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

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.

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.

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.

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.

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.

Guide: How Much Does it Cost to Start a Trucking Company?

Trucking remains a vital industry in the modern world. Trucking companies transport over 72% of all goods across the United States, and that number is expected to increase in the coming decade. When done well, a trucking company can be a lucrative business venture that’s in high demand. In general, you should plan to invest $100,000 to $200,000 at a minimum to start a trucking company, and those costs can increase based on the size of your operation, the number of employees you intend to hire, and the number of trucks you wish to own. Rather than asking, “How much does it cost to start a trucking company?” and looking for a flat figure, a better strategy to understand these costs is to look at the various costs you will need to cover to launch and run a freight or tucking occupancy. At Advanced Commercial Capital, we work with trucking and freight companies of all sizes, and we understand the industry well. Here is a breakdown of the different costs of a trucking company that you would need to factor into your plans.

Starting Your Company – Initial Investment Breakdown

Starting your own trucking company comes with a variety of costs. Whether you start with one truck or 10, there are specific costs that you have to tackle to launch your business. Here is a general breakdown of the things you will need and their initial investments:

• CDL – Your commercial driver’s license is a necessity, and these costs vary from state to state, as does the cost of taking the CDL training course. Plan several thousand dollars for this expense.

• Truck and Trailer – To start your own trucking company, you must purchase a truck and trailer. The age, size, and type will all impact the cost. This cost can be as low as $15,000 and as high as $150,000 for just the truck and an additional $30,000 to $50,000 for the trailer.

• Insurance – Commercial trucking insurance can be as much as $12,000 to $18,000 a year per truck.

• USDOT and Motor Carrier Numbers – To operate legally, you must have an MC and USDOT number. The total cost is $300 per operating authority

• Business Entity – For your protection, you will want to set up an official business entity, such as a Limited Liability Company or S-Corp. The cost for this varies by state but is usually less than $2,000 for a simple business structure.

• Electronic Logging Device – Finally, you’ll need to invest in an ELD system to ensure your drivers remain compliant with hours on duty regulations. There are only a handful of exceptions to ELD regulations, so plan to invest in one of these systems at the launch of your business. These can cost as much as $950 per year to operate.

Before you can launch your business, you will need to have all of these costs covered, and our financing options can help.

Operation and Overhead Costs

Once the business is up and running, there are additional operation and overhead costs you’ll need to account for as you work to bring in income. Advanced Commercial Capital can help you account for the following:

1. Driver Salaries

Unless you are going to be an owner/operator, you will need to hire drivers to drive your trucks. Expect to pay a salary and mileage of around $70,000 a year to attract and retain reliable drivers. You may also choose to pay mileage in addition to a base salary, and a standard of 40 cents per mile is common.

2. Fuel and Tolls

Fuel is another cost you must account for once you’re up and running. You should expect about 6 miles for every gallon of fuel in your semi-truck, and the actual cost of fuel will depend on the current prices at the pump. Similarly, you will need to invest in EZ Pass to cover tolls for your drivers.

3. Technology

Many trucking companies find technology is essential to their operations. Advanced mathematics systems can help you keep your trucks on the road more accurately, and automated routing and dispatch systems will help improve the efficiency of your business. All of these systems cost something to operate.

4. Business Overhead Costs

Finally, a trucking company is, at its heart, a business. This means you will have costs for marketing, keeping up an office, invoicing your clients, creating rate confirmation and freight contract documents, organizing notice of assignment documents, and tracking payments, similar to any business. It can cost around $5,000 to start and run your initial marketing campaigns, and you will also need to account for other office-based expenses. In trucking, these operational costs include dispatch, which many new companies outsource, so plan on dispatch fees of around 5 to 10% per load.

Navigating Regulatory and Compliance Fees

The trucking industry is quite heavily regulated due to the serious nature of accidents involving semi-trucks. Here are some of the compliance and regulatory costs you’ll have to cover:

• BOC-3 Form – If you’re doing interstate business, you will need to have a BOC-3 Form, which shows you can operate legally in your various states. This costs between $20 and $40.

• International Registration Plan Credentials – The International Registration Plan Credential is also required if you cross state lines. The IRP averages about $1,700 a year, but these plates can cost between $500 and $3,000 per truck.

