrier permits, MC Authority, USDOT Number, and many more. Failure to do so can lead to a hefty penalty which can affect the company’s revenue.

They also face many challenges every day, especially the newbies. These include bad weather conditions, accidents, truck breakdowns, and many more. While there are many benefits of starting a trucking company, you also stand a lot to lose. But knowing the reasons other trucking companies fail can help you prevent being one of them. Read on, as Global Multi Services take us through why trucking companies fail.

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LACK OF RESOURCES

Resources are an essential part of every business, and it’s no difference in the trucking industry. A standardized trucking company must have good trucks, competent drivers, professional dispatchers with good management, and many more. Without these, meeting customer’s needs and operating with utmost efficiency can be strenuous. These can give the company a bad reputation and make them go out of business within the first few years.

POOR MANAGEMENT SKILLS

The trucking industry is different from other industries because most sales activities take place outside the business premises. Trucks haul freight from one place to another every day, and a lot of managerial effort is required to keep track of drivers. They need to ensure the drivers arrive on time and in perfect condition. Without good management skills, there might be loopholes in operation leading to customer dissatisfaction. Therefore, it is paramount to recruit employees base on qualifications and experience. That way, the company will have knowledgeable individuals who have a nodding acquaintance with business success.

POOR BUSINESS PLAN

While the idea of starting a business is exciting, rushing into it can be dangerous. It needs proper research and a definitive plan. Poor planning often led to business failure. Therefore, do your research and understand how the industry works. Know your target customers and partner with professionals to come up with a comprehensive plan. You need a firm foundation, great strategies, and techniques to operate efficiently.

FAILURE TO OBTAIN MOTOR CARRIER PERMIT

Starting a trucking company requires you to follow regulations given by the Federal Motor Carrier Safety Administration. These include obtaining your motor carrier permits, IRP Plate, IFTA license, MC Number, and many more. Every state also has its requirements depending on the type of freight, truck weight, and distance traveled by truck. Failure to stay in compliance can lead to license revoke, leading to business failure.

LOW PAYING FREIGHT

Running a trucking company is expensive, but your expenses should not exceed your revenue. Therefore, you need to keep track of your cash-flow statements and make quote adjustments accordingly to avoid losing. Make sure your income aligns with your business objectives to avoid business failure.


With the development of new technology and more people ordering and tracking items than ever before, hiring a trucking company to move freight might be the best option for every business. The ability to move goods effectively over long distances is a crucial factor. And trucks have proven to be very affordable and safe. Trucking companies obtain motor carrier permit, IRP plates, and other licenses to operate in intrastate and interstate commerce. They also offer the perfect balance of weight, and the industry is well regulated. Trucking companies with good safety records, top-notch customer satisfaction, excellent service, experience, and expertise offer far more benefits than other means of transportation. With that said, read on as Global Multi Services takes us through the benefits of hiring a trucking company.

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EXPERTISE, EXPERIENCE, AND MOTOR CARRIER PERMIT

Trucking companies have the expertise and experience it takes to transport your freight quickly and safely. They have been in the business for many years and have understood how it works. They also have the license and permit to haul. If you want your goods delivered safely, you need a trusted and reliable trucking company. With their right expertise and significant years of experience, they will put you at ease because they know what they are doing.

SAVES TIME AND ENERGY 

The faster you get your materials and goods where they need to be, the more successful your business will be. Trucking companies are experts in shipping goods. They know all the required documentation to transport goods from one place to another and have streamlined the process to make it easy and efficient. Using them will save you a lot of time and energy required to manage your fleet and figure out your shipment.

MOTOR CARRIER PERMIT

The trucking industry is a regulated industry in the United States. Motor carriers must obtain a motor carrier permit from the Department of Motor Vehicles before operating across state lines. The Federal Motor Carrier Safety Administration also ensures trucking companies comply with safety and commercial regulations by carrying out audits and inspections. These help to eliminate bad driving and reduce crashes and accidents.

TRUCK WITH MULTIPLE SERVICES 

Trucking companies offer a wide range of services. These include LTL&FTL truckload shipping, reefer freight, same and next-day delivery, warehousing, freight management, and many more. With this range of services, you can form a relationship with one trucking company that will handle your shipping needs. These lead to cost reduction, allows you to enjoy an exceptional level of service and improved customer satisfaction.

BETTER RISK MANAGEMENT 

The trucking industry is one of the most dangerous industries in the United States. More than 400,000 truck accidents occur every year, and the supply chain is in constant danger of interruption. Goods and materials are also prone to theft and damage. All these can be reduced by using a trucking company. They have all the licenses needed to transport your freight and have insurance coverage. These help them when things go south during the transportation process.


Starting a trucking business and applying for a motor carrier permit are big decisions to make. A motor carrier permit is a document issued by the Department of Motor Vehicles Motor Carrier Services Branch. It shows the motor carrier is registered with the DMV as dictated by CVC Section 34620. Additionally, the permit verifies the motor carrier services meet all the requirements to operate commercially on California’s highways. It also contains essential information about the motor carrier. These include motor carrier name, expiration dates of the permit, motor carrier renewal date, mailing address, CA#, and many more. Read on as Global Multi Services takes us through things to consider as you begin your journey. The list will get you off on the right foot and help you make the best decisions.

Motor Carrier Permit

Do Your Research About Motor Carrier Permit

The biggest hurdle to starting a trucking business is getting all the information you need to get started. It takes a lot of research and consistency to get going, but it is often worth it. Researching about your target market, type of freight to haul, safety, and compliance will help establish your business goal. The long-term benefit is all that matters as long as you do things right. Before starting, you need to get your motor carrier permit and other essential licenses. The type of license and permit required depends a lot on your base state and the states you want to operate across.

Obtain the New Entrant Safety Audit

The new entrant safety audit is a requirement by the Federal Motor Carrier Safety Administration to ensure new trucking companies follow recommended safety standards. The FMCSA audit every interstate trucking company within their first year of operation. Knowing about the New Entrant Safety Audit beforehand can be a breeze of change.  But it can become a nightmare if things go wrong. Trucking companies with motor carrier permits but do not meet the minimum FMCSA safety requirements can be fined. Some are told to provide a corrective action plan, while others are often removed from service.

Apply for Motor Carrier Permit 

Probably one of the most important steps when starting a trucking company. Getting a trucking permit company to help you obtain your motor carrier permit is the best decision.  They will help you through many of the steps you must take before you start operating. Their charges are a bit high but worth the price because they will save you from lots of paperwork and processing. At Global Multi Services, we ensure you get the appropriate operating authority for your business. We will also help you process your Motor Carrier renewal when necessary. Contact us today and obtain your motor carrier permit post-haste.

Get Your IFTA License 

IFTA allows commercial motor carriers to register in their base state and have their tax assessments paid out to all member states according to miles travel and fuel purchase in each member state. Therefore, you need to keep track of your fuel purchase and the miles covered in each state. These can be made easy by having a trip envelop or an electronic onboard recorder.