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Category Archives: Carriers

Forming a Company – 3 of 5 in Starting a Logistics Operation

Companies that plan revenue opportunities that may exceed a million dollars in annual should consult an attorney,  and  a competent Certified Public Accountant (CPA).  A corporate structure is a must for motor carrier (trucking) from medium and up. There are numerous classification of corporation, so an attorney or/and CPA should be consulted.  Contracts of any kind is an agreement between two (2) parties, and a breach of contract may have dire consequence.

Once you know that you are ready to move forward through the Secretary of State, select a “Fictitious Name”, which is the official name of your business, and a “DBA”, Doing Business As. Create a positive presence, promote your services on the social media, i.e. Twitter, Facebook. your business.

You must contact the Internal Revenue Service “IRS” for your “Federal Identification Number”  for assistance in selecting the type of business you will own, and the pros and cons of each for filing your business and personal taxes.  They range from a Corporation…Partnership…Limited Liability “LLC”… S or C Corp.

The broker and carrier business can be risky when you factor in the moving a load.  The broker agrees to pay the carrier an agreed Dollar ($)  amount for moving a load with a small profit margin for the amount of money expended for fuel, permits, and travel time.

Scenario:  In an average movement, the broker agrees to pay the carrier am agreed amount to move the load from point “Origin” to point “Destination”.  It is assumed that the full amount of the debt or cost is to the carrier.

View Point:  When a shipper is unable to pay, particularly if the shipper is deeply indebted the broker may be liable to pay the carriers and the broker may be forced into bankruptcy. In many instances the broker’s commission is only 10 to 15%.  Just one (1) or (2) bad loads could cost a broker thousands of dollars.

The corporate shield protects personal and/or business assets from creditors, except when a principal signed as a “Personal Guarantor”.

Corporations:

  • Limited Liability Company or LLP are created and created and treated differently, because they represent different  liabilities issues generally requires an attorney.  Here are alternatives to these entities for a corporation with associated cost savings for its formation.
  • Fictitious Business Names (d/ba)-  The Business name is processed through the Secretary of State in each state.  There is no protection against bankruptcy.  A legal notice that in the local newspaper, an article be posted declaring the individuals involved in the formation of the company involved in the formation of the company and the place of business is required to open a business checking account.  Interstate transportation is not subject to state and local sales tax.

Always make a call if uncertain on what type of protection is required for your business.

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Start-up “ALL ABOUT YOU” Part 2 of 5 in a series of thoughts related to starting a transportation business

The Business Plan for “Starting” a logistics operation consist of a narrative and several financial worksheets.  The “Narrative” template is the body of the business plan, and serves as the Global Positioning System (GPS) because this is where the journey begins.  It contains more than 150 questions on how to proceed, and why.  Work through the business plan in any order except for the “Executive Summary” which must be completed last.  Skip any questions not applicable to your type of business.

Upon completion of your first draft, you will have a collection of small essays on various topics of your various i.e., what is your niche, who to do business with, what are the funding requirements, and what agencies can support you in setting up your logistics operation.  Edit these essays into a smooth flowing narrative.  This becomes a test of your knowledge of the career you’ve chosen, and what resources are available to equip you to meet those compliance requirements.

Business plan concepts on green chalk board

The real value in creating a business plan is not to have a finished plan in hand, rather, the process of researching, and thinking about your business in a systematic way.  The Army has a slogan that clearly defines planning called the five P’s , “Prior Planning Prevents Piss Poor Performance”.   Planning and due diligence helps you to think through thoroughly all of your ideas critically to avoid costly, disastrous mistakes later.  Always contact transportation consultants, and attorneys to be certain that your decisions are made with the best information.

The business plan is generic for any business, but specific in transportation because we are experts, and can serve as your GPS.  However, modify the business plan to suit your particular business needs, teview yhe section titled “Refining the Plan” found at the end. It suggests emphasizing certain areas depending on your type of  business, freight movement, sales, auto transporting, retail or service.  It also provide valuable insight on fine-tuning your plan for an effective presentation for venture capitalist.  Pay attention to your writing style or seek assistance through professional proposal writers.  You will be judged by the quality and appearance of your presentation, as well as your ideas.  Generally, you want get a second chance to make a first impression.

