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COMPLETE Guide: Starting A Successful TRUCKING Company — Transcript

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0:00too many times we see new trucking
0:02companies fail because they were not
0:04prepared or knew what to expect what
0:06life would be like as a business owner
0:07we want you to succeed so we are doing a
0:11seven part video series that goes into
0:13detail on new business roadmap from
0:16getting off the ground to year three of
0:18your business the goal is to help you
0:20prevent the many headaches new trucking
0:23companies face why year three well one
0:26secret in the insurance industry is that
0:28carriers who prove their low risk safety
0:30history will get much lower preferred
0:33rates as they go into the third year of
0:36business I like the sound of that so
0:38let's get in the loop with Luke and get
0:40started
0:42the first step in the seven step road
0:45map is simple know what lifestyle you
0:48want a Visionary doesn't just dream
0:51about starting their own business they
0:53meticulously understand it inside and
0:56out this means you need to know what
0:58type of cargo you want to haul getting
1:00the right truck for your operation
1:01getting the right trailer such as a box
1:04truck driving refrigerated trailer or
1:06flatbed getting CDL endorsements to haul
1:09special loads and how quickly you want
1:11to grow and if you plan to lease on
1:13owner operators under your own authority
1:15how far you will travel what states you
1:18want to haul in and more and if you
1:22don't know these answers then you put
1:24your new company at risk of failure
1:25before you ever haul a load so go back
1:29and pause this video so you can write
1:31these points down and then answer them
1:33go on I'll wait
1:39okay we will cover some of these options
1:41later in the series but if you don't
1:43have the answers find a mentor or talk
1:46with people in the industry now you
1:48probably already have your CDL but your
1:51lifestyle choices might require a Class
1:53A CDL or a special endorsement no matter
1:56if you want to drive your F250 pulling
1:58Hot Shot loads looking to get into box
2:00truck business or being a long-haul
2:02trucker with specialized skill
2:04endorsements you want your class A CDL
2:06because you want flexibility in your
2:08career for example if you are not making
2:11enough money driving Hotshot a Class A
2:13CDL allows you to move up to a larger
2:16vehicle or 40-foot trailer for bigger
2:18and more lucrative loads and haul
2:20Interstate across state lines and if
2:22this is not enough you can step up to a
2:25semi or be a company driver it's all
2:27about options now when truckers think
2:30about lifestyle they're often asking how
2:33do I make the most money as a truck
2:34driver well often these options means
2:37you need specialized skills and
2:38endorsements on your CD El for example
2:41the dangers of hauling hazardous
2:43materials such as gasoline explosives or
2:46other dangerous goods leads to a
2:48constant high demand for HazMat endorsed
2:50CDL Drivers which means you have a much
2:53higher pay and additionally tanker
2:56endorsed CDL drivers can haul liquids in
2:58large quantities which can be difficult
3:00because turning sharply and slamming on
3:02your brakes too hard can cause the
3:04trailer to tip so these drivers have a
3:07high level of skill in moving liquid
3:09materials safely and are often paid much
3:12more than regular CDL Drivers you can
3:15also consider being a car hauler or
3:17chase good flatbed loads in fact many
3:20owner operators have more than one type
3:22of trailer maybe they have a reefer
3:24trailer chasing the Harvest Seasons
3:26across the U.S and then switch to a
3:27flatbed trailer to haul heavy or
3:30expedited loads in slower months with
3:32these choices there are important cargo
3:35securement skills to learn and how to
3:37tie down loads with straps chain or
3:40tarps and for reefer and dry Vans you
3:42need to learn the Ideal Cargo securement
3:44for say crates of apples so they don't
3:46topple or get loose when climbing steep
3:48hills or hitting big bumps I could keep
3:51going but we will address many of these
3:52important choices in the coming steps
3:55to wrap up if you know what you want to
3:58do what you need and where you want to
4:00grow then all the business planning and
4:03money management licensing setup
4:05insurance and other processes goes much
4:09smoother so go do your research and
4:12learn as much as you can on the trucking
4:14industry on business management and
4:16compliance regulations and best of all
4:19you can start here subscribe watch more
4:22of our videos go read our blogs at
4:24cnsprotects.com for safety and
4:26compliance information and keeping
4:28safety scores low
4:30cnsinsurers.com for insurance
4:32information and keeping risk and
4:34premiums low and CNS trains for CDL
4:37training information
4:39there are literally hundreds of Articles
4:41over the years at your fingertips and
4:43everything is linked down below when
4:46you've done that the next video in the
4:48seven step startup roadmap is
4:50pre-startup planning where we will
4:52discuss costs cash flow savings
4:55expectations and more and stay safe out
4:59there
5:03welcome back to our seven part video
5:05series that goes into detail on a new
5:07business roadmap from getting off the
5:09ground to year three of your business
5:11the goal is to help you prevent the many
5:13headaches new trucking companies face
5:15before we dive in I want to thank all
5:18our new subscribers out there keeping
5:20the Channel Growing I want to especially
5:22call out Rowan you are awesome keep it
5:25up
5:26if you enjoy our content like Rowan does
5:29give this video a like leave a comment
5:31say hi to Rowan and don't forget to
5:33subscribe in the last video we talked
5:36about knowing what lifestyle you want as
5:38a new trucking company if you haven't
5:40watched it go check it out there are a
5:42lot of questions you should answer
5:43before moving on to the next step of
5:45your new Venture roadmap now let's move
5:47on to part two where we will discuss
5:49pre-startup planning for your business
5:51it is important one
5:56the choices you make from this point
5:58forward greatly impact your company's
6:00startup cash flow growth timeline and
6:02large future payment dates a solid
6:05business plan will list expenses and
6:07revenue expected in your new company
6:09expenses can be up to twenty thousand
6:12dollars per month as a single owner
6:13operator startup so be sure to put aside
6:16money for the Investments needed for
6:18your new career as this is the biggest
6:20reason new trucking companies fail did
6:23you catch that the biggest reason your
6:25business May Fail is not being prepared
6:27for the large costs involved in the
6:29trucking business so what should you
6:30prepare for first don't forget your own
6:33salary I mean you are a professional
6:36driver get paid for it next there are
6:39the startup costs that include the
6:41trucks and trailer payments licensing
6:43fees and registration costs third your
6:46commercial insurance payments which
6:48won't be cheap
6:49fourth any required data tracking
6:53software and services like a telematic
6:55device or ELD for your electronic logs
6:58fifth be prepared for paying your taxes
7:00not only are there the quarterly IFD and
7:03IRP mileage tax reports but annual
7:05business taxes as well
7:07sixth you can't forget about your daily
7:09operating expenses such as food Fuel and
7:11more and seventh you always need to be
7:14prepared for vehicle maintenance issues
7:16you never know when an issue will happen
7:18so have a rainy day fund for your
7:20business to be ready of course if you
7:22haven't received your CDL yet the last
7:25expense to consider is the cost of
7:27getting your CDL truck driving schools
7:29typically cost between five thousand and
7:31ten thousand dollars while one-on-one
7:33CDL training like at our CNS driver
7:35training center can cost between two
7:37thousand and thirty five hundred dollars
7:39if you start your company first there is
7:42a way to have your CDL training be tax
7:44deductible as on-the-job training or
7:46company contract training as long as it
7:49is paid for by the company entity have
7:51CDL questions let us know in the chat or
7:54click the Forum linked below and we will
7:56answer them
7:57with that said there is only one way to
8:00receive free CDL training find an
8:03employer who is willing to train you
8:04themselves or pay for your CDL training
8:07this is referred to as company sponsored
8:09CDL training and you should expect at
8:11least a one-year commitment after
8:13trading to that company
8:15we have a list of these companies on our
8:17CDL job board for the PA area you can
8:20find it link below
8:22now when starting your Trucking Company
8:24don't forget the old adage location
8:26location location
8:28why where you choose to start your
8:31Trucking Company could save you
8:32thousands on insurance and here are six
8:35specific reasons one your startup
8:38business location is important and can
8:40save you thousands of dollars in
8:41insurance premiums when you first start
8:43your trucking company in most cases it
8:45is best to avoid major cities or areas
8:47susceptible to severe weather for
8:50example trucking insurance is expensive
8:52in Atlanta Georgia however a new carrier
8:55can save thousands of dollars if they
8:57just start the location of the business
8:58outside of the city
9:01two location consistency is important it
9:05is best practice to live and have your
9:07driver's license in the same state that
9:09your business will be located in if your
9:11place of business has an address in New
9:13Jersey the insurance company expects
9:15your driver's license to be in New
9:16Jersey as well additionally if you
9:19declare to your insurance company on
9:21your application that you are going to
9:23operate within a 500 mile radius of your
9:25New Jersey place of business yeah you
9:27have a Florida driver's license that
9:30causes yet another unexpected mismatch
9:32if there is a mismatch you will almost
9:34always see a significant insurance
9:36premium increase
9:38three garaging address location is
9:41important in general living in an urban
9:44area compared with a rural area can have
9:46a major impact on rates in a metro area
9:49where there are more cars on the road
9:50and more traffic accidents are more
9:53likely pushing rates higher if you plan
9:55to make the changes to your garging
9:57address it is recommended that you
9:59notify your insurance company as soon as
10:01possible your insurer can make the
10:03necessary adjustments to your insurance
10:05policy to protect you against possible
10:07risks 4. delivery radius is important
10:10most insurance companies want you to
10:13stay Interstate or within a 500 air mile
10:16radius of your business location for the
10:18first couple years of business as you
10:20prove your safety history and show that
10:22you can manage the company well then
10:24expanding to long-haul Trucking will be
10:26more affordable
10:27if you are committed to start as a
10:29long-haul trucking business then expect
10:31to pay expensive insurance premiums for
10:33a couple of years
10:355. employing out-of-state drivers can be
10:38expensive if you want to grow your young
10:40business by adding new drivers insurance
10:42companies want these drivers to stay
10:43within a localized 500 air mile radius
10:46location for the first couple years
10:48until you gather more evidence of good
10:50business management and safe driving
10:52history for example out of State Drivers
10:55tend to cost ten thousand dollars per
10:57person in insurance premiums for startup
10:59carriers it is recommended to not use
11:02out-of-state drivers for the first three
11:04years of business
11:06and six routes matter two Underwriters
11:10also look at the location of frequent
11:12routes your driver's travel insurance
11:15companies are big fans of regular routes
11:17as it lowers the overall risk of an
11:19accident because the more regular routes
11:21you operate in the more familiar your
11:23drivers are however the location of
11:26these frequent routes could negatively
11:27affect your risk as well Underwriters
11:30use road safety data that highlight the
11:32more dangerous roadways to map out which
11:34states metropolises and cities are the
11:37riskiest to travel in
11:39have any other insurance questions let
11:41me know in the chat or click the form
11:43linked below and we will answer them
11:46now that we understand why location
11:47matters what about cash flow the biggest
11:51reason owner operators fail is not
11:53having enough money saved up before
11:55going on their own to manage the startup
11:57costs the maintenance emergencies or
12:00lagging payments after finishing a load
12:03cash flow is the amount of money coming
12:05in versus coming out of the company the
12:08issue for owner operators at the
12:10beginning is not having money coming in
12:12for at least 30 days after completing
12:14their first few loads that's right you
12:17may have finished three or four loads in
12:19a day or a week but on average you won't
12:22be paid for it until 35 to 45 days later
12:25from the company invoice
12:27owner operators need to have money on
12:30hand to pay for fuel Insurance food and
12:32more for the entire month before the
12:34money enters the bank account so truck
12:37drivers who are looking to go on their
12:39own must find a way to start a savings
12:41plan where you are regularly putting
12:42aside money at least 200 per week well
12:46on average truck expenses alone for a
12:48new owner operator is usually around
12:50fifteen thousand to twenty thousand
12:52dollars per month for a single truck
12:53before starting out you have to save up
12:56at least twice that to manage the first
12:57couple of months of your business
12:59ideally many consultants recommend
13:01saving at least six months of operations
13:03which is closer to a hundred thousand
13:05dollars as you build your savings you
13:08should learn how to build and use your
13:10credit score for when you later need to
13:12borrow for a truck purchase or repairs
13:15knowing that vehicle payments affects
13:17cash flow the question comes down to
13:19should you purchase or lease a new or
13:22used truck
13:23well think of it this way as your most
13:26expensive and most important asset a
13:29used truck will likely cost around sixty
13:31thousand dollars or more while a new
13:33truck will cost a hundred thousand
13:34dollars or more
13:36to get a new truck most dealerships
13:38require two years of Driving Experience
13:40a clean driving record twenty percent
13:42down payment and a credit score of at
13:44least 650.
