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rookie truck driver going for a drive in his truck

10 Common Pitfalls of Rookie Truck Drivers

Being a truck driver is a career decision that brings a wide range of different benefits that cannot be ignored. In addition to the fact that there is a low barrier to entry in that, there is no degree required, truck drivers usually have a tremendous amount of job security. The transportation industry and truck drivers, in particular, are the essential backbone of the United States economy, after all.

Becoming a truck driver offers tremendous opportunities for career advancement, gives people access to a highly competitive salary, and, of course, gives them a chance to travel in ways that they might not otherwise have access to. It’s no wonder it’s become so appealing to so many.

But there are several common pitfalls that brand-new truck drivers in particular tend to make in their first days and weeks on the job. Understanding what they are is the key to avoiding them in your own situation moving forward.

Rookie Truck Drivers Tend to Speed

In a lot of ways, new truck drivers tend to be a lot like their rookie contemporaries in that they have a “heavier foot” than most. Especially when you’re on the job, you always need to follow the speed limit. Be mindful of traffic laws and remember that you’re not just a driver anymore – you’re also performing an important service and are representing a business, too.

Newbies Often Ignore Safety

People who have never been truck drivers before are often surprised by the enormous checklist of things you need to do before you can even think about starting the engine, let alone driving. But it’s all critical and those safety checks should not be neglected. They could save your life or the life of someone else on the road one day.

New Truck Drivers are Often Overconfident

Overconfidence can come in many forms. Sometimes, a new truck driver simply thinks they’re able to work for longer periods than they actually can. Other times, they think that safety rules don’t apply to them because “skill” will always win out in the end. No matter what, you need to be mindful of your own limitations and act accordingly.

Physical & Mental Health Are Often Neglected

Being a truck driver is a sedentary lifestyle, and you need to be mindful of that moving forward. If you’re going to be sitting for at least eight hours a day you can’t just eat whatever you want. Likewise, you need to use every opportunity you have to get up and go for a walk at truck stops. Neglecting your mental health is also a bad idea. Make sure you’re getting enough sleep at night and seek professional help should you feel that you need it.

New Truck Drivers Tend to Neglect Relationship Building

As is true with any other industry, success in terms of being a truck driver comes down to your ability to build a relationship. Yes, it’s true that truck drivers spend a lot of time by themselves. But when you drop off a load you’ll still be interacting with people. People who might be able to help you out one day or otherwise advance your career. It would be a shame to waste that type of opportunity just because you don’t see the point of relationship building in the present day.

Many Rookie Drivers Think They Know Everything

Many rookie truck drivers think that “being a good driver” and “being a good truck driver” are interchangeable. In reality, you don’t know everything – and that’s a positive thing. Always take advantage of opportunities to learn new things and continue to develop yourself. It’s what will always keep the job as fresh and as interesting as possible.

Think about it like this. In a traditional job, the moment you feel like you’ve “learned enough” or are “as good as you can be” is the moment you start to plateau. You’d get bored with that job pretty quickly. Why would you then want to add something as physically and mentally demanding as truck driving on top of that?

Most New Drivers Have Unrealistic Expectations

Not every moment behind the wheel of a truck is going to be stellar. You will experience traffic delays, even if you didn’t today. You will hit a construction zone, even if you didn’t today. Unfortunate circumstances happen all the time and if you don’t start mentally preparing for them now, you’ll have a hard time dealing with them down the road (no pun intended).

Many Rookies Lack Organization Skills

Many rookie truck drivers make the mistake of assuming that since the cab of a truck is small, it isn’t really possible to be too terribly disorganized. However, when you consider the receipts that you have to manage and items that need to be both scanned and organized, it’s easy for your lack of organizational skills to fail you fairly quickly.

Newbies Often Avoid Asking for Help

Just because you’re a new truck driver who is on the road by yourself doesn’t mean you have to do everything on your own. When you pull into a truck stop, for example, you’ll be surrounded by like-minded individuals. On the road, you can use your radio to communicate with just about anyone. If you need help, ask for help – it truly is as simple as that.

Lots of Rookie Truck Drivers Switch Jobs Too Early

Finally, one of the biggest mistakes that rookie truck drivers seem to make involves switching companies too early in their careers.

There are a lot of trucking companies out there and each has something unique to offer. But at the same time, you need to focus on the development of your own personal skills to make yourself as attractive as possible in the marketplace. As a general rule, most professional truck drivers say that you shouldn’t switch to a new company within the first year after you’ve been on the road. Trucking is all about long-term commitment, and you may be doing more harm than good if you can’t show potential future employers that you’re willing to stick to it and won’t leave them at the drop of a proverbial hat.

If you’d like to find out even more information about the types of rookie truck driver mistakes that your organization would do well to avoid at all costs, or if you just have any additional questions that you’d like to speak to someone about in a bit more detail, please don’t hesitate to contact the team at Advanced Commercial Capital today .

happy truck driver

2024 Guide to Truck Driver Salaries

If you had to list some industries that are literally the backbone of the United States economy, the trucking industry would no doubt be right at the top.

Without the shipping and logistics services provided by these passionate, dedicated, and highly skilled individuals, essential goods and other products would not be transported across the country and the continent. Without them, our store shelves would be bare. Our grocery stores wouldn’t have the food we need to thrive on a daily basis. The list goes on and on.

Of course, this begs the question – how much do truckers make? Naturally, the answer to that question requires you to keep a few key things in mind.

What is the Average Trucker Salary in America?

According to one recent study, the average trucker in the United States brings home a salary of roughly $83,000 per year. Keep in mind, however, that this will vary depending on a wide range of different factors – some of which are under the control of the truck driving professional and some of which are not.

What Factors Influence a Trucker’s Salary?

One of the major factors that influence how much a truck driver makes has to do with whether they are owner-operators or if they work directly for a company. As the name implies, an owner-operator is someone who owns their own truck the same way you might a piece of property. They tend to bring home an average of almost $323,900 per year. This makes sense, though, when you consider what an enormous investment the truck itself was originally.

A truck driver who works with a trucking company, on the other hand, doesn’t have to make that investment to start their career or to take matters into their own hands. For that reason, they tend to make approximately $59,400 per year.