It typically takes several weeks to complete a good business plan.  Most of that time is spent researching, and thinking of your ideas, assumptions, and the value of processes.  Take he time, make a call, and  do the “Business Plan” properly because that is “THE” guide to determine the success of your logistics operation.  Those that prepare business plans never regret the efforts.

There is a famous proverb that states” Consider the cost”.  His could be taken several ways, not just the dollar amount because funding is part of the plan.  You may consider a home-based business and the effect it may have on the family.

If you are a motor carrier or broker finding freight is difficult without the right resources. The truck is never where he load is, so time and ravel must be considered as well as vetting carriers qualification, confirming rates, and tracking shipments.

A well-thought out “Business Plan” determines the size of your investment, number of employees, and return of your investment.  As a home-based owner-operator your family can be trained to find freight,  and you can get two (2) authorities, One (1) as a motor carrier (trucker) and one (1) as a broker to employees other carrier as loads are secured from load boards.

Remember, that TFS has the best transportation professionals in the industry working as a cohesive unit to meet all of your transportation needs at a cost-effective and timely manner.

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I don’t want to be him and call my boss!

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7 Required Elements of an Enforceable Contract

By: Bernadette A. Safrath

A contract is a legal document between two parties. In order to be enforceable, the contract must contain seven elements. While more specific requirements may differ by state, the basics of contract law require that these seven elements exist regardless of where the contract is formed. If even one is missing, a contract may be voided and the parties will be excused from any obligations.

7 Required Elements of an Enforceable Contract

Offer

An offer is the beginning of a contract. One party must propose an arrangement to the other, including definite terms. For example, if the proposal is an offer to purchase shirts, it must include quantity, price and a delivery date. When the offer is communicated to the other party, he has the right to accept, reject or amend the offer. If he rejects it, the offer dies. If he amends the offer, the original offer dies and his amendments become a new counteroffer that the other party can accept or reject.

Acceptance

An offer can be accepted in writing, in person or over the phone. The acceptance must simply be communicated to the offering party, with an obvious declaration that the accepting party intends to be bound by the buyer’s terms. Under the “Mailbox Rule” used in most states, an offer is deemed accepted when the accepting party places it in a mailbox or sends an email, even if the offering party never actually receives it.

Consideration

Consideration is something of value that the parties are contracting to exchange. Generally, one party exchanges money for property or services, but the parties can both exchange property or services, as long as a court would find that each party’s consideration has sufficient value.

Competence/Capacity

Competence, also called legal capacity, is a party’s ability to enter into a contract. The most common reason for incompetence is age. A party must be at least 18 years old to enter into a contract. If a minor signs a contract, she has the right to cancel it. Another reason for incapacity is mental illness. A person incapacitated by a disease or disability, who does not understand the terms of a contract he entered, has the right to rescind his acceptance of an offer, voiding the contract. Lastly, a person under the influence of drugs or alcohol may be considered incompetent if the other party knew or should have known that the person’s impairment affected his ability to understand and freely consent to the contract.

Mutual Consent

Generally, the law assumes that a competent party freely consents to a contract. However, if consent was obtained on the basis of frayed, due to duress or because of the exercise of undue influence, a party’s consent is considered involuntary and the contract is void.

Legality

A contract is only enforceable if the activity in the contract is legal. For example, a person cannot contract with someone to commit assault, murder or another criminal act. Additionally, contracts to split lottery winnings in states where gambling is illegal have been delayed unenforceable.