13:46many new owner operators cannot afford
13:48to put 20 down and will often choose to
13:51lease the truck with around a thousand
13:53dollar down payment in the short term
13:55leasing is always cheaper because
13:57leasing focus on the value of the truck
13:58at the end of the lease term lowering
14:01the initial investment with an option to
14:03purchase or refinance the remaining
14:05value of the truck after the lease ends
14:07I know this sounds complicated but
14:09here's an example a hundred and fifty
14:12thousand dollar truck is leased to own
14:13for four years after four years the
14:16value of the truck is worth fifty
14:17thousand dollars so during your lease
14:19you are paying off the difference in the
14:21value of a hundred thousand dollars and
14:23then you still owe fifty thousand
14:24dollars at the end
14:26now during the last four years your
14:28business plan would be to save money to
14:30purchase the rest of the value of the
14:31vehicle at the end of the lease or
14:33refinance for the residual left on the
14:35truck
14:36the average cost to lease a semi truck
14:39is between sixteen hundred dollars to
14:40twenty five hundred dollars per month
14:42for new trucks and eight hundred to
14:44sixteen hundred dollars per month for
14:45used trucks don't forget that there is
14:47still likely around a thousand dollar
14:49down payment if you're leasing from a
14:50dealer I get it this all sounds
14:53complicated but this is why I am
14:55stressing why knowing what you are
14:57getting into is so important driving
14:59truck and running a business is
15:02completely different but that is why CNS
15:04is here to help
15:08after part one and two in our roadmap to
15:10start a successful trucking business you
15:12have learned the importance of
15:14pre-planning and know what to expect
15:16going forward now the question is how do
15:19I get started luckily with your business
15:22plan in hand the process will go much
15:25smoother trust me and in part three
15:28let's get in the loop with Luke and chat
15:30about startup compliance
15:35well the government has rules and wants
15:37you to pay your dues but the rules are
15:40long specific and unique to particular
15:42circumstances and situations so let's
15:45split this into three compliance
15:47sections business compliance licensing
15:49compliance and DOT regulation compliance
15:52luckily for business compliance my
15:54friend Chris o'meally dove into this
15:56topic about what you need in order to
15:59start your new company let's quickly
16:00listen to what he has to say
16:03take it away Chris
16:06first things first we'll get you set up
16:08with an EIN or employer identification
16:11number and Ein lets the IRS properly
16:14identify taxpayers that are required to
16:16file business tax returns you will need
16:19to get this done right away so you
16:21aren't going up against the IRS when
16:23it's tax season remember you are at
16:26Microsoft you won't win that fight now
16:29you need to identify what type of
16:31business you are there are several
16:33choices here including C Corps s-corps
16:36llc's or Partnerships but we typically
16:39recommend that Trucking startups operate
16:42their business as an LLC to put it
16:44simply an LLC or limited liability
16:47Corporation combines pass-through
16:49taxation of a partnership with the
16:51limited liability of a corporation with
16:54all that information you stay above the
16:56board fill out paperwork in a timely
16:58manner and you'll be fine when it comes
17:00to tax season great let's move on to
17:03your licensing Appliance to set up the
17:06trucking part of your business first
17:08obtain a usdot number to operate as an
17:11interstate For Hire carrier you must be
17:13properly registered with the dot and
17:15issued an operating Authority by the
17:17FMCSA of course be sure you even need a
17:20usdot number this is how everyone will
17:23track your company when collecting and
17:25monitoring your safety information
17:27acquired during audits compliance
17:29reviews crash investigations and
17:32inspections companies that operate
17:34commercial vehicles transporting
17:36passengers or hauling Cargo in
17:38interstate commerce must be registered
17:40with the FMCSA and have a usdot number
17:43also commercial and Trust State
17:45hazardous material carriers who haul
17:48types and quantities requiring a safety
17:50permit must register for a usdot number
17:52apart from Federal Regulations some
17:55states require the interest State
17:57Commercial motor vehicle registrants to
17:59obtain a DOT number as well here is a
18:01quick map to those States requiring this
18:06second obtain a motor carrier operating
18:09Authority the MC number is also called
18:12your operating Authority and in general
18:14companies that do the following are
18:16required to have their Interstate
18:17operating Authority in addition to a DOD
18:19number here's Chris again with more
18:22details if you are a four-hire carrier
18:24passenger carrier or new federally
18:27regulated Commodities you'll need to get
18:30a motor carrier operating Authority or
18:33MC number for short so when you talk to
18:35our Trucking specialist to get your DOT
18:37number make sure you know what you're
18:40hauling around in that truck of yours so
18:43we can have you leave with a DOT number
18:45in one hand and an MC number in the
18:48other
18:49but one thing we want to warn you about
18:53number is public information as soon as
18:57your DOT number is active you will start
19:00receiving calls or emails from scammers
19:02that may be using Scare Tactics to
19:05purchase something we'll inform you of
19:07everything you need to know before we
19:09send you out on your own but if you find
19:12yourself questioning an email or a phone
19:14call as legitimate you can call us
19:16anytime to cross check it now the FMCSA
19:20registration and Authority process
19:22requires additional elements to be filed
19:24outside of this application process the
19:26FMCSA will keep your Authority in a
19:28pending status until the completion of
19:30the required processes and protest
19:32periods your registration and Authority
19:34can be granted and active in no less
19:36than 21 days but can take much longer
19:39based on the timelines of the required
19:40filings and any red flags within the
19:43application process that might indicate
19:45a closer inspection by the FMCSA
19:48mistakes are costly both in time and
19:51money when getting everything set up to
19:53start up your company
19:54if you have questions fill out the form
19:56below and our licensing experts will
19:58work with you from start to finish in
20:00setting up your company
20:01so let's move on to the other filings
20:03that need to be acquired during this
20:05pending status third file a boc3 a boc3
20:10is a required United States filings that
20:12activates your motor carrier Authority
20:14this filing assigns legal agents in the
20:17event court papers ever need to be
20:19served to your company by an outside
20:21State and let's hope this never happens
20:23it is required before Federal operating
20:25authorities can be granted in the U.S
20:28four know the heavy used tax states do
20:32you plan to drive heavy loads truckers
20:34with a vehicle that has a taxable gross
20:36weight of 55 000 pounds or more that are
20:39being operated on public highways are
20:41required to electronically file hovet
20:44form 2290 once filed you need to get a
20:47stamped copy of your schedule one you
20:49must file all taxable Highway Motor
20:51Vehicles that are required to be
20:53registered in your name under State
20:55District of Columbia Canadian or Mexican
20:58law during the tax period of when the
21:00truck is first operated
21:02complete a 2290 hovet form you'll need
21:05your business name address employer
21:07identification number details of an
21:09authorized signatory and vehicle details
21:12such as Vin and weight number five
21:14secure a unified carrier registration or
21:17UCR
21:18carriers Brokers Freight forwarders and
21:21leasing companies are required to
21:22register and pay a fee unless they also
21:25are operating as a motor carrier but
21:27what is a UCR here's Chris again with
21:30the details the unified carrier
21:32registration or UCR the UCR requires
21:35individuals and companies that operate
21:37commercial Motor Vehicles in Interstate
21:40or International to register their
21:42business with a participating State and
21:45pay Annual fees based on the size of
21:47their Fleet number six get an
21:49international field tax agreement or
21:51ifta sticker if the fuel tax permit and
21:54Reporting is required in your base date
21:56for carriers or operators of qualified
21:58Motor Vehicles most commonly truckers
22:00used in Interstate operations if the
22:03licensing are required for two actual
22:06power units with a gross vehicle weight
22:08or registered gross vehicle weight in
22:10excess of 26 000 pounds three axle power
22:13units regardless of weight and or power
22:16units that are used in combination when
22:19the weight exceeds 26 000 pounds gross
22:22vehicle or registered gross vehicle
22:24weight
22:24right back to Chris on this one
22:27similarly you also have to pay taxes
22:29annually on your Fleet which is called
22:32International fuel tax agreement or ifta
22:35if it requires you to fill out the fuel
22:37tax report quarterly if you drive in the
22:39U.S and Canadian provinces Alaska Hawaii
22:43and Canadian territories don't
22:44participate in this
22:46one more quick note with ifta an
22:48operating carrier with ifta receives an
22:50ifta license and two decals for each
22:53qualifying vehicle and as Chris
22:54mentioned the carrier must file a
22:57quarterly fuel tax report which
22:58determines the net tax or refund due and
23:02redistribute taxes from collecting
23:03states to states where it is due in
23:06other words this prevents you from
23:08registering with every state you drive
23:09through and filing quarterly reports for
23:11each of these states individually and
23:13while this is nice there are a few
23:15states that requires registration for
23:17those unique states to file the fuel tax
23:19reports these unique states are Kentucky
23:22New Mexico New York and Oregon
23:25number seven obtain an international
23:28registration plan or IRP sticker this
23:31registration gives reciprocity between
23:32the United States and Canada without the
23:35need for additional registrations
23:36providing for payment of Licensing fees
23:39on the basis of total distance operated
23:41in all jurisdictions the same
23:43requirements for ifta registration
23:45applies to IRP under this plan only one
23:48license plate and one cab card is issued
23:51for each fleet vehicle well that's
23:53enough licensing compliance talk for now
23:55there are other Hazmat and special
23:57licensing and permit requirements for
23:59Unique situations as I mentioned before
24:01mistakes are costly when getting
24:03everything set up to start your company
24:05if you have questions fill out the form
24:07linked below and lastly is DOT
24:10regulation compliance we will cover
24:12Insurance in the next video
