Trucking Regulations Archives

Why Updating FMCSA MCS-150 Form Is Important for Transportation Carriers

October 17, 2023Western Truck Insurance

The Federal Motor Carrier Safety Administration (FMCSA) mandates that, every two years, transportation companies update their Motor Carrier Identification Report (Form MCS-150). Updates may include changes or modifications to contact information (phone number, address, etc.), operating authority changes, ownership and control changes, insurance information, safety data, USDOT number, vehicle and equipment information, and other info.

Updating the MCS-150 is critical for ensuring the quality and completeness of carrier information within the FMCSA’s systems for various reasons:

Regulatory Compliance

Failure to provide the FMCSA with updated and correct information may result in penalties or other enforcement measures.

Safety Monitoring and Oversight

With updated data, the FMCSA can track carrier performance, prioritize inspections, and intervene if safety concerns develop.

Improving Data Quality

Accurate and up-to-date information is essential for insightful motor carrier safety analysis, research, and policy creation.

Enhanced Public Safety

Timely updates to the MCS-150 contribute to overall public safety by ensuring that carriers are compliant with safety regulations.

Carrier Accountability

Carriers demonstrate their dedication to compliance and safety requirements by evaluating and updating their information on a regular basis.

Insurance and Liability Management

The MCS-150 data is used by insurance companies to assess risk and select suitable liability coverage, which affects insurance premiums and policy terms and conditions.

Efficient Communication

Up-to-date information ensures that motor carriers receive critical notices, updates, and alerts about safety laws and compliance needs.

Data Accuracy for Shippers and Brokers

Shippers and brokers rely on reliable MCS-150 data to assess the safety and compliance of carriers. Updating information improves carriers’ reputations and chances of obtaining contracts.

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Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to make sure you do too. Our clients appreciate our dedication to finding competitive rates and offering unparalleled service beyond excellent insurance options. They also value how our state-of-the-art automation provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.

The Benefits of Sponsoring an Occupational Accident Program for Motor Carriers

July 11, 2023Western Truck Insurance

An Occupational Accident Program (OAP) provides a level of financial protection and support in the event of work-related accidents or injuries for independent contractors or owner-operators who may not be covered by traditional Workers’ Compensation insurance. It is commonly used in industries where independent contractors are prevalent, such as trucking and transportation, and is typically sponsored by a motor carrier.

An OAP may include the following:

Medical Expense Coverage: Helps reimburse medical expenses for work-related injuries or illnesses and may include coverage for the costs of hospital visits, surgeries, doctor consultations, prescription medications, and rehabilitation services.
Disability Benefits: Helps compensate for lost income during a temporary or permanent disability resulting from a covered accident or injury. These benefits can help contractors manage their financial obligations while they are unable to work.
Accidental Death and Dismemberment (AD&D) Benefits: In the unfortunate event of a contractor’s death or the loss of a limb or sight due to a covered accident, the program may offer AD&D benefits to the designated beneficiaries or the affected contractor.

Why Sponsor an OAP?

Sponsoring an OAP as a motor carrier can deliver several benefits that make it a valuable investment. Here are some key reasons why a motor carrier should think about sponsoring such a program:

Protection for Independent Contractors: By offering an OAP, motor carriers can attract and retain independent contractors by providing them with a level of protection in the event of work-related accidents or injuries. In addition, an OAP can help differentiate motor carriers from their competitors. It demonstrates that the motor carrier is invested in the overall welfare and protection of its independent contractors. This can be a significant selling point when recruiting and retaining skilled independent contractors.
Reduced Exposure: An injured independent contractor can file a claim against the motor carrier’s Workers’ Compensation policy as an uninsured subcontractor. With an OAP, this exposure is minimized.
Cost Control: OAPs allow motor carriers greater control over their insurance costs. Instead of depending solely on Workers’ Compensation insurance, motor carriers can design customized programs with specific coverage limits and deductibles that suit their financial capabilities and risk appetite.
Coverage Flexibility: OAPs offer flexibility in coverage options. Motor carriers can tailor the program to meet their specific needs and the needs of their independent contractors.
Claims Management: Motor carriers have control over the claims management process with an OAP. They can work closely with their insurance provider to ensure claims are handled efficiently and in line with their policies. This can help expedite the claims process, reduce administrative burdens, and maintain a positive relationship with independent contractors.
Enhanced Safety Culture: The motor carrier, in sponsoring an OAP, can help foster a safety culture within the organization by encouraging independent contractors to prioritize safety practices and adhere to established guidelines. This proactive approach can lead to a reduction in accidents, injuries, and associated costs.

