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Trucking Resources – How To Write A Contract Agreement – Part One Of Three
Thursday, September 2, 2010
posted by 18 Wheeler 8:44 PM
Hello, Fellow Drivers, My commitment to my readers is to find good information that will assist you in being successful in the trucking business. I found this article recently on a blog page about entrepreneurial thinking. There is one critical difference between the business owner and the entrepreneur. That difference is replication. I will write about this concept in a future blog (get on my RSS feed to make sure you receive the article). One of the things that make a successful trucking business is a well written contract agreement. Most of us know them as “hauling contracts”. Whatever the name, this basic ingredient makes or breaks your relationship with your customers. Enjoy the read and remember to be safe out there!
Writing a Contract Agreement
2010 | Jul 14
One of the critical instruments in any transaction, whether between a vendor and a customer, an employer and employee or even two private parties, is the basic contract agreement. For some business owners however, the basic contract agreement isn’t so basic.
Some feel that using a contract is an unnecessary inconvenience. Some feel it could actually cause them to lose an account or agreement. Others fear committing themselves to a poorly written contract or one that is not legally accurate.
When you get down to the heart of it, a contract is simply “an agreement or understanding between two or more entities to perform services.” It provides, above all else, communication and clarity of accountabilities for the parties involved. It establishes a basis for trusting that each will carry out the terms of the agreement.
Until fairly recently it has been the domain of attorneys and legal departments to draft and write up contracts. However, with the advent of authoring software and legal forms websites, this task has been made simpler, less expensive and more readily available to the small business owner. Here are some pointers to help you write a clear, carefully-worded contract if you choose to create your own.
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Trucking Industry News – Smart Spending – Part Two Of Two
Saturday, August 21, 2010
posted by 18 Wheeler 12:05 AM
Hello, Fellow Drivers, Yesterday I started a blog on smart spending. Today is Part Two of that blog and it will cover topics about curbing splurges and setting up automatic payments. Enjoy the read and remember to be safe out there!
Curb The Splurge
Positive, definitive goals make it easier to prioritize every time you’re in a checkout line. Smart spending is often just a matter of conscious spending. if you’re making an impulse purchase, stop and question your motives. Is that trip to the mall a misguided attempt to fend off the midweek blahs? If so, envisioning your long-term goals at the moment may stop you from shopping. Taking a moment to examine your motives not only saves you money, but also prevents buyer’s remorse that often kicks in once you realize you’ve spent unwisely. To paraphrase a shrewd old saying, giving up something of lesser importance for something of greater importance is not a sacrifice, it’s a bargain.
Even more gratifying than curbing your luzuries is cutting your family’s existing expenses by 10 percent. You can often reduce your cell phone or cable bill with just a few quick phone calls or mouse clicks. Switch to more energy-efficient appliances or a programmable thermostat to lower your utility bill. A little creative thinking can help you reach your goals even faster.
Put It On Autopilot
Make it as easy as possible to follow through on your good intentions by setting up automatic payments. Boost your retirement savings by signing up for a higher contribution rate on your 401(k). This year you can invest a maximum of $16,500 if you’re under 50 years old and $22,000 if you’re at least 50.
You can also set up automatic montlhy deposits into your Individual Retirement Arrangement (IRA). The 2010 annual limit is $5,000 if you’re under 50 ($6,000 if you’re older). If your goal is to plump your emergency savings, arrange a monthly transfer from your checking account into your savings. Want to pare down a high credit card balance? Set up an automatic monthly payment so you can keep chipping away at it without work or worry. Automatic bill payments will also save you money wasted on late fees and interest rates. It’s just one more way that a little time spent planning now can pay off quickly in savings without much effort or stress at all.
While saving money, your state of mind should be as balanced as the state of your bank account. Embracing the fact that you’re in charge of your financial destiny can make saving feel more like an adventure than a burden.
Trucking Industry News – Smart Spending – Part One Of Two
Friday, August 20, 2010
posted by admin 4:18 PM
Hello, Fellow Drivers, It’s been a couple of weeks since I blogged because of some technical issues. Got the bugs worked out and we’re back on track, or in this case, online! I found a great article about budgeting, in the Geico Direct magazine, Spring/Summer 2010 issue. It will give you some ideas on how to stay in the black whether you’re starting a trucking business or keeping a trucking business solvent. Enjoy the read and remember to be safe out there.
