Weight plays a major role in freight transport, From legal compliance to shipping rates, knowing how to classify and calculate different types of weight is essential for trucking professionals. Tare, net, and gross weight each serve a specific purpose in logistics and affect how loads are managed, priced, and regulated.

A clear understanding of these weight types helps avoid overloading, reduces the risk of fines, and improves efficiency on the road.

Definitions

Tare Weight

Tare weight refers to the weight of an empty truck, trailer, or container. This includes the vehicle itself along with any permanent equipment or materials, such as fuel or toolboxes, but does not include cargo. Tare weight is used as a starting point to calculate both net and gross weight.

Net Weight

Net weight is the actual weight of the cargo being transported. It does not include the truck, trailer, or any packaging or equipment used during shipping. This number is important for pricing, freight classification, and understanding how much product is being delivered.

Gross Weight

Gross weight is the total weight of the vehicle and its contents. This includes the tare weight and the net weight combined. It’s the number most often checked at weigh stations and is subject to legal limits based on the type of vehicle and route.

How to Calculate

Tare Weight Calculation

To find tare weight, weigh the empty truck or container on a certified scale. This should be done with all standard equipment, fuel, and fluids onboard, but without any cargo. Many trucking companies record tare weights for each vehicle to streamline future calculations.

Net Weight Calculation

Net weight is calculated by subtracting the tare weight from the gross weight.

Formula: Net Weight = Gross Weight − Tare Weight

This tells you exactly how much product or cargo is being transported.

Gross Weight Calculation

Gross weight is determined by weighing the fully loaded vehicle or container. This includes the tare weight plus the weight of the cargo.

Formula: Gross Weight = Tare Weight + Net Weight

Accurate gross weight measurements help ensure legal compliance and protect against overloading.

Practical Examples

Individual Item Shipment

A pallet of boxed goods is being loaded into a delivery van. The empty van has a tare weight of 6,000 pounds. After loading, the van is weighed again and shows a gross weight of 7,200 pounds.

Tare Weight: 6,000 lbs

Gross Weight: 7,200 lbs

Net Weight: 1,200 lbs

This tells the carrier that the cargo alone weighs 1,200 pounds.

Bulk Freight Shipment

A dump truck is used to haul gravel. The empty truck weighs 25,000 pounds. After being loaded, it weighs 60,000 pounds.

Tare Weight: 25,000 lbs

Gross Weight: 60,000 lbs

Net Weight: 35,000 lbs

These numbers are especially important when transporting bulk materials, where total load weight can quickly approach or exceed legal limits.

Regulatory Considerations

Legal Weight Limits

Commercial trucks are subject to strict weight regulations. The federal gross vehicle weight limit for trucks on interstate highways is 80,000 pounds, including cargo, vehicle, fuel, and equipment. Some states may allow higher limits with special permits or different axle configurations.

Consequences of Non-Compliance

Operating above legal weight limits can lead to serious penalties. These may include fines, delays at weigh stations, equipment damage, and increased liability in the event of an accident. Carriers may also face long-term impacts such as lower safety ratings and higher insurance premiums.

Impact on Shipping Costs

Weight plays a central role in how freight is priced. Accurate weight measurements help determine freight class, rate structures, and fuel surcharges. Heavier shipments often cost more to move and may require special equipment or permits.

Incorrect weight reporting can lead to billing disputes, reclassification fees, or shipment delays. In Less-Than-Truckload (LTL) shipping, where freight from multiple shippers shares trailer space, inaccurate weights can affect load planning and disrupt delivery schedules.

Best Practices for Trucking Companies

Staying on top of weight management helps trucking companies operate more efficiently, avoid fines, and maintain safety on the road. These best practices keep things running smoothly at every stage of a shipment.

Keep Accurate Records: Maintain up-to-date records of tare weights for all trucks and trailers in your fleet. This speeds up load calculations and reduces the risk of errors.

Use Certified Scales: Always weigh vehicles and cargo on certified, well-maintained scales. Inaccurate readings can lead to compliance issues and billing disputes.

Train Drivers and Staff: Ensure drivers and dispatchers understand how to identify and verify tare, net, and gross weight. Basic weight awareness can prevent costly mistakes.

Check Weight Before Departure: Confirm total weight and axle distribution before hitting the road. This helps stay within legal limits and reduces the chance of delays at weigh stations.

