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Things To Do When Starting A Trucking Business

January 21, 2022 by admin0IRP RenewalMC Authority

Trucking companies follow strict regulations from the Federal Motor Carrier Safety Administration to stay compliant. From obtaining MC Authority, processing UCR Renewals, to IRP Plates Renewal.

The trucking industry is one of the most significant and ever-growing industries in the United States. These present business opportunities for many people in the country. Though highly competitive, it has great potential for entrepreneurs that understand the business.

There is so much benefit to running a trucking business. These include: choosing your niche, routes, rate per miles, the companies to work with, and many more. It also provides a perfect combination of freedom and financial success.

But despite all the benefits mentioned above, starting a trucking business is lucrative and capital intensive, with multiple costs associated depending on your business niche. Also, it can sometimes be overwhelming with hurdles and challenges. That is why many people avoid venturing into the business despite the potential benefits they can enjoy.

Do you want to start a trucking business but don’t know where to begin? Global Multi Services highlights a straightforward guide that will steer you in the right direction.

WHY DO YOU NEED TO VENTURE INTO THE TRUCKING BUSINESS?

With driver shortage, increasing freight demand, and rates, you have the potential to make a lot of money by venturing into a trucking business. Aside from the ease of access into the industry, you will also build a sustainable business. But you will need to do thorough research to understand how the industry works. You also need to look for customers and contracts because they do not magically appear.

Here are things to do before starting a trucking business.

HAVE A BUSINESS PLAN

Having a business plan is very crucial when starting a trucking business. Just as a new job requires a fresh perspective and goals, a new trucking business needs an organized plan. A business plan is your fundamental guide and roadmap that determines your success. It is a GPS that gets you from where you are now to where you want to be.

It also helps you articulate your value proposition and shows potential obstacles down the road. Your business plan should include your financial budget, the type of equipment you plan to buy or lease, market niche, and other crucial business decisions.

CHOOSE A NICHE

Targeting the right market niche is crucial when starting a trucking business. Having a niche help streamline your operational processes and resources, optimize your sales, avoid competition with many companies and establish your name in the industry,

PERMITS AND LICENSE

Trucking companies must have specific licenses and permits to operate legally in the trucking industry. The type of permit you need depends on your market niche, base state, the type of freight you haul, and many more.

HOW TO STAY IN COMPLIANCE IN THE TRUCKING BUSINESS

Staying in compliance in the trucking industry requires obtaining several permits. The permits allow you to operate legally as a trucking business and also allow your trucks to transport freights across state lines. Having all these permits prevents you from paying hefty fines and penalties.

Here are permit and renewal processes to stay compliant in the trucking industry.

ACQUIRE YOUR MC AUTHORITY

MC Authority is mandatory for trucking companies operating across the United States. The authority indicates the Federal Motor Carrier Safety Administration (FMCSA) has given the trucking company permission to transport goods on public roads. There are other trucking-related registrations that a new business must obtain. They include IRP Plates, UCR Permit, IFTA Permits, and many more.

OBTAIN IFTA LICENSE

The International Fuel Tax Agreement is mandatory for trucking companies operating across interstate and international borders. Qualified motor carriers must register in their base state and obtain IFTA License with two IFTA Decals. They are also required to file IFTA Fuel Tax Returns quarterly in their base state.

PROCESS UCR RENEWAL

Trucking companies must obtain UCR Permit and process their UCR Renewals annually to run their trucking business smoothly. The Unified Carrier Registration is a federally-mandated program for trucking companies operating interstate and internationally. Trucking companies must apply in their base state and renew their permit before the expiring date to avoid penalties.

FILE IRP PLATES RENEWAL

The International Registration Plan allows trucking companies to operate across multiple jurisdictions using a single license plate. But they must register in their base state to obtain IRP Plates. All registered motor carriers must keep records of the distance covered in each member jurisdiction to process IRP Plates Renewal.

 

 

 

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What Does It Cost To Start A Trucking Business?

January 5, 2022 by admin0MC Authority

Many industries rely on the trucking industry to transport goods and raw materials from one place to another in the United States. These have presented a business opportunity for many trucking companies. But they need to obtain MC Authority and other permits to operate interstate.

The trucking business is lucrative once it starts running because of its high demand. However, the cost of starting a trucking business is intensive. The capital is expensive, with multiple operational costs associated with your business model.

Starting a trucking business also requires many costs related to trucking specifically and the ones incurred through the Federal Motor Carrier Safety Administration. In this blog, Global Multi Services will break down the cost of starting a trucking business.