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Why Proper Training of Truck Drivers Is Critical

June 5, 2023June 14, 2023Western Truck Insurance

Driver training is critical for trucking companies to ensure safety, regulatory compliance, efficient operations, cargo protection, and risk management.

Trucking companies have a responsibility to ensure the safety of their drivers, other road users, and the cargo they transport. Proper driver training in tractor-trailers plays a crucial role in promoting safe driving practices, teaching defensive driving techniques, and raising awareness about potential hazards on the road. Drivers learn how to handle various driving conditions, for example, such as different road types, weather conditions, and traffic situations. They’re also trained on lane positioning, speed management, merging, safe passing, and anticipating potential risks.

Well-trained drivers are more likely to make informed decisions, handle challenging situations effectively, and minimize the risk of accidents.

In addition, the trucking industry is subject to various regulations and compliance requirements, such as hours-of-service rules, weight restrictions, and vehicle inspection standards. Driver training helps drivers understand and comply with these regulations, ensuring that the company operates within the legal framework. Non-compliance can result in fines, penalties, and reputational damage for the trucking company.

Well-trained drivers are also more efficient and productive. They understand how to properly operate and maintain the vehicles, reducing the likelihood of breakdowns or mechanical issues. Additionally, driver training can teach fuel-efficient driving techniques, optimizing fuel consumption and reducing operating costs for the company.

The safe delivery of cargo is of utmost importance for the success of any trucking company. Driver training focuses on teaching proper cargo handling and securement techniques, ensuring that the load is protected during transit. This reduces the risk of damage, loss, or liability claims associated with improperly secured cargo.

Risk Management and Insurance

Trucking companies often face significant risks related to accidents and liability claims. Implementing comprehensive driver training programs can help mitigate these risks by promoting safe driving practices and reducing the likelihood of accidents. This can lead to improved insurance rates and better coverage options for a trucking company. In fact, the majority of insurers require a minimum of two years of experience with tractor-trailers before they will consider adding a driver to a policy.

Additionally, proper driving training can play a game-changing role in the outcome of an accident involving a tractor/trailer. If a plaintiff in the course of a lawsuit can show an inexperienced or unskilled driver was placed on the road jeopardizing the public and contributing to the accident, this will help establish the motor carrier’s negligence in failing in its duty to properly train the driver.

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FMCSA Proposes Changes to Its Safety Measurement System

May 16, 2023May 16, 2023Western Truck Insurance

The Federal Motor Carrier Safety Association (FMCSA) in February announced proposed changes to its Compliance, Safety, Accountability (CSA) program to reduce and prevent crashes. Public comments on the proposed changes are due this month.

The FMCSA’s goal is to ensure greater consistency in results by holding similar carriers to the same standard, regardless of how their safety issues are documented; improve the quality of the data; and help motor carriers better understand their results and how to use them to adopt safer behaviors.

