Jan 24, 2020 • Carriers

Industry Update - January 24, 2020

Industry Update - January 24, 2020

By Paul DeCoste

Industry Update

Curious about the top issues discussed in the trucking industry in 2019? Take a look at this graphic from the ATRI Top Industry Issues 2019 survey.

Weather Update

This snowstorm has been building up over the past few days and drivers need to be aware of some potential snowfall in the Midwest. The following locations should be driven on with caution for the weekend; Milwaukee and Green Bay, Wisconsin, Michigan’s upper peninsula, Chicago and South Bend, Indiana.

Pilot Name Change

Just yesterday, Pilot Flying J announced that they are changing their company name to “Pilot Company”. This new corporate name is meant to, “serve as an umbrella that captures the total portfolio of the business as it continues to expand its retail and energy operations.”

Driver Saves Lives

Linden O’Donnell went out of his way to put out a car fire and help several motorists. He was driving on the right side of Interstate 280 when he witnessed a car smash into the back of a stalled SUV. Thankfully the SUV was empty, but the passengers of the car were barely conscious and in need of help. As fire crept from the engine to the cab, Linden ran to grab his fire extinguisher and put out the flames. This allowed Linden to safely assist the drivers out of the car and out of harm’s way. His courage and ability to react deserves the honor he is receiving.

New Tech

This pilot study done by American Electric Power and Nissan Motor Co., is testing the reuse of old batteries to reduce costs for electric cars. This new process has the potential to lower system costs by one-half and even extend the power of lithium batteries by one-third.

TagsTruckloads road closure Truck Driver Owner Operator trucking Trucker Path Freight Factoring Trucking Industry truck stops Truck driver tips Freight Broker Owner Operators Freight Brokers national truck driver appreciation week Industry Update Did you Know Trucking Tips MATS 2019

