Truckers and Travelers
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Posts Tagged ‘Business Development’
Trucking Business Tidbit – Debt is Evil Because… Part 1 of 2
Wednesday, March 10, 2010
posted by 18 Wheeler 9:34 AM
Hello, Fellow Drivers, Today I want to cover a practical subject for all of you who want to start a trucking business or who want to prosper in your present trucking business. This comes from a book I keep as a financial shot in the arm when I need to remind myself of the ways wealth comes to me. The book is written by Dan Kennedy and the short title is “Wealth Attraction For Entrepreneurs”. Here is an excerpt from chapter 19.
Wealth Magnet 19 – Independence
Wealth is attracted to wealth, money to money. But because independence is the prime outcome and benefit of wealth, wealth is also attracted to independence. One is as good as the other as a magnet. Consequently, the less you need income, the more opportunities present themselves, the more eager people are to do business with you and pay you money, and the more easily wealth is attracted. The mandates the dimple practice of living beneath your present income so that you can be and stay debt free. … I realize this is very conservative financial advice. … It is again, about attracting wealth more than it is part of a debate about using debt as investment capital. …
Many other financial gurus differ passionately. They would advise, for example, fully mortgaging your home in periods of low interest rates and investing that money in real estate, stocks, or whatever to make the spread and build up assets. I have never gotten comfortable with debt as an asset, with leveraging debt into more debt. … I also find that leverage-the-debt advice often comes from people who earn commissions selling investments. However, right now, this about that debate. The debate ignores and omits the psychology of attracting wealth by feeling wealthy at your core (not indebted) and by feeling and being independent.
Debt doesn’t just enslave through compound interest reversed. It enslaves by imposition, by telling you that you should do work you don’t want to do, accept clients or customers you can’t stand, and otherwise compromise every which way because you need money. I insist your objective should be to get to the position of not needing more income, so you can act independently, be selective, call your own shots, and be entirely free of actual or felt pressure. What I call “The Independent Position” rolls finances, attitude, reality and emotions, and the conscious and subconscious together, and it is magic.
Tune in tomorrow when we give the REST of the story, as Paul Harvey would say! Be safe out there!
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Trucking Authority – The FMCSA To Be Shut Down 3-2-10
Wednesday, March 3, 2010
posted by 18 Wheeler 9:58 AM
Hello, Fellow Drivers, After taking a sabbatical from blogging I am back to keep you informed on the latest developments and information to get trucking authority or to have a successful trucking business. Land Line Magazine recently published this article about the FMCSA. It greatly affects the trucking industry. Enjoy the read and remember to be safe out there!
SPECIAL REPORT: DOT to shut down on Tuesday
Friday, Feb. 26, 2010 – As of Tuesday, March 2, a big chunk of the U.S. Department of Transportation will be shut down temporarily because of a lack of funding. Just how long it lasts will depend on Congress.
The stunning news came Friday after the Senate adjourned without passing legislation to extend surface transportation programs that were set to expire Sunday, Feb. 28.
As a result, 4,000 DOT employees will be at home without pay starting Tuesday, leaving only a skeleton crew to deal with matters of immediate safety.
Affected agencies include the Federal Highway Administration, Federal Motor Carrier Safety Administration, Federal Transit Authority and National Highway Traffic Safety Administration.
For truckers, the shutdown will bring business such as audits, authority applications, MCS-150 updates and other paperwork issues to a grinding halt.
The shutdown will not immediately affect scale houses, which are run by state law enforcement agencies. However, because FMCSA provides funding to state agencies for commercial vehicle enforcement, the furlough will put reimbursements in jeopardy.
U.S. Rep. James Oberstar, D-MN, chairman of the House Transportation and Infrastructure Committee, called an emergency press conference on Friday to shed light on the rare occurrence. The last government shutdown happened in 1995 and 1996 over disagreements about appropriations.
“The shutdown of the federal highway program means that the Federal Highway Administration won’t be able to reimburse states for highway or transit funds,” Oberstar told reporters.
The furlough and lack of funding mean no money from FMCSA to fund state commercial vehicle enforcement.