The Safety Measurement System (SMS), the CSA enforcement tool, currently analyzes motor carrier safety data — violations, crashes, and other metrics — to assist in identifying high-risk motor carriers. The proposed CSA changes would not affect the data sources but, rather, how the data are used. According to the FMCSA, some of the revisions include:

Move the violations and crashes that fall under what is now called “Basics” to a new set of “Safety Categories.” The categories will include unsafe driving, crash indicator, hours-of-service compliance, vehicle maintenance, hazard material compliance, and driver fitness.
Split vehicle maintenance into two categories: (1) “Driver Observed” – what a driver should detect pre- or post-trip and (2) the “Other” category, which will include all vehicle maintenance violations.
Reorganize roadside violations. Categorize 973 violations into 116 groups, with each group including violations for similar safety behaviors, to prevent multiple violations cited for a similar underlying issue. For example, if an officer cites a motor carrier during a roadside inspection for two or more violations from the same violation group, it is attributed to the group as a whole and scored only once.
Simplify severity weight slimdown to no more than 1 to 10 weighting of violations.
Adjust some of the intervention thresholds that identify companies for possible intervention.
Use a proportionate percentile for the exact number of inspections and crashes rather than cutoffs in the SMS established by safety event groups. This is designed to have the carrier’s percentile impacted by its events.
Update utilization factor from 200,000 to 250,000 vehicle miles traveled (VMT).
Segment driver fitness into “straight trucks” and “combination” carriers.

If and when these changes go into effect, it’s important to know what to expect so you understand how these proposed revisions will impact your safety score – up or down. You can visit CSA Prioritization Preview for more information.

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DOT-Compliant Vehicle Inspections: Part I

March 20, 2023March 20, 2023Bob Holtzman

Over the next few articles, we will review vehicle inspection requirements for commercial trucks as required and endorsed by the U.S. Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration (FMCSA). In this article, we will review daily vehicle inspections.

Drivers must conduct inspections at the beginning and end of each shift and on each vehicle used and complete a driver’s vehicle inspection report (DVIR). A DVIR is used to notify a driver’s company about any unsafe or missing equipment on the vehicle. It’s an integral part of a systematic and compliant vehicle maintenance program. Before anyone else can drive the vehicle, the company must repair the defect(s).

Who Is Required to Fill Out a DVIR?

The DVIR rules apply to drivers of commercial trucks (and buses) weighing 10,001 pounds or more.

DVIR Exemptions

Certain types of vehicle operators are exempt from DVIR inspection rules:

Driveaway-towaway operations, in which the vehicle or trailer being towed is the commodity being transported
Motor carriers with only a single commercial vehicle
Private motor carriers that transport passengers but not as a business operation

What Does the DVIR Include?

The DVIR should include the following information:

Date
Vehicle identity (fleet unit number, license plate number, etc.)
Signature of the driver who filled out the form
Signature of the mechanic or other person who repaired the vehicle (or decided that repair was not needed)
Signature of the next driver of the vehicle to acknowledge that the repair was done or not needed

Vehicle Parts to Include in the Inspection

Each DVIR must include any defects found on the following parts and accessories:

Service brakes (including trailer brake connections)
Parking (hand) brake
Steering system
Lights and reflectors
Tires, wheels, and rims
Horn(s)
Windshield wipers
Rearview mirrors
Coupling devices
Emergency equipment (fire extinguisher, reflective triangles, spare fuses)

If a driver or company violates the DVIR rules, the penalties for violations are significant: up to $1,270 per day for failing to complete a DVIR when required, up to $12,700 for falsifying a DVIR to hide a safety defect, and up to $15,420 for failing to repair a reported safety defect.

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How DOT Inspections Are Used for Insurance Underwriting

February 14, 2023February 14, 2023Bob Holtzman

Information collected about a transportation carrier during a routine inspection at weigh stations is posted and kept on the Department of Transportation (DOT) website and available to the public. Insurance company underwriters utilize this data when evaluating a risk and determining account acceptability and pricing.

Why Are DOT Inspections and Compliance So Crucial for Insurance Underwriting?

There is a great deal of industry and insurance data available to support a strong correlation between safety scores and crash events. In fact, underwriters put as much evaluation weight on safety scores as they do on drivers and loss histories.