24:15first driver qualification files are
24:18important trucking companies need to
24:20keep impeccable records in the event of
24:22an audit which will come in the first 18
24:24months of your new business a driver
24:27qualification file according to 49 CFR
24:30390.5 is required for anyone who
24:33operates a commercial motor vehicle this
24:35includes vehicles that weigh over 10 000
24:37pounds or placarded for hazardous
24:39materials or are designed or used to
24:42transport multiple passengers at least
24:43nine or more you are required to keep
24:46track of driver files if you are an
24:47individual who meets the definition of
24:49both motor care and a driver employed by
24:51that motor care a mechanic the owner of
24:53the company a part-time temp driver is
24:56only driving one time works for a
24:58private company
24:59Etc driver qualification files are
25:01simply the driver's personnel file that
25:03includes information of past employment
25:05drug testing history motor vehicle
25:08records credit history and more failure
25:11to maintain these driver qualification
25:12file Basics can lead to CSA violence
25:15relations fines and unsatisfactory
25:17safety rating and out of service orders
25:20want more information to prevent
25:21mistakes click the card above number two
25:24join the mandatory drug and alcohol
25:26Consortium anyone holding a commercial
25:28driver's license needs to have a
25:30pre-employment drug test and be enrolled
25:32in a DOT drug and alcohol Consortium
25:34owner operators are required to be in a
25:36Consortium to manage their drug testing
25:39program smaller and medium fleets also
25:42greatly benefit from allowing a third
25:43party to manage District drug testing
25:46rules companies should look for a
25:48program that meets the Dot's mandatory
25:51requirements and look for the following
25:53features
25:54random selections consulting company
25:57drug and alcohol policy support testing
26:00at certified Labs collection site
26:02management record keeping and Reporting
26:05assistance and mro services don't know
26:08what that means or want Consulting help
26:10fill out the Consortium form linked
26:12below number three install compliant
26:15electronic logging device an ELD is an
26:18electronic logging device capable of
26:19recording the electronic record of Duty
26:21status for CMV drivers in other words
26:24this tracks the hours of service and
26:26drive time of a driver but it can do so
26:28much more today's elds can actually help
26:31you grow your business elds offer many
26:34Fleet Management features like
26:35diagnostic tools and advanced reporting
26:37that can help you be prepared for any
26:39audit with their reports you can
26:41maximize your Fleet efficiency and
26:43simplify your operations so to recap we
26:47chatted about what you need to set up
26:48your business the Required licensing and
26:51permits needed to haul loads and some of
26:53the most important dot regular station
26:54compliance from drug testing to elds if
26:58you think this is complicated I am sure
26:59you will enjoy our next video where we
27:01will discuss your insurance needs step 4
27:04of the new Venture startup process is
27:06just right around the corner stay safe
27:09out there
27:14four of our new Venture road map to
27:16successfully start up your trucking
27:17company we will discuss Insurance not
27:21just what coverages you need but how you
27:23can start building a good safety record
27:25to help you keep future rates as low as
27:28possible with that said and a lot to
27:31cover let's get in the loop with Luke
27:33and dive in
27:37as a new carrier you can expect to pay
27:39much higher insurance rates since you do
27:42not have two plus years of safety
27:44experience under your DOT number these
27:46higher premiums will impact your profit
27:48and monthly cash flow which we will
27:50cover in the next video so stay tuned
27:53so what can you do now to help keep
27:56rates as low as possible as a new
27:59Trucking Company well it's pretty simple
28:02as a truck driver the earlier you can
28:05build your safety history the better
28:07Underwriters will measure the risk when
28:09they insure your new business the best
28:12thing you can do now are have a good
28:15credit score have no distracted driving
28:17tickets speeding tickets over 25 miles
28:20per hour or at fault rear end accidents
28:23have no Auto Insurance liability or
28:26physical damage claims while an employed
28:29driver
28:30have CDL experience for at least one to
28:33five years have your license in the same
28:36state you reside in and establish your
28:38business in the same state you reside in
28:41we mentioned this earlier in the series
28:43which you can watch fully by clicking
28:45the card above
28:47while these are important your MVR or
28:49Motor Vehicle Record has the most
28:52significant impact on insurance premiums
28:54for example if you get two or more
28:57speeding tickets or other moving
28:58violations in a three-year period you
29:01can count on a rate increase at most
29:03insurance companies
29:05a Motor Vehicle Record is a
29:07state-specific document that shows your
29:09driving history within that particular
29:11State over a period of time
29:14typically MVR reports show three years
29:17to 10 years of driving history such as
29:19accident reports driver restrictions
29:22civil traffic violations like speeding
29:24and running a red light license
29:26suspensions vehicle crimes like DUI
29:29reckless driving and leaving the scene
29:31of an accident unpaid summons and
29:33insurance lapses or number of points in
29:36states which use a point system
29:39if you have a history of issues on your
29:41MVR you can change your driving habits
29:44today and wait to get your Authority
29:46until the violations drop off your MVR
29:49within three years most speeding tickets
29:52will fall off your driving record and
29:54then may qualify you for a safe driving
29:56discount if your insurer offers one
29:59lastly if you have a history of
30:02insurance claims in either commercial or
30:04personal vehicles it will be immediately
30:06evident with adverse and severe
30:09implications on your commercial auto
30:11insurance premium when it comes to
30:13Commercial Auto Insurance both liability
30:16and physical damage insurance claims are
30:19viewed through two lenses one all paid
30:23claims are considered an accident even
30:25if there is no police report and two the
30:29higher the amount paid to settle the
30:30claims the higher the risk for insurance
30:32companies while safety history is a
30:35start your business reputation is also
30:38critical to build this up before you
30:40start your company you must think about
30:42your credit score simply a higher credit
30:45score means better ratings the theory
30:48with credit is that if you manage your
30:50personal financial affairs well you are
30:53more likely to take your driving and
30:55safety seriously so be sure to pay your
30:58bills on time include including
30:59mortgages or rent credit cards auto
31:02insurance and car or truck payments
31:05another way to keep your credit score
31:06high is to make sure your credit
31:08utilization rate is below 30 if possible
31:12for example if you have a credit card
31:14with a ten thousand dollar limit and a
31:17five thousand dollar balance on the card
31:19your credit utilization rate is fifty
31:21percent this means making sure you pay
31:23down any credit to below thirty percent
31:25of your total credit limit available to
31:28you in this example you want to have
31:30just three thousand dollars on your card
31:32and constantly Keeping On Time payments
31:36otherwise another option is to ask for
31:39your credit card limit to be increased
31:41on a credit card or two to quickly make
31:44that credit utilization rate lower this
31:46means increasing the credit limit from
31:48ten thousand to fifteen thousand dollars
31:49so if you have five thousand dollars on
31:51the card your utilization rate just went
31:54from fifty percent down to thirty three
31:56percent there is much more to consider
31:58with your credit
31:59let me know in the comments if you want
32:02a video talking in depth on managing
32:04your credit score report with your
32:06safety and business management story
32:08starting to be written you are ready to
32:10obtain the correct insurance for your
32:12company as a commercial Motor Carrier
32:14there are different types of required an
32:17umbrella or extra insurance coverages
32:20you will need these include primary
32:22liability cargo Insurance physical
32:24damage non-trucking use or bobtail
32:27insurance underinsured or uninsured
32:30motorist Insurance Workers Compensation
32:32Insurance reefer breakdown coverage and
32:35more let's discuss each one
32:38primary liability it is important to
32:41keep in mind your legal requirements
32:43trucking insurance is mandatory in all
32:4650 states and not having proper
32:48Insurance could cost you pricey fines or
32:51your license to stay legal on the road
32:54you are required to have primary
32:55Trucking liability insurance of at least
32:57seven hundred and fifty thousand dollars
32:59worth of coverage but most Brokers won't
33:02give you a load unless you have one
33:04million dollars worth of coverage
33:07non-trucking or bobtail liability
33:10all time spent in a truck is not
33:12billable but it is insurable when you
33:16use your truck for non-business purposes
33:18you need insurance coverage non-trucking
33:21liability offers liability coverage for
33:24property damage or bodily injury to a
33:26third party when trucks are being used
33:29for non-business purposes
33:31cargo insurance
33:33in addition to covering your vehicles it
33:36is just as important to protect the
33:37cargo that you are hauling whether it is
33:39yours or a client's cargo truck cargo
33:42coverage ensures the contents of the
33:45trailer temperature control machinery
33:47and other appliances are accessories
33:49that keep cargo secure coverage is
33:52custom evaluated for the type of
33:54Commodities hauled and the requirements
33:56of the shipper
33:58is a list of all risk and broad form
34:00policies to consider reefer breakdown
34:04loading and unloading debris removal
34:07pollution cleanup
34:09aggregate deductibles earned Freight
34:12charges
34:13and high-valued commodities requiring
34:16limits of 250 000 per vehicle or more
34:20physical damage Insurance anytime you
34:22drive you are exposed to risk your truck
34:25could be damaged in an accident or from
34:27another disaster it can be stolen or
34:30vandalized any of these issues could put
34:32your truck out of commission and
34:34compromise your business physical damage
34:36insurance coverage is not required on
34:38your truck unless your vehicle is leased
34:40if it is then you are more likely
34:43required to have physical damage
34:45insurance
34:46on the other hand if your vehicle is
34:48fully paid for physical damage coverage
34:51is optional however it offers 24-hour
34:54Collision coverage for damages to your
34:56tractor or trailer
34:58Collision comprehensive or specified