Writing

Not all contracts need to be in writing, but under the Statute of Frauds, certain contracts must be in writing in order to be enforceable. A written contract is required for all transactions involving real estate (i.e., lease or sale of a home), any promises to marry, any agreements to pay a third party’s debt and any transaction in which performance cannot be completed within one year of the contract signing.

https://www.sapling.com/11368503/7-required-elements-enforceable-contract

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Info and Fleet Owner – Technology – Autonomous Vehicles

Info and Fleet Owner – Technology – Autonomous Vehicles

Neil Abt | Jul 17, 2019

https://www.fleetowner.com/autonomous-vehicles/peloton-outlines-plan-platoons-driverless-following-truck

Six fleets are using PlatoonPro in real-world conditions, Peloton said.

Peloton outlines plan for platoons with driverless following truck

As company works on Level 4 technology for the future, CEO Switkes says fleets reporting strong fuel efficiency gains with existing PlatoonPro system.

Peloton Technology has unveiled plans to develop Level 4 automated following technology that would allow one truck driver to safely operate two tractor-trailers in a platoon.

“We want to leverage the skill and experience of the lead driver,” Josh Switkes, founder and CEO of Peloton, told Fleet Owner in an interview. “That helps in a variety of ways make this type of automation dramatically simpler than a stand-alone driverless truck.”

Switkes spoke publicly of Peloton’s plans for first time on July 17 at the 2019 Automated Vehicle Symposium in Orlando, FL.

Currently, the company is rolling out its Level 1 PlatoonPro system, which has a driver in both the lead and follow trucks. The driver in the second truck steers, but the system controls the powertrain and brakes to manage the following distance.

PlatoonPro is being used by six fleet customers in real-world conditions, with numerous other customer trials underway. Switkes said the system has a perfect safety record, and customers are achieving fuel savings averaging more than 7%. In some cases, miles per day have exceeded 700 per truck, resulting in projected fuel savings of up to $7,000-10,000 per truck, per year.

Switkes declined to provide specific details on any of the fleets using PlatoonPro, but hinted much of the activity has taken place in Texas. He emphasized one takeaway thus far is how infrequently other vehicles cut into an established platoon, which critics have pointed to as a safety risk and a reason the suggested fuel economy benefits would not be as high in real-world conditions.

Addressing another frequently cited concern, Switkes noted it is rare for significant “hard braking” events to occur. However, the company has spent “a huge amount of time” understanding and measuring braking capabilities to ensure the system will work properly every time, regardless of the circumstances.

As Peloton works today to further deploy PlatoonPro, Switkes said there is no exact timetable for its Level 4 system, stressing that safety testing and validation takes time. But he was confident this technology would prove attractive to an industry struggling with finding enough truckers.

“We see the drivers as the world’s best sensors, and we are leveraging this to enable today’s drivers to be more productive through automated following platoons,” said Switkes.

Peloton’s advanced platooning system will use vehicle-to-vehicle (V2V) technology, which allows the human-driven truck to guide the steering, acceleration and braking of the follow truck. Switkes said he believes the ability to double the productivity of the driver by controlling two vehicles through the platoon will prove attractive to fleets.

He also said the highest skilled drivers will likely operate these future platoons, and could receive higher compensation for their efforts.

Peloton said this will result in “improved work for drivers through better routes, schedules, and compensation, as well as better quality of life through expanding hub-to-hub and relay-style operations that allow drivers to be home with their families every night.”

Separately, a report released on July 17 from the Competitive Enterprise Institute (CEI) found that only 20 U.S. states have thus far authorized commercial automated vehicle platooning. The first start to do so was Utah back in 2015.

CEI said “with the coming advent of automated vehicles, numerous sections of state motor vehicle codes likely will need revision if we are to take advantage of the full range of benefits offered by vehicle automation technology.”

For platooning, the legislative hurdle generally surrounds minimum following distances on the highway. The group made two recommendations for altering these regulations while maintaining safety.

First is a “strong amendment,” which would preclude agencies from promulgating any regulations restricting automated vehicle platoons. Next is a “weak amendment,” which would grant motor vehicle authorities discretion in how to promulgate platooning rules.

