Truckers and Travelers
Trucking Information Resource
Archive for August, 2009
Hello, Fellow Truckers!
If you have traveled in the midwest, especially in Illinois, you will know what good news this is. Here is a trucking industry news update from an online newsletter report.
Truckers earn equality on Illinois highways
08/18/2009
SPRINGFIELD, Ill. — Going with the flow of traffic will finally be a reality for truckers after years of contending with split speeds on Illinois highways.
Members of the Owner Operator Independent Drivers Association (OOIDA), which represents professional truckers, are glad the Illinois governor signed a new law to raise the speed limit for trucks to 65 mph.
“This will no doubt bring an improvement to highway safety by reducing unsafe interactions between cars and trucks that previously operated at significantly different speeds,” said Todd Spencer, executive vice-president of OOIDA.
The Illinois Senate voted in May 2009 to approve a bill that would allow vehicles weighing more than 8,000 pounds to travel 65 mph on highways outside Chicago.
The bill – HB3956 –exempts the five surrounding “collar” counties from the rule change. House lawmakers approved the bill in early spring. The bill was signed into law by Gov. Pat Quinn on Aug. 14 and goes into effect January 2010.
This is a big victory for the trucking industry. We need to keep sticking together and supporting the trucking associations that fight to see more favorable laws being passed. Be safe out there!
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Hello, Fellow Drivers!
I have blogged many times about seeing yourself as a successful trucking business. Along with a well written business plan, visualizing is a necessary step also. However, you to go far with your trucking business you will also have to tell yourself out loud what it is you want to see your trucking business become. Here’s a for instance. In the book, The Millionaire Mind, the author talks about not just visualizing where you want to go in life and in this case your business. He also writes that you must say your thoughts out loud so that your mind hears you saying what you want to come to pass. If you are seeing yourself with a six or seven-figure trucking business, then you must also say out loud that you will have that kind of trucking business. If you are thinking you will have nice equipment, a good customer base, and plenty of home time but you say you’re flat broke, your equipment is shot and you can’t stay loaded, well guess what? You will have exactly what you SAY you have and it won’t matter how high you dream. Those dreams will die without substance behind them. My grandmother had a funny saying and it went like this. Wish in one hand and spit in the other and see which one fills up faster. It’s funny but true. The same is with your dream of starting a trucking business. You must dream it, say your dreams out loud, then plan each step of how you will achieve this starting with a trucking business plan. You will then see that keeping your thoughts and your words consistent will bring you the success you really want. Be safe out there!
CDL Training And Your Trucking Business Plan
Thursday, August 20, 2009
posted by 18 Wheeler 12:13 PM
Hello, Fellow Truckers!
Today I wanted to give you some information about why a CDL has to be part of your trucking business plan. If you’re going to write a successful trucking business plan and see that plan become a reality, you must first consider obtaining your commercial driver’s license. CDL training can be acquired by attending one of the many trucking schools in the nation. Do some research and find one that is run by a state school or has financial aid available. Once you have gone through the training, you must pass your CDL written test. All of this must be included in your trucking business plan if you are starting out as a beginner in the trucking business. A good trucking business plan is the foundation of a successful trucking business. Below is information obtained from the Federal Motor Carrier Safety Administration. It will give you helpful information on commercial drivers licenses.
COMMERCIAL MOTOR VEHICLE SAFETY ACT OF 1986
The Commercial Motor Vehicle Safety Act of 1986 was signed into law on October 27, 1986. The goal of the Act is to improve highway safety by ensuring that drivers of large trucks and buses are qualified to operate those vehicles and to remove unsafe and unqualified drivers from the highways. The Act retained the State’s right to issue a driver’s license, but established minimum national standards which States must meet when licensing CMV drivers.
The Act corrects the situation that existed prior to 1986 by making it illegal to hold more than one license and by requiring States to adopt testing and licensing standards for truck and bus drivers to check a person’s ability to operate the type of vehicle he/she plans to operate.
It is important to note that the Act does not require drivers to obtain a separate Federal license; it merely requires States to upgrade their existing testing and licensing programs, if necessary, to conform with the Federal minimum standards.
The CDL program places requirements on the CMV driver, the employing motor carrier and the States.
THE DRIVER
Drivers have been required to have a CDL in order to drive a CMV since April 1, 1992.
The Federal Highway Administration (FHWA) has developed and issued standards for testing and licensing CMV drivers. Among other things, the standards require States to issue CDLs to their CMV drivers only after the driver passes knowledge and skills tests administered by the State related to the type of vehicle to be operated. Drivers need CDLs if they are in interstate, intrastate, or foreign commerce and drive a vehicle that meets one of the following definitions of a CMV:
Classes of License:
The Federal standard requires States to issue a CDL to drivers according to the following license classifications:
Class A — Any combination of vehicles with a GVWR of 26,001 or more pounds provided the GVWR of the vehicle(s) being towed is in excess of 10,000 pounds.