35:01perils Aggregate and combined
35:03deductibles rental reimbursements Gap
35:07coverages personal effects for drivers
35:09Towing coverages electronic equipment
35:12coverage and downtime loss expense
35:15Workers Compensation Insurance
35:18if you have one or more employees and do
35:21not carry Workers Compensation Insurance
35:23you will be liable for these costs and
35:26additionally be subject to fines and
35:27fees based upon the state your operation
35:30resides in Workers Compensation
35:32Insurance protects your employees and
35:34your business from work related
35:35illnesses or injuries the coverage is
35:38mandated by each state and the workers
35:40compensation laws and benefits vary by
35:43state if Trucking Workers Compensation
35:46Insurance is mandatory it can provide
35:48coverage for medical expenses
35:50Rehabilitation death benefits and missed
35:54wages employees filing claims for
35:57Workers Compensation Insurance can only
35:59do so if their injury or illness is
36:02caused by their duties while on the job
36:04and often include a slip or fall a
36:08strain of the body from heavy lifting
36:10injuries that have resulted from an
36:12accident while operating machinery and
36:15more the injured parties must visit a
36:17healthcare professional in immediately
36:19so a medical doctor can provide medical
36:21reports to support any claims upon
36:24approval of the insurance carrier the
36:26employee will receive compensation
36:28payments and can return to work when
36:29cleared Fleet owners who lease on to
36:32motor carriers sometimes need to offer
36:34workers compensation coverage for their
36:36employee drivers
36:38owner operators have the option to
36:40purchase their own coverage called
36:42occupational accident insurance or oai
36:45oai is used for medical benefits and
36:48disability coverage in the event of an
36:51injury on the job
36:53this coverage option typically costs
36:55about half of a traditional workers
36:56compensation policy coverage cost it
36:59will not have all the benefits that
37:01workers compensation coverage provides
37:04okay you made it through good job if you
37:08are looking for an insurance quote or
37:09have questions then look no further you
37:12can get a quote from CNS insurance by
37:14clicking on the link below and fill out
37:17the form part 5 of our roadmap to
37:19success is managing cash flow stay tuned
37:23it will be here before you know it
37:28no cash is not King cash flow is King
37:32running a trucking company requires a
37:35lot of attention to detail if you allow
37:37anything to fall through the cracks then
37:38it could wind up costing your company a
37:40lot of money back in part two of our
37:43roadmap series we discussed the basics
37:45of cash flow because the biggest reason
37:47owner operators fail is not having
37:49enough money saved up before going on
37:52their own to manage startup costs
37:54maintenance emergencies or lagging
37:56payments after finishing a load now it's
37:58time to dig into the details so let's
38:00get in the loop with Luke and dive in
38:04so what is cash flow cash flow is simply
38:08the amount of money coming in versus
38:10coming out of the company it is your
38:12inflow and outflow of cash you have
38:15positive cash flow this allows you to
38:17pay bills reinvest into your business
38:20and build a safety net for maintenance
38:22issues low Freight rate cycles and more
38:26if you have negative cash flow you can
38:29try to survive while living in debt and
38:31hope your negative cash flow doesn't
38:33kill your business now the way you
38:34control positive cash flow is to speed
38:37up the inflow and reduce the cash
38:39outflow this is what we will talk about
38:41in detail today the issue for new owner
38:44operators is not having money coming in
38:46for at least 30 days after completing
38:48their first few loads because on average
38:51you won't be paid for it until you're 30
38:5360 or 90 day invoice from a shipper so
38:57this begs the question how do you manage
38:59cash flow so you can pay for fuel
39:01insurance food and more during startup
39:05as we discussed previously when starting
39:08out as a new owner operator you should
39:10ideally have saved up for at least six
39:12months of operation which is around a
39:14hundred thousand dollars for a single
39:16truck owner operator is it really that
39:18expensive well on average truck expenses
39:21alone is usually around fifteen to
39:23twenty thousand dollars per month for a
39:25single truck and this can be worse
39:27during a market downtrend because diesel
39:29prices inflation or interest rates are
39:31high
39:32now many of you are already running your
39:35own business so what can you do let's
39:38break this into two sections manage
39:41inflow and manage outflows to increase
39:44inflow we need more money coming in or
39:48speed up when that money comes in
39:50four ways to do this is to charge more
39:53use factoring or broker quick pay
39:56options work with trusted shippers
39:58directly and follow up on invoices
40:02charge more
40:04many trucking companies experience cash
40:06flow problems because they don't charge
40:08enough per mile to cover their expenses
40:10maybe you don't realize it but the race
40:13for quick cheap loads hurts companies
40:16more than helps if you accept these
40:19super low rates then the shipper assumes
40:22they can continue to get away with it
40:23but you are the one moving the product
40:26you are the professional so make sure
40:28you know what your costs and worth are
40:32the most important thing for you to do
40:34for every load is determine your truck
40:37Freight rate and costs per mile so you
40:40can cover your expenses in expected
40:41Profit just remember that these rates
40:44will fluctuate depending on your routes
40:46if you're going in or leading certain
40:48regions and more to calculate costs per
40:52mile you need to examine your current
40:54expenses and forecast the numbers of
40:56miles you plan to drive this year then
40:58divide the expenses and profit by the
41:01miles
41:02a truck Freight rate is a price a
41:05shipper or broker will pay you to haul a
41:07load while this sounds simple these
41:09rates per mile can vary significantly
41:11depending on your time of year and
41:14current fuel prices the most important
41:16number when it comes to calculating
41:18truck rate is the number of miles
41:20between your starting point and the
41:22destination
41:23after distance you need to know the
41:26weight of the shipment the control costs
41:28you must carefully manage the overall
41:30weight loading for your Fleet if you
41:32start with a higher rate for heavy loads
41:34even if the shipper negotiates a
41:36discount you will still end up with more
41:39total revenue lastly is the shipment
41:42density so you know how much room a
41:44shipment will take up in your truck once
41:46you know the weight of the shipment
41:47calculating the shipment density is
41:49simple all you do is divide the cargo
41:51weight by its cubic feet
41:54now to find the best trucking rates with
41:56load boards you should gauge load
41:59activity by origin and destination with
42:02load density this means find out how
42:05many trucks are already in the lanes you
42:06want to travel and whether negotiations
42:09will be favorable balanced or
42:12unfavorable
42:13then monitor load to truck ratios in
42:16general as the number of available
42:17trucks rise rates go down and as the
42:20number of available loads Rises rates go
42:23up and then search high paying loads
42:25across Lanes but be careful you don't
42:27want to get stuck in a region and find
42:29it hard to get out without losing money
42:31you may find it better to accept a
42:33decent load and have another decent load
42:36out versus a great load going in and
42:38losing money or being stuck without a
42:40load to go out this dance of loads lanes
42:44and rates is hard to manage so if you
42:46can find a trusted broker you can pass
42:48the headache to them but as always this
42:50comes with a fee temporarily use
42:52factoring or broker quick pay
42:55factoring is the selling of the invoice
42:57after you complete the load to the
42:58factoring company doing this allows you
43:00to get paid that same day but with a cut
43:03for the factoring service carriers then
43:06use that cash to fund operating expenses
43:08moving forward the goal here is to look
43:11for good factoring rates factoring
43:14companies often take 10 for their
43:16service but you can see them as low as
43:18five percent so look around if you are
43:20dealing with slower cash inflow then
43:22factoring as an opportunity to manage
43:24the marketing downtrend until things get
43:26better however factoring should only be
43:29a temporary solution so find ways to
43:32save and prepare for slow invoices so
43:35you are not dependent on giving away
43:37your profits to another company another
43:39option with Brokers is their quick pay
43:41programs depending on the broker in your
43:43relationships with them they may offer
43:45to pay for your invoice early in one to
43:48seven days and take a one to five
43:50percent fee this option is cheaper than
43:52dealing with a factoring company but may
43:54not be of available with all Brokers and
43:57they determine the terms and costs work
44:00with shippers directly
44:02load boards are not the only source of
44:05loads the best way to find Reliable high
44:08paying freight loads is to focus on your
44:11sales efforts to get your own Trucking
44:13contracts this effort is time consuming
44:16and often difficult but it is worth the
44:19time in the next video we will discuss
44:22how to build these relationships however
44:24when it comes to customers and cash flow
44:26here is what you need to know first vet
44:30your customers carefully by
44:32understanding their risk profile to
44:34guard against payment default you should
44:36regularly check the credit ratings of
44:38the companies you serve a lower
44:40declining credit score could mean that a
44:42customer or broker is in financial
44:44trouble so you should run credit checks
44:46and Bank references learn from their
44:48other vendors on how they pay their
44:50bills keep notes on customer payment
44:52history and then avoid slow paying
44:55customers some factoring companies and
44:58other Financial providers offer free
45:00credit scores and days to pay in
45:02information on thousands of Brokers and
45:05shippers
45:06and second state your terms clearly on
45:09both the credit application rate
45:11advisory and invoices of four moving the
45:15load with them
45:17follow up on invoices
45:20remember our goal right now is to
45:22increase money coming in or the speed
45:24which way they come in however
45:26businesses are often too busy running
45:28day-to-day operations to remember to
45:30follow up with clients about paying past
45:33due invoices while mistakes happen
45:35invoices can sometimes get lost in the
45:38shuffle if you aren't following up on
45:40your open invoices you're leaving cash
45:42on the table and your cash flow will be
45:45slow it is best practice to invoice your
45:48customers every day versus saving those