Several other factors will influence a truck driver’s salary, too. Where a truck driver lives, for example, will play a big role. Salaries for any profession tend to reflect the cost of living in a particular area and some areas have higher costs of living than others.

The specific type of truck they’re driving will also influence how much they make, as certain types of trucks require specialized skills that companies are willing to pay more for. This ties directly into their overall level of expertise. The more experienced you are, the more money you can expect to take home.

Driving routes are also a big influence in terms of how much someone will make. If your route is particularly long or complicated, you’ll make more money than if you just handled straightforward jobs all day. It’s like any profession – the more complex it is, the higher your salary tends to be.

Which States are the Best for Trucking?

The states that tend to be the best for truck drivers and people who want to pursue this type of career include Kentucky, Pennsylvania, and Indiana. Not only is the average truck driver’s salary high in these locations, but there are also a large number of trucker positions available.

Other states that are great for trucking include Delaware, Mississippi, Ohio, and Oklahoma.

Which States are the Worst for Trucking?

The states that are the worst for trucking tend to be those that are the opposite of those outlined above – meaning that not only salary comparatively on the lower side, but there also isn’t a lot of opportunity.

Take Hawaii, for example. In addition to salaries being on the low side, there aren’t many opportunities because Hawaii is quite small compared to a state like Oklahoma. Not only that, but the cost of living in Hawaii is also quite high – a bad combination if there ever was one.

Other states that would make this list include but are not limited to ones like Alaska, Florida, Idaho, Texas, and Oregon.

Trucker Salary Based on Trailer Type

Trucks that require specialized skills to operate tend to come with higher salaries than those that don’t. An oversized load driver, for example, typically commands about $96,000 per year.

Trucker Salary Based on Route Type

An OTR (over-the-road) driver would be at the top of the list for salaries based on route type. They tend to bring in about $99,000 per year, although it can be more in some situations.

Trucker Salary Based on Operating Models

As previously mentioned, the owner-operator model commands the highest salary based on the operating model. Others that are high on the list include lease operators, team truck drivers, and solo truck drivers.

Trucker Salary FAQs

What is the Highest Paying Trucking Job?

The highest paying trucking job tends to be owner/operator. Because they own their truck outright, as opposed to using one that has been issued by their employer, they tend to make more than $300,000 per year on average. Keep in mind, however, that you do have to make that large initial upfront investment.

What Type of Trucking is Most in Demand?

Because the trailer type is highly specialized, oversized load drivers tend to be in the highest demand. They also command the highest annual salary as a result. The same concept holds true for things like fuel tanker drivers and crude oil drivers.

Is it a Good Time to Get Into Trucking?

It’s always a good time to get into trucking, provided that your expectations are in order. Simply go into the situation knowing that where you live will absolutely impact how much you make, as well as other factors like your skill level. Have a plan in place for yourself so that your career can develop in the direction you want it to go in.

If you’re wondering how much do truckers make and want to find out more information, or if you’re eager to begin an exciting and rewarding career like this on your own terms, please don’t hesitate to contact the team at Advanced Commercial Capital today.

Freight forwarding trucks and trailers parked behind warehouses.

Freight Forwarder vs Broker: What’s the Difference?

What is a Freight Forwarder?

For the sake of example, say you’re shipping important freight halfway across the country. You need it to arrive at its final destination precisely at a certain time in order to appease your own customers and guarantee future success for your business.

One of the people you would enlist during this time is called a freight forwarder. They’re the person (or organization) that takes possession of your important items. They store them, pack them, ship them, and help make sure that everything gets exactly where it needs to go on-time and in full.

The Main Responsibilities of Freight Forwarders

Because a freight forwarder is handling your important shipment, they take a very direct role in everything that happens. In most situations, they’ll be responsible for covering your shipment by way of insurance. If something goes wrong, it is their responsibility to make it right.

While a freight forwarder won’t necessarily transport your important goods or other items directly, they will find the company that can. It’s a highly specialized job that comes with its own requirements, like the fact that any freight forwarder needs to be licensed under the Federal Motor Carrier Safety Administration. Also commonly referred to as the FMCSA for short, this is for both interstate and foreign freight.

Always ask to make sure that a company is licensed before you choose any particular one to work with.

What are the Benefits of Using Freight Forwarders?

In a general sense, the biggest benefit that comes with using freight forwarders has to do with how you get to leverage someone else’s years of experience to your advantage.

You’re an expert at running a business – you’re not necessarily (nor are you expected to be) adept at the finer points of shipping and logistics. A freight forwarder, on the other hand, is. That’s why they can help break up or even consolidate goods in storage in a way that makes them easier to ship while saving you both time and money at the same time.

They can extend those cost-savings into packaging and routing freight in unique and forward-thinking ways. Your freight still gets exactly where it needs to go, but in a way that saves money so that you can funnel it back into other areas of your business where it can do the most good.

Freight forwarders are also a tremendously efficient way to save as much of your time as possible. They handle all matters pertaining to customs, for example. Export or import issues can take a significant amount of time to resolve but thanks to a freight forwarder, that’s not something you have to worry about.

Along the same lines, freight forwarders will also help make sure that all of your essential paperwork is in order. This includes but is certainly not limited to any commercial invoices that you’re working with, the bill of lading, and certificates of origin (for international matters). This again frees up as much of your valuable time as possible so that you can focus on anything that you deem more important.

What is a Freight Broker?

In the world of logistics, a freight broker is an experienced professional who coordinates the connection between A) shippers, and B) carriers. It’s important to note that they do not handle freight directly. They simply act as something of a “middleman” between two parties during this important process.

The Main Responsibilities of Freight Brokers

Because of the nature of their position, the number one responsibility of a freight broker is to help you secure the best rate possible. Freight brokers often have pre-existing relationships with multiple carriers that they can leverage. Rather than trying to negotiate something on your own, they can help match you up with the right shipper and negotiate the best possible contract to help save you money.

Again, freight brokers only act as a “middleman” between a shipper and a carrier. They’re not responsible for any part of the right handling process. They will, however, track shipments to help make sure that all key stakeholders are up-to-date should any conditions arise that need their attention.

What are the Benefits of Using Freight Brokers?