Underwriters will look at out-of-service rates (driver, vehicle, hazmat) and compare them with the national average, safety ratings, and the seven basic alerts from FMCSA (unsafe driving, crash indicator, hours-of-service compliance, vehicle maintenance, controlled substances and alcohol, hazardous materials compliance, and driver fitness). If, for example, a trucking company has as few as two out-of-service alerts on its record for the last two years, many insurance companies will decline to quote the account. Others may offer a higher-priced quote that is too expensive for the carrier to pay.

The poorer the roadside DOT inspections, the more likelihood there is for onsite intervention. Not only do poor DOT scores impact insurance, but your trucks will also be stopped more, causing delivery delays.

It’s also important to note that safety scores are admissible in court when there is an accident and subsequent litigation. In addition, settlements and jury awards tend to be higher when safety scores are substandard.

Strategies for DOT Compliance

Following are several strategies to implement to help with DOT inspections and safety scores:

Communicate with drivers about the impact of safety scores on your operation
Reward drivers for passed inspections (an annual safety bonus, a gift card, and recognition)
Discipline drivers for failed inspections
Check the Safety Measurement System (SMS) website periodically to review your score
Analyze inspections to determine where the majority of issues arise and address them
Ensure MCS-150 is filed as required and accurately reflects your account
Hire right – view your drivers’ prior inspection history
Challenge incorrect inspection results – DATAQ

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Truck Safety: Past Driving Behaviors Provide Insight into Future Accidents

December 1, 2022December 5, 2022Bob Holtzman

There is a lot to be said about looking at someone’s past work performance to get an idea of how they will do in the future. This goes for any occupation, including transportation. Look at a previous driver’s performance and behaviors to gain insight into whether he or she is a potential risk for future violations and crashes and to help with hiring and targeted training.

This is precisely what the think tank at the American Transportation Research Institute (ATRI) has done since 2005 in studying the correlation between driver violations and the potential for their involvement in a crash.

ATRI recently released its 2022 Crash Predictor report, which is based on more than 580,000 individual truck driver records. It identified more than 25 different violations and convictions that increased the likelihood of future crashes, five of which increased future crash likelihood by over 100%. The five behaviors that are consistently strong indicators of future collision involvement are:

Reckless driving violation
Failure-to-use/improper signal conviction
Prior crash
Failure to yield right of way violation
Improper or erratic lane changes conviction

A failure-to-yield violation and failure-to-use/improper signal conviction are the leading indicators of an increased crash likelihood (an increase of 141% and 116%, respectively). Those drivers with a history of a previous crash had a 113% higher probability of having a future crash than the norm.

Why This Data Is Valuable for Trucking Firms

In having the ability to look at a truck driver’s behaviors to improve predictions of future crashes, trucking firms can do a better job of hiring, training, and supervising drivers. If a driver has a previous violation, it doesn’t necessarily mean you don’t hire him or her. However, if you do, you have better insight into what type of specific training and supervision to implement to reduce truck-involved accidents.

Be sure to document your decision to hire a driver with a violation, including the training you provided, so that, if there is an accident, you have a record of your efforts to correct the issue. The same goes for your existing drivers. If they have a violation, provide training and document the targeted remedial instruction you have provided. This is critical in defending your hiring decisions and demonstrating the steps taken to provide proper training when an accident occurs, and there is a subsequent lawsuit. Research shows that when juries consider awards in trucking accident cases, the amount and level of training trucking firms provide to their drivers are among the many factors they consider.

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What Truckers Need to Know About Operation Safe Driver Week

July 5, 2022July 6, 2022Bob Holtzman

Operation safe driver week is almost here, and it will be an informative event about commercial truck safety. Large trucks contributed to 107,000 crashes that resulted in injuries in 2020, with 4,842 deaths. The Commercial Vehicle Safety Alliance created Operation Safe Driver Week to improve the driving behaviors of commercial and passenger vehicle drivers. The program accomplishes its goals through education, outreach, awareness, and interactions with law enforcement.