Smart Spending – by Carla Fried
On the road to your financial goals, you can always adjust the route. Here are some budget tweaks that may just get you to your destination faster. If you think budgeting means denying yourself and living without, think again. Smart spending is about making the money you have work harder to get more out of life, not less. It’s much easier to push your financial plan that few extra yards if you view it as an opportunity rather than a chore. Every dollar you save is another dollar you can put toward your child’s college education, your retirement or that dream anniversary vacation.
Revisit Your Goals
Maybe you already have a plan and can see your financial goals on the horizon. That doesn’t mean there aren’t ways to reach them faster. Start by reviewing your plan and tweaking where you can. Once additional payment a year can knock five years off a 30-year mortgage, saving you a ton in interest. Putting just $100 per month into a savings account with 2-percent interest becomes $6,300 in just five years (savings accounts are a reliable choice in any economy).
Perhaps you can pushc yourself and resolve to add 10 percent more cash to each of the goals on your list over the next year, putting 10 percent more into your 401(k) or credit card payemtns. Make sure it’s a figure you can stick with. The goal is to pare your spending, not put your current life on hold.
Search For Savings
Cant’ imagine how it’s possible to spend and still save? Here are some ways to wring even more out of what you already have. Collect at least six months’ worth of bank and credit card statements (12 months is ideal) and identify every essential transaction, such as gas for the drive to work and the utility bill. Then, evaluate what’s left; those are purchases you chose to make. That doesn’t make them bad purchases, but here’s where you can learn to spend–and yes, indulge–but more strategically.
Pick one nonessential expense that you really love–your season tickets, for example–and keep it. That’s your luxury to enjoy. Now look at the other nonessentials and challenge yourself to either cut them entirely or scale them back. Is your family going out to the movies and dinner every Saturday? Resolve to stay in two Saturdays a month and have a family movie night at home. you can still have fun, just less expensively. If your kids balk at scaling back, maybe it’s a good time to suggest they get a part-time job. You can save more by setting limits on how much of your children’s fun you will bankroll.
Some Tips: 1. Giving up something of lesser importance for something of greater importance is not a sacrifice, it’s a bargain.
2. Unexpected expenses: Life is full of surprises and not all of them are welcome. Maybe it’s a major car repair or an urgent trip to help a friend or relative in need. You can’t avoid every financial setback but you can prepare for them. Aim to set aside at least three to six months of living costs in savings, just in case.
Tomorrow’s blog will conclude with Part Two of today’s article.
DOT Physical, Medical, Drug Test FAQ – Blood Sugar/Blood Pressure Specifically – Part Two of Three
Tuesday, August 3, 2010
posted by 18 Wheeler 12:05 AM
Hello, Fellow Drivers, In part one of this blog on DOT physical, DOT medical card, and DOT drug testing FAQ’s, we covered the first six of eighteen questions on this subject. Below are questions 7 through 13. Enjoy the read and remember to be safe out there.
Here is a list of questions we often hear from drivers.
We hope this helps your search to understand what’s required to meet FMCSA DOT physical regulations and get your DOT medical card with as little hassle as possible.
Can the DOT medical card be laminated?
- Yes. We laminate your DOT medical card for you. Because you need to keep it with you at all times while you’re driving, lamination helps to reduce the wear and tear on the card.
How long is a DOT medical card good for?
- A DOT medical card is good for two years if you have no restrictions. A history of high blood pressure, taking high blood pressure medications, and/or taking oral medications for diabetes can restrict the medical card to one year.
How many 3-month DOT medical cards can you have?
- One only. You should have the condition, which caused the restriction, under control by the end of the 3-month window.
Is there a difference between a DOT medical and a DOT physical?
- No. These terms are used interchangeably. They are most often referred to as a DOT medical when referring to the DOT medical card, and DOT physical when referring to the DOT physical exam, and sometimes drivers refer to them as a CDL physical or CDL medical.
If I don’t have medical insurance can I still get a DOT physical?
- Yes. You do not need medical insurance to get a DOT Physical. Insurance is not a part of our DOT Physical exam service. Payment for the exam is your responsibility at time of service. Some insurance companies treat this exam as preventative health care and will not reimburse for it. If you have insurance and want to claim reimbursement we can give you a receipt to submit to your insurance company.
