Starting a trucking company today can be very rewarding for many reasons. The logistics industry is suffering from around a 75,000-truck shortage and is estimated to be needing up to 200,000 trucks by 2020. For every single truck today on the highway, there is an estimated of 10 to 20 full truck loads needing to be moved and as the economy keeps continuing to grow, the demand for trucks to move freight will not end. Learning how to start a trucking company business is what I will share with you in this article and the benefits that anyone can receive by owning their own trucking company and not having to buy a Store my Truck.
Starting a trucking business makes you money
Owning a trucking company today in America is a guarantee for making money. For every full truck load that is moved, you can see income produced immediately. I always tell people that as soon as you get a load, you get paid and there’s not much time in waiting in-between. Each truck loads worth is determined by the type of trailer your truck is pulling and you are paid by the mile. A good example would be if your pulling flatbed products hauling building materials for 1000 miles, your truck could generate up to $4000.00 dollars one way. For this reason, it is very important to decide the proper trailer that you will use to move freight with and to make sure your driver can manage this type of trailer.
Within the transportation industry there are several types of trailers used to haul freight. The highest paying trailers are usually flatbed with refrigerated trailers following next. General box freight usually pays less but the abundance of freight available is endless. A person can make around $50,000 dollars up to $75,000 dollars a year by owning any of these type trailers with their trucking company and can keep their truck moving daily.
When getting started to move freight with your new trucking company, for the first 6 months you will be limited to getting freight since your company is new. It is very important to work with a freight broker that can assist you with getting dispatched and finding consistent freight. Freight brokers have the job of working with hundreds of different shippers that would allow you to pull freight as a new trucking entity. After a few months of operating with your own federal authority, more shippers will begin to give you freight as your time in business grows. Regardless of being new, anyone can keep their trucking business moving freight daily with the help of a good freight broker and its very important in the beginning to contact a freight broker to discuss the freight your truck will be hauling.
Starting a trucking company is affordable
If your wanting to start a trucking company today, it can be done for around $1200.00 dollars. This is usually the cost of your filings and some states can be different so make sure you check with a consulting company like LFS about the fees you would be looking to pay. One requirement you would have is to apply for your federal MC and DOT numbers. This is around $300.00 dollars.
After applying with the FMCSA you would then apply for your UCR filing and IFTA account so you can move freight across multiple states. These filings can be done by professional company’s who would file on behalf of you so that there are no mistakes made and the authority is granted after 21 days of your filing date. The FMCSA makes you wait for 21 days before allowing your MC Authority to be granted Active.
The last requirement would to have a Liability insurance policy that is added to your MC Authority of a minimum of $750,000 and the FMCSA will grant you active to move freight.
Listed below are the Standard filings
Listed below are the Standard filings needed to start your own trucking company:
- USDOT Number – This number from the U.S. Department of Transportation (DOT) is used to collect and monitor your company’s safety information, inspections, crash investigations, etc.
- Operating Authority – All for-hire carriers must have authority from the DOT to haul freight across state lines. Your authority also determines what types of freight you can haul.
- Heavy Vehicle Use Tax – Applies to all trucks that weigh more than 55,000 pounds.
- International Registration Plan (IRP) – IRP distributes registration fees based on distance traveled in each U.S. state or Canadian province. You have to register on your state’s transportation website.
- International Fuel Tax Agreement (IFTA) – IFTA is an agreement among the lower 48 U.S. states and Canadian provinces to simplify reporting of fuel use by carriers who drive in multiple states. Carriers file a quarterly fuel tax report that determines their tax and distributes it to the states. Your truck must have an IFTA decal on it, and you have to apply for a new one at the beginning of every year.
- BOC-3 Filing – This names your company’s process agent, who will be the one to get served on your behalf in any legal proceeding. You need to designate a process agent in each state where you maintain an office or establish contracts.
After these filings have been made, you usually will have between 21 days up to 30 days before getting your first load. The FMCSA will also include you into the New Trucking Entrant Program for the first year and you will have to meet with a DOT inspector for your first safety audit within your first year. This allows anyone to begin to learn the requirements and your audit should go be quite easy to pass. There are several companies who will help you learn and keep your new trucking company compliant to the guidelines of the FMCSA and help you prepare for the safety audit and I highly recommend you working with one of these. One of the most trusted companies that can help you stay compliant and meet your DOT safety audit is JJ Keller.
You do not need to own a truck to start a trucking business
As stated before that the amount of freight is just endless in this trucking business and this is very good for the owner of a trucking company. Most people think they need to invest into a truck which can be expensive. The truth of this is you do not have to be the owner of the truck and trailer, you just need to be the owner of the trucking company. A new trucking company can be started by using another person’s truck and trailer.