45:51invoices up as a batch and send out a
45:53week or two later
45:55then create a follow-up plan that helps
45:58you professionally collect on your
46:00invoices from your clients in a timely
46:02manner simply make receivable calls the
46:06day in invoice is due work with
46:08receivables weekly and run account
46:11receivable reports weekly if you do this
46:14well it can also be a great way to check
46:16in with your customers and strengthen
46:19your relationships now the other side of
46:22cash flow to slow down the outflow we
46:25need to find ways to spend less or move
46:27when the bills need to be paid to a
46:29later date four ways to do this are how
46:32to use ifta correctly set up fuel cards
46:35and Tire or maintenance accounts manage
46:38rate negotiations and find other
46:40operational inefficiencies use ifta
46:43correctly
46:44typically fuel is the largest operating
46:47cost in a trucking company and the
46:49average truck today can consume more
46:51than 20 000 gallons of fuel a year
46:53costing more than seventy thousand
46:54dollars in fact due to record high fuel
46:57prices and the roller coaster swings in
46:592022 fuel prices became the top concern
47:03in trucking according to atri's annual
47:05issues report unfortunately many
47:08carriers purchase fuel using the wrong
47:10strategy leaving thousands of dollars on
47:13the table
47:14field purchases are governed by ifta and
47:17are subject to taxes due or refunds
47:19buying fuel at a location that has the
47:22cheapest pump price does not guarantee
47:24you the cheapest fuel why because each
47:27state sells fuel at a different price
47:29and taxes the fuel at its own rate on
47:32top of this the international fuel tax
47:34agreement or ifta requires that you pay
47:37taxes to each state or Canadian province
47:39that you drive through regardless of
47:41where you bought the fuel specifically
47:44you have to pay for the fuel consumed
47:46and sometimes miles traveled in their
47:49jurisdiction smart carriers develop a
47:52strategy to help optimize their fuel
47:54purchases this concept is easier to
47:56explain with an example let's assume you
47:59have the option of buying fuel in
48:01Illinois or in Missouri here are the per
48:04gallon pump prices from a few years ago
48:07Illinois was 3.39 Missouri
48:113.25 where would you buy your fuel at
48:15first glance Missouri has the cheaper
48:17fuel seems like the obvious choice right
48:18let's look at the same numbers but with
48:21more details Illinois was 3.39 is 2.97
48:26pre-tax and 42 cents taxed Missouri has
48:313.25 cents but three dollars and eight
48:34cents pre-tax and a 17 cents taxed
48:37although Missouri has the cheaper pump
48:39price Illinois has the cheaper pre-tax
48:41price Illinois is the better deal
48:43because you are paying a lower base
48:46price for the fuel then using your ifta
48:49calculations you can add the relevant
48:51taxes later as required the numbers add
48:54up when you drive thousands of miles
48:55every month using this strategy you
48:59could rack up huge savings that simply
49:00drop to your bottom line as profit there
49:03is a simple Excel spreadsheet calculator
49:05in the description below that you can
49:07use as part of your trip planning
49:09process
49:10utilize fuel cards and tires or
49:13maintenance accounts fuel cards are
49:15payment cards that can help you get
49:17discounts on your diesel purchases from
49:19a network of fuel stations which will
49:22help you maintain cash flow these cards
49:25function like a credit card where you
49:26can make the necessary fuel purchases
49:28through the card and get 60 to 90 extra
49:31days to come up with the cash to repay
49:33the bill based on price point fuel cards
49:36are categorized into fixed price fuel
49:39cards and pump price fuel cards in fixed
49:42price fuel cards the fuel is determined
49:45for the whole week and you are informed
49:47a week ahead so if you expect a rise in
49:49fuel prices in the upcoming days you can
49:52refill at lower prices on the other hand
49:54with pump price fuel cards you'll be
49:57charged according to the price displayed
49:58on the pump apart from fuels few
50:01companies also allow you to buy
50:03additional items such as toll payments
50:06or similar expenses like lubricants car
50:08washes and more while a fuel card is the
50:11best way to optimize the fuel expenses
50:13not all fuel stations will accept your
50:15fuel cards and not all the fuel card
50:17companies gave you the same discounts to
50:19choose the best fuel card for your
50:21business you must consider different
50:22factors such as location discounts type
50:25of vehicle and more for locations some
50:28fuel cards will only work in a
50:30particular region or at certain field
50:32stations if you are a local or a small
50:34Fleet operator that runs in a particular
50:36area choosing a brand or Fleet fuel card
50:39with a limiting operating territory can
50:42be a cost efficient choice
50:44for discounts fuel card providers offer
50:47different types of discounts from point
50:49of sale and rebates point of sale
50:51discounts reduce the fuel cost at the
50:53time of purchase the company immediately
50:55provides the amount to the fuel card
50:56company which reverts it to the fuel
50:59station
51:00on the other hand in the rebate model
51:02the fleet receives the fuel receipts for
51:04the total amount of fuel purchased at
51:06the end of the month
51:08so what card is the best well we heard
51:12sponsored so we won't pitch anything
51:14however some trucking businesses use
51:16several fuel cards simultaneously this
51:18is particularly helpful if they don't
51:20cost anything for you to use and you
51:21want to maximize access to different
51:23stations but research routes and costs
51:25to determine whether this makes sense
51:27for your business like the fuel card
51:29tire and maintenance accounts or credit
51:31accounts that defer payments of big
51:33expenses to pay them later most cars
51:36provide detailed monthly reports on
51:39transactions and let you set
51:40restrictions on purchases this
51:42eliminates the risk of your drivers
51:44fudging on their expense reports and
51:46costing your Fleet more money
51:48managing rate changes look Freight
51:52recessions come and go and the Bull and
51:54Bear Cycles are vicious in 2023 we are
51:57in a bear Market with a chance of a
51:59recession hitting this summer if a
52:01shipper asks for a rate cut of 10 to 15
52:03percent instead of accepting it across
52:05your business take a lane by Lane
52:07approach to negotiation versus a
52:10unilateral cut on the flip side just
52:13because the shipper is asking for a rate
52:14reduction don't be shy about asking for
52:17an increase if one is needed just note
52:20that a carrier might have to work with
52:22the shipper on a series of increases
52:24that gets the rate where it needs to be
52:27find inefficiencies in your operation
52:29efficiency is key to profitability and
52:32your trucking business makes money by
52:34optimizing efficiency after all if your
52:37truck spends days idling and wasting
52:39fuel you won't be profitable
52:42instead make sure that you're maximizing
52:45your equipment utilization to ensure
52:47that you're generating the most Revenue
52:49possible of your fixed expenses look at
52:52any other inefficiencies you may have in
52:54your business as they could be costing
52:56you in the long run to find them analyze
52:59all your expenses ask yourself if the
53:02expenses are necessary and if there are
53:04cheaper solutions that can provide the
53:06same results understanding your business
53:08expenses can help you become more
53:11efficient operationally and financially
53:13additionally make sure you are limiting
53:16mistakes especially with DOT violations
53:18that can cost you thousands leave you
53:20out of service on the road ruin business
53:23relationships and increase future
53:25insurance rates well there you have it
53:27this was a very long video with lots of
53:30tips feel free to rewind take more notes
53:33and ask us questions in the comments
53:35below don't forget to like And subscribe
53:39as well the next video in the series is
53:41a discussion on fine finding loads
53:47so you want to make money in trucking
53:49what you found the video to help you out
53:51one of the most important skills to
53:53develop in the transportation industry
53:55is learning how to find Lowe's this is
53:58especially true for owner operators and
54:00small fleets that are just starting out
54:03there is a lot to talk about here so
54:06feel free to check out the timestamps
54:08below and let's get in the loop with
54:09Luke and dive in
54:11[Music]
54:14the biggest problem when finding loads
54:16is knowing the good ones from the bad
54:18ones when do you pass and when do you
54:20accept certain loads with current
54:22technology and the excess number of
54:24trucks on the road carriers must be as
54:27fast as possible or have great
54:28relationships to win loads with good
54:31rates to build these relationships you
54:33first need to understand what the three
54:35types of freight are and why they matter
54:37when negotiating rates the three types
54:41of freight are contract Freight spot
54:43Market Freight and relationship Freight
54:46let's get to know each of them what is
54:48contract Freight contract Freight
54:51otherwise known as direct shipper
54:52Freight are a type of fixed long-term
54:55truckload pricing for consistent Freight
54:58volumes and make up to 85 percent of all
55:01loads basically shippers commit to a
55:03certain load volume and carriers offer
55:05fixed Transportation rates as a carrier
55:08if you are moving this type of cargo you
55:10are expected to move the load at the
55:12rate you agreed upon previously for
55:14example Pepsi knows they have X amount
55:17of loads they want to send in the year
55:19they work with their trusted carriers or
55:22Brokers to handle a hundred or so lows
55:24at a determined rate on various routes
55:26or Lanes but as you have seen the market
55:29can quickly shift in either direction
55:31hurting or benefiting the carrier when
55:34diesel prices or other costs rise it can
55:36squeeze a carrier's bottom line because
55:38they are now paying more for fuel on a
55:41previously contracted rate in the same
55:43scenario the shipper is protected
55:45because the contract has locked in a
55:47transportation rate giving them control
55:49over their expected costs for the year
55:51so carriers cannot raise the rate to
55:54offset the increase in fuel prices
55:55however on the positive side for
55:58carriers if the market is on a downtrend
56:00and you have a lot of contract
56:01connections the new rates will drop
56:03slowly compared to the wild swings in
56:05the spot Market
56:07so what is spot Market Freight
56:09do you ever wonder why a broker might
56:11not have all the details of a load like
56:13appointment Windows customer
56:15characteristics or weight it goes
56:17through the heart of what spot Market
56:19Freight is traditionally spot Market
56:22Freight is used to find rates for a last
56:26minute shipment or expedited loads these