How much does a DOT physical cost without insurance?
- We’ve seen DOT physicals charged anywhere between $50 and $100. We charge the same price whether you have insurance or not. Payment for our DOT Physical service is $65.00 and payment optionsare cash, credit card, T-check, Com-check, or pre-authorized company account.
DOT Physical, Medical, Drug Test FAQ – Blood Sugar/Blood Pressure Specifically – Part One of Three
Monday, August 2, 2010
posted by 18 Wheeler 8:48 AM
Hello, Fellow Drivers, I have been noticing that many of you are searching for answered to blood sugar and blood pressure issues and how these affect getting your DOT medical card. I found a website that has some really good information and a place in Salt Lake City, Utah that helps truckers with DOT medical card and DOT physical questions. I have put their information below. After reading what they posted online, I found it to be quite helpful. If you can’t get to this truck stop for answers, find a chiropractor or a medical professional that has knowledge of a DOT physical, DOT medical card and DOT drug testing. I will include the first six questions on this blog. Enjoy the read and remember to be safe out there!
Here is a list of questions we often hear from drivers.
We hope this helps your search to understand what’s required to meet FMCSA DOT physical regulations and get your DOT medical card with as little hassle as possible.
At Chiro Stop we do
DOT Physical Exams and
DOT Drug Alcohol Testing.
Quick, Accurate, and Hassle Free
No appointment necessary. Walk-ins are welcome,
or call 801-972-2332 to book a time that works for you.
Parking for 135 trucks at Sapp Bros. I 80 Truck Stop, in Salt Lake City, Utah.
What are the DOT physical requirements?
- We’ve compiled a shortened version from FMCSA Rules and Regulations here. If you want to see the long, official legalese version here is a link to FMCSA Part 391.41.
Does a DOT physical include a drug test?
- Drug testing is not part of a DOT Physical exam but your Company may request to have drug alcohol testing done at the same time. DOT drug testing and breath alcohol testing are additional charges.
What drugs are tested for, if a DOT drug test is requested?
- The 5 Panel drug test analyzes urine for the following drugs:
- Marijuana (THC metabolite)
- Cocaine
- Amphetamines
- Opiates (including heroin)
- Phencyclidine (PCP)
What’s involved in a DOT physical?
- The process is pretty straight forward. We can complete your physical in 30 minutes. Here are our 3 easy steps to complete your DOT physical.
Why do I have to have a urine test?
- The urine test is just a kidney screen to test for sugar and protein. It’s done to determine that there is no early onset of conditions like high blood pressure breaking down the kidneys, or early signs of diabetes, or kidney infection.
Can I obtain a copy of my DOT physical form?
- Yes. We give you 2 copies of the long-form. One for the driver, one for the Company. If you need, we will fax the DOT form to your company. The examining doctor keeps a copy of the form for our office records.
DOT Safety Audit – Passing Your First Audit – Part Two
Wednesday, July 28, 2010
posted by 18 Wheeler 11:43 AM
Hello, Fellow Drivers, This is the sequel to 7/13/10 on passing your first DOT audit. I will start with a list of items the DOT will be wanting to see in your office records and expound on the ones that need further explanation. The key to passing your DOT safety audit is organization and preparation. Let’s start with what records the DOT will be looking through when they pay you a visit. If you would like help with putting your records together for a DOT Safety Audit, please email me at truckersandtravelers@gmail.com. I can also assist you with any trucking authority issues. Below is a list of those records. Enjoy the read and remember to be safe out there!
