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REASONS MANY TRUCKING COMPANIES CONTINUE TO FAIL 

June 16, 2022 0Permitstruck businessTrucking

Running a trucking company can be rewarding, but it is not for everyone. People come into this industry with unrealistic expectations to be successful in months. Forgetting there are certain precautions and practices you need to adhere to attain success.

According to reports, more than 500 trucking companies went under in 2019. This trend is said to be caused by unfavorable conditions for new companies in the trucking industry. But the failure of established firms has pointed to other causes.

Trucking companies face risks day in and day out, especially if they are new to the landscape of operation. But these are avoidable with proper planning and having the right help in your corner. Therefore, knowing the common reasons other trucking companies fail can help you prevent being one of them.

In this blog, Global Multi Services gives you a hand-up on the industry by covering why trucking companies continue to fail.

LACK OF PLANNING 

Starting a business is rewarding and life-changing. However, a proper business plan is imperative to its success. Every trucking company needs a firm foundation to build strategies and techniques to operate efficiently. Running a trucking business is the same as running other businesses. But the industry has many state and federal regulations with a unique client base.

Failing to factor them into your business plan may haunt your business later. Therefore, you need thorough research and a plan to build a good foundation. Having a business plan also helps you brace for any possible contingencies. Hence, take time to create your business blueprint and, if possible, involve a corporate attorney. Understand your client base, know the market, and calculate weight surcharges.

UNSKILLED MANAGEMENT 

Sales activities take place outside the business premises for trucking companies. Therefore, a managerial effort is required to keep track of all the drivers on the road. They also ensure the freight arrives on time and in perfect condition. So, employ a management team to keep track of money flow, bills, operations, and more.

Managers are one of the most important aspects of a business operation, and unskilled managers scare off good employees, making them leave. Therefore, your management team must have qualifications and experience. That way, you will be surrounded by a knowledgeable team with a nodding acquaintance with business success.

CASH FLOW PROBLEM 

Starting a trucking business without considering your cash flow is one of the biggest mistakes business owners make. The cash-flow issue is a combination of many factors. These include low-paying freight, high costs of operations, too many unpaid invoices, etc. Also, clients often take up to two months to pay their invoices, and the trucking company has to cover the costs with its money. To ensure business operations go on, the company needs to foot utility bills, pay employees, build inventory, pay suppliers, get more clients, and cover tax expenses. So, lay out strategies to manage your cash flow with the help of a business management service.

COMPLIANCE ISSUE

Staying compliant is paramount for trucking companies operating across the United States. The Federal Motor Carrier Safety Administration encourages safe driving and ensures they follow the required regulations. These include obtaining permits, licenses, DOT Compliance, maintenance, etc. Also, every state has its requirements depending on freight, truck weight, and the distance traveled. Failure to adhere to these regulations can lead to fines, penalties, license revocation, or shutdown.

TO SUM IT UP 

The trucking industry is competitive, and you can only be successful with a comprehensive business plan while identifying and exploiting available market gaps. Do thorough research and avoid unnecessary mistakes. Stick to your plans and learn from your predecessors to be successful.

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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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IMPORTANT WAYS TRUCKING COMPANIES CAN AVOID FINES AND PENALTIES

March 31, 2022 0IFTAIFTA PermitMotor Carrier PermitTrucking

Running a trucking company requires complying with regulations and familiarizing yourself with the intricacies of permits. These include obtaining IFTA permits, IFTAL Decal, USDOT Numbers, etc. These regulations ensure trucking companies conform to safety requirements and other guidelines that affect nearly every aspect of the trucking industry. It also keeps them on track and avoids paying fines.

According to research, trucking companies that prioritize safety and compliance grow successful businesses. With that said, here are ways trucking companies can avoid penalties and fines.

  • Obtain IFTA Permit
  • Compliance with Hour of Service
  • Obtain USDOT Number
  • Drug and alcohol testing

OBTAIN IFTA PERMIT 

For many decades, motor carriers had to apply for licenses and file fuel taxes with each state based on fuel purchased and consumed within each jurisdiction. This process was highly tedious, inefficient, and time-consuming. These lead to the establishment of IFTA.

With IFTA, carriers could use a single fuel license when operating interstate. It also simplifies fuel tax collection for motor carriers. But motor carriers must register in their base state to obtain IFTA Decal, IFTA Permit, and file IFTA Fuel Tax Returns. These keep them in compliance and avoid paying fines.

COMPLIANCE WITH HOUR OF SERVICE 

The Federal Motor Carrier Safety Administration specifies the number of hours truck drivers are allowed to be behind the wheel daily and weekly. These prevent truckers from becoming tired on the road. It also minimizes the risk of crashes and ensures they rest before they start their next shift. Understanding HOS and ensuring your drivers comply with it save you from penalties and build customers’ trust.

OBTAIN USDOT NUMBER 

The USDOT Number is mandatory for trucking companies operating interstates. It is a unique identification number assigned by the Federal Motor Carrier Safety Administration to track trucking companies’ performance, compliance review, safety information, crash investigation, and many more. These ensure secure, modern, and efficient transport systems. Obtaining USDOT Number requires filling out and submitting your application form with the DOT. These can be time-consuming and hectic for newbies. Global Multi Services provides step-by-step guidance to obtain your USDOT Number. We ensure your application is processed accurately and promptly.

DRUG AND ALCOHOL TESTING

The FMCSA requires trucking companies to complete drug and alcohol testing programs. Trucking companies must always test their employees for drugs and alcohol to ensure safety. Their drivers must test negative before they start driving. Drug and alcohol testing is also required after an accident to ensure the driver stays compliant while driving.

THE BOTTOM LINE 

Staying up to date with industry regulations is vital for the success and reputation of your trucking company. Establish a culture of compliance today to boost business reputation and avoid being penalized.

Global Multi Services can help you avoid violations and follow DOT laws and regulations. Our professionals are here to make your job easier by providing a quick and error-free permit.

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