56:29are loads available on the market for a
56:31very short time usually Gone in 60
56:33Seconds and are offered by freight
56:35brokers this type of freight typically
56:37makes up 10 to 15 percent of all loads
56:40on the roads many Brokers are often
56:43blind copied in an email with other
56:45Brokers for these quick loads and are in
56:47a race among Brokers to land the load so
56:50there's not a lot of time to ask for
56:52details or heavily negotiate these loads
56:55additionally spot rates are more
56:56volatile and change rapidly this is why
56:59knowing your operational costs and lanes
57:01are important if carriers are constantly
57:04fishing the spot Market you need to
57:07expand your load types by getting
57:09contract loads directly from shippers
57:11we'll talk about this later in the video
57:13what is relationship Freight this is the
57:16happy blend of contract and spot Market
57:18Freight if you want to win good loads
57:21regularly then build great relationships
57:24with Brokers and shippers and prove you
57:27are consistent and reliable this
57:30includes making Fair rate negotiations
57:31always being on time with your loads and
57:34quick at responding with positive
57:36communication skills if you build your
57:39relationships well the broker will offer
57:41you more premium loads help you get
57:43loads and Lanes you regularly run and
57:46help you avoid deadhead miles this is a
57:49win-win relationship so now that we know
57:52the basics why does knowing Freight
57:55types help you negotiate with brokers
57:58first did you know that the average
58:00owner operator works with 20 to 40
58:02Brokers each year this is because
58:04Brokers have spent the time and energy
58:06to create relationships that many owner
58:08operators and small carriers may not
58:10have the skill to do to earn direct
58:13shipper loads when it comes to contract
58:16freight brokers get the bulk agreements
58:18for a certain number of loads at the
58:19agreed rate that come from the shippers
58:22directly Brokers then often look to make
58:25five to fifteen percent margins when
58:27negotiating with carriers however when
58:29the market drops there is not much
58:31margin for Brokers because costs Rose
58:33but their contract stayed the same
58:35carriers need to know that when working
58:38with Brokers on these loads there may
58:41not be much wiggle room for their profit
58:43and your profit eventually these
58:46contracts get renegotiated and if the
58:48market improves margins will rise for
58:50Brokers and they'll be much more wiggle
58:52room to negotiate on rates we spot
58:55Market Freight speed wins some sometimes
58:58Brokers do not have a lot of details
59:00about the load because like we've
59:01mentioned they were blind copied in a
59:03mass email and are in a race with other
59:06Brokers to win that load
59:08carriers may not be able to negotiate
59:11back and forth multiple times for a few
59:13hundred dollars because the lost time
59:16with slow negotiations means the Brokers
59:18may not get the load at all also the
59:21broker may be getting 10 to 15 other
59:24phone calls every second for this load
59:26this is why it is important to know your
59:29profitability your lanes Trends
59:32happening so that you can quickly
59:33negotiate with a broker at the right
59:36price sometimes you need to be willing
59:38to just walk away if it doesn't make
59:40sense
59:41now that we discussed the basics of
59:43freight we need to discuss the four ways
59:46to find loads and each method has its
59:49benefits and drawbacks these are using a
59:52freight broker use a Load Board
59:54negotiate directly with shippers and
59:57become a government contractor
59:59carriers using freight brokers is the
1:00:01most common way to find loads for a fee
1:00:03they take on the effort to match loads
1:00:06with drivers load boards are great to
1:00:08grab quick loads to get back to home or
1:00:11use to move to a more profitable Lane
1:00:14government contracts are a nice source
1:00:16for direct loads as you continue to
1:00:18build your customer relationships for
1:00:20your own direct shipper loads again
1:00:22we'll cover direct shippers a little bit
1:00:24later in the video
1:00:25to get started here let's talk about
1:00:27some tips for vetting Brokers good
1:00:30freight brokers can bring Peace of Mind
1:00:32by connecting you with trusted shippers
1:00:34negotiate the best rates to haul cargo
1:00:37optimize routes to prevent deadhead
1:00:39miles and help you save time keeping
1:00:41your wheels moving but with so many
1:00:44Brokers carriers should look for Brokers
1:00:46with experience and make sure they are
1:00:49licensed bonded and insured be sure to
1:00:52read both the positive and negative
1:00:54reviews and start growing a relationship
1:00:56with them the more you both trust each
1:00:59other the better the loads being offered
1:01:01when you receive a load note that the
1:01:03broker is negotiating rates on the back
1:01:05end with the shipper make sure the load
1:01:08makes sense for you and you will make
1:01:10your money after the fees and general
1:01:13expenses you also need to be wary of
1:01:15double brokering double brokering occurs
1:01:18when a carrier accepts a load and then
1:01:20re-brokers it to another motor carrier
1:01:22this is not a legal practice likely the
1:01:25motorcade carry that re-brokers to load
1:01:27is not authorized or in compliance with
1:01:29FMCSA and has become a big issue in the
1:01:32marketplace the rule of thumb here is if
1:01:35the rate seems too good to be true then
1:01:37it is too good to be true for example if
1:01:41you know the market and see a load 75
1:01:43percent over the fair market rate the
1:01:46load is likely double or even triple
1:01:47brokered and you may be ghosted after
1:01:50delivering the load and never get paid
1:01:52if you see these too good to be true
1:01:54rates trust your gut ask for more
1:01:58details if they can't answer them
1:01:59clearly don't keep wasting your time
1:02:02these loads can hurt a month of
1:02:04profitability and in this current market
1:02:06could ruin your business so how do you
1:02:08negotiate with Brokers let's start with
1:02:11the basics it's all about your sales
1:02:13attitude like with any relationship no
1:02:17one wants to be called or look cheap so
1:02:20don't call the broker rates too cheap
1:02:22complaining will make the negotiation go
1:02:25cold quick similarly do not demand their
1:02:28best rate every Hagler knows this
1:02:31carriers need to know their Lanes
1:02:33average rates and operational costs so
1:02:35you can make a decent negotiation show
1:02:38the broker that you know your numbers
1:02:39and be honest with not accepting a load
1:02:42if it doesn't make you money for example
1:02:45if you know that a lane capacity is high
1:02:47meaning that there's a lot of carriers
1:02:49but not a lot of freight then you may
1:02:51want to change lanes or accept a cheap
1:02:54load to get you out and accept a second
1:02:57more profitable load on the new Lane the
1:02:59more quickly you can meet in the middle
1:03:01the more you will consistently get good
1:03:03loads from the broker next you need to
1:03:06provide full details to the broker they
1:03:09are not mind readers tell them your
1:03:12actual location and what equipment you
1:03:14are running so the broker can better
1:03:15estimate what loads are near you
1:03:18anticipate loading times cut off times
1:03:20and more lastly tell the broker which
1:03:23Lanes or regions you run consist
1:03:25instantly as this helps you build
1:03:28consistency and reliability the more
1:03:31details you provide up front the quicker
1:03:33they can work with you
1:03:35need some sales training my favorite
1:03:37book on this subject is How to Win
1:03:39Friends and Influence People by Dale
1:03:41Carnegie the book teaches you to become
1:03:43genuinely interested in other people to
1:03:46smile to remember that a person's name
1:03:48is to that person the sweetest and most
1:03:51important sound in any language to be a
1:03:54good listener to talk in terms of the
1:03:56other person's interest and to make the
1:03:58other person feel important and do it
1:04:01sincerely not only will this book help
1:04:03you with your business but any personal
1:04:05relationship as well I'll provide a link
1:04:07down in the description below
1:04:10how to use a Load Board
1:04:12can't get a good load from a broker and
1:04:14don't want to deadhead for a long time
1:04:16the easiest way to find loads without a
1:04:18broker doing the research for you is
1:04:20using load boards but be careful they
1:04:23are very competitive load boards are
1:04:26websites that allow shippers and Brokers
1:04:28to make arrangements with carriers to
1:04:30move Freight sounds simple well many of
1:04:33these websites or apps allow you to
1:04:34search for loads in many ways such as by
1:04:37weight by Route by commodity and
1:04:39equipment by specialty loads and much
1:04:42more
1:04:43they also let you check credit scores of
1:04:46Brokers see reviews of shippers and
1:04:48other carriers and provide a source of
1:04:50additional Services some of the most
1:04:52popular load boards are trucker path
1:04:55truckstop.com dat loadboard 123 load
1:05:00board direct Freight and there's many
1:05:02more
1:05:03you will have to experiment with each
1:05:05one determine which load board to use
1:05:07how many to use build relationships and
1:05:10improve your profile over time to
1:05:12increase your competitiveness when
1:05:14finding loads
1:05:15there are also websites that feel like
1:05:17load boards but are slightly different
1:05:19offering specific types of freight or a
1:05:22different type of third-party tools
1:05:24unfortunately too many carriers rely
1:05:27heavily on load boards using them
1:05:29excessively can squeeze your profit
1:05:31margins to a point where pulling the
1:05:33load is not profitable much like spot
1:05:35Market freight load boards have a place
1:05:37in the market but if you rely too
1:05:39heavily on them you will need to shift
1:05:41your focus on other types of freight and
1:05:43get contracted loads direct from
1:05:45shippers
1:05:47how to become a government contractor
1:05:50the last option to consider are the
1:05:52local state and federal government
1:05:54Freights this can open more load
1:05:56opportunities for you as you build other
1:05:58customer relationships unlike the other
1:06:01types of loads you will have to first
1:06:02register as a government contractor to
1:06:04be able to haul their load or partner
1:06:06with another company who is already
1:06:08under a government contract you can
1:06:11register by visiting the U.S general
1:06:13Services Administration GSA website it
1:06:16is important to note that the government
1:06:18might have stricter guidelines about
1:06:20delivering some loads such as requiring
1:06:22you to be a fleet owner that you meet
1:06:25requirements set in the service contract
1:06:27Act of 1965 which helps determine wage
1:06:31rates performance expectations and more
1:06:34for some military loads you need to be
1:06:37an approved fak carrier small Fleet and