CEI’s report, “Authorizing Automated Vehicle Platooning: A Guide for State Legislators” is a nationwide inventory of state “following too closely” rules that offers specific, state-by-state fixes to amend statutes in a way that exempts speed-coordinated vehicle platooning from those laws.

“The economic, safety, and environmental benefits of platooning should prompt other states to update their laws,” said Marc Scribner, CEI senior fellow and author of the report.

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ATA: Turnover rates in first quarter present “muddled picture” of driver market

The annualized turnover rate at large truckload fleets rose 5 percentage points in the year’s first quarter from the quarter prior, according to the American Trucking Associations, while the turnover rate at smaller truckload fleets fell four percentage points –   the first dip for small fleets in three quarters. The parity between the two rates “demonstrated a muddled picture” of the driver market, said ATA.

“While the market for drivers in certain segments continues to be tight, we’re seeing the impacts of a softer freight environment,” said Bob Costello, chief economist at ATA. Despite weaker freight growth, it is clear that there is still strong demand for quality driver’s industry wide, which will continue to put carriers under pressure to recruit and keep good ones.”

Large carriers are defined as those with more than $30 million in annual revenue, while smaller truckloads carriers are those with less than $30 million in revenue.

The turnover rate at large truckload fleets in the first quarter was 83% – 6% points lower than 2018’s average and 11% lower than the same quarter a year ago. At smaller truckload carriers, the rate fell to 73% – the same rate as 2018’s first quarter.

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Marketing…Marketing…Marketing – some pointers on data privacy

A couple of days ago we were shocked to receive notice of a pending lawsuit against TFS for sending out an unsolicited text message to a transport company promoting some of our services on www.TFSMall.com.  The number we had texted information too was listed as a business number with the FMCSA and so was available in the public domain for use by other businesses wanting to contact them.  When you sign up with the FMCSA, you sign a document called an OP1 that says that you accept that your phone number will be distributed to other organizations for them to contact you via either calls, email, or text.

Image result for data privacy

We have and will always be proud of our level of transparency that we have with both our clients, potential clients, vendors and business partners when it comes to information we utilize for in-house marketing and also what we post on our websites.  We have all the relevant disclaimers on our websites and email communications; we want you all to learn and benefit from all of our experiences.

  1. Never use your personal cellphone number for business.  You will be amazed at how many different locations your number will start appearing online and how many calls and texts you will receive.  If you are on a tight budget as a new business, there are a variety of cost effective options available to you.  Google Voice for example, will set you up with a free telephone number that will forward to your cell number.  You can even use their app to dial out from that free number, via your cellphone service.  There is no cost associated with a google voice phone number.  If you need help setting this up our team would be happy to help.
  2. If you are going to be emailing or texting potential business partners, always include in your signature an option to “unsubscribe”.  All email software has an option for setting up a signature, so you can include an unsubscribe option there so that you do not have to keep on typing it in.   Again our team can help you with this if needed.
  3. When sending out emails or texts to a large number of recipients use software that is designed to do the job.   www.constantcontact.com and www.mailchimp.com are examples of email marketing software.  www.skipio.com and www.eztexting.com are examples of text marketing software.  FYI there may be costs associated with using these applications so make sure you do  your due diligence.  If you need help please let us know.

When it comes to the crunch, as a business owner, there are always things that will come along that you will have to deal with  that you were not expecting.  Take them in your stride, take a deep breath and be sure to always work with credible, well organized companies, and build a team that you can trust and rely on!

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Women in Transportation

This is a topic that the team at TFS is reviewing and researching. We hope to have some recorded interviews and/or podcasts soon. If you are a women and work in the industry, please contact us…we want to hear from you!

https://www.abc15.com/news/region-phoenix-metro/central-phoenix/more-women-getting-behind-the-wheel-for-trucking-jobs

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Truckers are classified as ‘unskilled labor’? Nope

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Todd Dills | December 19, 2018

If I’ve heard it once I’ve heard it a thousand times in the back-and-forth commentary over this or that issue, often centered around the issue of compensation: “If the Department of Labor didn’t classify us as unskilled labor …” What typically follows is the notion that this or that issue would be better for drivers.

