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THE GREATEST CHALLENGES FACED BY THE TRUCKING INDUSTRY IN THE UNITED STATES

May 26, 2022 048 States Truck PermitsPermits

Are you planning to kick off your trucking business plan and ready to get the wheels turning? You may have assumed everything is a bed of roses. But when you get into the industry, you will realize getting into gear can be more complicated than you imagined.

The trucking industry is prey to challenges, and the more informed you are about the specific vulnerabilities, the more prepared you will be. These challenges range far and wide, and no one knows when the dead-end will come. Many factors have also increased these challenges. They include advanced technology, driver shortages, and even international trade disputes.

The trucking industry issues are inevitable but have a lot to offer if you are ready and willing to focus on doing it right. Buckle up as Global Multi Services takes you through the trucking industry challenges in the United States.

  • Driver shortage
  • Constantly changing regulations
  • Deteriorating infrastructure
  • Financing a trucking company

DRIVER SHORTAGE

One of the biggest challenges the trucking industry experience in the United States is the shortage of truck drivers. According to reports, the trucking industry has more than 63,000 driver shortages. Also, only about 6% stay in their position every year. Reports from the American Trucking Association also indicate that it might grow to 100,000 by 2022.

Driver shortages are plaguing the trucking industry due to an aging population and increased demand from e-commerce. Also, older drivers are retiring with no replacement by younger generations. These have led to increased pressure to deliver on time, driver fatigue from extra hours on the road, and subsequent risk of accidents and injuries.

CONSTANTLY CHANGING REGULATIONS

The trucking industry is subject to constant review and revision. Each state in the United States also has different regulations. These make it difficult to operate and stay compliant in the industry. Trucking companies must now install devices that track the hours their trucks spend on the road every day. The Federal Motor Carrier Safety Administration has also proposed lengthening shifts, changing rules regarding breaks, and others.

Trucking companies must also update the drug & alcohol testing with the FCMSA. These cost trucking companies money and put fleets of trucks out of commission until they are complete. These regulations make it harder for trucking companies to deliver on time on top of the existing problem of driver shortages.

DETERIORATING INFRASTRUCTURE

Having a safe and reliable infrastructure is crucial for operating a successful trucking company. That is why trucking companies have an infrastructure spending plan. But these come with a cost. Asphalt deterioration, signage issues, construction delays, crumbling bridges, roads, and tunnels. All these affect the delivery of goods and cause accidents.

According to American Society of Civil Engineers reports, traffic congestion wastes more than $3.1 billion worth of fuel every year. These increase delivery delays and ruin perishable goods. It can also affect the trucking company’s reputation and cancellation of contracts. Unfortunately, these challenges cannot be controlled by the trucking industry officials.

FINANCING A TRUCKING COMPANY

The cost of running a trucking business is enormous and can get out of hand without proper research and understanding of how it works. Seeking the help of financing companies that suits your trucking business is also paramount. Apply for a business loan with tailored guidance on how to improve your trucking business funding changes. Advanced algorithms can also match you with lending solutions that meet your financial profile and needs.

KEY TAKEAWAY

The trucking industry has a lot to offer, and there are enough for you to claim your slice of the pie. But it comes with its challenges and several potholes. Global Multi Services is a truck permit that provides and operates across the United States. Reach out to us for all your trucking permit and license needs.

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WHY IS THE TRUCKING INDUSTRY AND TRUCK PERMIT IMPORTANT IN THE UNITED STATES?

May 18, 2022 0PermitsTrucking

The trucking industry moves goods across overland routes in the United States. They deliver freight from rail yards, ports, and airports to their final destinations. They also have a market worth $732.3 billion and allow flexibility in delivery times.

The trucking industry is the most reliable and more affordable than other means of transportation. They are a vital pillar of the economy of the United States. Also, every sector of the American economy relies on the trucking industry to function daily. Additionally, they provide massive job opportunities to the country and are responsible for employing approximately seven million people, half of whom are truck drivers.

Trucking companies need truck permits and other documents before operating intrastate or interstate. These laws are put in place to regulate the trucking industry and protect the country’s roads. Also, it avoids accidents and ensures truck drivers adhere to government regulations. But the processing of these permits can be a hassle and takes some time.

Global Multi Services have the legal experience and expertise to get a truck permit for your hassle-free. Continue reading as we discuss the importance of the trucking industry and truck permits.

IMPORTANCE OF THE TRUCKING INDUSTRY

SHIPMENT OF GOODS 

Goods travel on trucks at one point or another before reaching their final destination. Many companies and business owners also depend on domestic shipments to run their businesses, and trucks haul about 70% of all domestic shipments. Therefore, the trucking industry enables businesses to transport their products across the country. They also allow them to get the raw materials and the supplies they need to continue running their companies. These add up to about $140 billion in goods shipped by motor carriers per year. These goods include agricultural products, furniture, stone and minerals, vehicles, wood, textiles, leathers, coal, petroleum, etc.

EMPLOYMENT OPPORTUNITY

The trucking industry provides employment opportunities for many people in the country. According to reports, more than 700,000 truck drivers are employed in the United States and earn about 30 billion dollars every year. Hence, the industry invests a lot of money in the country’s economy. The trucking industry supports consumers and businesses by transporting raw materials and finished products all over the country to be purchased by everyone.