Class B — Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing a vehicle not in excess of 10,000 pounds GVWR.
Class C — Any single vehicle, or combination of vehicles, that does not meet the definition of Class A or Class B, but is either designed to transport 16 or more passengers, including the driver, or is placarded for hazardous materials.
Endorsements and Restrictions:
Drivers who operate special types of CMVs also need to pass additional tests to obtain any of the following endorsements on their CDL:
T – Double/Triple Trailers (Knowledge test only)
P – Passenger (Knowledge and Skills Tests)
N – Tank Vehicle (Knowledge Test only)
H – Hazardous Materials (Knowledge Test only)
X – Combination of Tank Vehicle and Hazardous Materials
If a driver either fails the air brake component of the general knowledge test or performs the skills test in a vehicle not equipped with air brakes, the driver is issued an air brake restriction, restricting the driver from operating a CMV equipped with air brakes.
THE STATES
Knowledge & Skills Tests:
States develop their own tests which must be at least as stringent as the Federal standards. Model driver and examiner manuals and tests have been prepared and distributed to the States to use, if they wish.
The general knowledge test must contain at least 30 questions.
To pass the knowledge tests (general and endorsement), applicants must correctly answer at least 80 percent of the questions.
To pass the skills test, applicants must successfully perform all the required skills (listed in 49 CFR 383.113). The skills test must be taken in a vehicle representative of the type of vehicle that the applicant operates or expects to operate.
This information is given to help new truck drivers stay informed and DOT compliant. Be safe out there!
The trucking industry stands as one of the most enduring institutions in our recent history. Goods need to be transported in large quantities across the country, and truckers are just the men and women to execute that crucial task. They help put food in our mouths and deliver the consumer goods that we enjoy every day. For many young people, the chance to join these elite ranks is worth the time and effort.
Part of that effort includes the successful completion of the commercial driver’s license test. Truckers need this certification before they can operate a semi or some other vehicle that’s nearly as large. The lead up to the CDL test can be stressful for young drivers, but there are plenty of tips and study materials available to help ensure success.
Trucking Business: 6 Essential Ways to Grow: Part Two
Tuesday, August 18, 2009
posted by 18 Wheeler 12:10 AM
Hello, Fellow Truckers! Today we are going to finish up our blog with the last three essential ways to grow your trucking business.
4) Make decisions with your head, not your heart. It is crucial in today’s trucking industry that you make intelligent decisions about who you partner and do business with. If your trucking business specializes in hauling aggregate, find a group of customers that focus on just that. If you haul with a flabed trailer, focus on customers that require their equipment to be hauled only in that manner, such as the military or equipment companies. The most important point here is to focus on what makes you excell. Do what is best for your trucking business that also benefits your customers.
5) Expand your target market. Stay focused on the customers that are within your niche market. Focusing on what you do the best will help separate you from the competition in the trucking industry. To take care of your clients you will have to expand your field of expertise. For instance if all you give your clients is your business card, why not include a brochure of what you can provide your customers and why they should consider your trucking business as an ally. When you pass out your card, do you give them a pen with your trucking business name as well? Do you send them special occasion cards or small tokens of appreciation for their continued business such as free coffee from Starbucks? These are just ideas to set you apart and build loyalty with your client base.
6) Evolve. Changes in the trucking industry, new DOT compliance issues, and safety regulations will require that you alter the way you run your trucking business. Do you have a trucking industry consultant that you can call to assist you with ideas on keeping current with these changes? Do you attend or are you involved in any organizations or activities that will keep you on the cutting edge of the trucking industry? Be ready for an challenge that comes your way with the knowledge to meet that challenge. Step back, focus on your business.
Remember, grow your local presence. Stay current of the new DOT regulations. Finally, increase your referral base. Get out of the box and think like a super successful trucking business. Think, act, become. Be safe out there!
Trucking Business: 6 Essential Ways to Grow: Part One
Monday, August 17, 2009
posted by 18 Wheeler 12:23 PM
Hello, Fellow Truckers!
To survive as a successful trucking business, you must be willing to adapt and change. You must think like the CEO of Microsoft, in other words think outside the box. You will only be as successful as you see yourself being. Below are three of the six essential ways to grow. Tomorrow we will finish this blog with the last three ways to grow your trucking business.
1) Spend money. You know the old adage: You have to spend money to make money. Starting a trucking business or sustaining an active one entails expansion. Anyone that tells you that you don’t have to get out and meet and greet potential customers is not doing well and wants to rain on your parade if you do so. Think of ways to network with concrete companies, construction companies, grocery store companies, etc. Whatever your line of trucking, get in front of the people that own the businesses you will deliver products to. Go to meetings that these potential customers attend or get involved in the organizations that they are involved in. If you want something bad enough, you will find the time to get in front of the customers that will make your trucking business prosperous.