1:06:40owner operators with their own authority
1:06:42for at least three consecutive years in
1:06:44good standing have two options for
1:06:46getting approved as an fak carrier first
1:06:49there is the sddc's carrier registration
1:06:52program
1:06:53this approval process for carriers
1:06:55wishing to haul fak for the military
1:06:58with this program follows clear
1:07:00guidelines there's six steps first
1:07:02obtain a standard carrier Alpha code
1:07:04scack
1:07:06second set up an account for electronic
1:07:08payments with U.S Bank Freight payment
1:07:11third complete sddc's online
1:07:13registration and four obtain a
1:07:16performance bond the required amount
1:07:18depends on the carrier size and the
1:07:20number of states where you'll run
1:07:22government Freight owner operators and
1:07:24small fleets should register with the
1:07:25small business administration which
1:07:27enables access to the small business
1:07:29bonding rules your bond will be twenty
1:07:32five thousand dollars to run in up to
1:07:33three states fifty thousand dollars for
1:07:35four to ten States and a hundred
1:07:37thousand dollars for 11 or more larger
1:07:39companies are required to maintain
1:07:41twenty five thousand dollars for a
1:07:42single state fifty thousand dollars for
1:07:44two to three states and a hundred
1:07:46thousand dollars for four or more costs
1:07:48will be as low as one to three percent
1:07:49of the bond amount annually for those
1:07:52with Stellar credit but they can run as
1:07:54high as 10 for others and five instruct
1:07:57your bonding company to afford your bond
1:07:59information to sddc and six if you're
1:08:02not already carrying it obtain at least
1:08:04150 000 of cargo insurance
1:08:06I hope this wasn't too complicated but
1:08:09those are the four ways to find loads
1:08:11but no matter the size of your Fleet if
1:08:14you want to make good money you need
1:08:16direct customers but how do you do this
1:08:19we will cover four main tips as an owner
1:08:22operator or a small Fleet owner you wear
1:08:24many hats from driving truck accounting
1:08:26maintenance business manager safety
1:08:28director human resources and so much
1:08:30more the hardest skill to learn is being
1:08:33a salesperson but why is it so hard well
1:08:36many truckers are just not wired to
1:08:38negotiate Swindle hear no and bounce
1:08:41back shake hands smile and grind however
1:08:44to build your contract Freight from
1:08:46shippers directly this grind is key so
1:08:50where should you begin first you need a
1:08:54professional website this will help you
1:08:56look professional this means stop using
1:08:59a Gmail or Yahoo AOL or some other email
1:09:03address that's so generic to do this
1:09:05build a professional web website and
1:09:07push your brand that provides shipper
1:09:10solutions for the types of freight or
1:09:12Commodities you like the haul for
1:09:14example if You Haul Regional flatbed
1:09:16loads your website should use phrases
1:09:19such as when you need to haul
1:09:21construction materials or equipment to a
1:09:23project site we get it there safely and
1:09:25on time or another option finding a
1:09:29reliable flatbed carrier is essential to
1:09:31successfully completing your shipments
1:09:33things like that make your website look
1:09:35good
1:09:36at CNS our marketing team can get you
1:09:38set up with a unique website with custom
1:09:41photos create your professional email
1:09:43address help you create an exciting
1:09:45company logo and present your company
1:09:47professionally online Second you need to
1:09:50create a carrier packet to give to
1:09:53shippers this next step is to help you
1:09:56stand out from the crowd by creating a
1:09:58compelling carrier packet so the
1:10:00customer knows details about your
1:10:02business your insurance information what
1:10:04Lanes or regions you can legally haul
1:10:06their product in and what types of
1:10:08equipment you use the goal is simple
1:10:10after looking over the packet all the
1:10:12shippers should need to do is plug in
1:10:14your information into becoming a
1:10:16qualified carrier that's it so the
1:10:19information to include are an
1:10:21introduction of your company Commodities
1:10:23U-Haul Lanes or regions U-Haul contact
1:10:26information your DOT number your
1:10:30standard carrier Alpha code or scat code
1:10:32insurance information your NAIC policy
1:10:36reference contact information from other
1:10:38trusted customers or brokers copy of
1:10:41your certificate of liability insurance
1:10:42stating what your policy has and insured
1:10:46limits W9 form with your employer ID
1:10:49copy of your MC number from the FMCSA
1:10:52and a copy of your scat code renewal
1:10:54take this a step further by offering
1:10:56shippers complete visibility on their
1:10:59loads this could be giving them login
1:11:01information to see where their Freight
1:11:03is on your telematic device or other GPS
1:11:06tracking system
1:11:08and third
1:11:09find shippers to work with directly now
1:11:13that you have a professional website and
1:11:14a complete carrier packet it is time to
1:11:17introduce yourself to shippers in your
1:11:19local or Regional area that you live or
1:11:21would like the hall Freight in this
1:11:24process is simple but the grind is real
1:11:27you can start identifying shippers you
1:11:29want to work with by Googling small or
1:11:32big towns and look for manufacturers
1:11:34industrial complexes or warehouses that
1:11:37manage the Commodities you like to haul
1:11:40your goal is to introduce yourself with
1:11:42shippers or logistic managers and if you
1:11:44are looking for reefer loads consider
1:11:46looking for shippers in large produce
1:11:49markets make sense you can apply this
1:11:52strategy to any industry go wherever
1:11:55your customers go and meet them this is
1:11:58a sales call so you need to hone your
1:12:01skills on getting past the secretary or
1:12:04gatekeeper this skill just takes time to
1:12:06practice so don't get frustrated and
1:12:09remember the skills you learned in the
1:12:10Dale Carnegie book we mentioned earlier
1:12:12remember rejection comes with this
1:12:15process maybe for every 10 to 15 carrier
1:12:17packets you may only get one Direct
1:12:19Customer to start your relationship with
1:12:21that's one more
1:12:23don't give up and follow up a week later
1:12:26to keep your company in their minds as
1:12:29you call email or visit these carriers
1:12:31make sure you wear your brand look
1:12:34professional and meet face to face in
1:12:36person or with a zoom call but wait
1:12:38there is more
1:12:40join industry events and associations
1:12:43use your sales skills and join an
1:12:46industry Association where you can meet
1:12:48Business Leaders and shake hands with
1:12:50other competitors having Connections in
1:12:53the industry to refer to and be referred
1:12:55by can be an excellent source of gaining
1:12:57loads and keeping shipper relationships
1:12:59intact and lastly find events shippers
1:13:03will attend shippers may not attend mats
1:13:07or gats Trucking shows but there are
1:13:09many shipping Logistics construction
1:13:11produce warehousing and other industry
1:13:14events that they do attend and don't
1:13:16forget those carrier packets and don't
1:13:18skimp on the educational talks at these
1:13:21events by investing the time to
1:13:23understand the details of the industry
1:13:24You Haul in you can gauge future rate
1:13:27fluctuations in different regions of the
1:13:29country and this effort is time
1:13:31consuming and often difficult but it is
1:13:34worth the time with these tools skills
1:13:37and effort you will build new
1:13:39relationships ships earn good customer
1:13:41Freight stop relying on load boards or
1:13:44Brokers that take a cut from your hard
1:13:46work and keep the cash flow flowing well
1:13:50there you have it every way to find
1:13:52loads without having to lease to another
1:13:54company there are links to all this
1:13:57information in the bio below need help
1:14:00starting your own Trucking Company fill
1:14:02out the form also linked below with that
1:14:05go get them don't give up and as always
1:14:09stay safe out there
1:14:13everyone knows that within the first 12
1:14:15months of operating as a property
1:14:17carrier within interstate commerce or
1:14:19120 days as a passenger carrier each
1:14:22carrier must undergo a new entrant
1:14:24safety audit oh you didn't know that
1:14:28well then you must be asking yourself is
1:14:30it a big deal let's get in the loop with
1:14:32Luke and find out
1:14:34welcome back to the last video in our
1:14:37new Venture startup roadmap series
1:14:38that's a mouthful if you are watching
1:14:40this seventh installment right now great
1:14:43give us a like and let us know in the
1:14:45comments what you think but if you
1:14:47missed the other videos then who cares
1:14:49about the YouTube algorithm stop
1:14:51watching this video and watch this
1:14:53series from the beginning the playlist
1:14:54is linked above and you can choose which
1:14:57video you want to watch okay back to
1:15:00this video congrats on sticking with us
1:15:02during the roadmap series before we
1:15:05break this down into a way too long of a
1:15:08video since you know that I like to talk
1:15:10let's get this out of the way these new
1:15:13Venture audits are designed to help
1:15:15carriers understand the requirements
1:15:18they must follow to operate within
1:15:20compliance of the FMCSA this means the
1:15:23audit is a teaching moment or a learning
1:15:26opportunity so relax the Auditors are
1:15:29there to help
1:15:31but with any audit there is a flip side
1:15:34if the carrier does not have adequate
1:15:36proper safety controls in place it is a
1:15:38pass fail audit so let's go over what
1:15:41this audit entails and make sure you're
1:15:43in compliance remember when we said that
1:15:45there are daily monthly and annual
1:15:47compliance requirements this is the time
1:15:50they will make sure you are following
1:15:52the rules to ensure compliance with
1:15:55applicable federal motor carriers safety
1:15:57regulations hazardous material
1:15:59regulations and related record-keeping
1:16:01requirements motor carriers must undergo
1:16:04a safety audit within the first 12
1:16:05months of their operations to complete
1:16:07the new entrant program for insurance
1:16:10this is the first chance for a company
1:16:13to Garner safety history that will later
1:16:15be accounted for during the next
1:16:17Insurance renewal as a carrier the
1:16:20earlier you can build the safe driving
1:16:21history the better Underwriters will
1:16:23measure the risk when they insure your
1:16:25new business if if the safety history is
1:16:28bad due to not complying with Federal
1:16:30Regulations found in this audit
1:16:32insurance rates will stay high as a new
1:16:36entrant into Trucking or other industry
1:16:38it is required to follow all DOT
1:16:40regulations Transportation construction
1:16:42manufacturing whatever and the dot will
1:16:45want to see some established records and
1:16:47processes the new entrance safety audit