Being a truck driver can get lonely, but they are vital to the country. They pull massive loads and cannot even see behind them for the most part. They also spend several days all alone in their trucks. Some truck drivers spend days and weeks away from their families, which can be difficult.

BOOST THE ECONOMY

A country’s economy relies on consumers buying goods and services, and the trucking industry adds a lot to the American economy. In a country as large as the United States, product transportation is everything we could ever need to ensure every citizen gets what they need. The trucking industry is pretty much responsible for everything the citizen buys. The product can get there in a semi-truck or shipped as raw materials in a truck to where they assembled the product.

Most states in the United States have land areas. So, boats cannot be used for everything, and flying goods and raw materials are expensive. Therefore, truck driving is our only option.

The trucking industry adds a lot to the American economy. Trucks are responsible for about 84% of the entire revenue of the whole transportation industry. It brings in more than $500 billion in revenue each year. These contributions to the gross income of the country and boost its economy.

IMPORTANCE OF TRUCK PERMIT

COMPLIANCE TO LAW

The Department of Transportation and the Federal Motor Carrier Safety Administration set many regulations to ensure the trucking industry adheres to safety rules. Hence, it is vital to know the requirements and necessary procedures to comply with the laws. Running a trucking company is already challenging, and getting penalized for not adhering to the law can affect your business reputation.

AVOID ACCIDENTS

Aside from permits necessary to travel from one state to another, safety rules are put in place to protect other vehicles and road users. Trucking companies must do pre-inspections on their truck to ensure it is in good working condition before hitting the road. These show all the truck parts are working perfectly and will not cause any havoc on the road. They must do drug and alcohol tests for their drivers and other employees in the country.

WIDE RANGE DELIVERY

Truck permits allow motor carriers to operate across the United States. These include IRP Plate, Motor Carrie permit, MC Authority IFTA, etc.

The International Registration Plan is an agreement between the 48 contiguous states of the United States and the Canadian province. The plate facilitates apportioned fee collection from motor carriers traveling across two or more states.

The International Fuel Tax Agreement maintains the concept of using a single fuel license for interstate carriers. Qualified motor carriers must register and obtain an IFTA permit and file IFTA Fuel Tax Returns in their base jurisdiction.

THE BOTTOM LINE

Trucking is a profession that provides plenty of opportunities for work, growth, and freedom. According to reports, the number of truck drivers is steadily rising. But it is not enough to keep up with the current demands of the economy. With demands higher than ever, it is an opportune time to pursue a career in truck driving. The trucking industry supports the citizens and is the backbone of the country. Therefore, becoming a truck driver means you are supporting a healthy economy.

GLOBAL MULTI-SERVICES HAVE WHAT IT TAKES

Registering your trucking business to get MC Authority is stress-free when you find the right company with the experience to help you in assisting your needs. Global Multi services have the expertise you need. Contact us today for all your trucking permits and authority

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The Significance of Checking USDOT Number of Trucking Companies

April 12, 2022 0PermitsUSDOT Number

The US Department of Transportation was established to ensure safe, modern, and efficient transport systems across the United States. These also include establishing an agency called the Federal Motor Carrier Safety Administration. They regulate the commercial trucking industry to reduce accidents and injuries. Therefore, companies and individuals should check the USDOT Number when using commercial vehicles to transport their freight.

A USDOT Number Registration protects customers against fraud and is an easy way to check a trucking company’s safety record. It also helps in verifying their legitimacy and compliance with regulations. However, some companies often try to hide their safety records by creating fake USDOT Numbers. Hence, use the FMCSA website to see if the number on the company’s website is legit.

WHO NEEDS USDOT NUMBER?

All trucking companies with a Gross Vehicle Weight above 10,000 pounds and participating in interstate commerce must register their vehicles with the Federal Motor Carrier Safety Administration and obtain a USDOT Number. Motor carriers transporting hazardous materials such as propane, fertilizers, pesticides, and herbicides also need it.

HOW TO CHECK USDOT NUMBER FOR TRUCKS

Ensuring the trucking company, you want to hire has a registered USDOT Number is vital for the safety of your freight. It allows you to make an informed decision based on the company’s past performance.

Here is how to check below:

USE THE FMCSA’S SAFER SYSTEM SEARCH PAGE

The Safety and Fitness Electronic Records System is a database with trucking company safety and complaints information. Thus, individuals and companies can search for USDOT Numbers using the SAFER system search page.

SEARCH WITH COMPANY NAME

Go to the FMCSA official website search menu and write the company’s name. Ensure you change the search criteria to “Name” before pressing the search button. Also, many trucking companies have similar names so pay attention to ensure you select the accurate one.

SELECT THE CORRECT NAME

Trucking companies are registered with their legal name on the FMCSA website, and many trucking companies have similar names. Thus, it is easy to choose the wrong company if you do not know its base state. You can get the company’s location on their website or with a quick google search.

GO THROUGH THE COMPANY SNAPSHOT PAGE

The snapshot page consists of the company’s profile and data such as their complaint and inspection history, safety and performance ratings, accidents, and others. You will also find their legal name and USDOT Number. Check if their identification and contact information match the ones provided on the website and ensure their USDOT Number is not declared: Out of Service.

KEY TAKEAWAY

USDOT Number helps protect individuals and companies that need movers from hiring an unreputable company. Checking the FMCSA database will provide vital information on their safety and compliance history

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