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IS THE TRUCKING BUSINESS A GOOD INVESTMENT IN THE UNITED STATES?

July 26, 2022 by admin0Permitstruck businessTrucking

Do you want to set your hours and be independent while driving? Are you planning to venture into the trucking industry but not sure if the trucking business is a good investment? We have all the answers to your question.

The trucking industry keeps everyday life moving, and the industry has continuously grown over the years. With the trucking demands and digital revolution, trucking companies are more valuable than ever. But the National Association of Small Trucking Companies states that about 15% of new trucking companies survive their first year of business.

Well, your trucking company does not have to be one of those 15% statistics. Whether owner-operator or truck driver, you can create a profitable trucking business with careful planning, hard work, and dedication.

At Global Multi-Services, we want to make that happen. That is why we compiled a list of things to consider to ensure your trucking business provides a return on your investments.

SELECT A SPECIFIED NICHE  

Choosing a specified niche determines the services you offer, what equipment you buy, and what rates you charge. It is also one of the best ways to form critical financial planning and make profits.

Look for loopholes in the industry. That is, what customers are lacking in the industry. It is also advisable to pick a niche with less competition directly from large, established companies.

For example, the dry van market is more competitive because it has many established companies and owner-operators. But temperature control is a more profitable niche. There is less competition, seasonal fluctuation, and risk of economic disruptions to the market.

CALCULATE THE OPERATIONAL COST  

An adequate financial plan is paramount when starting a trucking business. Also, your income must be higher than your expenses to make profits. Therefore, you must know your operational cost. These help you determine the revenue you need to generate to make a profit and how high you need to set your prices.

The operational cost is divided into fixed costs and variable costs.

FIXED COST  

Fixed costs are predictable costs, and they do not fluctuate over time. They include the following:

  • INSURANCE

Having insurance is mandatory for all trucking companies. Primary auto liability and general liability insurance should be the very minimum. You can also include coverage for physical damage, cargo, medical payment, and reefer breakdown coverage.

  • TRUCK AND TRAILER COST

Your truck and trailer cost often varies from time to time. However, it will be a fixed cost you pay every month if you take a loan.

  • LICENSE AND PERMIT

Trucking companies must obtain state and federal permits to operate legally in the United States. The Federal Motor Carrier Safety Administration and Department of Motor Carriers ensure trucking companies adhere to the industrial regulations. So, you need funds to apply for your IRP Apportioned License Plates, IFTA License and Decals, UCR Permits, Motor Carrier Authority, and Unified Carrier Registration. These licenses and permits often require yearly or quarterly renewal, which could mean extra fees.

VARIABLE COST  

Variable costs are costs that do not fluctuate based on production or revenue-generating activities. They affect cash flow and increase based on your business size.

Variable costs include the following:

  • MAINTENANCE SERVICE

Your equipment requires regular maintenance to keep them in good working condition. It varies depending on your operations and equipment.

  • FOOD AND TOLLS

Food is a must-have, and its prices depend on the area and restaurant. The toll fee also depends on the states you are operating across.

  • DRIVER COMPENSATION

Driver compensation is your highest variable cost. Therefore, carefully plan the types of truck drivers you want to employ. Also, you can work with owner-operators if it’s a better option.

  • FUEL PRICE

Fuel prices are different in each state, season, and city. So, your fuel cost depends on the miles traveled and the state.

CUT FUEL COST

The International Fuel Tax Agreement simplifies fuel tax reporting for trucking companies operating in the contiguous states and Canadian provinces. But they must obtain an IFTA License and IFTA Permit in their base jurisdiction to be qualified. Registered companies must also file IFTA Quarterly Fuel Tax Report to their base jurisdiction totaling miles traveled and fuel purchased in all participating jurisdictions. Your base state calculates the fuel tax you owe each jurisdiction.

With IFTA, trucking companies’ fuel taxes are determined by the fuel cost in their base jurisdiction. That means fuel price at the pump minus their per-gallon state tax. Therefore, always purchase fuel in states and pumps with the lowest price.

FIND SHIPPERS 

Finding loads can sometimes be hard for a new trucking company. So, you need to develop a good strategy for finding shippers. Develop direct relations with shippers and offer a competitive price. These promote your business and maximize your profit margin. You can also find shippers through freight brokers or load boards. But they will charge a fee, reducing your profits.

PLAN YOUR CASH FLOW  

Running a successful trucking business requires careful planning of your cash flow. Shippers and brokers make payments between 15, 30, and 45 days. So, a cash-flow management strategy is mandatory to keep your business running while waiting for payments.

PROMOTE YOUR BUSINESS  

The trucking industry is highly competitive. Therefore, you must promote your business relentlessly to attract good clients and quotes. Create a website and social media accounts to reach out to your potential customers. Also, attend various networking events and join online communities to connect with people beneficial for your business growth.

ABOUT GLOBAL MULTI SERVICES  

Global Multi Services help trucking companies apply for their truck permit and license in the United States. Our experience and expertise allow us to overcome permit application difficulties and obstacles, allowing you to run your trucking business legally.

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IFTA FUEL TAX: HOW TRUCKING COMPANIES CAN ATTRACT PROFESSIONAL TRUCK DRIVERS

April 19, 2022 by admin0IFTA DecalIFTA Fuel Tax ReturnsIFTA PermitIFTA Program

The trucking industry is the backbone of modern-day commerce. There is also a lot of competition in the industry, and trucking companies must meet intrastate and interstate requirements to operate legally. These include obtaining IFTA fuel tax, IRP Plates, IFTA permit, USDOT Number Filing IFTA fuel tax return, etc.