Trucking Related Cost

Trucking-specific costs are paramount and assertive when starting a trucking business. It gives you independence and step into more management roles when compared to only collecting income from driving. Trucking costs are one of the largest expenses categories unique to the trucking industry. And the first costs you should be concerned with when establishing your trucking business.

According to trucking reports, one mile costs approximately $1.38 for a semi-truck, which is incredibly high for someone just getting into the business. But it can be lower depending on the type of trucking niche you plan to venture in.

The Cost For Trucking Equipment

The trucking industry is incredibly capital intensive because safety is paramount, and you need quality equipment to operate safely. Having the trucks, proper coverage, and other equipment is necessary to carry out business. And the cost of your trucking equipment is dependent on your market niche. Two options are involved when purchasing trucking equipment:

  • Purchase trucks and hire truck drivers to drive them.
  • Hire drivers that must provide their trucks.

Although the first option is often lucrative, it requires a lot of money to purchase all the equipment.

Truck Maintenance Cost

In addition to purchasing trucks and other equipment, you will also need regular preventive maintenance. These indicate issues from the trucks and keep them in good working condition to protect drivers, freight, and other road users.

Truck parts that need proper maintenance are brakes, alternator, wheel, batteries, airlines, and others. Taking care of your trucks avoids future expenses. But they are costs you need to consider when running your trucking business.

The Cost For MC Authority

MC Authority is one of the legal requirements mandatory to operate your trucking business in the United States. Motor Carrier Authority is a license issued to trucking companies by the Federal Motor Carrier Safety Administration, allowing them to transport freight on public roads.

Trucking companies also need to file paperwork to stay compliant with the trucking industry. These include applications for other permits, licenses, and fees. It also prevents them from paying hefty fines and penalties.

The Bottom Line

As you can see, establishing and running a trucking business is not a cheap endeavor. It also requires many equipment, high operating and maintenance costs to keep it running successfully. Therefore, do thorough research and prepare well before venturing into the business.

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Facts You Do Not Know About The Trucking Industry

December 29, 2021 by admin0MC AuthorityUCR Permits

Many people are aware of the basics of the trucking industry and its importance. But there is a lot more they need to know about the industry. The trucking industry makes a large part of the United States economy, and many people rely on trucking companies to deliver commercial and industrial items. Trucking companies must also adhere to the regulations of the industry to operate across the country. These include obtaining licenses and permit such as MC Authority, UCR Permits, and many more.

If the trucking industry disappears, many people will be left homeless and have nothing to eat. There would also be ramifications in the country.  Read on as Global Multi Services walk you through some interesting facts you do not know about the trucking industry.

TRUCK HAUL MORE FREIGHT

According to reports, trucking companies transport raw materials and goods from one place to another across the United States. Surprisingly, they transport about 70% of these goods and raw materials through trucks. Research has also shown that truck drivers haul around 12 billion tons of goods every year.

Other methods for transporting freight include rail, air, pipeline, or vessel. However, they cannot carry as much weight as trucks when hauling within the United States. That is why the reliance on trucks continues to increase over the years.

MC AUTHORITY IS MANDATORY

Trucking companies need to obtain Motor Carrier Authority and other licenses to transport goods on public roads in the United States. The authority is issued to them by the Federal Motor Carrier Safety Administration. Failure to obtain these authorities can lead to hefty fines and penalties.

THERE ARE DIFFERENT TYPES OF TRUCK DRIVERS

Many people do not know that there are different kinds of truck drivers. These include over-the-road drivers, regional drivers, dry van drivers, tanker drivers, refrigerated freight drivers, and many more.

OTR Truck Drivers: The OTR truck drivers transport freight throughout the United States. They spent days and weeks on the road away from their family.

Regional Drivers: The regional truck drivers haul freight within a specific area. They only remain outside for a few hours and complete their shifts on time.

Refrigerated Freight Drivers: Refrigerated freight truckers deliver perishable goods such as medical products, meats, body products, and many more. They need to know how to regulate their truck’s temperature, keep tabs on any temperature fluctuations, and store the goods properly for the best refrigeration and temperature stability.

Dry Van Drivers: Dry van drivers often operate large single trailer vehicles containing non-perishable products and dry goods.

Therefore, you need to understand how drivers work if you plan to start a trucking company.

SHORTAGE OF TRUCK DRIVERS

The trucking industry is experiencing a severe shortage of drivers, and they are struggling to meet customers’ demands. And one of the leading reasons behind the lack of drivers is age. The average age to drive a truck is twenty-one years, and many young adults often divert to other professions before reaching that age.

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