How to Become a Freight Broker? [h2] How to Become a Freight Broker? [/h2] [p]To become a freight broker you need to understand the <a href="https://truckerpath.com/blog/trucking-industry-trends/">trucking industry trends</a> first. Thousands of products need to be moved across America and companies use every venue possible to ship their freight, but none more than through truck freight. The trucking industry produced $726.4 billion in revenue for 2015 and freight tonnage has increased since. Freight is hauled by truck drivers but moved by freight brokers. Here's how you can become a freight broker and enjoy a piece of the lucrative pie. [/p] [h2]1. Register your Freight Broker Company [/h2] [p] There are a couple routes you can choose to become a freight broker. The easiest way to start is to get hired by an established freight broker company. There you will fall under their insurance and use their capital as well as being provided training about the trucking industry. If you've already done this and have the necessary capital, this is where you would be registering your business with the local licensing department. Once you register your LLC you will receive your Tax ID Number [a href="https://irs-tax-id.com/?utm_source=bing&utm_medihttps://irs-tax-id.com/?utm_source=bing&utm_medium=cpc&utm_campaign=irs%20tax%20id%2Fein&utm_term=irs.gov%20tax%20id%20number&utm_content=irsum=cpc&utm_campaign=irs%20tax%20id%2Fein&utm_term=irs.gov%20tax%20id%20number&utm_content=irs"]from the IRS[/a]. [/p] [h2]2. Have a Plan For Your Freight Broker Company [/h2] [p] The most important part of becoming a freight broker is to have a clear vision and plan, especially if you need to generate funding from lenders. Know your target, stick to your strengths, and don’t be afraid to grow. [/p] [p] Understand your region and what types of loads move through, who's your ideal customer base? What type of services will you offer? How will you market your freight brokerage? [/p] [giphy]<iframe src="https://giphy.com/embed/Sg21YDdh3Onqo" width="480" height="288" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [h2]3. Build a Carrier Base [/h2] [p]Life as a freight broker is all about who you know. Networking and connecting with motor carriers is the only way you will succeed in moving freight. You need to start building a list of trucking companies with capacity and willingness to work with you. [/p] [p]This is when networking meets relationship building. Establishing trust and showing that your work efficiently and provide good service can be the difference when finding carriers. The best way to find carriers is by using load boards from trusted companies like Trucker Path Truckloads. Load boards allow you to post your freight for carriers to view and then contact you if they're interested in hauling them. This way you can move more loads quickly and from anywhere. [/p] [p] Don't forget, freight brokers also need to connect with shippers who need freight moved. Here's a closer look at <a href="https://truckerpath.com/blog/how-do-freight-brokers-find-shippers/">how freight brokers find shippers</a>. [/p] [h2]4. Freight Broker Authority [/h2] [p]You’re well on your way to becoming a freight broker now that you have a registered business and a carrier group to connect with, but there are still a few more requirements. You must apply for a US DOT number with your local Department of Transportation branch. Once you are approved, take your DOT Number to the Federal Motor Carrier Safety Administration (FMCSA) to get a Motor Carrier (MC) number and broker authority. This is approved through the completion of the [a href="https://www.fmcsa.dot.gov/registration/form-op-1-application-motor-property-carrier-and-broker-authority"]OP-1 Form which includes a $300 application fee[/a].[/p] [p] Here are a few more details as to how you can get your <a href="https://truckerpath.com/blog/freight-broker-license/">freight broker license</a>. [/p] [h2]5. Freight Broker Bond [/h2] [p] To show carriers and companies alike you have the financial backing to broker your business you will need at least a $75,000 <a href="https://truckerpath.com/blog/freight-broker-bond/">Freight Broker Bond </a>(BMC-84 or BMC-85). Think of this as insurance for your business. This will cover you in the instance something goes wrong leading to monetary losses of a company. [/p] [p] Let's say the carrier you contracted to haul a load shows up to the receiver with a truckload of spoiled milk because you instructed them to cool the reefer to 74 degrees instead of 47. You were deemed responsible and your client seeks repayment of damages for a load of milk valued at $65,000. Your bond covers that cost similar to the way car insurance companies handle a car accident. [/p] [giphy]<iframe src="https://giphy.com/embed/3o6Zt2iHqqrjNlbPS8" width="480" height="270" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [h2]6. BOC-3 Blanket of Coverage [/h2] [p] One of the last filings you will have to complete in order to become a freight broker is your [a href="https://www.fmcsa.dot.gov/registration/form-boc-3-designation-agents-service-process"]BOC-3[/a]. This is the Blanket of Coverage for your company. Basically, you must file your BOC-3 in each state you will be operating. You will need to select a process agent to file. The process agent is the company who will be handling your legal processes in each state you have operating authority. [button-white href="https://www.fmcsa.dot.gov/registration/process-agents"]List of FMCSA Agents[/button-white] [/p] [h2]7. Freight Broker Essentials [/h2] [p]The tools of the trade for a freight broker are office equipment and supplies to make work easier and more organized. You'll need the basics like a computer with internet, printer, scanner, and fax machine. But you'll also need a phone with several lines and a quality headset to communicate with drivers and clients. [giphy]<iframe src="https://giphy.com/embed/VmNVXIMH3bCsE" width="480" height="353" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [/p] [p] Don't forget<a href="https://truckerpath.com/blog/freight-broker-software/"> broker software</a> as you'll want software that allows you to keep track of your loads, customers, carrier locations, and truck status (some load boards will do all of this for you). DR Dispatch and ITS Dispatch are a few of the programs that can be beneficial. [/p] [p] Look for broker software offering GPS tracking based on logged location updates, bill of lading/invoice generators, pickup and delivery location (shed) logs, note taking/documentation, and most importantly rate confirmation generation. These are the essential functions needed to manage your loads from pick up to delivery. [/p] [h2]8. Freight Brokerage Financials [/h2] [p]In order to continue your carrier relations, you need to get backing from a bank. As a freight broker, you will be paying the carrier after they deliver the load. Pay terms for carriers range from 1-28 days (sometimes more). Whereas you will be extending the customer a line of credit or they will pay up front for the services. [/p] [p] You make your money off of the margin known as the "spread". For example: [ul] [li]Company X pays you $3,000 to find a motor carrier[/li] [li]You pay Carrier Y $2,500 to haul the load[/li] [li]You earn $500 for brokering the arrangement. Of course, this isn't all profit as overhead costs will apply, but you get a general idea.[/li] [/ul] [h2]9. Marketing Your Freight Company [/h2] Lastly, in order to succeed as a freight broker, you have to make a name for yourself by building awareness surrounding your freight company. Reliable service that is transparent and convenient is key to building a reputation with carriers. Word of mouth is critical for growing your freight business locally but you have to put yourself out there and raise awareness just like any other startup if you want to be a successful freight broker. [/p] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=becomeafreightbroker&utm_campaign=july12"]Get Started With Truckloads[/button-green]

