How to Make your Trucking Company Successful Part 3: Paying for a Good Truck

If you want to own a trucking company, then you first have to own a truck.  Sounds simple, but in reality, getting title to a big rig can be the most challenging part of becoming an owner-operator.  So, in this post, we’ll look at the options for buying a semi of your own.

 

First things first: unless you recently hit the lottery or inherited a small fortune, you’re going to have to finance your truck.  That leads to the issue of credit.

 

Good Credit, Bad Credit

The last few years have been brutal, economically speaking.  As a result, a lot of folks who once had sterling credit may now have trouble getting financing.  If that sounds like you, then persuading a lender to extend credit to you will be harder, but in many cases it’s still possible.  Here are some facts to keep in mind:

 

  1. A good down payment can overcome bad credit.  Car dealers have long known this, which is why they encourage buyers with credit issues to come up with as much money as possible up-front.  A large down payment shows that the buyer is serious about the purchase and hence is more likely to pay the loan back.  A ball park figure to shoot for is 20% of the sticker price, though very low credit ratings could require a down payment of as much as 50%.
  2. A good impression can help when trying to get financing.  Show up at the dealer or finance company well-groomed and reasonably well-dressed.  We’re not talking suit and tie here; just make sure you’re presentable.  If your trucking company has jobs lined up and waiting for you to get a rig of your own, then bring documents attesting to that fact.  Bring your CDL as well.
  3. Pre-owned trucks are easier to get financing for than new ones.  This is particularly true now, as the poor economy has caused many trucking firms to go out of business in the last few years.  Because of this, there are plenty of used rigs on the market and a shortage of buyers.  Of course, buying anything used means being extra-careful to check it out thoroughly first.  Still, going with a pre-owned semi can be a very smart move.
  4. Leasing is worth considering as an alternative to a conventional purchase agreement.  Dealers are generally more willing to lease to persons with troubled credit than to finance an outright sale.  This can free up operating funds that would otherwise go into a hefty down payment, giving you cash on hand for operating expenses until payments start rolling in.

 

Lease-to-Own Agreements: Good or Bad?

Some companies offer to lease rigs to truckers regardless of past credit.  After driving for the business for a specified period of time and making regular payments on the truck, they can take possession of it.  These deals differ widely from each other in their fine print, so we can’t stress strongly enough that you need to read the agreement very carefully before signing anything.  Sometimes drivers have put their name on the dotted line only to find out later that they’ve gotten themselves into a mess of trouble.  For example, truckers have found themselves on the hook for charges such as:

  • Auto losses.
  • Cargo losses.
  • Worker’s compensation audits.
  • DOT fines.

 

You might also be responsible for filing your own fuel taxes.  Then there are the horror stories of drivers who have been on the verge of finishing out their agreement, only to have the company cut their miles to force them into default.  The business then repossesses their truck and leases it out to the next unfortunate person.

 

The lesson here is to check everything out thoroughly before entering into a lease-to-own agreement.  Look for reviews by drivers who have worked with the company.  Ask other truckers their opinion.  Also, as we said before, BE SURE to read the agreement over thoroughly before signing, and voice any concerns you might have.  If the leaser can’t or won’t answer your questions, then you’re probably better off walking away.

 

We hope this post answered your questions about truck financing.  Remember, in these high-tech times, one thing every driver needs is great trucking management software.  That’s why we encourage you to take Trucking Office for a free 30-day test drive, no credit card or checking account number necessary.  That’s how sure we are that you’ll fall in love with it.

Time to Go Through your DOT Compliance Checklist

Making sure that all the points in the DOT compliance checklist are covered is part of running a trucking company.  Also, if your business conducts state-to-state commerce, then it’s important to remember that the government requires you to comply with both the CDL and drug and alcohol checklists.  Here’s a look at the major portions of each.