To that end, one of the key benefits of using a freight broker is the increased visibility into your shipment that they bring with them. A freight broker will help keep track of freight and fuel rates, will keep tabs on regulations that you need to know about, and can even help stay up-to-date on all emerging industry trends. This is all insight that they will then share with both the shipper and the carrier so that all parties can make the best decisions possible moving forward.

But overall, freight brokers also have a reputation for helping to save everyone involved as much money as possible. For carriers, they can help optimize routes in a way that eliminates inefficiencies and that helps increase important qualities like accuracy and even safety. For businesses, they can help negotiate the best rates to save as much money as possible on the actual shipment itself.

In a lot of ways, a freight broker is like an accountant. Not only are they supposed to save you money, but the amount they end up saving will more than cover the associated costs of choosing one in the first place.

Key Differences: Freight Forwarder vs Broker

The main difference between a freight forwarder vs broker is one of responsibility. The freight forwarder is always responsible to the shipper in any logistics situation. A carrier, on the other hand, is responsible to the forwarder. The carrier is not directly responsible to the shipper. That’s what a freight forwarder is for.

This mainly comes into play should any legal issues arise during the shipping process. Freight brokers do not take physical possession of the important goods and other products being shipped. Freight forwarders do.

How to Choose Which to Use

In most scenarios, if you can only pick between a freight forwarder and a broker, choosing a broker is the way to go. They play a critical role in domestic shipping in particular and can help save you time and money. Many organizations find a great deal of success using both at the same time, however. It will simply come down to which option makes the most sense given the goals that you’re trying to accomplish.

If you’d like to find out more information about the differences between a freight forwarder and a freight broker, or if you just have any additional questions you’d like to go over with someone in a bit more detail, please don’t delay – contact the team at Advanced Commercial Capital today.

An image of a semi-truck parked at a loading dock, depicting the logistical process including lumper fees in trucking operations

What Are Lumper Fees in Trucking?

What is the Purpose of Lumpers?

If you had to make a list of some of the positions that are crucial to the trucking industry, lumpers would undoubtedly be right at the top.

Essentially, a lumper is a person who unloads cargo when it arrives at a warehouse. A driver picks up a shipment from its point of origin and takes it to its destination. The business representing that destination has likely hired a team of third-party individuals to safely unload that truck. These would be lumpers.

A lumper is particularly valuable in situations where specialized skills are needed to ensure the safe handling of goods. This is why you’ll see a lot of grocery store chains hire lumpers, for example, as unloading perishable goods in a way that keeps everything safe until it reaches store shelves isn’t necessarily a task you can assign to just anyone.

A lumper is often trained to be able to accomplish their job not only quickly, but accurately and (most importantly) safely as well.

Depending on the exact company they’re working for, lumpers could be involved in a wide range of different types of freight. They can handle the aforementioned grocery store inventory items to household furniture and other large products, for example. They don’t just load and unload in a general sense. They stack, organize, and more. This is what separates them from any average employee who may be hired by a warehouse to perform similar duties. By profession, a lumper is dedicated to offering a level of care and attention-to-detail that it is difficult to match through other means.

What are Lumper Fees?

In the trucking industry, a lumper fee is a charge relating to freight deliveries that equates to the value of the labor that was necessary to both load and unload the cargo in question.

Sometimes, a company will need to hire a third-party worker to move a shipment from one place to the next. Naturally, that will mean loading and/or unloading a truck, which is physical work to be performed. A lumper fee helps to cover the costs associated with that action.

What Is a Typical Fee?

Lumper fees will vary depending on the job because there are so many different factors involved. In addition to base wages, a lumper fee is also meant to provide assistance with any tools, materials, or other supplies that may be required. Generally speaking, a lumper fee will range from $100 to $500 depending on these conditions.

What are Lumper Receipts?

As the term implies, a lumper fee receipt is simply proof that payment has been made. Sometimes this can come in the form of a paper receipt, or it may be in a digital format. Regardless, it will have the same basic information including the date and time that the work was performed, as well as an overview of the services.

Who Pays Lumpers?

Oftentimes, freight brokers will make it a requirement as part of their contract that drivers use lumper services. This is done to guarantee the safety of the shipment, as well as all involved. The broker will be responsible for paying the lumper fee. If they don’t do so directly and the driver does, the driver will eventually be reimbursed.

In certain situations, it’s possible to get a lumper fee advance – as is true when drivers partner with OTR solutions like the team at Advanced Commercial Capital. If a driver is being told that they must pay the lumper fee up front, they can get an advance from Advanced Commercial Capital to cover those costs. That way, they don’t have to worry about any financial strain or potential payment delays when the work has been completed.

Laws Surrounding Lumpers

The major law surrounding lumpers is Title 49 of the United States Code 14103. It expressly states that the shipper or receiver (depending on the agreement between these two parties) is responsible for all costs associated with paying a lumper and their fees.

Of course, not every driver is necessarily aware that the law is on their side – meaning that they could fall victim to scams if they’re not careful. If you’re a driver that is expressly told by your freight broker that you are responsible for the fee, or that you have to pay upfront and will not be reimbursed, this is likely a scam. It could be that the broker is attempting to essentially trick you into reimbursing them for a fee they’ve already paid, allowing them to look legally compliant on the surface while getting back the lumper fee in the end. The same would be true if they insist on taking money to cover some or all of the lumper fee out of your eventual payment.

Pro’s & Con’s of Hiring Lumpers

For most organizations, the major benefit of hiring lumpers comes by way of the money they save in the long run.

The alternative to lumpers would involve hiring your own permanent team of staff members to accomplish the same task. You might think this would be easy, but again – many types of freight require specialized skills to handle properly. Finding the sheer volume of these employees that you would need to avoid delays isn’t just expensive – it’s also incredibly time-consuming.

Not only that, but when you hire lumpers, you don’t need to concern yourself with things like payroll taxes or workers’ compensation insurance. This alone can make it a cost-effective way for mid-sized organizations in particular to get this important job done.

One of the potential cons of hiring lumpers ultimately has to do with a lot of the criticism they regularly receive from those in the industry. If the events of the last few years taught us anything, it’s that the supply chain is inherently fragile. On the one hand, things have grown to the point where it’s now possible for even small businesses to operate on a global scale. However, anything you add to the supply chain increases its complexity, which also represents another potential point of failure moving forward.