2) Find your niche. Let’s face it, the trucking business is very competitive. Because of that, you must create ways to get your trucking business to stand out. The best way to do this is to improve your customer service. How can you go beyond your customers’ expectations of your trucking business? Do you go out of your way to find out personal information about your customers such as how many kids they have and what their names and ages are? Do you ask them how their week is going and genuinely take time to listen and respond? Don’t those things make someone stand out to you? Well, they are made of the same cloth. You remember the golden rule? It’s in the Bible, by the way and was coined by Jesus. He said, “Do unto others as you would have them do unto you.” Matthew 7:12.
3) Generate referrals. Two types of people focus on referrals to build their trucking business. The first type has a successful trucking company and has earned the referrals. The second type is not confident enough in themselves to SPEND MONEY so they ask, beg and plead with people they know for referrals. Ask yourself; when was the last time you got a referral without asking? The true test of your merit is when others feel that your value is compelling enough to tell others about you. If it’s been several months since your last referral, I encourage you to refine your niche.
Stay tuned and check out Part Two of this blog. Be safe out there!
Hello, Fellow Truckers!
This won’t be a long blog but I just wanted to tell you all about a great website I found. It’s got great information on starting a trucking business and how to get trucking authority. It also has a great page on trucking resources. You can go to this one page and plan your whole trip out by the road conditions, weather conditions, traffic jams, fuel stops and even places to keep your pets in motels. I emailed the owner and she says that soon she’s adding a listing of all the nation’s hospitals and walk-in clinics and vet hospitals. The web page on trucking authority is very thorough. You can get your trucking authority on your own with little help from the experts. The owner of the website is here to help you be successful in the trucking business. Check it out on the highlighted link above. It’s called Truckers And Travelers. Be safe out there!
As we speak, the national average for diesel fuel prices is hovering around $2.50 a gallon. Just a year ago, that average was set at a staggering $4.50 a gallon. To trucking companies, these significantly lowered fuel prices mean a higher profit margin and more resources freed up to offer more trucking jobs. To an entrepreneur considering the trucking business as a career path, these numbers seem inviting indeed.
Low fuel prices lead to greater potential for economic gain, but they also allow upstart trucking companies to grow their business fast. After all, if you can keep your fuel budget low it follows that you’ll have money left over to hire new employees and purchase state-of-the-art trucks and equipment. Fuel prices tend to fall even more as summer shifts into autumn, which makes this an opportune time to enter the industry.
Hello Fellow Truckers! Here are the basics for starting a trucking business.
Operating Authority
The Federal Highway Administration (FHA) and its agencies is the regulatory authority for the trucking industry. A motor carrier must obtain either interstate or intrastate operating authority from FHA before the carrier can engage in interstate trucking. The “trucking industry” link above will guide you step-by-step through the process of trucking authority. Here are some things to consider.
The truly independent trucker prefers to have his/her own trucking authority; however, the start-up Owner-Operator may choose to use another carrier’s authority by leasing on to that carrier.
If you are a relatively inexperienced Owner-Operator, leasing on will allow you to get hands-on industry experience and a regular paycheck while the carrier handles the details of providing the operating permits, loads, a trailer, fuel cards, etc. Carrier leases are governed by federal laws. You can locate the applicable statutes in Title 49 of the United States Code, 49 CFR Part 376, Lease and Interchange of Vehicles. Online search for “49CFR376″ at http://www.access.gpo.gov/nara/cfr/waisidx_03/49cfr376_03.html. And recently a U.S. appeals court has ruled that Owner-Operators have the right to sue carriers that do not comply with federal leasing regulations. Many trucking companies now offer lease programs for owner operators as well as lease-purchase programs. Most programs sound very good, but please be aware of unscrupulous carriers. They can cost you thousands of dollars and put you out of business.
If you consider leasing on, obtain copies of leases from several carriers that interest you and study them carefully. If a carrier does not want to provide you with a copy for your review, pass on it. Truth-in-leasing laws entitle you to a copy of the lease before you sign it. Make sure you understand the implications before you sign a lease, and never pick up a load before you read the lease.
Provisions a lease should contain and specify:
- It must clearly detail the responsibility of the carrier and the owner-operator with respect to cost such as fuel, fuel taxes, deadheading, tolls and permits, base plates and licenses, and what happens to any unused portions of these items.
- It must clearly specify who is responsible for loading and unloading, and who pays for lumping.
- The carrier must pay you for loads within 15 days of submission of the paperwork.