• International Fuel Tax Agreement Decal – Yet another regulation required for crossing state lines, the IFTA costs about $10 a year.

• Heavy Highway Vehicle Use Tax – The HVUT is applied to all trucks weighing over 55,000 pounds. It runs between $100 and $550 a year. You will also need to pay business income taxes each year.

• Unified Carrier Registration – The UCR for up to two trucks is $69, but for three to five vehicles, it is $206. Larger trucking companies will need to spend even more.

Choosing the Right Financing Strategy for Your Trucking Company

The costs to start a trucking company do vary from one to the next. The right financing strategy starts with the right finance company that understands the intricacies of running a trucking company. Advanced Commercial Capital works with trucking and freight companies, offering factoring, freight capital, and cash flow solutions tailored to the trucking industry. We help our clients finance their startup costs, avoid financial pitfalls, such as scams and double brokering, and create a financial plan that will work for the long term. Transportation financing is all we do, so we are well-positioned to help you launch your trucking company and keep it running through factoring or lines of credit that will keep the cash flow in play as you need it. To learn more about the costs of starting a trucking company, reach out to our team today.

A Complete Guide to Tucker Lingo and Radio Codes

The Origins of Trucker Slang

When you’re a truck driver communicating on the open road, you’re using radio frequencies that a lot of other people rely on at the same time. Because of that, the number one rule is to never use more airtime than you absolutely need. Out of this simple idea, an entire dictionary of trucker slang was born.

Trucker slang is a vocabulary developed by truckers on CB radios in the 1970s and 1980s. It saves time while still getting across important information about upcoming hazardous road conditions, a police presence, and other things that truckers need to be aware of while driving. Many phrases that are now common (like a person calling someone else’s spouse their “better half”) originated from what was essentially this new language that truckers slowly developed out of necessity.

10 Must-Know Trucker Terms for Beginners

While there are a seemingly endless number of examples of trucker slang out there, ten terms in particular are so common that it’s practically mandatory that you know them. Understanding what they mean (and critically, the context in which they’re used) is the key to having a successful, productive conversation while on the open road.

1. All Locked Up. This term is commonly used when one trucker warns those on the road behind him that an upcoming weight station is closed.

2. Alligator. Sometimes you’ll see this expression itself abbreviated as “gator.” It means that there are upcoming dangerous conditions on the road that truckers need to be mindful of. A piece of tire in the center of a highway could damage a truck’s hose or body, for example. Or, it could get kicked up and damage a nearby car. The term comes from the idea that you shouldn’t let it “bite you.”

3. Back It Down. This is something one trucker will say to another when they’re warning them to slow their speed. There may be a police officer coming up, or traffic may be getting hazardous for some reason.

4. Bear In the Bushes. This means that not only is there a police officer on the road up ahead, but he or she is also hiding just out of normal view. They’re probably trying to catch people who are speeding using the element of surprise.

5. “Do What?” When a trucker says something that doesn’t quite go out properly over the radio, another trucker might say “do what?” as a quick way to get them to repeat themselves.

6. Good Neighbor. If one trucker does something that you find helpful or that you approve of, you would show your appreciation by saying “thanks, good neighbor.”

7. Gumball Machine. This is yet another of the many examples of trucker slang relating to law enforcement. Here, one trucker is warning others that they see patrol car lights on the road ahead.

8. Home 20. A trucker would ask for your “Home 20” as a way to find out what your home location is.

9. In Your Back Pocket. A location is already “in your back pocket” if you have previously passed it on the road.

10. Roger. This is just another term for saying “yes,” “affirmative,” “okay,” or any other similar form of acknowledgment.

CB Radio Codes

Also commonly referred to as a “citizens band” radio, a CB radio is a type of tool that was commonly used by truckers to stay in communication with one another while on-the-road. Nowadays, wireless communication is practically ubiquitous – people have cell phones, messaging apps, industry-specific social networking tools, etc.

But for decades, when one trucker wanted to warn another about an impending road hazard, or to ask a question, or just to hold a conversation to stave off the boredom, they would use a CB radio in order to do it.
CB radio codes were developed as a type of shorthand to quickly convey an idea or a critical piece of information to others. Going beyond trucker slang like those examples outlined above, 10 codes are typically employed. This is a fast, efficient way to universally communicate ideas like:

1. 10-1. You would say this if you can’t hear another person you’re trying to communicate with.