The industry is steady and has excellent growth potential. Its demands have also continued to grow as consumers get used to receiving their freight at breakneck speed. Therefore, the industry is thinking of new and creative ways to attract and retain professional truck drivers. To achieve this, trucking companies must hire qualified and dedicated truck drivers. But how can recruiting-focused companies attract the best truck drivers to grow their business? Here are a few tactics the trucking sector can use to keep its drivers satisfied and attract new ones.

GOOD WORKING ENVIRONMENT

Truck drivers face many challenges and must be constantly alert while driving. They work for many hours daily and even on the weekends to meet their deadlines. At the same time, they have to be away from their friends and loved ones for long periods.

Truck drivers also travel in an enclosed space every day and are often exposed to extreme temperatures, hazardous situations, noise pollution, fluctuating light, and exhaust gas. These can make their daily lives exhausting, tiring, and lonely. Proving a good working environment for them makes their job easier and pleasurable. Paying them incentives, meal allowances, overnight hotel expenses, and health benefits keep them satisfied.

IMPLEMENT SPECIAL BENEFITS

Taking measures to ensure truck drivers work fewer hours and have the benefits of taking more paid days off to visit their families would help them stand out. Here are some benefits to keep your drivers working for you.

  • Provide exceptionally comfortable trucks
  • Organize employee appreciation events and training sessions.
  • Provide bonuses, better routes, and policies.
  • Good company’s work culture and policies.
  • Employee work-life balance and paid vacations.

Taking this initiative makes your company stand out and attracts professional truck drivers.

USE STATE-OF-THE-ART-TECHNOLOGY

Using technology to maximize your truck driver’s experiences keeps them safe on the road and makes driving easier. These include using IoT sensors for their safety, asset trackers to encourage them, ELDs, and others. These are all extremely useful in helping them feel protected and secure.

Technology provides satisfaction and protection to perform optimally. But, using complex ones that will take your drivers weeks to understand is not advisable. Ask them what kind of technology they would like to use to ensure convenience and a better experience.

KEY TAKEAWAY

Trucking companies need to invest in the health and well-being of their truck drivers in the face of increased demands to ensure optimum performance and a growing business.

Global Multi Services is a premium trucking permit provider across the United States. We help trucking companies obtain IFTA permits, MC Authority, UCR permits, IFTA decals, and other licenses and permits. Contact us today to process your interstate and intrastate permit at an affordable price.

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IFTA FUEL TAX RETURN: PERMIT AND LICENSE TIPS FOR TRUCKING COMPANIES

December 24, 2021 by admin0IFTA DecalIFTA Fuel Tax ReturnsIFTA PermitIFTA Program

The trucking industry is one of the most regulated industries in the United States at the state, federal, and international levels. There are numerous rules they must obey to operate across the state. These include obtaining IFTA Permits, IRP Plate, USDOT, Filing IFTA Fuel Tax Return, and many more. Navigating these rules can be challenging for many trucking companies. But they must follow them otherwise, face stiff fines and penalties, or may even lose their authority. Read on as Global Multi Services takes us through permits obtained by trucking companies at the federal and international levels.

PERMIT OBTAIN AT THE FEDERAL LEVEL

The Federal Motor Carrier Safety Administration is the governing body that oversees registrations for USDOT and MC Authority.

  • USDOT NUMBER AND MC AUTHORITY

The USDOT Number is a unique identification number used to evaluate the safety practices of trucking companies. Trucking companies operating interstate are generally required to obtain a USDOT number issued by the Federal Motor Carrier Safety Administration.

MC Authority is a permission trucking companies obtains from the Federal Motor Carrier Safety Administration to transport goods across the United States. They also require a DOT number and appoint a process agent in their base states.

  • COMMERCIAL DRIVER’S LICENSE

A commercial driver’s license is mandatory for drivers to drive a commercial vehicle legally in the United States. They must be above 18years, complete training, and pass a driving test before receiving the license. While the application and testing requirements vary from state to state, most states require drivers to be 21years and above for interstate travel. To qualify for a commercial driver’s license, drivers must pass a knowledge test, a skills test, and a medical screening.

  • UCR PERMIT

The Unified Carrier Registration is a federally-mandated program for trucking companies operating across interstate and international borders. Trucking companies must register in their base state to obtain UCR Permits. They also need to pay an annual fee based on the total number of vehicles in their fleet. Trucking companies whose base state does not participate in UCR must register with their neighboring participating state to obtain their UCR Permits.

PERMIT OBTAIN AT THE INTERNATIONAL LEVEL

  • IRP PLATE

The International Registration Plan allows motor carriers to operate across the province of Canada. Trucking companies must first register in their base state and pay an apportioned fee. The fees are calculated based on the distance covered in a specific jurisdiction and the weight of the vehicles. After registration, they must track and report the mileage travel in each jurisdiction and renew their IRP Plate annually.

  • IFTA PERMIT

The International Fuel Tax Agreement is a cooperative agreement between the provinces of Canada and states of the United States except for Hawaii, Alaska. IFTA mainly aims to establish and maintain the concept of using a single fuel license used by interstate motor carriers. Qualified motor carriers need to register for IFTA in their base state, receive IFTA Permit and IFTA Decal. They must also carefully document fuel usage in each jurisdiction and file IFTA Fuel Tax Return in their base jurisdiction.

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