Safer drivers mean fewer worker injuries, lower costs for truck insurance, less vehicle downtime, a better reputation for your trucking operations, minor damage to client property, and more on-time deliveries. Participation in Operation Safe Driver Week benefits your driver’s health and bottom line.

What To Know About Operation Safe Driver Week

This program presents both opportunities and risks for drivers. The more your drivers know, the better equipped they will be to take advantage of opportunities and avoid risks.

When Operation Safe Driver Week Takes Place

The 2022 event occurs July 10 through July 16 in the United States, Canada, and Mexico. Drivers should prepare for more road law enforcement activity during this time.

Who the Operation Impacts

The operation impacts all drivers. Law enforcement will target unsafe driving practices by both commercial and passenger vehicle drivers during this time.

Behaviors Law Enforcement Will Target

Law enforcement officers will look for drivers engaging in risky behaviors, such as following too closely. Other dangerous factors include distracted driving, driving under the influence of alcohol or drugs, and changing lanes improperly. Additionally, there will be a particular focus on speeding. Instruct your drivers to be extra vigilant about driving the posted speed limit during this operation to avoid citations.

Increased Risk of Citations and Traffic Stops

Law enforcement officers stopped 17,910 passenger and 28,148 commercial vehicles during the 2021 operation. Likewise, they issued 16,863 citations and 10,486 warnings. Drivers should expect more traffic stops and plan potential delays into their schedules.

Purpose of Operation Safe Driver Week

The operation’s purpose is to increase roadways’ safety by reducing the number of crashes. Reduce risky behaviors to reduce dangerous situations.

Why the CVSA Launched the Program

Statistics show that the actions or inactions of drivers contribute to 94% of crashes. The CVSA launched this initiative because data indicates more interactions with law enforcement reduce risky driving behaviors. The 2022 program focuses on speeding because data shows that excess speed is a factor in over 25% of crash deaths and is the most common driver-related cause of crashes for both commercial and passenger vehicles.

The program also targets other risky driving behaviors that frequently contribute to deaths and injuries on the roads, such as distracted driving, not wearing seatbelts, and driving under the influence. In 2019, distracted driving killed 3,142 people. 47% of the people who died in traffic accidents were not wearing seat belts, and drunk drivers caused crashes that killed 10,142 people.

4 Tips for Improving Trucker Safety

Your drivers can avoid traffic citations, reduce truck insurance costs, and cause fewer accidents by engaging in safe driving practices:

Check Blind Spots

Drivers should check their mirrors every 8-10 seconds to see if any vehicles are in their blind spots. Scanning for about a quarter-mile will help drivers be aware of work zones, traffic congestion, and other hazards.

Proceed Through Wide Turns Cautiously

Larger trucks will usually have a wider turning radius than passenger vehicles. If a truck cuts a corner, it can result in property damage or cause an accident with another car. Passenger vehicle drivers may not always give commercial trucks the extra space to make turns. Drivers must be aware of this potential hazard.

Do Not Drive While Distracted

Driving while texting is illegal for commercial drivers and is a common cause of accidents. Additionally, drivers who use mobile phones should use hands-free devices. Drivers should avoid drinking, eating, operating a navigational device, or reading a map while driving. Likewise, they should not drive while feeling ill, exhausted, or using medications that cause drowsiness or dizziness.

Maintain a Safe Speed

Excess speed is the most common cause of accidents. Driving too fast is also likely to result in a citation during the operation. Drivers should obey posted speed limits and reduce speed when necessary due to the weight and size of the vehicle or the road conditions.