2. 10-2. This means that you can hear other people clearly.

3. 10-3. This means that you want someone else to stop transmitting for whatever reason.

4. 10-4. This is a widely known expression that simply means “message received.”

5. 10-6. This means that you’re busy and that someone should hold on a moment before attempting to speak.

6. 10-9. You would use this 10 code when you want someone to repeat whatever it is that they just said.

7. 10-10. You would use this at the end of your transmission to let other people know that you’re done talking.

8. 10-17. You would preface a message with this, letting people know that whatever you’re about to say is urgent.

9. 10-20. You ask someone for their “20” if you are trying to find out what their exact location is.

10. 10-33. You would use this to let people know when there was emergency traffic at a station.

11. 10-45. You would say this if you wanted everyone within the broadcast range of your radio to report their status.

12. 10-100. This is the 10 code that means you’re taking a bathroom break.

Common Expressions

In addition to the CB 10 codes outlined above, there are a number of common expressions that you’re likely to hear on the radio. When talking about CB slang in particular, however, they take on a slightly different meaning than general trucker slang.

1. Ace. Someone would be referred to as “ace” if they are an important CB operator.

2. Ancient Mariner. A reference to classical literature, The Rime of the Ancient Mariner, this is used to describe someone who is an AM or FM user.

3. Beam. This is another way to refer to a directional antenna.

4. Big Mama. This term describes a 9-foot whip antenna.

5. Double Key. This phrase describes when two stations are talking at the same time.

6. Fox Charlie Charlie. This is another way to describe the FCC.

7. Fox Hunt. When the FCC is actively searching for illegal operators, this is called a Fox Hunt.

8. Haircut Palace. Someone would warn another driver about a bridge or overpass with a low clearance by calling it a “Haircut Palace.”

9. Twin Huskies. This is a term used to describe someone using dual antennas.

If you’d like to find out more information about trucker lingo and the types of radio codes that are commonly used on the open road today, or if you just 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.

How to Get Loads for Your Trucking Business

Finding fresh loads is a constant hustle and sometimes a hassle for both truckers and trucking companies. But rest assured, with a shortage of truck drivers in the US; there are plenty of loads out there to source.

Whether you’re just starting to haul or have been moving goods for years, there are ways of finding new loads that are cost-effective and make doing business easier.

We will look at how to get loads for trucks and how to keep a steady flow of work coming your way.

Building a Strong Network of Clients and Partners

Networking is the backbone of established trucking companies. It can be time-consuming and hard to break through when branching out as an independent truck driver.

But building a solid network with clients and partners is beneficial and has a high payout over time.

Get involved with truck industry associations by going to events that focus on the types of freight that you are looking to haul. Some associations are exclusive and only allow entry if you work in their specific industry.

Keep in mind that trucking associates are not the place to find clients and are attended mainly by your potential competitors.

However, industry events are a great place to shake hands, exchange tips, and in some cases, build a prospect list.

Utilizing Online Load Boards and Freight Marketplaces

Load boards were once found on special television screens at most truck stops in the US. Now, you can easily find pick-up and drop-off locations, rates, and contact information all online.

You can find free online load boards, while others have paid options. Some load boards offer free trials and even have easy-to-access apps that send notifications about newly posted fresh loads.

Freight marketplaces and online load boards have the same basic function of connecting shippers, brokers, and carriers of shipments. But, a freight marketplace offers more services and is more comprehensive than a load board.

Online freight marketplaces use a load-matching algorithm to help shippers and brokers find suitable carriers for the job.

Developing Effective Marketing and Branding Strategies

You don’t have to be a million-dollar trucking company to develop an effective marking and branding strategy.

Organic social media content is an easy, cost-effective way to generate new business and build a reputation. When you post regularly, you’re putting your name out there and interacting with the shipping community. Just remain authentic to your brand and open to experimenting on different platforms.

Websites are great tools for spreading the word, but you want them to make a strong impression. One effective strategy is to work with an SEO professional to optimize keyword search and link building.

