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THE CHALLENGES OF MANAGING A SUCCESSFUL TRUCKING COMPANY IN THE UNITED STATES

June 22, 2022 0truck businessTrucking

The trucking industry is one of the biggest industries in the United States and provides revenue for the country. According to the American Trucking Trends 2017, trucking generated over 70% of the nation’s freight bill. However, while the trucking industry hauls billions of dollars of goods across the country every year, trucking companies face a myriad of challenges that can prevent their companies from meeting their full potential.

Starting a trucking business usually requires more than getting the appropriate license and purchasing trucks. It poses challenges you need to overcome if you want to be successful. This year has presented multiple struggles for the industry, from government freight regulations and environmental factors to rising fuel prices. Surmounting those obstacles is not impossible. But it takes time, effort, grit, and determination.

Global Mukti Services has compiled the top challenges of managing a successful trucking company in the United States to aid in the quest for a successful business. These challenges present complications relative to finding a solution. So, keep reading to find out how to address some of these challenges in your trucking company.

MEETING CUSTOMERS’ EXPECTATIONS

The evolution of customer expectations is one of the most significant challenges of managing trucking companies. In today’s world, customers surf the net with their smartphones and expect instant gratification. They expect

start-up trucking companies to keep up with trends, despite their lack of multi-million-dollar infrastructure.

Addressing expectations relating to the feasible output is a significant hurdle for many trucking companies. Also, the advent of AI, electric self-driving trucks, and other technologies has increased the expectation for trucking companies to perform more significantly than ever.

Companies now have to convince their clients they are still human-oriented. They must also show them the value of their business even when they cannot match other companies’ infrastructure.

SOLUTION

Add extra value to your service

Adding extra value to your services is always a benefit and a bonus for customer relations. Often, the most prominent companies overlook this. Therefore, your company may be able to take advantage of it.

Use modern technology

Utilizing modern technologies is another way of proving you provide value. Using modern technology tools in your day-to-day operations implies your business is moving at the speed of technological growth.

Understand what motivates your client

Understanding what motivates your client is paramount when running a successful trucking business. You must know what they want and how they want to be treated. These make them patronize and trust your business.

Build customer trust

Being open about your business operation builds customer trust. And trust is the cornerstone of any business relationship. So, always focus on building trust first.

Be open and transparent with your operation.

No one likes a shady company, and being honest about your operations and processes makes your customers expect normal operations. It also allows smooth communication.

SECURITY THREAT

Security is one of the growing concerns for trucking companies. Valuable technologies are hauled across the United States, increasing the amount of crime. With freight disappearing from storage and trucks, trucking companies must increase security in their facilities and trucks.

Cybercrime is also a new threat that has emerged in the trucking industry. Dependence on technology determines the risk of cybercrime activities in your company.

SOLUTION

Partnering with companies that have earned their status as secure technology through adequately built systems and processes ensures your company maintains secured operating environments.

DIGITAL EVOLUTION

Trucking companies operating in similar ways for decades tend to shy away from significant change. So evolution toward digital solutions has affected many trucking companies. Many digital reports are now replacing paper ones. These include operator checklist, equipment condition report, fleet repair requests, pre/post-trip inspections, accident reports, etc.

Training older drivers

Training older drivers and staff to adapt and use modern tools and technology can also be challenging.

While some adopt the new technology with open arms, others might reject the idea without question. These affect the management when operating in a fashion that is the most effective for individuals.

Introducing new technology

Introducing new processes and technologies implies an upfront expenditure with the hope of increased revenues. For example: Purchasing new electric trucks and upgrading your driver’s communications to a smartphone and tablet requires an upfront expense.

SOLUTION

The key to understanding how to tackle the challenge of digital evolution is knowing the best methods of implementing new systems into your existing framework. Make your staff understand the intrinsic value of new technologies. Show them how the efficiency of digital solutions bypasses old paper documentation.

DRIVERS FATIGUE MANAGEMENT

Driver fatigue is another challenge faced by trucking companies. Fatigue sets in on monotonous positions and can be caused by more than mere tiredness. Therefore, a critical fatigue management program is paramount for employees. Also, fatigue management is challenging for trucking companies because they want to balance efficient service while allowing their drivers to work at a more leisurely and enjoyable pace.

SOLUTION

Implementing health and safety protocols for truck drivers is the first thing to do. Technology has also provided tools to track and manage health and safety issues at multiple locations. Using automated trucks will also eliminate driver fatigue issues. However, these trucks may increase driver influence problems since they do not need to pay much attention due to assisted driving technology.

STAYING IN COMPLIANCE

Staying in compliance is mandatory for trucking companies operating across the United States. The Federal Motor Carrier Safety Administration ensures motor carriers adhere to all regulations. The Department of Transportation provides permits and licenses for trucking companies to operate legally. But renewing those permits and authority can be hectic and time-consuming. Also, every state has different regulations, making it difficult for trucking companies to keep up with them.

SOLUTION

Working with a trucking permit provider like Global Multi Services relieves you of all the stress. We will help you apply for and renew all your permits and licenses. We will also update you on changes in regulation from time to time. These allow you to focus on other parts of your business.

WRAPPING UP

The trucking industry provides an essential service and can overcome its current challenges. With foresight, perseverance, planning, and determination, you can overcome these challenges and see your business thrive.

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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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