Safe driving behaviors benefit everyone involved in trucking operations. Encourage your team to drive safely not only during times of increased law enforcement but year-round.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

Fatality Wrecks with Big Rigs Up 13%

June 21, 2022Bob Holtzman

An accident is the worst possible outcome for a truck driver, and fatality wrecks are every trucker’s nightmare. Unfortunately, research reveals that big rig collisions that result in death have risen sharply in recent years. Specifically, the National Highway Safety Traffic Safety Administration reports that semi-truck fatality wrecks are up by 13%. This alarming statistic reveals the dire need for new safety measures, but with big-rig wrecks increasing in fatality numbers, it may not be clear where to start. Trucking companies can combat this deadly problem by understanding its root cause, identifying risk factors, and implementing more stringent safety standards.

Understanding the Cause of Increased Fatalities

Such a dramatic uptick in deaths would seemingly be attributable to a specific cause. It doesn’t seem to be the case, though, as experts blame different issues, and there’s no single clear culprit. Instead, a range of problems appears to be contributing to the topic. Trucking companies that want to fight against fatalities should start by understanding the following three possible causes of the increase.

National Trucker Shortage

When considering the reasons for the increase in fatalities, it’s impossible to overlook the nationwide shortage of truck drivers that occurred in the wake of COVID-19. Although there’s evidence to suggest that the shortage may end, its impact will undoubtedly continue to have consequences. The increase in enormous rig collision fatalities may be among these consequences. With fewer drivers available, many truckers faced an increased workload and intensified pressure to meet tight deadlines. Together, these factors may encourage unsafe behaviors such as speeding and sleepy driving.

Return to the Road

A shortage of truckers isn’t the only consequence of COVID-19. The pandemic also ushered in a widespread period of quarantine, during which many people stayed home instead of driving. Now, people are rushing at the opportunity to get back on the road. Thus, the sudden increase in traffic has also resulted in a sudden spike in deaths. It may be due to a deterioration of driving skills during the lockdown.

Inconsistent State Laws

Any interstate driver who travels through multiple states in a day may find it challenging to keep track of the speed limits and other standards as they can change regularly. To complicate matters further, some states have even raised their speed limits, which some reasonably interpret as disregarding roadways fatalities. It may encourage other motorists to engage in unsafe driving behaviors that increase the likelihood of collisions and fatalities.

Forming Solutions to Minimize Fatalities

How can trucking companies combat the problem? Likewise, truckers should understand the impact an accident can have on truck insurance rates. To save lives and keep truck insurance rates low, carriers should consider the following potential solutions.

Recruiting Safe Truck Drivers

Recruiting more truckers is important in lightening the load of those currently on the road. More importantly, though, trucking companies should focus on hiring truckers who can drive safely on the road. Promising predictors of driver safety include their civilian driving record and background check results.

Investing in Training Programs

Truck drivers need to complete training and onboarding that will familiarize them with the exceptional standards of your company. As you develop your training program, it’s essential to incorporate thorough coverage of safety protocol. It should include a discussion of your company’s safety principles, individual state traffic laws, and the variance in those laws.

Switching Priorities to Incentivize Safety

It’s essential, too, to ask what kind of behavior your company is incentivizing. If your company offers drivers bonuses for meeting tight deadlines, you may unintentionally incentivize unsafe driving behaviors. Conversely, if your company provides rewards for adherence to safety laws, you’re motivating drivers to follow the rules and drive with safety in mind.

Trucking Companies Can Save Lives With Safety

Trucking companies can play an important part in either encouraging or discouraging the unsafe driving behaviors that may cause these collisions. It should motivate every trucking company to recruit safe truckers, implement better safety training, and incentivize safe driving. Following these steps may be the best approach to lowering the truck accident fatality rate.

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How To Improve Your Trucking Business Profit Margins Part 2

May 24, 2022May 26, 2022Bob Holtzman

Many factors can influence a trucking company’s profit margins and what expenses they can afford on a daily basis. There are certain factors to consider, especially what truckers can control.

You can’t control the weather, the whims of a client, or a supply chain disruption — but you can manage your maintenance practices, recruiting methods, and cost management strategies. Still, it may seem like challenges outweigh advantages, and in times like these, how do trucking businesses make money?