1. Driver Qualification Files ( includes 18 items that must be in each employee’s file, some of which are listed below)
2. DOT physical and medical card
3. Pre-employment drug testing results
4. Drug consortium membership
5. Logs for the months you have been in operation to the date of the DOT Safety Audit
6. Pro-rate book contents
7. DOT and MC authority granted
8. BOC-3 paperwork
9. Evidence of Insurance on all equipment
10. Leases or hauling contracts
11. HAZ-MAT certification
12. All permits, such as bridge and overweight
13. Registrations on all equipment
14. UCR
15. Additional permits from Kentucky, New Mexico, New York and Oregon if you run through those states with interstate trucking authority
16. IFTA registration
17. Maintenance records on all equipment both trucks and trailers
18. Yearly inspection sheet on all equipment both trucks and trailers
DOT Safety Audit – Passing Your First Audit – Part One
Tuesday, July 13, 2010
posted by 18 Wheeler 2:38 PM
Hello, Fellow Drivers, I have been looking at your searches recently and many of you have been needing information about DOT Compliance and the first DOT safety audit. I wanted to pass along some helpful information that will give you success in preparing for and passing the DOT Safety Audit. The “new name” for a trucking company that has just received their letter granting them operating authority is called a “New Entrant”. After doing some research, I found these FAQ’s on the FMCSA website. In researching this article, I could not find any “down-to-earth” information that would actually help a “New Entrant” understand what they had to have in place to confidently face this important aspect of your trucking business. In Part Two, I will go into more detail as to what your records should contain to pass the safety audit successfully. Enjoy the read and remember to be safe out there!
- Where will these safety audits be conducted?
The safety audits will primarily be conducted on-site at the carrier’s principle place of business; however, some safety audits may be conducted at other locations. A uniformed DOT officer will show up at your home office (whether in your home or elsewhere) in his blue and white DOT patrol car and conduct an audit of your records. This audit will be conducted after you have received your letter from the FMCSA granting you operating authority. Once you receive your MC number, you must wait for this letter to arrive in the mail before you can legally drive the roads. However, your audit will be conducted AFTER you have received this letter. - When will safety audits be conducted?
New entrant motor carriers can expect to start receiving safety audits 3-6 months after they are granted new entrant registration. My safety audit occurred about three months after I was granted my own operating authority. - Why were these rules created?
Congress required the FMCSA to establish minimum requirements for new motor carriers seeking federal interstate operating authority. These minimum requirements include having the carrier certify that it has systems in place to ensure compliance with the Federal Motor Carrier Safety Regulations, and a safety audit conducted within the first 18 months of the carrier’s interstate operation. - How will the safety audits be conducted?
The safety audit will be conducted by a Safety Auditor and will consist of a review of the carrier’s management system. The areas of review include, but are not limited to, the following: - Driver Qualifications
- Driver Duty Status
- Vehicle Maintenance
- Accident Register, and
- Controlled Substances and Alcohol use and testing requirements.
- Will a safety audit result in a safety fitness determination by the FMCSA?
No. Carriers will either pass or fail the safety audit, depending on their level of compliance and whether they have basic safety management controls in place. Safety fitness determinations of satisfactory, conditional, or unsatisfactory will only result from the completion of a compliance review. - If a new entrant has a compliance review conducted, are they also subject to a safety audit?
No. If the FMCSA conducts a compliance review, the new entrant will not also be subject to a safety audit. However, they are still subject to the 18-month safety- monitoring period.
Living Sensibly – A Trucking Business Success Story!
Monday, July 12, 2010
posted by 18 Wheeler 12:01 AM
Hello, Fellow Drivers, In many of my blogs I have written about running a trucking business sensibly. This means, paying cash or paying off credit cards every month, living within a budget (actually living below your means if possible) and saving for a “rainy day” (an emergency fund). I found an article in Land Line Magazine that tells a trucking business success story with these very principles practiced. Enjoy the read and remember to be safe out there!
Striking Gold Hauling Gas
Wayne Nagel ordinarily delivers five loads of fuel a day, normally within an hour’s radius of Minneapolis. For this OOIDA member, finding the right niche, choosing the right equipment, and trucking smart have paid off.
As Wayne Nagel pilots his buddy’s Cessna 172SP with his wife, Keri, by his side, he soaks in the Minneapolis countryside and all its beauty. Dotted with water, the area lives up to its “Land of 10,000 Lakes” billing, yet Wayne is able to spot many of the roads and interstates where he logs some 95,000 miles per year transporting fuel to various gas stations and convenience stores.
“You get a different perspective up here than you do from behind the wheel,” Wayne said. “It’s peaceful and relaxing. I love being an owner-operator – having my future in my own hands.”
Back on the ground, the 31-year-old OOIDA member pilots a Kenworth T660 with a 38-inch AeroCab sleeper. Leased to the petroleum division of Wayne Transports for the past four years, Wayne distributes gas, diesel and jet fuel in the greater Minneapolis area and throughout the upper Midwest.