Jul 12, 2017 • Brokers

2290 Form [h2]2290 Form and EINs: Everything You Need to Know[/h2] [p]The Heavy Vehicle Use tax season is coming right at us at full speed! You can try to jump out of the way, but you’ll still need to file your 2290 Form by the August 31 deadline. Don’t let the deadline run you over. Be prepared and file as soon as possible to avoid having your form rejected. Part of being prepared involves knowing that you’re required to have an EIN to file. [/p] [h2] What to Remember About Your EIN [/h2] [p] Your EIN (Employer Identification Number) is also known as the Federal Tax Identification Number and the Federal Employer Identification Number or FEIN. EINs are assigned to businesses operating in the United States in order to identify them for tax reporting purposes. Each EIN consists of a unique 9 digit number.[/p] [p]This is important because you are required by the IRS to have an EIN to complete your 2290. They need it to identify you to correctly verify that you’re filing for yourself and to prevent fraud. [/p] [p]There may be some confusion when it comes to EINs and Social Security Numbers (SSN) because they’re both 9 digit identification codes. However, EINs are used to identify businesses, and social security numbers are used to identify individuals. Also, the IRS used to accept SSNs in place of EINs on 2290 Form, but that is no longer the case. If you use your SSN in the EIN field your form will be rejected. [/p] [p]Plus, when it comes to the information on your 2290 Form such as your business name and address, it will need to match what the IRS has on file or it could be rejected. You can see if your information matches what the IRS has on file by contacting the IRS directly at 800- 829-4933. [/p] [p]If you don’t have an EIN you can <a href="https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online"> apply online for free with the IRS</a>. Once you finish applying you will instantly receive your 9 digit EIN, but please keep in mind that it will take about 15 days for your EIN to update in the IRS’s system and your 2290 Form could be rejected during this time. [/p] [p]Each EIN is is a unique code that never expires. However, as a sole proprietor you may need a new EIN if you’re subject to a bankruptcy proceeding, you incorporate, you take in new partners and operate as a partnership, or you purchase or inherit an existing business. [/p] [h2]How To File Your 2290 Form?[/h2] [p]Why wait when you can go ahead and knock out your 2290 Form today? Go ahead and file online with ExpressTruckTax or the ExpressTruckTax App now. Simply follow the step-by-step filing guide to instantly complete your form. As a result, your Form 2290 will be transmitted directly to the IRS and you'll get your stamped Schedule 1 in about 15 minutes.[/p] [p]You can also call TSNAmerica at 803-386-0320 to file your 2290 Form today over the phone. Simply give them a call and an outstanding US-based representative will file your 2290 for you! It’s that easy. Plus, you will instantly get a copy of your stamped Schedule 1 via email.[/p] [h2] Need Help With Your 2290 Form? [/h2] [p]The outstanding <a href="https://www.expresstrucktax.com/">ExpressTruckTax team</a> can help. Call them with any questions you may have at 704-234-6005 Monday - Friday from 9 a.m. - 6 p.m. EST. You can also reach them via live chat or through <a href="http://support@expresstrucktax.com">24/7 email support</a>.

Aug 03, 2017 • Carriers

Industry Update - November 22, 2019 <h4><strong>By Paul DeCoste</strong></h4> <h3><strong>Did you Know?</strong></h3> The trucker-themed movie, <a href="https://en.wikipedia.org/wiki/Roadgames">Roadgames</a>, came out this week almost 30 years ago. On November 19<sup>th</sup>, 1981. Starring Stacy Keach and Jamie Lee Curtis, this film is a personal favorite of Quentin Tarantino. <h3></h3> <h3><strong>Industry Update</strong></h3> The <a href="https://globalnews.ca/news/6199178/cn-rail-strike-3rd-day/">strike at CN Railway</a>, Canada’s largest railroad, has entered its third day. 3,200 unionized workers began their strike on Thursday, and it has been recorded as the biggest company strike in a decade. The union is mainly fighting against worker fatigue and making sure that worker’s breaks are not reduced. <h3></h3> CN’s stock has slowly fell by 3$ over the past three days of this strike. <h3></h3> <h3><strong>Regulations</strong></h3> House Democrats in Connecticut want the governor to <a href="https://cdllife.com/2019/dems-tell-connecticut-governor-to-revive-truck-only-toll-plan/">rethink a plan that will only toll commercial vehicles on 12 bridges throughout the state</a>. The funding plan, officially titled “CT2030”, will only toll semi-trucks and other commercial vehicles and is estimated to rake in $150 million in revenue per year. The Connecticut House Speaker, Joe Aresimowicz, argues that commercial vehicles do majority of the damage to interstate roads and therefore, should be tolled at a rate that is 7x higher than the rate for passenger vehicles. <h3></h3> Governor Lamont has since stated that, “the truck-only option provides too little revenue, too slowly and too piecemeal to make a meaningful difference.” For the time being, highway tolls in Connecticut will remain the same to all vehicles that pay their fees. <h3></h3> <h3><strong>ELD Update</strong></h3> <a href="https://www.ttnews.com/articles/uber-freight-subsidizes-geotab-elds-0">Uber has recently partnered with Geotab and announced an interesting deal</a> to supply small carriers with their ELD service. Small carriers with 10 trucks or fewer are eligible to receive a free Geotab ELD as well as a free year of Uber Freight services. However, there’s a catch. <h3></h3> Carriers that accept this deal must agree to share their telematics data with Uber Freight. The breakdown of exactly what kind of data will be shared has yet to be announced but the value of telematics data has been on the rise in recent years and there is not telling how much valuable information you could end up giving away. <h3></h3> <h3>"Movember"</h3> <a href="https://www.trucker.com/drivers/maxitrans-supporting-mens-health-movember-drive">MaxiTRANS is an Australian trailer manufacturer and they are using “Movember” to raise awareness</a> for mins health issues. Issues that include prostate and testicular cancer, mental health and suicide prevention. The company even commissioned an entire reefer trailer that is branded with Movember on all walls.

Nov 22, 2019 • Carriers