And we can’t forget truck wraps. A large vinyl decal can display your name, number, and an impressionable logo for thousands of people to see each day.

Maximizing Efficiency through Route Planning and Load Optimization

Load planning is about maximizing the capacity of you and your truck so that you can deliver multiple shipments in the fewest trips. But there are things you must consider your truck’s specifications (refrigerated), the center of gravity, where it’s going, and the product you’re hauling.

The main responsibility of a load planner is to maximize payload capacity. It also cuts unnecessary costs by considering loading sequence, destinations, overtime, and more.

Efficient route planning improves customer satisfaction because you can deliver goods on time, every time. It provides you with accurate time window management, real-time updates, effective other fulfillment, and services that focus on the customer’s preferences.

Using route planning and load optimization ensures better safety for drivers. It takes into account road conditions and road limits and helps you avoid high-risk areas. And when optimizing routes, you’re reducing fuel use and truck emissions, which lessens the environmental impact.

Maximizing efficiency through route planning and load optimization ensures that you’re complying with new trucking regulations. Manually planning and sequencing routes are inefficient, time-consuming, and leave too much room for errors.

Leveraging Technology and Automation for Streamlined Operations

In the trucking industry, technology is ever-evolving. Technological advancements and software solutions help streamline operations, reduce costs, and optimize overall performance.

Trucking companies and some owner-operators use fleet management software to track insights into vehicle locations, routes, fuel consumption, and maintenance schedules.

Electronic Logging Devices (ELDs) have changed how large-fleet trucking businesses and owner-operators track and manage hours of service (HOS) to remain compliant.

Using a telematics system to track performance allows you to monitor speed, fuel consumption, braking patterns, and more to optimize fuel efficiency and address any maintenance issues faster.

Advanced analytics and predictive maintenance is another maintenance solution that proactively addresses maintenance issues and minimizes truck downtime and repair costs.

The evolution of automation using mobile applications has changed how the trucking industry does everything from GPS tracking to load management. Mobile apps streamline operations, reduce time-consuming tasks, and enhance overall productivity.

Conclusion

You have options when you’re in search of fresh loads to transport.

Building a solid network of peers allows you to establish yourself in the trucking business as an owner-operator. And developing effective marketing and branding keeps your name out there.

Technology and the internet now allow trucking companies and independent contractors to access load boards and freight marketplaces from anywhere, maximize efficiency, and automate to streamline services.

Route planning and optimization come with plenty of advantages, including cost reduction, enhanced efficiency, better customer service, and more.

But understanding how to get loads for trucks is not the only way to increase cash flow and stay profitable. Saving money, improving cash flow, and remaining consistently profitable continues after you have picked up and dropped off a load.

We at Advanced Commercial Capital understand the things that truckers need to feel confident and succeed. We provide custom-tailored, fair and honest invoice factoringthat protects you against unpaid invoices due to fraud, bankruptcy, or delinquency.

You can contact us at Advanced Commercial Capital at 855-465-4655 or by using our contact form.

How to Find Shippers as a Freight Broker

Trucking Industry and Logistic Dock - two trailers are parked at the dock with two empty spots int between them reminding us to look for how to find shippers as a freight broker

Whether you’ve read guides about starting a freight brokerage and are ready to get started or have experience in the industry, finding shippers is one of the most important factors. Here are some tips for finding freight shippers as a freight broker that can help you achieve your goals and boost profit margins.

Talk to Existing Customers

Make note of all of your current client’s shipping locations, and ask them if there are other locations, subsidiaries, or partners that you can team up with along those corridors. Sure, it’s easy to do an online search, but companies change ownership hands, lose clients and find new ones that might be noted on the web.

Be certain to remind them (should they choose to recommend you) that you offer solid trucking rate confirmations for their protection and their company’s. This helps shippers know that they are getting paid in accordance with the terms of the agreement.

Know Your Competitors

The shipping industry is highly ambitious, so building credit as a freight broker is important to keep up with competitors and exceed them. Strong credit along with satisfied shippers and recipients can allow you to negotiate higher prices as a broker.

After all, carriers and shippers tend to lean towards reliable, low-risk freight brokers. To better understand what your competition is doing, research what the top freight brokers in those regions are doing. Find out what they are charging. Do they work with fixed percentages or have a sliding scale to accommodate changes?

