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HOW TO NAVIGATE THE TRUCKING INDUSTRY

July 22, 2022 by admin0Permitstruck businessTrucking

The trucking industry is one of the industries that people mention when they think about booming industries in the United States. The industry has enormous potential for professional truck drivers that want to start their trucking business. But it is highly competitive and sometimes frustrating.

Building a successful trucking company involves having the right equipment, using the proper safety indicators, and getting the required permits. These truck permits allow you to operate interstate and internationally without violating the regulations. Are you considering transitioning from a professional truck driver or owner-operator to running a trucking company? These blogs from Global Multi Services give details on what to do when starting your trucking business.

PERMIT NEEDED TO START A TRUCKING COMPANY 

Navigating your way through permits in the trucking industry can sometimes be confusing and overwhelming. The Department of Transportation regulates the trucking industry and ensures trucking companies adhere to state and federal regulations. They also ensure motor carriers follow the state requirements for interstate and intrastate transportation. Here are some mandatory permits for trucking companies

INTERNATIONAL FUEL TAX AGREEMENT 

The International Fuel Tax agreement simplifies the reporting of fuel used by trucks operating across the conterminous United States and Canadian provinces. Registered trucking companies have a single fuel license. But they also need to file quarterly fuel use tax returns with their base state.

UNIFIED CARRIER REGISTRATION

The Unified Carrier Registration is mandatory by the federal government for trucking companies that travel interstate and internationally. Trucking companies must also register their business to receive UCR Permit and pay an annual fee based on fleet size.

INTERNATIONAL REGISTRATION PLAN 

The International Registration Plan permits operation under a single registration plate. IRP is issued to trucking companies in their base jurisdiction and requires an annual renewal fee. The state allows them to operate across the United States and Canadian provinces.

MOTOR CARRIER AUTHORITY 

A motor carrier authority is an operating authority that gives trucking companies the right to transport goods on public roads. Receiving your MC Authority allow you to operate legally across the United States

MISTAKES TO AVOID WHEN REGISTERING YOUR TRUCKING COMPANY 

Taking a leap of faith by starting your trucking business always comes with mistakes. There are many trials and errors as you learn the valuable lessons of your new business. But these mistakes made can be costly and time-consuming to correct. Here are the most common mistakes trucking companies make when starting their business.

MISSPELLINGS 

Every detail must match 100% when registering your trucking company. From entity name, owner’s name, address, and Employee Identification Number to the Federal Motor Carrier Safety Administration registration. Spelling mistakes can cause rejection of your registration. It can cost you money to correct.

ADDRESS ISSUES

The Federal Motor Carrier Safety Administration uses the United States Postal Service to notify and communicate with trucking company owners. That means they do not accept PO BOX as a physical address and registering a wrong physical address can create problems.

Many trucking companies now use virtual addresses. They pay other companies to create a virtual for them. This address is accepted through the USPS system, and the company accepts mail on behalf of the trucking company. These also allow trucking companies to create an entity in any state. But this is not possible in states that require proof of residency to approve your International Registration Plan.

NO BUSINESS KNOWLEDGE

Focusing on what you know about trucking and driving is not enough to run a successful trucking business. You must research and understand how the industry works. Running a trucking business can be less exhausting and tiring when you know how to navigate it. Therefore, you need to be mentally ready for the stress that comes with profit. Study on your own or with your startup representative.

FILLING ERROR 

Common filing errors include

  • Not having your business identifier listed on the EIN filing.
  • Filing under the wrong entity type.

Obtaining your EIN before registering your business entity with the state can cause rejection of your company name due to similarity to another one in your state.

RUSHING YOUR BUSINESS REGISTRATION

Rushing your business registration can lead to many errors that can take time and money to correct. Therefore, take your time when registering and ensure everything is correct.

Do you want to be a brokerage, dispatcher, and carrier all at once? You will need a lot of capital and time. These might be too much to handle simultaneously. Register for one first and grow into your other plan. Building your business with a clear vision gives you a higher chance of success.

STATE FILING

Every state has a different permit and handles everything differently. Failing to adhere to every state regulation can get you penalized, fined, or your license revoked. Therefore, know the rules of the states you want to operate across. You can also consult a trucking permit company like Global Multi Services for help.

HOW TO AVOID THESE MISTAKES

CREATE A BUSINESS PLAN 

Creating a business plan helps you focus on the core parts of your business. It lays out permits, licenses, capital required, financial projections, and other strategy details. It also keeps you focused on building your company according to a blueprint.