Because of this, lumpers are seen by some as an unneeded addition to a supply chain that has already grown far too large over time. Whether that will impact your own business remains to be seen, but it is something that people have discussed in the recent past.

If you’d like to find out more information about the intricacies of lumper fees in the world of trucking, or if you have any additional questions that you’d like to go over with someone in a bit more detail, please don’t hesitate to contact the team at Advanced Commercial Capital today.

orange frieght truck

What are the Different Types of Freight Trucks?

What is a Freight Truck?

If you had to make a list of all the industries in this country that many people take for granted, transportation and logistics would undoubtedly be right at the top. Most of us don’t spend too much time thinking about the origins of that new furniture we bought, or that car, or all those items we ordered on Amazon. We just enjoy them. But without logistics professionals, they never would have made it into our lives.

In terms of the transportation industry itself, freight trucks are crucial. They’re designed to transport items safely and efficiently, no matter what. But obviously, different types of items have different requirements. You wouldn’t be able to haul gasoline to the local gas station for a refill using the same type of freight truck you would to get all those dairy items down to the local grocery store. You’d use freight trucks in both situations – just two different kinds.

When people talk about the sensitive nature of supply chain operations, not only in this country but around the world, understand that freight trucks of all shapes, sizes, and types are an integral part of that.

8 Types of Freight Trucks

All told freight trucks have a variety of intended purposes depending on what type you’re talking about. Some look very different from the next and many require specific types of experience to safely operate. They all have the same overall purpose, however: to make sure important items get where they need to be, no matter what.

1. Dry Van

A dry van is the type of freight truck that most people are familiar with. Indeed, if you’ve ever ridden on the highway for any appreciable length of time, you’ve likely passed more than a few of these. Dry vans have 53-foot-long trailers and are not temperature-controlled. If you’ve ever worked in a warehouse and had to unload pallets or even furniture, the chances are high that it all arrived at your destination via a dry van.

2. Refrigerated (Reefer)

Refrigerated trucks are sometimes called reefer trucks. They look similar to a traditional dry van, except the trailer itself is temperature-controlled. This makes it perfect for hauling items that need to stay within a precise temperature range, with food and beverages being the top example. Many pharmaceuticals and even sensitive chemicals are often hauled this way, too.

3. Flatbed

Flatbed trucks don’t carry their loads in an enclosed trailer. Instead, as the name implies, they use a flat, open trailer. There are no sides or even a roof. This is what makes them perfect for oversized cargo in particular. They’re easier to load than a traditional truck and can carry the type of weight that you’d be hard-pressed to match elsewhere.

4. Step Deck (Drop Deck)

Also commonly referred to as a drop deck, a step deck trailer is not too dissimilar to a flatbed truck. You still have a flat, open space with which to store items. However, the unique construction of a step deck makes it the ideal solution for tall cargo in particular. Not only do they have more overhead clearance, but they’re also easier to load and unload as well because they’re closer to the ground.

5. Tanker

Tanker trucks are designed very precisely to carry the types of loads that would largely be impossible to transport in any other way. A lot of construction materials make it to their destination this way – like sand or even concrete.

Here, there are two main types of tankers that you’re talking about. The first are dry bulk tankers, which can carry items like sugar and grain. Liquid tankers are also available, which are great for hauling beverages or even chemicals like gasoline. Most of these have different compartments to keep multiple loads separated from one another. They are both equally challenging to load and operate, albeit in their own unique ways.

6. Dump

Dump trailers, also commonly referred to as dump trucks, are designed to easily transport loose materials. One might be used to remove debris from a construction site, for example. Another might take essential materials like gravel to that same construction site. They’re also regularly used in the landscaping and agricultural sectors. The point is that whatever you’re hauling, you can do so quickly and efficiently. A dump truck is open on the top so whatever you’re hauling will be exposed to the elements to a certain extent, but that likely won’t matter.

7. Auto-Transporter (Car Hauler)

Auto-transporters are a type of freight truck designed for a single purpose: to safely carry multiple vehicles at one time. They’re built in a way that makes loading them easy – you essentially just drive the car right into an enclosed space, at which point it is secured. Depending on the size of the vehicles, it’s not unusual to see a car hauler with six or more cars at one time. These auto-transporters typically get used by car dealerships, for example, to transfer cars from one location to another. Regardless, if you need to transport vehicles over long distances, and you don’t want to actually drive them, an auto-transporter is likely how you’re going to get the job done.

8. Double Trailer

Finally, we arrive at double trailers. They’re essentially two dry trailers that are being pulled by a single truck. In terms of their design, think of them a bit like a train, only on the road. Multiple trailers are all being pulled via a locomotive, only in this case it’s a standard truck. You often see a lot of these carrying around large quantities of items in the retail or e-commerce industry. Some package delivery services also use them when they need to move high volumes of goods. Regardless, double trailers are understandably difficult to operate, which is why it takes an experienced driver to make sure things get where they’re going as safely and as efficiently as possible.

In the end, the type of freight truck you should use will vary depending on exactly what type of cargo you’re hauling. Typically, the job itself will dictate what type of truck is required. If something must be temperature controlled, you begin to narrow down your transportation options fairly quickly. If you’re having a hard time deciding, don’t worry – the team at Advanced Commercial Capital is happy to help.

If you’d like to find out more information about the different types of freight trucks, or if you’d just like to discuss your business’ own needs with someone in a bit more detail, please don’t hesitate to contact Advanced Commercial Capital today.

over the road trucker

Discover the World of Over the Road (OTR) Trucking

What is Over the Road (OTR) Trucking?

Also commonly referred to as OTR for short, over-the-road trucking is exactly what it sounds like. As a logistics professional, you’ll be tasked with hauling cargo over long distances, typically crossing state lines. You may even venture into other countries depending on the nature of the freight you’re carrying.

Over-the-road truck drivers can spend three to four weeks on the open road sometimes, seeing the best that Mother Nature has to offer while also making a satisfying living for themselves at the same time. They can sleep in either the cabin of their truck or at a nearby hotel or motel depending on their preferences.