 

CDL List

  • You must have a copy of the current Federal Motor Carriers Safety Administration (FMCSA) rules in your office or place of business.  In addition, each of your drivers must receive a copy of the rules, and sign both a receipt and agreement to comply with the regulations.
  • You must make sure that all of your drivers familiarize themselves with parts 40, 380, 382, 383, 387, 390-397, and part 399, subchapter B, chapter three, title 49 of the federal regulations code.
  • You must complete both pre- and post-trip inspections of all your vehicles and document that you have done so in writing.
  • You must keep up-to-date qualification records and safety performance histories for each of your drivers.
  • You must document each driver’s hours of service.  CDL drivers may not need to complete a log grid if they never drive further than 100 miles from the terminal, but the company must keep records of their hours.
  • You must create a regular vehicle maintenance program and make sure that it’s followed.
  • In case of an accident involving one of your company vehicles, you must keep thorough records of the incident in a register.
  • You must ensure that all of your vehicles are marked with their respective DOT numbers.
  • You must comply with commercial motor vehicle (CMV) entry-level driver training requirements.

 

DOT FMCSA Drug and Alcohol Compliance Checklist

It’s important to make sure you’re following this DOT compliance checklist, as the DOT has stepped up enforcement of its rules regarding drug and alcohol abuse, including roadside checks.  Serious civil and criminal penalties may be applied to you or to any of your drivers who violate these rules.  For this reason, make sure that you’ve covered all the following bases:

  • Ensuring that all your drivers have copies of the DOT policies.
  • Keeping the results of pre-employment drug tests for all your drivers on file.
  • Making sure that drivers are not allowed to perform safety-sensitive tasks, including delivering loads, until and unless their drug tests have been returned and are confirmed to be negative.
  • Checking with your driver’s former employers as to whether the driver had any drug or alcohol problems while employed, and keeping records of the findings on file in your office.
  • Putting all of your drivers in a random drug/alcohol testing pool.  Remember, this pool must be separate from any pool you maintain for non-driver employees.
  • Conducting random drug testing of at least 50% of your drivers each year.
  • Randomly checking at least 10% of your drivers for alcohol abuse each year.
  • Making sure that these checks occur immediately after the drivers are notified that the tests will take place.
  • Having all supervisors complete the training program required by the DOT.
  • Immediately removing any driver in violation of DOT regulations from safety-sensitive duties.
  • Referring those drivers to approved substance abuse programs.
  • Ensuring that all required records relating to drug and alcohol regulations are on file and can be retrieved at any time.

 

Sound Like a Lot to Remember?

That’s because it is.  These regulations are only a small part of what you must stay on top of when you run a trucking firm.  That’s why you need the best truckers’ software on the market: Trucking Office.  Take it for a free 30-day test drive and find out for yourself how great it is.  You don’t even need to give us a credit card or checking account number!

How to Make Your Trucking Company Successful Part 2: How to Bid Jobs

You can’t be successful in the trucking business if you don’t get jobs.  This of course leads to the question: how do I get them?  And that leads to the art and science of bidding for loads.  New drivers often approach this topic with a mix of fear and confusion, but in truth, it’s nothing to be afraid of.  Let’s look at the process step-by-step:

  1. Before knowing how much to bid, you have to know your expenses.  This includes setbacks for maintenance, truck and trailer payments, insurance, fuel, and other related costs, not to mention the fee for which you are willing to work. Trucking expense software helps you to total these costs easily.
  2. Figure in a premium for a “hassle fee.”  For example, hauling flowers from Kansas City to Dallas in June will cause a lot less wear and tear on your rig (not to mention your body) than transporting heavy machine equipment over the Rockies in November.  Also, if taking the load means navigating your way through New York City or some other heavily congested urban area, consider raising your bid as compensation for the aggravation you’ll be dealing with.
  3. Remember that you have to get back from the destination where the load is delivered.  You might make great money during a run from Atlanta to L.A. but once the freight is dropped off, you will either have to hightail it back to GA or pick up another job nearby.  All those deadhead miles can cut deeply into your profit margins, so they should be figured into your bid calculations.
  4. If you want to know what your competitors charge, contact them and ask for a rate sheet.  If it fits within your financial situation, you can try to under-bid.  Just don’t go crazy and charge so little that you’re barely surviving.  Trucking is a high-stress profession, and currently there is a nationwide shortage of drivers, so use those facts to your advantage.

 

Now that you know the basics of bidding on loads, let’s look at how to find them.