BE PREPARED 

Be prepared physically and mentally. Ask yourself these questions what will I do if my truck breaks down on my first load? How will I run my business if it takes weeks to get paid on my first load? How can I pay my drivers and find loads?

GATHER INFORMATION

Gathering information for the entire process helps you understand what you are getting into and how to navigate your way. It also avoids confusion or falling into the hands of scammers. Check out online information about starting a trucking company and ask around other people in the industry.

TO SUM IT UP 

Understanding how to start a trucking company can sound complex and tiring. Realizing the industry is a bit more competitive should not affect your desire to start. With the right business plan, permits, and finance, you can get the wheels rolling in your trucking business.

Do not be afraid to hire a trucking permit service provider like Global Multi Services to help you. Our truck permit services are the best in the United States. We will ensure you have everything completed and filed correctly.

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THE CONS OF WORKING AS AN OWNER-OPERATOR

June 30, 2022 by admin0truck businessTrucking

Company drivers drive the company’s truck. They also transport loads when and where the company assigns them, giving them little control over their work schedules. Owner-operators are self-employed business owners who transport freight loads for others. They have more choices about when they work and what types of loads they haul.

The reality of being an owner-operator is that it is often more work when compared to working for someone else. Owner-operator has trucks and takes on all the management jobs with their driving role. Instead of being told where to go, they find loads to haul. They also create awareness, build relationships, and find ways to stay busy when times get slow.

But owning your equipment can be very expensive. The cost of buying or leasing trucks plus maintenance can be overwhelming. Owner-operators must pay bills on time to keep creditors from filing judgments against them. They also have to pay for liability and health insurance while setting aside money for taxes. Read on as Global Multi Services explain the cons of operating as an owner-operator.

EQUIPMENT EXPENSES

Working as an owner-operator requires having your rigs. Many often start with one truck and eventually build up to a fleet that may include several trucks, trailers, and flatbeds. Buying or leasing tractors is one of the primary and most expensive investments.

As an owner-operator, you can ask for a loan to buy the equipment, and the potential lenders will examine your credit history. That means the better your credit rating, the more promising your chances of getting a low-interest loan. But you need to finance at least a part of the investment.

Many owner-operators choose to lease their truck and other equipment instead of buying it directly. That is, they only pay for the property when they use it. These allow them to upgrade their equipment more often and get better equipment with less money up-front. Are you planning to become an owner-operator in the future? Now is the best time to start planning for your dream career. Start saving money from your paycheck to have a down payment for your tractors.

HIGHER FINANCIAL RISK

The financial risk of an owner-operator is enormous as they are responsible for the maintenance and fueling of the trucks. Although they can take time off when they want, they spend this time on truck maintenance and keeping business records. Also, the pressure and stress they face can be more tiring than an employed driver. Owner-operators also need to research and network with trucking companies to find who will pay the best and be consistent.

BIGGER RESPONSIBILITIES

While there is much freedom in being an owner-operator, it comes with new responsibilities you may have yet to consider. An owner-operator must research to know how to manage their trucking business. They are responsible for replying to emails, answering phone calls, and pounding the pavement to land new clients. They also handle things they were minimally involved in as an employee. These include repair services, maintenance schedule, truck cleaning, and compliance.

LESS FLEXIBILITY

Owner-operators start at the bottom and work their way up. That means they may not have the best schedule or routes until they gain a bit of tenure and seniority. They are also limited to other companies’ clients, patterns, and communication technology. These make their earning potential at the beginning unstable.

LESSER DOWNTIME

Owner-operators work for more hours than company truck drivers. They have a lot more of the workload to cover on their own. They inspect the truck before hitting the road, set up contracts, and haul the freight. These show they do not have much downtime. Also, starting as an owner-operator can be very stressful. Many companies will not give them loads until they have established a good reputation in the industry. Furthermore, they must constantly network and build their brand as a reliable source for hauling freight.

WRAPPING UP

Becoming an owner-operator often seems more enjoyable than working as a company driver. However, it requires hard work and more responsibility since they own their trucking business. Every decision they make affects their business and customer trust.

ABOUT GLOBAL MULTI SERVICES

Global Multi Services is a one-stop place for all your trucking permit applications across the United States. We provide expert services to trucking companies at an affordable price. Contact us today for a fast and efficient truck permit application.

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

June 22, 2022 by admin0truck 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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