These discoveries can help identify areas of weakness in a competitor’s business structure. You can then find ways to serve portions of certain sectors of the market that other freight brokers are neglecting.

Make Some Cold Calls

Finding shippers as a freight broker can be as easy as making a few cold calls that could potentially lead to fruitful partnerships. Before cold calling, prepare a proposition and sales pitch that explains why your freight brokering service will value prospective clients.

Know that the first ten seconds of engagement will be the most critical. After a quick introduction, get right to the point. Discuss the regional company’s target shipping zones. Showing familiarity with the area means local businesses are likely to work with you.

Should they be interested, talk about how you factor invoices with a factory company. Explain that this practice streamlines the process, giving shippers easy access to collecting payments. If you haven’t already, consider signing a notice of assignment to simplify paperwork while ensuring satisfied shippers.

Warm Calling Tactics

Making warm calls is a bit more involved than cold calling, but it tends to yield better results. Instead of walking in half-blind, know what the shipper’s primary service needs are and whether they’ve expressed any interest in freight shippers or are looking for new partnerships.

This ensures that you don’t waste their time or yours, should their needs be well covered currently (unless you want to try and undercut competitors). It also shows your genuine interest in receiving them as clients and meeting their needs.

Reach out to Former Customers

Former customer accounts that suddenly ghost you are termed ‘orphan accounts’. Making contact with these former clients can be a remarkable way to expand your customer list and make your trucking business more profitable.

However, if there was a reason for their dissatisfaction with you, be sure to let them know that you have taken steps to resolve issues from the past in those areas. Explain that you’d like to regain their business. You may even offer a discounted rate for a few months to those who sign back on as a sign of good faith.

Look for Referrals

Owners are far more receptive to referrals provided by fellow trusted associates, and they carry more power in lead generation than marketing or advertising content. After developing solid relationships with a shipper, don’t be shy about asking for referrals.

Ask them if they are aware of other businesses in need of shipping brokerage services. If you’re lacking referrals, boosting credit with nonrecourse factoring for freight brokers may be a good option to free up working capital. This could make or break a client’s decision.

Create a Loyalty Program

Loyalty programs serve two primary purposes: to incentivize current clients to keep them with your company and to generate freight industry buzz that can establish and grow your brand image. These typically provide discounts, rewards, and other incentives to attract and retain clients.

Sponsoring a loyalty program fosters shipper retention and can result in overall growth in the industry. These programs can have a lasting major impact on your business, as they can strongly influence consumers’ decisions.

Rewarding loyalty counts, and promoting such programs can be amazing marketing strategies that distinguish your freight brokerage from others in ways beyond more than just price. Loyalty programs can involve several aspects with a similar principle. Most of them offer clients discounted brokerage rates after a certain number of transactions.

However, loyalty programs can entail more than only rewarding repeat customers. They can also be tailored to fit the main niche of your brokerage and be a more interesting way to express your company’s vision. Loyalty programs can deepen relationships while showing appreciation to clients.

Transportation Factoring for Truckers With Advanced Commercial Capital

Learn more about how to find shippers as a freight broker with assistance from the experienced team at Advanced Commercial Capital. We are the top choice for factoring for truckers, because we specialize in this field, giving it our full attention. In fact, factoring and related processes are all we do!

Invoice factoring offers trucking companies a number of benefits that make these agreements worthwhile. We can help secure advance funds that factoring can provide to help your startup or keep your business growing.

These finances can assist with covering payroll, fuel, maintenance, insurance, and other trucking-related expenses. Additionally, our factoring company can help save you money. We charge no setup fees and don’t require contracts while offering time-saving tools for shippers.

Trucking Key Performance Indicators

A blonde, female truck driver stands in front of a row of semi trucks, she is wearing a blue flannel with a red puffer vest, with her arms crossed, she's smiling knowing that she has solid data and information to increase the kpi for trucking companies

A Key Performance Indicator (KPI) for trucking companies is a metric that tells the staff more about how their operations are helping or hurting their bottom line. Known as Key Performance Indicators due to their unmistakable importance to an organization’s longevity, truckers need to pay attention both to what their KPIs are and how they change over time. Advanced Commercial Capital provides factoring for companies that prefer to have timely cash flow, which is why we encourage everyone to get a handle on how they work.