  1. Thanks to the Internet, finding work is easier than ever.  Websites like findfreightloads.com or truck-driver-jobs.net are excellent places to locate jobs across the country. Visit them and see how many loads you can find; you’ll be encouraged by the number of opportunities out there.
  2. Use any personal contacts you may have.  For example, if you have relatives or friends who work in distribution centers, you might have a direct line to the manager who assigns freight carriers.  If you have connections through a civic group, church, or some other organization, you could inquire among those as well.
  3. Consider niche jobs in the trucking industry where demand is very high.  One of these is “hot shot” trucking, in which drivers haul partial loads that are time-sensitive.  For example, a high-end food store in Chicago may need a load of organic produce from San Antonio delivered ASAP. Jobs like these can be stressful, but the pay can be excellent, and you can stay as busy as you want to be.

One thing every trucker needs is fleet maintenance software.  After all, you won’t make much money off of your rig if it’s always in the shop, so making sure that all preventative work is done on time is crucial.  That’s why you owe it to yourself to check out our TruckingOffice software.  It’s affordable, easy-to-use, and makes keeping up with scheduled maintenance a breeze.  Plus, it can help with scheduling loads, keeping fuel tax records, and other aspects of the business.  Take TruckingOffice for a free 30-day test drive and find out for yourself how it can help you become more profitable and successful than ever!

Fleet Maintenance Software: What the Inspector Looks For

Fleet maintenance software is essential for today’s trucking owners and operators.  It helps you keep your rig in top shape at all times, saving you both costly fines and big repair bills.  While we’re on the subject of “costly fines,” though, let’s talk a bit about what parts of a commercial vehicle should be inspected prior to a run.  These are things an inspector might look for if you are stopped, so you should look them over yourself beforehand.  This is a partial list, intended to provide an overview; a full checklist can be found here.

Front of Vehicle

  • Lights and reflectors – make sure they’re in good working order.
  • Mirrors should be clear and adjusted as needed.

Engine Compartment

  • Oil level – in addition to checking the level, look for signs of water, bubbles, or other impurities.
  • Coolant level – should meet manufacturer’s recommendations.  Also check the coolant for contaminants or discolorations.
  • Power steering fluid – check level and condition.
  • Water pump – make sure all bolts are tight and hoses show no signs of cracks or other damage.
  • Alternator – Bolts should be tight and belts in good shape.

Steering

  • Inspect linkage, hoses, and steering box.

Front Wheels

  • Check tires for proper inflation, as well as any signs of damage or unusual wear patterns.
  • Inspect rims, hub oil seals, and lug nuts.  Make sure everything is tight and in good shape.

Front Suspension

  • Examine shocks, springs, spring mounts, and u-bolts.

Front Brakes

  • Inspect brake lines and/or hoses for cracks, loose fittings, or other danger signs.

Under the Vehicle

  • Give the drive shaft, frame, and exhaust system a close visual inspection.  Any cracked or hanging components should be tended to immediately.

Rear Axles

  • Examine the tires, lug nuts, rims, spacers, and hub oil seals.

Rear of Vehicle

  • Lights, reflectors, and splashguards should all be in good working order.

Front of Trailer

  • Check the header board/bulkhead, reflectors, and lights.

Side of Trailer

  • Inspect the landing gear, reflectors, lights, doors, ties, lifts, frame, and frame and tandem release.

Trailer Wheels

  • Check tires, lug nuts, rims, spacers, and hub oil seals.

Tractor Coupling System

Inspect the following components:

  • Platform
  • Mounting bolts
  • Release arm and safety latch
  • Lever/locking arms
  • 5th wheel skid plate

Trailer Coupling System

  • Check the drawbar or tongue, safety devices, mounting bolts, and sliding pintle.

 

DOT Numbers

The DOT uses these numbers to identify specific commercial vehicles and gather information for inspections and audits.  There are no rules specifying where these numbers must be placed, but the usual locations are either on the cab or the doors.  The numbers should stand out against the truck’s background color.  Black numbers, for example, will show up well against a white background.  The numbers should be large enough to be read without difficulty from a distance of 50 feet.

 

What Commercial Vehicle Inspectors (CVIs) Look For

Aside from making sure that tractor-trailers are within weight limits, state troopers and DOT officials typically check for the following things:

  • Worn or damaged tires
  • Cracked, oil-soaked, or excessively worn brake linings
  • Cracked frames
  • Fuel leaks

These officials will also always check to make sure you have a current CDL.  It’s amazing to think that drivers would try to get by without a valid license, but some do make the attempt—don’t be one of them!

