5 Truths About Trucking in 2020
Transportation of freight has been a necessity ever since the inception of the USA. As the decades have passed, shipping has only become faster and faster. In our modern era of transportation, trucking is the dominant force for the current freight network. Trucking is not however, by any means, an easy way to make a fortune or even a living. Here are 5 truths one must accept before entering into the fold. Whether you are an owner operator or a company driver you will need to accept them in order to be successful in the long term.
1) Starting Will Be The Hardest
Trucking is a high barrier to entry industry. Before you even get inside of a truck you must have established an MC number and DOT number which can be found on the FMCSA official website (https://www.fmcsa.dot.gov/registration/getting-started). This process in itself takes at least a month to complete however, it is possible to establish the company without any outside assistance.
Next you will have to ensure you find an admirable “A Rated” insurance company so brokerages and shippers will be able to work with you. This is also an expensive process as the insurance industry is unregulated and will give you a relatively higher rate as soon as you are first starting out. I recommend having 2 different insurance contacts to ensure you are receiving as much information as possible for your quote and also preventing any sales bias.
Now the biggest expense is of course your initial investment in the truck itself. Starting out you need to measure your risk and reward meticulously when buying a truck given that you will have a high overhead with a new truck, but on the other hand, you will have higher mechanical risk for a used one.
These examples are just a few of the barriers to trucking success that you will have to push through in order to even start making your own money throughout your tenure.
2) The Road is Tough On The Mind
Making a profit in trucking ultimately is decided by your ability to handle the open road for an extended amount of time. Some trucking positions have local work that would get you home each day and there is definitely opportunity in it however, driving statewide is a different beast. If you plan on driving for 2 weeks or longer over the road you must be prepared to have a plentiful supply of mental endurance. Most drivers listen to podcasts or music or talk to their loved ones throughout their tenure however, if you have never been on the open road you will see it that the road will eventually wear you down.
My advice to prevent this eventual wearing down of your working mentality is to make a firm schedule. If you are able to work for one full week and return to your terminal then be sure not to make any exceptions to this schedule. Making the schedule with your partnered brokers or customers can be extremely beneficial as your body can get on a schedule. I will not say that the open road will not be mentally draining as you are away from your comfortable bed, but you will be able to sustain yourself throughout your time out of state and even grow to enjoy it as you’re providing a living for yourself and possibly others.
3) Your Truck WILL have an issue
As much as I would like to guarantee that your tenure trucking would be an easy yellow brick road, the truth is your truck will eventually run into problems. AJG has had brand new trucks from dealerships have issues after the first couple weeks that would force the truck to be back inside of the dealership for a time. No matter the condition of the truck ALWAYS expect breakdowns and have a plan of what to do. This has ruined other trucking companies and owner operators, as they will continuously take the cheaper options with repairs which will cost much more in the long term. Always have a savings budget for any emergency situations on the road as those will end up costing the most. Depending on the time of day a road service can charge upwards of $300 just for the trip to you and the labor and not including parts. Gain some experience with pricing your parts to ensure you are not getting scalped throughout your time on the road in a repair.
Pre-Trip inspections are as essential as they say when it comes to your units. At AJG Transport we have inspectors come into the yard weekly just to keep close tabs on all of our trucks from bumper to bumper. Thinking longevity is always key. Always buy OEM (Original Equipment Manufacturer) parts , over time the parts you think will not make a difference in brand will end up being the downfall of your unit. In the end, your truck is a well-oiled machine and will only last as long as you take care of it.
4) Relationships Matter
In trucking, setting others up for success is usually the key to long term growth as you will consistently find the fruits of your ability to help later in your business venture. Your first few customers or brokers could end up being the reason you have a big Christmas bonus at the end of the year. So how do you create relationships in trucking? By being AVAILABLE. Brokers will always support the trucking company that is willing to be flexible with appointment times or later pickups in the middle of the night. Everyone wants to have a simple Monday through Friday schedule however that is not how money is made.
Personality is also another huge key in your business development. Customers and brokers will always have experiences with bad drivers or company owners and swear never to work with them again, even if they do have a lower rate. In trucking, as in all business, it is all about your integrity and character from talking on the phone, to meeting in person and even your email responses.
5) You will be away from home
Trucking is by no means a sexy industry. In this day and age of technology it is mainstream to shoot for an office or desk job that can be fully handled from home. But trucking is essential whereas desk jobs can be outsourced or taken over by online automated systems. In trucking, make peace with the fact you will miss some celebrations, birthdays, anniversaries etc. However if you negotiate right, you will be compensated for your sacrifices.
Trucking is going to be a journey. One filled with woes, breakdowns, profit, and many negotiations. It is a high risk high reward industry that can be cutthroat to the unaware. If you accept these truths among others you will be able to expect the worst and hope for the best. This is the first of the universal disciplines you will learn.
Best of Luck!
Andrew Gomez
Andrew@AJGTransport.com