Wayne got his first taste of trucking as a college student. One of his best friends bought a truck and offered Wayne the opportunity to drive it at night.
“I went out and got my CDL as I worked toward my college degree in criminal justice during the day and hauled gravel at night.”
After graduation, he took a job with the city of Elk Point in South Dakota, but after six months, he knew the life of a cop wasn’t for him.
“I knew I wanted to be my own boss,” Wayne said. “I liked to interact with people, have a flexible schedule, and be responsible for my own success. I thought trucking would offer that.”
With a game plan in place, he hired on at Wayne Transports as a company driver.
“I felt this was my stepping-stone to learn more about the industry and to help me become a successful owner-operator.”
When he felt the time was right and he had money saved, he bought a truck and leased on to Wayne Transports, which has a mix of company drivers and owner-operators. After paying off that used truck in just 22 months, he upgraded to a Kenworth T660, purchased through Rihm Kenworth in St. Paul.
“I wanted a new truck that was great looking, but also aerodynamic for better fuel economy,” says Wayne. “When I went into the dealership, I was there just to look, but when I walked out I was sold. I knew the T660 was what I wanted.”
Wayne says he got a good price on his trade-in, so in April 2009 he ordered a new KW. He spec’d the T660 with a 500-hp Cummins engine, with an Eaton UltraShift 13-speed transmission.
“Those specs give me enough power, plus they will help come trade-in time with higher resale value,” he said.
Wayne had Rihm’s body shop install a 10-inch drop chrome visor, stainless steel kick panels, custom toolboxes and WTI fenders. Inside, Wayne added aftermarket chrome instrument displays and a 30-inch flat screen TV in his bunk.
He entered the Paul K. Young Truck Beauty Contest at this year’s Mid-America Trucking Show and enjoyed the competition, especially the compliments on his truck. Wayne placed second in the division for first time exhibitors, combo class.
“Everyone loved the look of the truck, and Wayne Transports asked me to represent the company by exhibiting at the Minnesota Petroleum Marketing Convention, which was held in April,” he said.
While short hauls get him home at night, Wayne will make the occasional long run to regional airports in the Midwest, hauling aviation fuel.
“Running full, I’ll average about 7 mpg at 65 miles-per-hour, running between 1450 and 1550 rpm. Running empty to Louisville when I went to MATS, I averaged 7.7 mpg.”
One key to better paychecks, he said, is a can-do attitude.
“As an owner-operator, I can pick and choose when and where I haul, but to be truly successful you need to be reliable and a can-do operator for your company. You want them to depend on you,” Wayne said.
“In some cases, that means taking a load you don’t want or working a day when you don’t want to. Over the long run, it’s paid off for me.”
Wayne also sticks to a strict plan on his cash flow and reserves.
“I pay my credit cards off every month, I don’t get overextended, and I keep a rainy day fund for the unexpected,” he says.
This strategy has allowed his wife to be a stay-at-home mom to their three children. It has also provided extra cash to put a down payment on a rental house, which generates additional income.
“We’re doing well,” says Wayne, as he lands the Cessna. “If you work hard and have the right business sense, good things can happen.” LL
Trucking Industry News – New State Laws That Affect Trucking Business
Sunday, July 11, 2010
posted by 18 Wheeler 11:46 AM
Hello, Fellow Drivers, It’s been a while since I last blogged. Sorry for the long absence. While reading Land Line Magazine, found some trucking industry news about recently passed state laws. Enjoy the read and remember to be safe out there!
States Roll Out New Laws
By Keith Goble
state legislative editor
Truckers must be on constant watch for new rules that could affect them as they drive from point A to point B. Fresh off legislative action in states stretching from Idaho to Virginia, July is one of the leading months for new laws to take effect. Below is a sampling of what Land Line found:
Colorado
Truckers and others who cannot stay within 10 mph of the posted speed must stay to the right on grades that average 6 percent or more for at least one mile along Interstate 70. The rule change affects stretches of I-70, including Vail Pass, Georgetown Hill and the Eisenhower Tunnel.
Florida
Big shippers are expected to have the green light on July 1 to begin reaping the benefits of a boost in permissible truck weights to 88,000 pounds on non-interstate highways in the state. However, at press time there is an attempt to withhold issuing permits for heavier trucks.