The video here, from the folks at TruckerNation, does a pretty good job of debunking the notion that truckers fall into an “unskilled” classification, one used in government not by DOL at all, as Andrea Marks explains there, but by the Social Security Administration for various purposes. There, depending on the level of CDL obtained, and considering endorsements, amount of time worked and more, drivers are classified as either “skilled” or “semi-skilled,” she says. Never “unskilled.” It’s worth a watch.

What the video doesn’t get to is what’s typically happened in my own experience talking to folks all around the industry, as hinted at in the first paragraph here. When someone invokes the old “unskilled” notion, asked for some clarification what I’ve most often then heard is an invocation of the reality of the exemption from overtime-pay protections for DOT-regulated motor carrier employee drivers — that exemption was codified as part of the Fair Labor Standards Act of 1938. Follow this link for a clear fact sheet on it.

There’s been no shortage of talk about the seeming absurdity of an industry regulated by the hour but paid by the mile over the years, for sure. More seriously, you don’t have to look far to find past advocacy efforts centered on the notion that removal of the motor carrier exemption from overtime-pay requirements for safety-sensitive workers would force a better standard of compensation for company drivers, and drive better income conditions for owner-operators by extension. (Read owner-operator Joe Ammons’ past such argument here, and some distillation of related changing conditions — how that ELD mandate figures in — via this link. Find some carriers moving to more of a salary-type compensation model, with a miles incentive on top, via my own reporting from earlier in the year; such moves, when true earning potential is there, might be interpreted as a kind of advocacy in and of themselves.) In an industry where much energy is being expended by attorneys and drivers suing carriers over state meal and rest breaks in California, and by motor carrier interests hoping to overturn the outlier court action that is enabling such suits, changing the motor carrier exemption to the FLSA doesn’t seem to figure into compensation conversation so much of late.

What’s your view on it? If the FLSA exemption were removed and carriers were forced to adjust to the reality of overtime pay requirements, do you think your own particular situation in the industry would improve ultimately or not?

You can find the original article at:

 

https://www.overdriveonline.com/truckers-are-classified-as-unskilled-labor-nope/?utm_source=daily&utm_medium=email&utm_content=12-19-2018&utm_campaign=Overdrive&ust_id=06a780eeefe60c8ac627bfe6e4ac197d#

 

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Record number of truckers killed in workplace fatalities in 2017

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Matt Cole            | December 19, 2018

 

Truck driver occupational fatalities rose in 2017 to the highest number since at least 2003, according to numbers released Tuesday by the Department of Labor’s Bureau of Labor Statistics.

 

BLS says the 840 truck drivers killed on the job in 2017 represented 77 percent of the 1,084 motor vehicle operators killed on the job last year — the most since it began tracking occupational statistics in 2003. There were 786 truckers killed on the job in 2016.

 

In total, there were 1,443 fatal injuries in the transportation and material moving occupations in 2017, a nearly 4 percent increase over the 1,388 fatalities in 2016, according to BLS.

 

BLS’ numbers are in line with those released in October by the National Highway Traffic Safety Administration. NHTSA’s numbers showed there were 841 occupants of large trucks killed in crashes in 2017.

 

Across all occupations in the U.S., there were 5,147 workplace fatalities in 2017, down slightly from the 5,190 reported in 2016.

 

Other occupations with high fatalities in 2017 were:

 

    Construction – 965 fatalities

    Installation, maintenance and repair occupations – 414 fatalities

    Management occupations – 396 fatalities

    Building and grounds cleaning and maintenance occupations – 326 fatalities

 

Original article:

 

https://www.overdriveonline.com/record-number-of-truckers-killed-in-workplace-fatalities-in-2017/?utm_source=daily&utm_medium=email&utm_content=12-19-2018&utm_campaign=Overdrive&ust_id=06a780eeefe60c8ac627bfe6e4ac197d

 

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