 

TruckingOffice: The Best Choice for Fleet Maintenance Software

Using TruckingOffice is like having a full-time secretary who never calls in sick or takes breaks.  It handles maintenance, dispatch, fuel tax, and countless other things with the click of a mouse, giving you more time to do the thing that actually puts money in your pocket—hauling loads!  Take it for a free 30-day test drive and we’re sure you’ll agree.  We won’t even ask for a checking account or credit card; simplify your office and start making your trucking company more successful today!

Transportation Brokerage Software: What It Is, Why You Need It

Whether you’re a truck broker or just interested in finding out more about the field, there are a few things you’ll need for long-term success.  You’ll have to have qualities like tact, determination, self-motivation, and a great work ethic.  Contacts with truckers and warehouse managers would be helpful as well.  And last but certainly not least, you should have transportation brokerage software.  Here’s why:

  1. There’s a great deal of math and recordkeeping that comes with being a transportation broker.  You’ll need to stay on top of whose truck went where and picked up what, how many miles it was hauled, and what the agreed-upon fee was.  You’ll have to know how much to pay both Uncle Sam and your drivers, and how much you’re left with after all is said and done.
  2. Staying on top of all these things is nearly impossible to do with a piece of paper and a pencil.  Pocket calculators can help, but make one tiny mistake and you can find yourself owing serious money to your clients or your drivers.  It doesn’t take a college degree to understand why that’s a terrible way to do business.
  3. Transportation brokerage software can make your life a million times easier.  With it, keeping everything straight is a simple matter of entering information in a few fields on a computer screen.  Anyone with basic typing skills can use the software, and it will enable you to not only work quicker, but also more smoothly and accurately than your competition.

Of course, not every type of transportation brokerage software is the same.  Here are some features you should demand from whichever package you ultimately decide on.

  1. It should be designed either by truckers or by professional truck brokers.  You see, there are plenty of great general-purpose business programs out there; Microsoft Office™ is perhaps the best known.  However, these packages don’t give transportation brokers the kinds of features and support they need.  So invest your money wisely; pick a brand that has specifically created tools for freight brokers like yourself.
  2. It should be available online.  That simply means that you don’t need a disk to install it on your computer.  This offers many advantages, including:
    1. Instant updates whenever the software company adds a new feature.  You simply log onto the Internet and enjoy all the advantages the improved software has to offer.  There’s no need to buy new disks and go through the complicated, time-consuming process of uploading them onto your machine.
    2. Software disks are fragile, and can easily be lost, stolen, or damaged.  So whenever possible, it’s better to simply have your programs stored on the Internet, where they’re safe and secure.
    3. Not only are the programs themselves safer on the Internet than when kept on disks, but your confidential business information is as well.  This offers you protection from the dangers of information theft or disaster, and the exposures to legal liabilities that such theft or loss can cause you.
  3. It should already be used and trusted by thousands of customers in the trucking and transportation brokerage businesses.  Why take a chance on a new product when you can have one that’s already proven itself to professionals who work in your field?

TruckingOffice Software: The Brand You Can Trust

We’re confident that our own product is quite simply the best of its kind on the market.  TruckingOffice is designed by truckers, for truckers; it has been tried, tested, and loved by other drivers; and the online interface is super simple to operate. But don’t take our word for it; go ahead and take it for a free, no-obligation 30-day test drive—we won’t even ask for your credit card or checking account information.  After that, if you haven’t fallen in love with what we’re confident is the best trucking business software out there, then just walk away.  It’s as simple as that.

How to Make Your Trucking Company Successful: Part 1 – Maintenance

Whether your trucking company has one truck or one thousand, you’ll have much fewer hassles and much more profit if you invest in preventative maintenance for your fleet.  However, there’s far more to maintaining a rig than just talking about it.  Proper maintenance means paying strict attention to schedules and having enough funds on-hand to make sure the job is done right.

It’s All In The Manuals

Every commercial vehicle comes with instructions for getting the most use out of it; they’re in the manual.  There you’ll find maintenance schedules, the proper oil and fluid levels, noise emission details, specifications for torque, and other vital information.