Indeed, OTR truck driving professionals are the backbone of logistics in this country – they’re a significant contributor to the way our economy functions. But what is OTR in a general sense, and how does it differ from regional or even local truck driving? The answers to questions like those require you to keep a number of important things in mind.

How Much do Over the Road Truckers Make?

OTR (over the road) truckers typically earn between $45,000 to $70,000 per year, depending on factors such as experience, employer, and mileage driven. Some experienced truckers with specialized skills or hauling hazardous materials can earn upwards of $80,000 annually. Additionally, many OTR truckers receive benefits like health insurance, retirement plans, and performance bonuses, enhancing their overall compensation package.

OTR vs. Regional vs. Local Trucking

It’s entirely possible for over-the-road, regional, and local truck drivers to be carrying similar types of freight at a given time. It’s just that beyond this, the nature of their job (and the length of each commitment) can vary wildly.

Local trucking is exactly that – short-range trucking that likely involves hauling cargo from one part of a city to another. Most of these truck drivers work a typical 9-to-5 work day, or at the very least have something that resembles a traditional hourly job. A local truck driver might pick up a load of goods at a warehouse and take it to a specific business, for example. They’ll also likely drive smaller trucks simply due to the nature of their job.

Regional truck driving kicks things up a notch by breaking free of the confines of one particular area. Here, truck drivers will travel an entire region which can involve multiple states depending on the logistics network someone is a part of.

Most larger organizations that do a lot of shipping break the country up into a series of smaller states. Each of those collections of states is called a region and a regional truck driver could find themselves in various locations across the Northeast, Midwest, Southwest, or more depending on the day.

Regional truck driving is a bit more time-consuming and labor-intensive than local truck driving, but not nearly to the extent that OTR trucking is. Regional truck drivers could be engaged in one job for a few days at a time, but they’ll still get to spend more time with their friends and family members than their OTR counterparts. They regularly find themselves away from home, but never too far away from home.

As stated. OTR truck drivers can find themselves on-the-road for literally weeks at a time. It’s not inconceivable that they could have to haul a load from one corner of the country to another, or from Washington state across the border into Mexico. It all depends on who they’re working for and what the needs of the job are. Anywhere you can get to on the continent via truck is a place that an OTR truck driver could find themselves in at some point.

OTR Trucking Job Requirements

An OTR Trucker driving away from the sunset.
The number one OTR trucking job requirement to concern yourself with has to do with a CDL, or commercial driver’s license. Just like you need a driver’s license to operate your personal motor vehicle to show that you have the skills and judgment necessary to do so safely, the same is true of commercial trucks.

There are three main classes of CDL to choose from depending on your needs. These include:

  • Class A, which is the most common. This lets people operate vehicles with a combination weight rating of 26,001+ pounds. Examples of things that would fall under that category include tanker trailers, tractor trailers, and flatbed trucks.
  • Class B, which is necessary if you’re planning on operating a single commercial motor vehicle that is NOT hitched to a trailer. Here, you’d be talking about something like a school bus or a larger delivery truck.
  • Class C, which is essentially a Class B license only it also gives you the ability to tow another vehicle that weighs less than 10,000 pounds. The combined weight cannot exceed 26,001 pounds, however. Many tank trucks meet this description.

  • It’s also important to note that the actual licensing process you’ll go through varies depending on which state you’re in. They all, at a minimum, will require you to take both a written test and a practical one. To that end, it will be not unlike when you got your regular driver’s license as a teenager, albeit on a much larger scale.

    In an over-arching sense, you’ll always have to prove that you’re capable of safely operating the vehicle that you’ll be driving and that you’re capable of adhering to state and federal regulations. It’s just that some states are a bit more intense when it comes to proving exactly that.

    Advantages of OTR Trucking

    By far, one of the biggest advantages that comes with OTR trucking has to do with earnings potential. Yes, it’s a significant time commitment, and you’re almost guaranteed to spend a lot of time away from your friends and family members. But according to one recent study, the average starting salary for drivers is about $64,000 per year. Depending on the amount of experience you have, coupled with certain endorsements, you could easily make $120,000 or more.

    All this and you also have more job security than most people get to enjoy. Right now, there is actually a truck driver shortage in this country – a problem that is only expected to get worse as time goes on. Over the next decade companies will be so desperate for truck drivers that you essentially never have to worry about being out of work for too long. You’ll also likely get perks like a fuel card while over the road trucking so you don’t have to worry about how you’re going to get from one location to another.

    Many people also enjoy the fact that there are few requirements needed in order to begin a career (only the aforementioned licensing), and professionals often cite the decidedly unique lifestyle they get to live as a major selling point.

    If you’re interested in finding out more information about over-the-road truck driving and why it might be an ideal career choice for you, or if you just have any additional questions that you’d like to discuss with someone in a bit more detail, please don’t delay – contact the team at Advanced Commercial Capital today.

    man wearing a blue ball cap working on his freight broker license paperwork

    6 Steps to Getting a Freight Broker License

    What is a Freight Broker?

    A freight broker is essentially a “middle man” between two parties: a business that requires the careful shipment of goods, and the authorized motor carrier who will be doing the shipping. A freight broker doesn’t actually transport anything themselves. Instead, think of them more as an important part of the logistics side of the equation.

    They will help make sure that the needs of the client business are understood and taken care of all throughout the process. They’ll match that client up with a carrier capable of meeting their specific needs. They help manage financial risk for all parties and can even assist in addressing things like carrier safety, compliance, and potential fraud.

    One of the many benefits of being a freight broker is that there is virtually no limit on the amount of money you can make. You get to be an active part of the logistics industry without commuting or spending a lot of time on the road, and there are also low startup costs as well. Being a freight broker also comes with low overhead expenses as you don’t have to worry about actually shipping the goods or paying to properly maintain a fleet of vehicles.
    In order to operate as a freight broker, however, you will need to get your freight broker license. This isn’t necessarily a difficult process, but it is a precise one that you must follow. There are a few steps in particular that you’ll definitely want to account for moving forward.

    Steps to Acquiring Your License

    1. Meet Requirements

    Arguably, the most important step to getting your freight broker license involves making sure that you meet all the necessary requirements to embrace this long and fruitful career. That means investing in training if you have not already had the opportunity to do so.