This is called an owner operator and you can register the owner operators truck under your authority. The owner operator would be considered as a lease on driver and he would drive his truck and trailer for you. You would make around $500.00 dollars a week or more by just utilizing this method and there are a lot of people catching onto this type of trucking business model.
Early History of Volvo Trucks
Volvo produced its first truck in 1928, but had also been making cars the year before. The first truck was the LV series 1. It came with a 2.0 L four-cylinder engine that had 29 horsepower and that first year they sold 500 of this model. While most trucks of this era had chain-drive systems and solid rubber tires, Volvo was being innovative and the LV truck was shaft-driven and had pneumatic tires.
This model was much more of a success than Volvo expected and unlike other trucks made in the 20s, Volvo had designed the entire vehicle. After the first 500 sold out quickly, they had to hurry to do a second series of 500 more trucks, which were considered Series 2 and had a few modifications, such as widening its track to 1,460 mm, and reducing the previous double rear axle to only one, which made it safer, though it drove slower.
Volvo Produces First Six Cylinder Trucks
In 1929, Volvo Trucks came out with the very first six cylinder truck, dubbing it the Series 3 truck. It was fairly close to the Series 2 trucks in design however, so only the motor was different. It had wooden wheels, which were not that practical for heavy work and its two wheeled brakes were not considered as safe as brakes nowadays for the weight of these medium duty vehicles. The company manufactured and sold about 3,000 of these trucks.
Volvo Makes First Three Axle Trucks
In the 1930s, Volvo came out with their first truck with three axles, which was called the LV64 LF. It was made to comply with the rules then that only allowed smaller loads on each axle due to the fact the roads in the 30s were pretty terrible.
Volvo Trucks in the 1930s
The 1930s was when Volvo began to be a lot better at making more modern style trucks. And their trucks were using diesel fuel and changed from. Wooden to steel wheels and to hydraulic style safer brakes.
With this move to be more innovative, Volvo became. A more dominant force in the Nordic countries for selling and making trucks. And by the end of the 30s they were more. Recognized in the world of heavy and medium weight trucks.
The LV series of trucks were considered more modern and helped to get Volvo established. As a big exporter of trucks to countries all over the world. During this time frame Volvo continued to make improvements in their trucks. Making chassis changes, longer wheelbases in some models. And larger margins for overload in off road style trucks.
LV 8 and 9
Especially the LV 8 and 9 were considered to be models that. Helped Volvo have a stronger position as a major player in producing trucks. In these models, the truck engine was moved. From the usual spot behind a front axle to sit on the top of the front axle. Which helped make for better distribution of axle load. Since there were road restrictions concerning axle weight, this made these two trucks very popular.
Plus, these trucks had a more aerodynamic design. And were rounded instead of having the usual more vertical or horizontal shapes. Plus, drivers were happy that these trucks had a standard heater, which many at that time didn’t have. The LV 8 and 9 were also more able to be modified and adapted to do a variety of jobs.
Volvo in the 1940s
World War II in the 1940s caused Volvo to go into producing trucks. For the Swedish army more so than for anyone else. This relationship with the military helped Volvo long term because it gave them. A chance to develop rough terrain trucks that later could be produced for the construction field.
By the mid 1940s Volvo was getting more experienced in the heavy duty type trucks. Something they hadn’t done much of prior to the war. The L29 trucks that came out were a more powerful style with a diesel engine and were introduced in 1946. The Swedish road commission was pleased with them. Because these trucks were good at handling the harsh weather and in helping with road construction in Sweden.
Volvo’s First Diesel Engine
Volvo also made their first diesel engine in the 40s called the VDA. Or Volvo Diesel Type A, which was a pre-combustion style of motor. However, it proved to be hard to get going in cold weather. So a newer version was brought out in 1946 and became very popular in Volvo’s trucks. The later LV series of Volvo trucks had this new diesel engine in some of them.
Volvo Trucks in the 1950s
Volvo’s next vital change in their motors came in the 50s. When they change to a direct ignition VDC engine, which was better in fuel consumption levels. It is considered the ancestor to today’s Volvo truck engine. Volvo was considered a pioneer in using a turbo charged engine that was stronger and more efficient. Plus, Volvo was then able to make heavier weight and longer style of trucks.
Volvo in the 1960s through the 1990s
Trucks were very popular for transportation by the 60s and were becoming a more flexible tool. By then, the truck cabs had rubber suspension systems. More visibility due to higher up cabs, and more comfort for drivers in the seats as well.
The 1970s brought more refinements for trucks in general and they had tilt cabs. Turbocharged engines, better horsepower, and could go faster. Two very dramatic entries into the world of Volvo trucks were. The F10 and 12 trucks that were made in 1977. They had better ergonomics and were safer and set the stage for trucks of the next few decades.