“None of that will happen because there will be no funding for it, and if there is a furlough on Tuesday there won’t be any personnel available for enforcement action,” Oberstar told Land Line.
Oberstar said the shutdown also affects the stimulus funds to states because there won’t be people in federal offices to process grants. He said some states could lose out because of the inaction.
The Highway Trust Fund has been surviving on a series of short-term extensions since the surface transportation law known as SAFETEA-LU technically expired in September 2009.
The U.S. House and Senate have been under tremendous pressure to extend the provisions of SAFETEA-LU beyond Sunday’s deadline.
U.S. Senate Majority Leader Harry Reid, D-NV, asked his colleagues on Friday to lend unanimous consent to a 30-day extension for highway programs offered by the House, but Sen. Jim Bunning, R-KY, did not consent, citing the fiscal ramifications of the $10 billion cost. Bunning’s threat of filibuster caused Reid to adjourn the Senate on Friday for the weekend. Senators are scheduled to return Tuesday with the matter only baby steps closer to resolution.
Oberstar said Friday that in order to get the DOT back to work as soon as possible, he would lend his support in the House to passing the $15 billion Senate version of jobs legislation, HR2847.
The jobs bill contains a provision for shoring up the Highway Trust Fund through the end of 2010. The House originally wanted the highway extension to last only through Sept. 30 as lawmakers work on a five- or six-year highway bill.
Tune in to Land Line and Land Line Now on Monday for continuing coverage of the shutdown and what it means for other agencies.
– By David Tanner, associate editor
david_tanner@landlinemag.com
Trucking Authority – UCR Fees For 2010 Not Finalized; Enforcement Delayed
Tuesday, February 2, 2010
posted by 18 Wheeler 7:34 PM
Hello, Fellow Drivers, I found an interesting article from Land Line Magazine, February 2010. For those of you with trucking authority, or want to get trucking authority, this article will be of interest to you. Enjoy the read and remember to be safe out there.
By Jami Jones
senior editor
With the start of a new year, truckers wanting to clear out their fee obligations are left without a clear answer on what they owe in Unified Carrier Registration fees for 2010.
The Federal Motor Carrier Safety Administration posted a notice to the Federal Register in September 2009 outlining new proposed fees. The extended comment period closed later that month.
FMCSA officials reported during the rulemaking process that states have been unable to effectively collect the UCR revenue they are entitled to by law during the 2007-2009 registration years. They believe the proposed new fee levels will both encourage states to aggressively enforce the UCR fees rule and generate the necessary revenue to execute state motor carrier safety programs.
The fee structure proposed in the rulemaking for 2010 is:
0-1 trucks………………………. $83
2-5 trucks…………………….. $166
6-20 trucks…………………… $497
21-100 trucks……………… $1,741
101-1,000 trucks…………. $8,373
1,001 or more trucks….. $82,983
Brokers and leasing companies will still be subject to the same fee paid by truckers in the 0-1 truck category.
However, as of mid-December 2009, the agency still had not published a final determination on the fees.
“There is an enforcement memo going out telling roadside law enforcement after the first of the year to not write tickets for not having your credentials in place in the cab because there simply isn’t going to be anything in place yet,” OOIDA Director of Regulatory Affairs Joe Rajkovacz told Land Line.
“That is not to say they will not be enforcing the payment of previous years’ UCR fees,” he added.Rajkovacz said truckers really need to make sure they have their proof of payment on
2009 UCR fees.
“Some jurisdictions are writing $1,000 tickets,” he said.
Rajkovacz said he expects the 2010 UCR fees to be settled sometime in the first quarter of 2010. LL
Hello, Fellow Drivers,
It’s been a while since I wrote to you. Today I wanted to share an article written by a company that offers bonds for brokers of all kinds. When you get trucking authority, you will need to check on the FMCSA website to see if you will need a surety bond to proceed in the trucking business. Below is a short article written by one company that offers bonds to truck brokers, specifically freight brokers. These are the people who find the loads for drivers and dispatches them accordingly. Enjoy the read and remember to be safe out there!
Freight Broker Bonds
Like a host of other industries, freight brokers are required to obtain legitimate bonding before they can legally operate.