    There are a wide range of online training courses you can take that will give you the knowledge you’ll need to excel while on-the-job. There are also a number of training books that can help you out. If you already have a freight brokerage company that you’re planning on working with but just haven’t met the formal requirement of having a license yet, you’ll likely be able to speak to them to get some hands-on practice and experience.

    Remember that this is absolutely one of those situations where “continuous improvement” is a goal that you should be striving for.

    2. Gain Knowledge of the Industry

    During this period, you’ll also want to gain as much knowledge about the industry itself as possible. Don’t lose sight of the fact that this is a business, the same as anything else. So you’ll want to know as much as you can about the ins and outs of how things work, all so that you can use this knowledge to your advantage.

    Case in point: choosing a business structure. For tax purposes, there are three main structures you can choose from depending on your needs. You could be a sole proprietorship, a partnership, or a corporation. There is no “one size fits all” answer regarding which type you should select. Each will have long-term implications regarding how you can earn money and how you’ll be taxed on that income. If you’re not sure where to begin or are confused about the intricacies of the process, it’s always recommended that you consult the help of a business attorney. That way, you can be confident knowing that you’re making the best decision possible.

    3. Obtain a DOT Number

    In order to operate a freight brokerage business in the United States, you need to have a DOT (or USDOT) number. This is something that you get through the Federal Motor Carrier Safety Administration, otherwise known as the FMCSA for short.

    Note that you will obtain your DOT number when you fill out and submit form OP-1 (see below for additional information). However, because this is a strict requirement for operating at all, it’s important enough that it warrants a separate mention.

    4. Register with FMCSA

    It’s also important to note that you will need a process agent not just in the state that you’re based in, but in every state that you plan on writing broker contracts in. This is essential because in the event that you are ever sued, the process agent is the person who will agree to accept any court papers on your behalf. This is who a process server would look for to serve a summons, for example.

    To properly register with the FMCSA, you’ll need to fill out CForm BOC-.

    5. Obtain a Trust Fund or Bond

    As per the Moving Ahead for Progress in the 21st Century Act, all freight brokers are required to have a $75,000 freight broker bond. This is a special type of bond that covers not only yourself, but also any of your affiliates, for up to $75,000 in the event that any claim filed against you is successful.

    In terms of running a business, this bond helps to immediately give you a much-needed level of credibility. It’s also a way to prevent fraud and to compensate any shippers or other carriers that you may not pay in a timely manner for whatever reason.

    6. Submit OP-1 Form

    Finally, once you’ve completed all the aforementioned steps and your business structure is firmly in place, you’ll want to fill out your OP-1 form. This is an application form that will get sent to the FMCSA that includes a general overview of who you are and how you plan to operate.

    Just a few of the pieces of information you’ll need to submit along with your application include but are not limited to ones like:

  • The name of your company.
  • Your name.
  • Your address and other relevant contact information.
  • The type of operating authority.

  • To speak to the type of operating authority in particular, you’ll have two options to choose from depending on your situation: a “Broker of Household Goods” or a “Broker of Property (Except Household Goods).” This will be directly impacted by the career path you see for yourself.

    Note that when you submit your OP-1 form, you will also have to pay a filing fee for each type of license you have in mind. As of 2024, that filing fee is $300.

    If you’d like to find out more information about the important steps you need to take to get your freight broker license, or if you have any additional questions that you’d like to go over with someone in a bit more detail, please don’t hesitate to contact the team at Advanced Commercial Capital today.

    Freight manager revewing LTL freight route

    What is LTL Frieght?

    Understanding LTL Freight

    Less than truckload freight, also commonly referred to as LTL for short, is exactly what it sounds like — the process of transporting products and other goods that don’t necessitate a full tractor-trailer or other large commercial truck to do so.

    Because of this configuration, one business may share space with others during transportation. They will pay only for the space their pallets are using, at which point the remainder of the truck will be filled up with assets relating to other businesses. Usually, these LTL freight shipments can range from between 150 pounds to 10,000 pounds, although there may be some exceptions.

    Weighing the Pros and Cons of LTL Freight

    As is true with any type of shipping, LTL freight has both its advantages and disadvantages. Only by understanding the intricacies of each will you be able to determine which approach is most appropriate for your needs.

    Advantages

    The most immediate benefit of LTL freight has to do with cost savings. It’s simply far cheaper to pay for a portion of the space on a truck than it is for the entirety of the vehicle. Depending on what you’re shipping, LTL could wind up being exponentially less than what you would otherwise pay.

    Because of this, LTL freight is notorious for being small business-friendly in particular. Smaller organizations don’t necessarily have the available funds necessary for full truckload freight. If what they’re shipping doesn’t take up enough physical space to actually require that full truckload, they’re also paying for resources that they’re not utilizing. So not only does LTL freight become the more cost-effective option, but the most efficient one as well.

    LTL freight by design is also very environmentally friendly. Due to things like fuel costs, it’s unrealistic to ship a truck with anything less than maximum capacity — especially if it’s going to be traveling large distances. Rather than having five businesses pay for five separate trucks that they won’t be utilizing 100% of, all that can be condensed into a single shipment — creating a beneficial situation for all parties.

    Disadvantages

    Of course, that’s not to say that LTL freight isn’t without its potential obstacles — chief among them being the added time that it adds to the shipping process.

    If a business was paying for a full truckload, that driver would answer exclusively to them. It would pick up those products and head right to their final destination as quickly as possible. With LTL freight, you are sharing space with other businesses that will also need to be attended to. This could cause an appreciable delay in the amount of time it takes for a shipment to reach its destination.

    LTL shipping is also inherently complicated due to the ever-fluctuating rates that organizations are charged. It isn’t just your shipment’s destination that carriers are concerned about. They also want to know the total weight, the pickup location, the deadline, and other factors. Everything impacts how much you will pay, which can make it a time-consuming process in and of itself to determine how much you’ll spend and where to go to find the perfect balance between price and the level of service you get in return.