1:16:50is required for any company with a DOT
1:16:53number that is involved in the
1:16:55transportation of property or passengers
1:16:57in interstate commerce with a vehicle of
1:17:00gross vehicle weight rating or gross
1:17:02combination weight rating of more than
1:17:04ten thousand pounds and subject to
1:17:07Federal Motor carriers safety
1:17:09regulations companies operating solely
1:17:12in intrastate within a state Commerce
1:17:15are subject to applicable state
1:17:17regulations regarding commercial Motor
1:17:19Vehicles so what does this audit look
1:17:22like a safety audit involves the seven
1:17:25behavioral analysis in safety
1:17:27Improvement categories or Basics to
1:17:30determine the new carrier's compliance
1:17:31with the safety regulations and assist
1:17:33in establishing a sound safety program
1:17:35this audit could be in person or done
1:17:38off-site where the carrier will upload
1:17:40required documentation directly to the
1:17:42fmcsa's website for them to review
1:17:45Auditors May request documents related
1:17:47to drivers vehicles and general
1:17:49operating procedures and record-keeping
1:17:52requirements a lack of basic Safety
1:17:54Management controls or failure to comply
1:17:56with any one of the following 16
1:17:58regulations will result in a notice to a
1:18:01new entrant that the usdot new entrant
1:18:04registration will be revoked these 16
1:18:06are failing to implement an alcohol or
1:18:09controlled substance testing program
1:18:12using a driver known to have an alcohol
1:18:14content of 0.04 or greater to perform a
1:18:17safety sensitive function like driving
1:18:19using a driver who has refused to submit
1:18:22to an alcohol or controlled substance
1:18:24test required under part 382
1:18:27using a driver known to have tested
1:18:29positive for a controlled substance as
1:18:31you can see a lot of these are drug
1:18:32related failing to implement a testing
1:18:35program for alcohol and or random
1:18:37controlled substances
1:18:39knowingly using a driver who does not
1:18:42possess a valid CDL
1:18:45knowingly allowingly requiring
1:18:48permitting or authorizing an employee to
1:18:50operate a commercial motor vehicle with
1:18:53a commercial learner's permit or
1:18:56commercials driver's license which is
1:18:58disqualified by a state has lost the
1:19:01right to operate a CMV in a state or who
1:19:03is disqualified to operate a commercial
1:19:05motor vehicle
1:19:06knowingly allowingly requiringly
1:19:08permitting or authorizing someone to
1:19:11drive who is disqualified from driving a
1:19:14commercial motor vehicle
1:19:16operating a motor vehicle without having
1:19:18in effect the required minimum levels of
1:19:21financial responsibility coverage
1:19:24similarly operating a passenger carrying
1:19:28vehicle without having in effect the
1:19:30required minimum levels of financial
1:19:32responsibility
1:19:34knowingly using a disqualified driver
1:19:37knowingly using a physically unqualified
1:19:40driver
1:19:41failing to require a driver to make a
1:19:44record of Duty status that's your daily
1:19:46logs requiring or permitting the
1:19:49operation of a commercial motor vehicle
1:19:51declared out of service before repairs
1:19:54are made
1:19:56failing to correct out of service
1:19:58defects listed by driver in a driver
1:20:01vehicle inspection report before the
1:20:03vehicle is operated again and lastly
1:20:06using a commercial motor vehicle not
1:20:08periodically inspected
1:20:11so what happens after the new Venture
1:20:14audit once the new entrance safety audit
1:20:16is complete the auditor will review the
1:20:19findings with the carrier within 45 days
1:20:22the carrier will receive written
1:20:23notification from FMCSA confirming that
1:20:26they have passed or failed if they
1:20:28passed the audit the carrier safety
1:20:30performance will continue to be closely
1:20:31monitored for the remainder of the
1:20:3318-month new entrant period if no
1:20:36subsequent safety problems are found the
1:20:38carrier will be granted permanent
1:20:40operating Authority and continue to be
1:20:42monitored under CSA off-site FMCSA
1:20:45safety audits are on the rise so what
1:20:48does an off-site audit look like well
1:20:50during an off-site review a safety
1:20:53auditor conducts the audit remotely
1:20:54accessing a carrier's safety performance
1:20:57and safety management practices by
1:20:59requesting specific documents from the
1:21:01carrier the investigator will mention
1:21:04that they are required to upload
1:21:06information such as action reports
1:21:08driver lists equipment lists mc95 forms
1:21:11and other records cares may also be
1:21:14required to fill out a questionnaire
1:21:16with basic details such as revenue and
1:21:18mileage data insurance information
1:21:20address and other operating information
1:21:22and these types of audits are only on
1:21:26the rise in 2018 the FMCSA said off-site
1:21:29audits will be restricted to less
1:21:31serious carrier problems and would not
1:21:33be allowed in the case of Maintenance
1:21:35Basics violations however fmtsa changed
1:21:39its tone during the kova 19 pandemic and
1:21:41immediately expanded the use of remote
1:21:43Motor Carrier safety compliance reviews
1:21:45in 2020 the FMCSA and state enforcement
1:21:49may have conducted over 50 percent of
1:21:52all compliance reviews remotely where
1:21:55just 10 percent were conducted in 2019
1:21:57and 2 in 2018. although the regulatory
1:22:00definitions of compliance reviews
1:22:02describes the reviews as on-site FMCSA
1:22:06said the influx of electronic record
1:22:07keeping and other technology allows the
1:22:09agency to perform form the same
1:22:11investigative functions remotely fmcsa's
1:22:14off-site audits generally take two weeks
1:22:16or less and the investigator will
1:22:18complete the process by phone now how do
1:22:22you schedule the fmcsa's new entrant
1:22:24audit it's simple the investigator will
1:22:27contact you by phone or email to
1:22:30schedule the audit generally they will
1:22:32try to contact the company by phone
1:22:34first and if they are unable to get a
1:22:36hold of you they will email you
1:22:38according to Harry Sanders retired from
1:22:40the FMCSA
1:22:42the letters FMCSA sent out would be
1:22:45confusing and sometimes a carrier would
1:22:46operate after their revocation date that
1:22:49would subject them to more headaches in
1:22:51the form of fines and possibly out of
1:22:52service issues if an auditor has
1:22:54attempted to contact you do not put off
1:22:57getting back to them the FMCSA has
1:23:00processes in place that they will follow
1:23:02and if you do not get back to them they
1:23:04will mail a notice letter or demand
1:23:07letter of detailed instructions of what
1:23:10they are requesting in the timeline in
1:23:12which you should respond if you ignore
1:23:14this request the company can face
1:23:16monetary fines around a thousand dollars
1:23:18for the first 10 days and up to ten
1:23:21thousand dollars or suspension of your
1:23:22authority to operate the audit should be
1:23:24scheduled in two or three weeks so the
1:23:27carrier can prepare for the audit now a
1:23:30serious question what happens if
1:23:32violations are found during an fmcsa's
1:23:35new entrance audit if the carrier fails
1:23:38the safety audit the FMCSA will provide
1:23:40the carrier written documentation
1:23:42detailing the violations that caused the
1:23:44carrier to fail and the requirements for
1:23:47developing a corrective action plan or
1:23:48cap plan and yes I know the P stands for
1:23:51plan so I just said corrective action
1:23:53plan plan but whatever the cap must
1:23:56explain the actions the carrier will
1:23:58take to address the violations
1:23:59identified caps must be submitted to the
1:24:02FMCSA service center within the number
1:24:04of days specified on the failure
1:24:06notification failure to either submit a
1:24:09cap or implement the corrective actions
1:24:10will result in loss of FMCSA
1:24:13registration but you can get help during
1:24:17this process CNS is very well versed in
1:24:20safety and compliance laws and are
1:24:22experienced Representatives know what
1:24:24information is crucial and imperative to
1:24:26accomplish a safety rating increase we
1:24:29work directly with the client or
1:24:31implementing and training staff to meet
1:24:33the requirements necessary these
1:24:35corrective action plans are complicated
1:24:38and take a lot of work to complete do
1:24:40you have a good safety rating but are
1:24:42still worried you may not pass an audit
1:24:44learn how CNS can help you prepare for
1:24:46the audit by clicking the link in the
1:24:48bio below so finally the big question
1:24:52how do you pass this dot audit there are
1:24:55eight best practices every carrier
1:24:57should prioritize maintain good
1:25:00record-keeping procedures by keeping all
1:25:03documentation current and accurate good
1:25:06company policies by focusing on hiring
1:25:08work and discipline proof of consistent
1:25:11hours of service by monitoring auditing
1:25:14and corrective actions for logbook
1:25:16violations maintain good vehicle
1:25:19maintenance records with dvir annual
1:25:21inspections and preventative maintenance
1:25:23do not wait until the last minute to get
1:25:27files ready establish a voluntary
1:25:29corrective safety plan and file it with
1:25:32the FMCSA to address any underlying
1:25:35issues that have or could potentially
1:25:37lead to safety issues and improve its
1:25:39performance and conduct mock T audits
1:25:43with third-party experts to go through
1:25:45the audit process and identify issues
1:25:47that need correcting and lastly act
1:25:50quickly to fix any problems discovered
1:25:52by paying special attention to high risk
1:25:55issues if you need help one of our new
1:25:58entering audit Specialists will be
1:26:00assigned to you immediately and they
1:26:01will reach out to you the dot auditor
1:26:03letting them know that CNS is
1:26:05representing your company during the
1:26:07audit it is extremely important to
1:26:09contact us as soon as you find out about
1:26:11the new entering audit so our dedicated
1:26:13audit specialist can take over
1:26:15communication and correspondence with
1:26:17the dot auditor and get access to
1:26:19information such as driver and vehicle
1:26:22lists PIN numbers account load logins
1:26:24and more we will also educate you and
1:26:27ensure that you have the process set up
1:26:29to not only pass the audit but for
1:26:31future success as a commercial Motor
1:26:33Carrier well there you have it you
1:26:36started your Trucking Company got all
1:26:38the licenses permits in Insurance you
1:26:40need you learn the basic of how to find
1:26:43loads and you successfully passed your
1:26:46new Venture audit thank you for joining
1:26:48me on this startup series if you have
1:26:50questions or want to offer video content
1:26:52suggestions let us know in the comments
1:26:55below now get out there manage your
1:26:58business well and as always stay safe
1:27:01out there

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