Also included in the new law is a provision increasing the maximum gross vehicle, axle weight limits for large trucks equipped with idle reduction technology. Trucks with APUs installed can now weigh up to an additional 400 pounds.
Another change puts in place statewide standards for red-light cameras. The law allows cities and counties to set up cameras at intersections and fine red-light runners $158.
Idaho
Aimed at preventing the double taxation of registered semi-trailers, a single temporary permit can be had for $60 when no more than one vehicle in the combination is unregistered in the state. Previously, a combo permit cost $120 simply if the power unit was unregistered.
Indiana
Two new laws are in effect in July. One new law, which is intended to provide an incentive to reduce truck idling, allows large trucks equipped with idle-reduction technology to weigh up to an additional 400 pounds.
Also included in the law is a provision that prohibits intrastate operations from hauling one or more metal coils individually, or grouped together, weighing at least 5,000 pounds unless the operator is certified in proper load securement.
In order to comply with FMCSRs, another new law more than doubles fines for truckers found violating out-of-service orders. Motor carriers who get in on the act also face heftier fines.
Iowa
Despite various concerns, the largest trucks traveling along non-interstate highways can now pack more freight. All commodities loaded on trucks with six or seven axles can haul 96,000 pounds – up from 80,000 pounds.
Tennessee
A new law is intended to prevent police from going on ticket-writing sprees. Law enforcement agencies are prohibited from punishing or rewarding personnel based solely on the number of traffic citations issued. Agencies are blocked from using formal quota policies or even informal guidelines.
Virginia
Faster travel through Virginia could soon be in store for truckers and other drivers. As of July 1, VDOT can increase speeds on rural sections of interstates from 65 mph to 70 mph where engineers deem it safe.
Speeders now face an extra $1 per mile fine. Lead-footed drivers will face $6 per mile fines – up from $5. Where does the fine money go? The state’s Literary Fund, of course.
West Virginia
The state Parkways Authority can now pursue selling bonds to build new highways, and collect tolls on those roads to pay off the bonds. County commissions have the power to veto toll roads. LL
Hello, Fellow Drivers, I wanted to take a few moments to talk about getting started in the trucking business. Some of you have commented that now is the best time to get a loan to start a trucking business. While there is nothing wrong with borrowing money, it puts you at the mercy of the lender. For instance, a typical truck and trailer loan will run an average of $2000 to $3000 per month, for about six years, depending on the type of rig and trailer you purchase. That’s a lot of moolah to earn on the road, not to mention the fuel, maintenance and road expenses you also will incur. After owning my own trucking business for over 7 years, my suggestion is to start your business with some cash in the bank. In other words, if you borrow the money for the rig, have three to six months of cash in the bank to run on until you are earning a steady income.
Some of the comments from my readers entail borrowing money against your house, since interest rates are at an all time low (in some cases 3.5%). I have been an entrepreneur for over 20 years and for almost 4 of those I managed a branch office for a major mortgage company. Armed with “insider” knowledge of mortgage loans, my suggestion is to save up cash until you have a 3 to 6 month cushion in the bank (the more months saved the better). Avoid borrowing against your most valued asset, your home. For most hard-working Americans, this is their most valuable asset. Keep it that way by leaving the equity in it. I am also a real estate investor. Before the real estate crash, I was able to purchase over $2 million in properties with no money down. While that made me feel like a big shot, it put me in a leveraged position, leaving me vulnerable to my lenders. I have been fortunate to be able to manage my properties well, but that is not the case with many investors. My suggestion again, is to not leverage yourself to the point of vulnerability. There is an old saying the finance world: CASH IS KING! That saying will always ring true, no matter what the interest rates do. The more liquid you are, the more power and freedom you will have in your business.
Some of you will go ahead and borrow to the hills to get started in a trucking business. You will also be wishing about 12 to 18 months into that leveraged position, when the loads are slim, that you had been more liquid. You will have to stay out on the road until you meet your obligations, whereas if you were more liquid, you could enjoy more down time. It is my wish that this blog has caused my readers to at least pause and think about the cost of debt.
If you would, take some time to read my three-part blog dated 6/5/09, 6/8/09 and 6/9/09 on starting a trucking business. It will give you valuable information about preparing before you venture out as an entrepreneur. Enjoy the read and remember to be safe out there!