The charts offer different recommendations depending on many factors, such as how far you drive and the wear and tear the truck endures.  To know what’s best for your rig, you’ll need to consider what kind of conditions you drive under.  For example, if you’re running 80 mph most of the time, then you’ll need to perform more maintenance than if you average 65 mph.

In the same way, hauling heavy loads through the Rocky Mountains will do more to age your rig than transporting produce across the Great Plains.  Most manuals offer a variety of maintenance schedules based on factors like these, so use the one that best fits your situation.

Basic vs. Advanced Maintenance

A list of the simplest (and least expensive) maintenance tasks include the following:

  1. Checking tires for wear and inflation levels.
  2. Changing engine oil at recommended intervals.
  3. Inspecting wipers and replacing as necessary.
  4. Making sure lights work correctly at all times.
  5. Replacing oil and other filters according to official maintenance schedules.
  6. Regularly inspecting belts and hoses for cracks or other signs of wear and replacing as necessary.

A more complete list will include tasks that may require the services of a professional mechanic:

  1. Servicing brakes.
  2. Checking and maintaining drive axles.
  3. Inspecting and maintaining wheel seals.
  4. Inspecting and maintaining the transmission.
  5. Checking the batteries.
  6. Checking and maintaining the exhaust system.
  7. Inspecting and servicing the driveline.
  8. Checking the suspension.
  9. Inspecting and maintaining the steering, clutch, and engine.

 

The Importance of a Maintenance Escrow Savings Account

Any independent trucker knows the meaning of the term ‘feast or famine’: either you’re literally driving yourself crazy or you’re sitting at home wondering if you’ll ever haul a load again.  This being the case, it’s absolutely essential that you set aside funds during the good times so you’ll have cash on-hand for maintenance expenses during the lean times.  Experts in trucking finance recommend the following as a guideline for putting money aside on a per-mile basis:

Truck Age and Maintenance Savings

New truck

2 cents/mile

1 year old

3 cents/mile

2 years old

4 cents/mile

3 years old

5 cents/mile

4 years old

7 cents/mile

5 years

10 cents/mile

 

Know When to Trade the Truck in

Nothing lasts forever.  No matter how much you love your rig, the time will come when it’s time to say adios and get a newer one.  Here are some tips for knowing when that day has arrived:

  1. When you’re not running the truck so much as it’s running you.  If the costs of payments, operating expenses, and maintenance are greater than what you’re bringing in, then it’s time for a trip to the dealer.
  2. When the truck’s resale value offsets a newer vehicle’s principal and interest to a significant degree.
  3. When you’re scared stiff that the next DOT officer you run into will either fine the living daylights out of you or declare your rig unsafe for use.

The first two are simple mathematical computations, and the third is a subjective feeling.  Nonetheless, all three are excellent indicators that trade-in time has come.

Trust TruckingOffice to be Your Owner-Operator Software

These days, having the right software is almost as important as having the right truck.  TruckingOffice features easy maintenance log entry screens, and can sort records by date, truck, cost, or vendor for specific repairs. It also helps you to create a preventative maintenance plan and sends you alerts when it’s time for repairs and oil changes. That’s why we recommend you take TruckingOffice for a free 30-day test drive.  Once you do, you’ll wonder how you ever got along without it.  Try it out today!

Getting Ready for MATS 2013!

We will be at MATS (Mid-American Truck Show) again this year working with our partners at Getloaded and FreightCheck.  We have joined forces to become the Hauling Heroes – a unified solution for your trucking success.

Lauren is assemling flashlights for MATS 2013

Lauren is working behind the scenes to help us get ready for MATS 2013.

 At MATS this year we will be showing off some new features.  We have added more routing functionality.  Now you will be able to get street by street routing from PC*Miler as well as the map of the rout.  We are also working on providing state specific IFTA forms for every state.  Stop by our booth (#68084 in the west wing), take a look at the new features, meet our partners, and get a cool flashlight!

 

 

 

 

How to Choose a Tax Preparer for Truckers

Think – Who did your income taxes last year? Did they give you good service? Were you happy with the result? Did they even KNOW trucker taxes?

Over a year ago, the TruckingOffice team made a commitment to go beyond simply providing the very best bookkeeping and record keeping services available. We began a search for the very best in other important services that all professional drivers need, like factoring, insurance and tax services.