    Navigating LTL Freight Rates

    As stated, a number of different factors determine the LTL shipping rate that you’ll pay. The dimensions of your shipment determine the class itself, which impacts — but does not totally dictate — the rate. The destination of the shipment will also play a role. The farther it has to go, the more money you can expect to spend.

    Some shipments require special handling, which will also add to the cost. Examples include but are not limited to perishable items, fragile items, and anything that is particularly hazardous. Finally, if you choose to expedite your shipment, you can expect to pay an additional fee.

    Optimizing LTL Freight Management

    One of the best ways to optimize your LTL freight management efforts involves the use of a transportation management system, otherwise known as a TMS for short. This is a software-based tool that not only provides shipping optimization on a case-by-case basis, but also global visibility and business intelligence into everything that you have in transit.

    Once all information is entered accurately, a TMS will be able to consider every LTL load you have in the context of your entire business. It can then help you identify opportunities to combine with other loads on nearby routes. It can also help you select an LTL carrier, better anticipate your rates, and more — all so that you can have the most complete and accurate picture to work from when making decisions.

    Choosing Between LTL and Parcel Shipping

    Generally speaking, LTL shipping is ideal for organizations that A) do not require a full trailer to transport their items, and B) are dealing with a shipment that is under 15,000 pounds. Any more than that and you would obviously want a full trailer. Any less than that and LTL still might be a bit too much effort given what you’re trying to accomplish.

    Depending on current freight rates, parcel shipping might be the way to go. This is especially true if the items you’re shipping are under 150 pounds individually. In that case, you’d probably be able to find more competitive rates with a parcel service.

    Addressing Common Issues in LTL Shipping

    One of the most common issues that businesses often face with LTL shipping has to do with misunderstood shipping windows. When your average person buys a product online that is shipped to their home, they’re very used to “three-day shipping” translating to “three days or less.” When you’re talking about large, complex situations involving LTL freight, a quote of “three days” likely means a “minimum of three days.” Because of that, you need to calibrate your own expectations accordingly and make appropriate arrangements with your customers or those waiting for your shipments.

    Another common issue that many have with LTL shipping has to do with rates that seem to fluctuate far more than they really are. If you’re getting a quote based on inaccurate information, that quote will be adjusted appropriately once the carrier actually has possession of your shipment.

    For the best results, always weigh and measure as accurately as possible. If a product weighs 10 pounds, but it’s in a box with a lot of empty space, that’s a lot of wasted room that will only add to your costs. Try to package things as carefully as you can to avoid running into these types of problems moving forward.

    To find out more information about the ins and outs of LTL freight, or to get answers to any other questions about the process that you may have, please don’t delay — contact Advanced Commercial Capital today.

    Freight driver looking over a clipboard with freight class chart printed on it

    How to Calculate & Determine Freight Class

    Understanding Freight Class

    What Is Freight Class?

    Every type of product that a business ships is associated with a National Motor Freight Classification. This in turn relates to a precise freight class number, which typically ranges from 60 to 400. In addition to making sure that all organizations are paying correctly for the actual items they’re shipping, this also helps to avoid the wasting of time, money, and other resources throughout the logistics pipeline.

    Why Is It Important?

    Freight classes are determined by the National Motor Freight Traffic Association, otherwise known as the NMFTA for short. Because of this standardized measurement, it is possible to have standard pricing across all LTL freight carriers and businesses, dramatically simplifying the process and making it more cost-effective.

    LTL Shipping and Metrics

    Special Features of LTL

    Short for “less-than-truckload,” LTL shipping does not require a business to fill an entire trailer for shipping. Instead, they’re sharing that space with multiple other organizations, thus only paying for the exact amount of space they need to use.

    The major difference between this and other types of shipping is that LTL uses a “hub and spoke” shipping model. Instead of shipping items directly from an origin to a destination, LTL loads may go through various distribution centers for unloading, consolidation, and more before final delivery.

    Determining Transport Metrics

    Carefully figuring out transport details is crucial for improving operations. This process involves identifying and analyzing various key performance indicators (KPIs) to gain insights into the overall performance of a transportation network. Metrics such as travel time, vehicle speed, congestion levels, and reliability play a pivotal role in assessing the effectiveness of a transportation system. By using technologies like GPS and sensors, transportation engineers, urban planners, data analysts, and other stakeholders can collect information in real-time to see what’s going well and where they can improve operations. Analyzing these details helps improve transportation and allows for the development of plans to make it work even better in the future.

    Factors for Freight Class

    Density

    One of the most important factors that determines freight class, beyond the actual commodity being shipped, is density. Take the total cubic feet of the items being shipped and divide by their total weight. The lower the density, the higher the freight class.

    Handling, Liability, Stowability

    The term “handling” refers to how easy something is to transport. Items that are oddly shaped, hazardous, fragile, or extremely heavy would require special handling and thus additional fees.

    Liability relates to how likely an item is to get damaged or stolen in transit. Likewise, it has to do with how likely an item is to damage other items during shipment. The higher the liability, the more you will pay.

    Finally, stowability assumes that, provided it has been packaged properly, freight should be easy to stow during transportation. This includes not only in trucks but on trains, boats, and even planes. If a shipment is particularly difficult to load and stow or if certain precautions must be taken, it will usually correspond with a higher freight class.

    Calculating Freight Density

    Step-by-Step Guide

    First, measure the length, width, and height of the shipment in question. Be sure to include all pallets and other packaging materials.

    Multiply the height, width, and length measurements together. The number you get is the total cubic inches of the shipment. Divide that number by 1728 to convert it to cubic feet.

    Next, find the weight of your shipment, which should be measured in pounds. Once identified, divide the weight by the cubic feet. This will give you the number of pounds per cubic foot, which is otherwise known as density.

    At that point, all you have to do is look at the appropriate freight class chart to find the freight class for your shipment.

    Freight Class Codes

    Classes and Chart

    Remember that freight classes are an industry standard, so any freight class chart you look at should contain the same information. If your freight class code is 60, for example, you’re likely shipping something along the lines of car parts or other accessories. A freight class code of 77.5 usually equates to items like tires and bathroom fixtures. A freight class code of 92.5 refers to computers, monitors, refrigerators, and similar large, fragile items.