The Federal Motor Carrier Safety Administration (FMCSA), www.fmcsa.dot.gov/, mandates that brokers acquire these risk-mitigation tools to help protect consumers, state interests and freight companies. These bonds may also be referred to as BMC-84 Bonds, ICC Bonds or property brokers surety bonds. The FMCSA does have an exemption that allows brokers to possess a BMC-85 trust fund instead of the traditional freight broker bond.
How They Work
In essence, surety bonds are three-party agreements between a principal (the entity needing the bond), the obligee (the project owner or recipient of the work, often the state) and the surety, a neutral third party that guarantees the company will fulfill its obligations. These bonds are not to be confused www.suretybonds.com/insurance.html.
A freight broker bond provides a guarantee that all applicable laws and regulations will be followed. It also provides an avenue of recourse and financial compensation if a broker fails to fulfill its duties or engages in illicit or illegal activity.
Consumers or other injured parties can file a claim against the bond. If the claim is ultimately deemed valid bond company that issued the bond ensures compensation is provided.
How to Obtain Them
The market for freight broker bonds remains volatile after several years of frequent bond claims. In many states, these are considered high-risk bonds that may require significant collateral. There is a high-risk market for these bonds, and applicants should expect to pay higher rates and provide 100 percent collateral.
Hello, Fellow Drivers! If you read yesterday’s blog (11/5/09) on how to get trucking authority, then you will be able to follow this blog and decide if you want carrier authority, broker authority (steps are below) or both. In any case, you will want to bookmark the federal website that gets you started on your way to starting your trucking business. That site is www.fmcsa.dot.gov. You can also visit www.truckersandtravelers.com for further assistance and email the owner of the site. You be the one that decides who will assist you. Empower and educate yourself of the trucking authority process. Enjoy the read and remember…be safe out there!
Broker Authority
Requirements of obtaining your broker authority within the minimum 16 days:
- Register for a Motor Carrier (MC) number issued by the Federal Motor Carrier Safety Administration (FMCSA)
- File Process Agents (BOC 3 filing) for each state
- Obtain a $10,000 Surety Bond or Surety Trust
- UCRA Registration
Refer to www.truckersandtravlers.com for assistance with doing steps 1 and 2 yourself.
Step 3 – Surety Bond or Trust
You are responsible for obtaining your own surety bond or surety trust. You can choose either a bond or trust, however you will need to obtain one or the other within the first two weeks after the MC number is filed to avoid any delays. To find a reputable surety bond company, do a Google search on surety bond for trucking and you will find companies to assist you with this process.
What is a Surety Bond?
It is an amount of money that you post to guarantee that you will do something you’ve promised to do.
Freight Brokers must obtain a Broker Authority. In order for the Broker Authority to be released as “Active”. there are 2 items that must be on file with the FMCSA. You must have a BOC-3 process agents and a $10,000 Broker Surety Bond.
The Broker Bond is evidence of financial responsibility. Basically the Surety Bond guarantees that you will meet all your contractual obligations to your customers and that you can pay any claims immediately.
Either the BMC 84 “Property Broker’s Surety Bond” or a BMC 85 “Property Brokers Trust Fund Agreement” must be on file, both will satisfy the Federally mandated $10,000 insurance/surety requirements for your Property Broker Authority.
You would need to contract with a bonding company or use your own resources. Evidence of a surety bond must be filed using a BMC 84, evidence of a Trust Fund with a financial institution must be filed using form BMC 85.
These items must be on file in order to activate your Broker Authority.
A Bond is not insurance that you purchase; it is the collateral for a promise.
We work with a “Highly Reputable” Bonding Company that has several different financial plan options for you to help you obtain your required Broker Bond. They currently hold over 50% of the Bond market, they are in excellent standing with the Better Business Bureau, they are very experienced and have many references for verification.
Most new Broker’s do not have this kind of money, if you need help getting a Broker Bond, contact us and we will help you immediately.
Do not let the $10,000 Broker Bond prevent you from pursuing a Freight Broker Business of your own, there are different plans to pick from that fit your financial needs.