Several months ago, we had the opportunity to become personally acquainted with Dennis Bridges and his team at eTruckerTax. (His main office is in Atlanta, but he works with drivers nationwide.)

The questions we asked ourselves in our search are the same ones that you should ask yourself if you happen to be searching for a new preparer:

  1. Do they give prompt, attentive service?
  2. Do they know trucker taxes inside and out?
  3. Do they provide a great value for the fees charged?
  4. Have they been around basically forever? Do they have a track record? Have they proven themselves?
  5. And finally, are they fun and pleasant to deal with?

After checking out Dennis Bridges and eTruckerTax VERY thoroughly, we are very happy to recommend them to you for all your tax needs, starting with this tax season.

If filing your taxes is about as fun as a trip to the dentist, or if you answered “No” to even one of the questions above when you checked out another tax service, we strongly recommend that you reach out to Dennis Bridges, CPA and his awesome team at eTruckerTax TODAY!

Dennis has been working with truck drivers and small trucking companies nationwide for over 20 years, helping owner-operators save THOUSANDS of dollars on their taxes.

You can click here to find out about a very special offer he has put together exclusively for TruckingOffice members, whether you’re still dealing with prior-year issues or you just want the best trucker tax guy in the country to handle your taxes.

For even faster service, call his office direct at 888-234-3485, and be sure to tell them you’re from TruckingOffice. His special offer for our TruckingOffice members is only available for a limited time, so check him out today while it’s on your mind!

Best regards,
Your friends at TruckingOffice

P.S.- Is the IRS breathing down your neck? They deal with IRS problems of all kinds too! Dennis literally wrote the book on dealing with IRS issues. Call or email them today and sleep better tonight!

P.P.S.- Still not convinced? Check out what these folks said about him…

“Dennis Bridges is one of the few accountants in the country that really understands truckers and their taxes.”
-Attorney Tommy Swate, Speaking at the Great American Trucking Show (GATS) in Dallas, Texas

“Dennis Bridges is the trucker’s IRS Problem Solver!”
– Brendan Cooney, Assoc. Editor, Truckers News Magazine

Electronic Logbooks for Truck Drivers: A Controversial Topic

Logbooks for truck drivers have been a source of controversy for decades.  Originally meant to ensure that drivers were alert and well rested when behind the wheel, some people contend that they have just the opposite effect, encouraging truckers to falsify records and/or use illegal drugs to stay awake longer.  How widespread such abuses are is a matter of debate.  Due to the move towards electronic logging methods, however, such concerns may soon become a thing of the past.

 

Electronic logging programs work along with GPS systems to record hours of service (HOS) records automatically.  They include start times, days on duty, the amount of drive time since the last rest period, cumulative drive times within an 8-day period, and total distance covered within a 24-hour period.  Sleeper berth and off-duty times are also recorded.

 

This data is recorded and transmitted through a message display terminal (MDT) that is located in the cab.  A simple push of a button sends it off through a wireless network to computers for storage.  The information includes the driver’s name, which vehicle he or she is operating, the trailer number, and the freight company.

 

Of course, not everyone is happy with the move towards electronic logbooks.  Organizations that represent owner-operators, for example, complain that requiring drivers to use them will impose unfair financial burdens on small business people, who are already struggling due to the slow economy.  Others are taking a different approach, claiming to have figured out ways to tamper with the devices that would allow drivers to ignore mandatory DOT rest and mileage rules.

 

Despite these efforts, it appears that the old-fashioned paper logbook will soon go the way of the milkman and the Model T.  Most major carriers are already using electronic logbooks, and Uncle Sam requires that carriers with a history of safety violations must install them on their trucks.

 

Will electronic logbooks for truck drivers lead to a new era of safe driving, or are they just another expensive government mandate that will do little good?  The debate is far from over.  One thing that’s beyond debate, however, is the fact that TruckingOffice is the best software for professional drivers on the market period; TruckingOffice can handle your dispatches, invoices, IFTA records, expense tracking, and maintenance.  Take our free 30-day test drive and see for yourself!