    3PLs and Freight Class

    Some third party logistics providers may have their own specific guidelines that you must use when determining freight class. So long as you have measured all your shipments appropriately, this should not be difficult to determine. You’ll still have accurate data to work from when determining which class you fall into (and what rate you will pay), even if the price is ultimately different from what is considered an industry standard.

    Optimizing Density

    The number one way to optimize the density of your shipments is to make use of every last inch of space available to you. This is why a lot of businesses invest in custom shipping materials that leave little to no wasted space in a box. Doing so may cost a bit more upfront as opposed to using “one size fits all” materials, but it can save you quite a bit of money on logistics costs in the long run.

    In other words, there should be as little empty space in a box or package as possible. If you have to, use airbags or bubble wrap to fill in those gaps. This will help provide a cushion to the goods being shipped without adding too much in additional weight.

    Speaking of dimensions, you’ll also want to make sure that you’re measuring your shipments as accurately as possible. Even a height that is off by a few inches or a weight that is off by a few pounds can make a major difference in terms of how much you think the load weighs, which will impact density and how much you’ll pay as a result.

    Finally, make sure that all shipments are loaded and secured as carefully as possible. Boxes that are shaped similarly should all be grouped together to maximize how much you can fit on a pallet. Heavier items should always be at the bottom to create a stable foundation. Everything needs to be secured in place using plastic wrap to prevent the weight from shifting. The tighter you can pack everything, the more accurately you’ll be able to measure — and the more you’ll save on shipping as well.

    If you’d like to find out more information about how to calculate and determine freight class, or if you have any additional questions that you’d like to go over with someone in a bit more detail, please feel free to contact Advanced Commercial Capital today.

    female freight broker, sitting at a desk with a laptop, using a headset to call out to freight clients

    What is a Freight Broker?

    What Does a Freight Broker Do?

    Think of a freight broker as something of a “middleman” between two important parties – a shipper and a carrier. As a business owner, handling the logistics of shipping yourself can be an often frustrating and time-consuming affair. You’ll need to constantly communicate with multiple carriers, deal with the intricacies of different contracts, try to figure out who to call if something should unfortunately go wrong, etc.

    Working with a freight broker helps to streamline this process exponentially. You’re getting access to a team of shipping professionals who already have their own network of carriers and pre-existing relationships they can draw from. The freight broker helps make sure that the transportation of critical freight goes as smoothly as possible at all points in the process, making sure that it arrives at its destination safely, on time, and in full.

    Advantages of Freight Brokering

    The most immediate benefit of working with a freight brokering professional comes by way of streamlined communications. Rather than dealing with multiple carriers depending on the freight you’re talking about, your business gets a single point of contact during the journey. If you have a question, you have someone you can call to get the answer. If you have a problem, you know exactly where to go to get the solution.

    Note that in this scenario, communication is very much a two-way street. A freight broker helps keep business leaders informed about the status of their freight at all points, making sure they have complete visibility no matter what.

    Partnering with a freight broker also helps make the logistics of the shipping process easier, as again you’re talking about a professional who has their own pre-existing network of contacts to draw from. Rather than going through the hassle of negotiating terms and conditions with a carrier, planning the most ideal routes to cut costs, tracking freight, and more, businesses can allow a freight broker to handle all this on their behalf.

    Not only does this allow them to rest easy knowing that their freight is being taken care of, but it also frees up their valuable time to focus on core business processes – which is truly the biggest advantage of all.

    When to Find a Freight Broker

    One of the most important things to keep in mind about all this is that not all businesses automatically need a freight broker. Each organization is unique, and some may be currently shipping everything they need without an issue. In that situation, working with a freight broker might not make sense – at least not yet.

    But if you find yourself increasingly worried about shipping costs and are unsure of how to manage and reduce them on your own, a freight broker can definitely help. They’re experts at optimizing your supply chain management in a way that cuts costs without sacrificing important elements like quality of service or security in the process.

    Another major sign that the time is right to find a freight broker has to do with issues resulting from scalability. Especially in the early days of a small business, it’s entirely possible that you are able to manage everything without a problem. But as your organization continues to grow, your freight needs can evolve rapidly – to the point where you may be having a hard time keeping up.

    You’re dealing with more than just a “minor inconvenience” at that point – it may literally be the thing that prevents you from scaling in the way that you need. In that scenario, a freight broker can step in and make sure that your supply chain is taken care of so that you can grow without being artificially limited in any way.

    Finally, one of the most obvious signs that the time is right to work with a freight broker has to do with a situation where your freight may be getting to its destination, but not on your desired schedule.
    Again, freight that isn’t delivered on time is more than a “small problem.” Immediately, it can cause the type of reputational damage to your business that you might have a difficult time recovering from. In a larger sense, it means that you’re dealing with unexpected delays and inefficient routes – problems that are costing you money and that will only get worse if you let them.

    Freight brokers have the insight and expertise needed to mitigate risk from all these factors and more. Yes, sometimes unexpected delays do happen, but a freight broker can minimize them as much as humanly possible. They can also call upon their time-honored safety procedures to help minimize damage to your freight, making sure that all items get into the hands of waiting clients and customers without issue.

    How to Choose a Freight Broker

    By far, the number one thing to look for in a freight broker has to do with not just experience, but experience with the specific kind of business you’re running. Not all industries are created equally, and the shipping needs of someone in the food and beverage field might vary wildly from a company in healthcare. You need a freight broker that understands the finer points of your field so that they can come up with the right strategy for your long-term goals.

    You’ll also want to pay close attention to the carrier partnerships that a freight broker brings with them. Again, it isn’t just about whether you trust the freight broker – you also need to trust the carrier partners that they have deemed reliable and safe. If a chain is only as strong as its weakest link, a freight broker is only as strong as its weakest carrier. You’ll at least want to know what you’re dealing with before you make any type of decision to that end.

    Beyond that, a freight broker should be licensed, bonded, and insured. They need to be registered with the Federal Motor Carrier Safety Administration, all so that you can rest easy knowing that even in the event of an issue, someone will be by your side every step of the way.
    If you’d like to find out more information about what a freight broker is and how one might benefit your business, or if you have any additional questions that you’d like to discuss in a bit more detail, please don’t hesitate to contact Advanced Commercial Capital today.