Cost Per Mile

How many miles a truck drives is easy to calculate, though most truck companies will break it up into loaded and dead-head categories. The loaded miles are known as those where the truck is carrying cargo, while the dead-head category refers to the return journeys. Clearly, the cost of loaded miles can vary throughout the journey, depending on whether the truck has multiple stops. (The tail end of a journey may not carry the same costs as those at the beginning, but it will have an effect on your total profits.) Dividing miles may not always be perfectly precise, but there needs to be a solid estimation as a jumping-off point for future calculations.

Gross Profit Margins

A gross profit margin refers to how much the company makes after deducting straight costs, like wages, maintenance, and fuel. Net profit margins refer to how much the company makes after deducting all expenses, which can include anything from annual taxes to business insurance. Assessing a gross profit margin comes down to having all of the right numbers, so it’s important to think about how much is spent at any given time on standard expenses. For instance, if you service all trucks at one time during the year, you can average out the costs to get a better idea of your gross profits per month.

Driver Turnover Rate

Driver turnover can often cost companies more than they realize. It’s not merely the cost of posting a job ad or calculating the amount in wages it takes to sort through the applications, run the interview process, etc. When one driver leaves, all of their training goes with them. If they had any relationships built up along the way, those bridges may be burned too. Though an extremely important KPI for trucking companies, the full costs of turnover rates aren’t always apparent until after a company gets into financial trouble.

While you’re considering the turnover rates, you should also think about employee satisfaction as a whole. The more happy and engaged employees are, the more productive they’ll be. If you’ve noticed that workers are ‘checked out’ to a certain extent, it may be worth more to incentivize them than it is to ignore the issue.

Safety Performance

Trucks are on the road day after day, so their safety performance will have a lot to do with how much every trip will make. When it comes to safety, ‘almost’ certainly does count. The more near-misses on the road, the more likely it is that the driver will have a mishap in the near future. Truckers may feel like they’re in unwinnable situations when it comes to their livelihoods: they have to be well-rested enough to function, yet they won’t make any money if they’re not on the road.

Careless drivers may be a great way to bolster short-term revenue for all involved but, overall, it’s a losing strategy. Improving this metric may involve anything from holding a one-time defensive driving class to entirely revamping the schedules of drivers. It seems like too much effort is being put into this one KPI for trucking companies, just consider what a single lawsuit would cost.

Freight Claim

It’s impossible to prevent every potential snag on the road when it comes to cargo. Sometimes the truck tilts at just the right angle in a way that could never have been predicted. However a company settles damage or loss to goods incurred on its trucks, though freight claims can cost trucking companies quite a bit if they’re not careful. Drivers are not always diligent when it comes to loading and counting their freight, and brokers and shippers are well aware of this. Pre-trip inspections, supervised loading, official reports, photos, well-stacked freight, and better driving can all go a long way when it comes to improving this KPI for trucking companies.

Equipment Utilization

Equipment refers to your trucks, but it can also refer to any ancillary gear (e.g., dollies, straps, etc.) used to make the treks. Like many of the other KPIs listed here, there’s not always an easy way to determine the exact degree of wear and tear. For instance, if a driver is particularly hard on their brakes, this may not come to anyone’s attention until the brakes start to squeak (or, worse, when they start to lose their potency). The best way for truckers to measure this KPI is to look at their past records for spending trends. It’s likely that repair or replacement costs are worse for certain categories than others, which can give decision makers a better idea of whether the business can get more value from each asset.

KPIs and Cash Flow

Trucking companies don’t always boast the highest profit margins, but there is a good degree of wiggle room between the highs and lows. The best trucking companies are ones that operate with a keen eye on how their resources are being spent on any given day. They see not only how their short-term expenses are costing the company, but what can be done in the long-term to rein in their budget.

At Advanced Commercial Capital, our job is to get trucking companies the money they need to pay their staff, bring in new clients, and complete all maintenance on time. From fuel to insurance, we specialize in transportation factoring because we know how important it is for our clients to have someone to call. To learn more about our services, which do not include long-term contracts or setup fees, contact us today.