Trucking Company’s Profit Margins

Learn about effective strategies for improving trucking business profits and gaining control over your company’s bottom line. You can boost revenue with the right approach while enhancing your drivers’ work conditions and ensuring your clients are satisfied.

Invest in Preventative Maintenance

One of the best ways to mitigate expenses and predict costs is to invest in preventative maintenance for your fleet. Repairs and replacements are a common source of unexpected costs. It is especially true when a truck’s stranded on the side of the road. According to Fleet Equipment Magazine, the cost of such a repair is $407 on average, which represents an increase of 24% from prior years. Multiply this cost by the number of trucks in your fleet. Then, consider how frequently you have to perform impromptu repairs — and it’s clear how quickly the costs add up. Preventative maintenance such as monitoring fluids, checking tires, and replacing filters can go a long way in preventing unnecessary breakdowns, thus minimizing costs.

Improve Your Recruiting Methods

Another high cost for trucking companies is continuously recruiting, hiring, and training new drivers. The high departure and turnover rate impacting the industry enhances this. Despite this issue, some dedicated drivers want to put their skills to use, and they want to find a long-term employer just as much as you want to see long-term employees. Finding these candidates is a critical component of minimizing your company’s expenses. Thus, you may need to renovate your recruitment strategies. Rather than casting a too-wide net, you should focus on seeking out experienced truckers who bring professionalism and commitment to the table.

Monitor Your Cost Per Mile (CPM)

Cost per mile is one of the most important metrics for tracking your corporate expenses, but it’s a frequently overlooked number. This figure is imperative if you want to gain an accurate overview of just how much you spend in general operating costs. You can calculate it by assessing your fixed costs — costs such as commericial truck insurance premiums, staff wages, permits, and license — and adding these expenses to variables such as gas, maintenance, and unexpected repairs. Then find the total number of miles your fleet drives and divide the costs by this number. Determining your cumulative CPM is a great way to understand your company’s financial standing — and work to improve it.

Pursue New Contracts and New Clients

A trucking company’s profit margins can fluctuate, and based on their marketing strategy. Many trucking companies adopt a passive marketing strategy and wait for clients to find them. It’s true that eventually, new clients will seek out your services. However, it would help if you actively pursued new contracts and clients. You might have to hire new staff or expand your fleet to accommodate more business, but this is an excellent problem to have. You can start by looking for additional loads on load boards. It can introduce you to new partners who could eventually become long-term clients. You may also be able to scope out new business by looking at broker networks that connect truckers with high-paying transport opportunities.

Invest in Customer Satisfaction

The only figure more critical than your trucking company’s revenue is your company’s customer satisfaction rate. Do you have relationships with repeat clients who continuously hire your drivers — or are you reliant upon a steady stream of new customers who may or may not come back? If the latter sounds more familiar, there’s a good chance you need to work on your customer satisfaction skills. How happy your clients are directly correlated to how profitable your business is. You can boost both by actively seeking feedback from customers, asking what you can do better, and offering to resolve issues before they can escalate.

Explore All Sources for Funding

Even if you follow all of these tips, it’s possible to run into financial difficulties. The trucking industry can be a volatile business, but you can see big profits when you invest in your company. To weather a period of slow revenue, you should explore all funding sources. You might need to apply for a company credit card or seek a loan from a family member or friend. These options often aren’t ideal, but an extra boost of funding might give you the padding you need to overcome obstacles.

Invoice Your Clients Promptly

Finally, you must invoice your clients as soon as possible. Your truck insurance provider won’t wait for payment, so why should you? You have expenses to cover and drivers to pay. Don’t allow clients to interrupt your revenue by waiting to pay. If you encounter a client who doesn’t pay promptly, it’s essential to handle the situation with patience. Rather than reacting with anger, you should extend understanding and provide them with various options to submit payment.