- If you get paid on a percentage basis, you are entitled to a copy of a rated freight bill before or when you get paid for the load.
- Only items specified in the lease can be deducted from the settlement.
- The lease must state the amount of the escrow fund and to which items it may be applied. The carrier must provide an accounting of the escrow fund, either on the settlement form or once a month on a separate form. The lease must give the owner-operator the right to ask for an account of the fund on demand. And while the carrier controls the fund, it must pay interest. All deductions from the escrow fund must be specified in the lease, and a final account of the fund must be provided and the balance be paid no later than 45 days from the owner-operator’s last day with the carrier.
- Terminate your lease in writing and within any specified termination period.
- The carrier and you must sign an original and two copies of the lease. The carrier keeps the original and you must keep one copy in your truck. File the other copy with your business documents.
Never sign a lease under pressure and in haste. Question everything you do not understand, because once your signature is on that document, it is a legally binding contract. Avoid leases for specific periods of time such as three months or a year. Instead, opt for a month-to-month lease so you can give notice and terminate your lease within a reasonable time should things not work out. Always pay for your own base plate and fuel tax, because many carriers charge a flat rate and fail to give an accounting and refund of over payments. Avoid unknown carriers and check an incorporated carrier’s status with the Corporation Commission. If the information on file with Corporation Commission is scant, avoid the carrier. Ask for references and talk to other Owner-Operators that are leased on to the company with which you are negotiating. If you get negative feedback, reconsider your choice.
The once complicated process of obtaining your own interstate operating authority ( or intrastate operating authority) has been simplified and you can even apply online.
Why should you get your own trucking authority? The answer is simple: it will give you more independence to make decisions how to run your trucking business. You can find your own loads and negotiate the freight rates, or you can work with reputable brokers to find loads for you.
You will need to follow these steps to get your own trucking authority:
- Application: Obtain an application for Motor Property Carrier & Broker Authority from the Federal Motor Carrier Safety Administration (FMCSA), either by mail or online at http://www.diy.got.gov/. The website also includes information about filing requirements.
- Liability Insurance: Obtain liability insurance. Federal regulations require all for-hire carriers to have liability insurance. The minimum coverage is $750,000, if you do not haul hazardous materials. Hazmat carriers must have $1 million to $5 million minimum coverage, depending on what they haul. In addition, common carriers need a minimum of $5,000 in cargo insurance. Your insurance company or agent must send the needed forms to FMCSA. They must be submitted within 90 days of application.
- Legal Process Agent (BOC-3 Process Agent): You need a legal process agent for each state in which you operate. If there are legal proceedings against you, the legal process agent is the person who will officially receive any papers served. Your insurance company may provide this service to you. If not, companies that offer compliance services are also legal process agents.
- Obtain DOT Number: Submitting a Motor Carrier Identification Report (Form MCS-150) and obtain a DOT number from FMCSA. You must do this before you begin operations, and your DOT number along with your company name must appear on your vehicle(s).
- Obtain Single State Registration System (SSRS) You must register your authority and proof of insurance in every =state you operate, but Kentucky, New Mexico, New York and Oregon require additional road and mileage tax credentials. They require that you obtain a state permit to run within their state lines.
- Obtain IRP Licenseto register your truck in each state that you operate. With intratstate authority you will not need this.
- Obtain IFTA License from your base state. (Please see Registration section for details about SSR, IRP and IFTA.)
Hello Fellow Truckers,
Today I want to explain the importance of DOT compliance and meeting those requirement to stay profitable in your trucking business. When applying for trucking authority, one of the steps will involve preparing for your first DOT inspection. It will occur within the first 18 months of the FMCSA (Federal Motor Carrier Safety Administration) granting your operating authority. One of the major items that a DOT officer will be looking through is your paperwork. You will need to have the following included in order to pass your DOT inspection.
1. Employee records which include their employee application, driving record, DOT physical long form, drug test results, employment history and background check.
2. Truck and trailer initial yearly inspections, VIN#, and make and model of each piece of equipment that will be operated.
3. Truck and trailer registration, insurance and base plate information, UCR (if running interstate) and any special state permits such as Orgegon, New Mexico, Kentucky, or New York and all overweight or overlength permits as well. You will also need to include a Haz-Mat permit if you are hauling hazardous materials.
4. Maintenance records on both your truck and trailer. This includes all inspections, oil changes, repairs and any accidents.
5. Your BOC-3 paperwork.
Now that you have an idea of what you must have, make sure that all of this paperwork is neat and orderly. I would suggest assistance in getting this portion of your DOT compliance in place. Consult with a professional. My recommendation is Clay Eppard of Fleet Safety. This will assure you that your first inspection is passed with flying colors. Remember, Fellow Drivers, running a successful trucking business begins with proper planning and preparation. Be safe out there!