Truck Dispatch Software And Other Factors of Success

 A lot of people are drawn to the trucking industry for the freedom and adventure associated with it, but don’t necessarily want to be professional drivers themselves.  If this is the case with you, then you might want to consider a career as a dispatcher.  It’s an excellent way to learn the industry, even if you eventually get behind the wheel yourself or become a freight broker.  What you’ll need if you decide to go this route, however, is a strong command of truck dispatch software, as well as good communication skills, knowledge of local roads, and the ability to think fast and work under pressure.

 

What Dispatchers Do

A dispatcher is to the transportation field what air traffic controllers are to the airline industry.  They act as go-betweens for drivers and the company’s customers, making sure that freight gets where it needs to go.  They handle all the legwork involved with a delivery run, from cargo pick-up to the final drop-off.

They must balance the safety and welfare of individual truckers against fulfilling the transport company’s obligations.  For this reason, they must be familiar with how many hours truckers may legally work in a day to stay compliant with DOT requirements.  In the United States, professional drivers are limited to 11 cumulative hours of driving during a 14-hour period, after a rest period of at least 10 consecutive hours.  Also, truckers can’t work more than 70 hours inside of an 8-day period.  Disregarding these guidelines means falling out of FMCSA compliance, which carries consequences ranging from fines to revocation of an operator’s license.

 

What It Takes To Be a Dispatcher

The ability to handle pressure is key to succeeding as a dispatcher.  The customers are under stress because they need the freight to be at a certain place by a certain time, and their bosses don’t want to hear otherwise.  The drivers are under pressure because they need to keep the customer and the trucking company happy, yet must also pay attention to the needs of their own body as well as Uncle Sam’s many rules.

The dispatcher is at the center of all this tension, and must work to keep all sides happy.  For this reason, excellent people skills are vital to dispatching success.  Some other abilities dispatchers should have include:

  • Being able to multitask
  • Strong organizational talents
  • The academic skills to pass licensing requirements for dispatchers (these vary from state to state)

 

Independent Dispatching: What Is It?

There’s a great deal of confusion about what independent dispatchers do versus the responsibilities that a freight broker takes on.  This is understandable, as there’s a good degree of overlap between the two fields.  Here are the main differences:

  1. Independent dispatchers work directly for owner operators or for small trucking companies.  Their job is to keep trucks loaded and on the road as much as possible.  An independent dispatcher will work with both freight brokers and manufacturers to try to get good rates for the drivers he or she represents.  Independent dispatchers earn either a percentage or flat fee for each load they set up for their drivers.  Some also earn a weekly salary per truck.
  2. Freight brokers represent companies that need things moved.  Their job is to work either with dispatchers or directly with owner-operators to arrange pick-ups and deliveries.  They earn a commission based on the difference between what the company pays them to set up the load and what the driver and/or dispatcher receives for hauling it.  The broker posts announcements about open loads on the Internet, and then receives calls from independent dispatchers offering to have their drivers handle the job.

One way to look at how this works is to consider what happens when an agent selling a piece of real estate deals with another agent who represents someone trying to buy the property.  Each has the interests of their client foremost in mind, and they work to arrange the best possible settlement for their side.  The relationship between the two might be cordial and friendly, with each agreeing to a price that all sides think is fair.  At other times, however, the exchange might resemble a fight between two alley cats, with each using whatever tactics it has to in order to win.

As you can see, both professions require the ability to deal with persons who have all sorts of motives, both fair and foul.  This is why people skills are so important for both dispatchers and freight brokers.  On any given day they might be acting as sales reps, counselors, coaches, negotiators, horse traders, or any number of other things.  For those who are up to these challenges, however, both fields offer opportunities for high income and endless variety.

 

One Thing You Absolutely Must Have

One thing is for sure: you won’t get far in this line of work without excellent truck dispatch software.  And that’s exactly what TruckingOffice provides.  Here are some of the advantages it offers dispatchers:

  • The ability to enter multiple consignees and shipping points
  • Flexibility in entering driver pay options
  • Dispatch sorting by driver, trucks, date, or customer, all with a single mouse click
  • Cutting-edge search features that allow you to review dispatch histories from any category screen

 

We think that TruckingOffice is the very best dispatch software you can find anywhere.  But don’t take our word for it; take our 30-day free test drive and see if you agree.  You don’t even need a credit card or checking account to get started.  But don’t be surprised if you find yourself hooked!