Review Shipper Information: Double-check weight data provided by shippers. If numbers seem off, verify with your own scale to avoid surprises during transit.

Key Takeaways

Accurate weight management is more than a compliance issue. It is a practical way to protect your business, avoid delays, and manage costs effectively.

Advanced Commercial Capital provides factoring solutions designed for trucking companies. We help you access cash quickly for fuel, maintenance, payroll, and more. There are no setup fees and no long-term contracts. Just simple support that works when you need it.

Have questions or ready to get started? Contact us today and keep your trucks moving.

Understanding what affects load pay helps both company drivers and owner-operators make informed decisions. Several key variables impact how much a driver can expect to earn from a particular haul.

But how much do box truck loads pay? What are the highest-paying truckloads in general? The answers to those questions require you to keep a few key things in mind.

Factors that Influence Load Pay

Freight Type

One of the biggest factors that influences load pay ultimately comes down to freight type. Pay rates will vary due to not only the specific types of items being transported, but also the complexity and the risk involved. Hazardous materials, for example, often pay more due to dramatically increased regulatory oversight.

Oftentimes, high-value goods may also offer higher rates because there is an increased level of responsibility that comes with them.

Distance

Depending on the length of transportation, some loads might not be paid by the mile. Instead, drivers will get paid a specialty fee for the length of the trip. Having said that, some short-haul trips might pay out at a higher rate per mile to make the job worth it.

Weight & Volume

Heavier or bulkier freight usually means more wear and tear on equipment and higher fuel consumption, which translates to increased compensation. This is especially true when it comes to full truckloads, often commonly referred to as FTL loads for short.

Specialized Skills / Endorsements

Obviously, when you’re talking about transporting heavy equipment, a driver will need a commercial vehicle license or CDL. But some freight goes beyond that, requiring CDL endorsements or even specialized training. These types of jobs come with premium pay for the efforts.

Examples of this include, but are certainly not limited to, things like hazmat certifications, tanker endorsements, and more. Not only that, but drivers with these credentials are higher in demand – and can ask for better rates – when negotiating their next job.

Urgency

As is true with just about any other industry, if a job needs to be completed quickly, you can expect to pay an additional fee on top of it. Expedited freight is no different, and items like medical supplies, essential repair parts, and others are prime examples of this. Not only do same-day or next-day deliveries often add to the amount a driver can make, but working on the weekend or holidays can as well.

Seasonality

Finally, seasonality will likely impact the amount that a driver can expect to earn for different hauls based solely on how it will increase supply and demand. If you live and work in an area with a lot of agricultural activity, for example, harvest season will likely see a boost in your pay. Because of events like Black Friday and Cyber Monday, and their importance.

Common Haul Types & Average Pay

Dry Van

Dry van drivers start at $0.45 per mile for a company and $1.50 per mile as an owner-operator.

Reefer

Refrigerated drivers start at $0.50 per mile for a company and $1.75 per mile as an owner-operator.

Flatbed

Flatbed truck drivers start at $0.55 per mile for a company and $2.00 per mile for an owner-operator.

Tanker

Tanker truck drivers start at $0.60 per mile for a company and $2.25 per mile for an owner-operator.

Oversized

Most oversized load operators make between $3.00 and $6.00 or more per mile, depending on the scope of the job.

LTL

Typically, less-than-truckload drivers will get paid an hourly rate if they’re working for a company. The rate for an owner operator can vary wildly depending on all the factors outlined above, which makes it difficult to assign a single number to it.

Regional Pay Differences

As one might expect based on all of the above, rates can also vary pretty wildly depending on which region of the country you’re driving in. On the West Coast, for example, you may be dealing with a high volume of freight, but the area itself is also highly competitive, as there are a lot of drivers to go around. The best rates tend to be those found around the ports.

In the Midwest, there is a strong manufacturing industry presence. Because of that, freight volumes tend to be consistent all year round. They don’t necessarily vary significantly with the seasons like they do in other areas.

In the south, drivers often have to contend with a lower pay per mile, comparatively speaking, of course. Having said that, the area is also known for having a lower cost of living.
Thanks to tighter delivery windows and congestion all around, the northeast tends to pay higher rates.

Finally, you have many of those mountain states that may not be heavily populated, but that will often surprise you due to the rates drivers can make. It has a lot to do with the fact that the roads are very challenging when you’re trying to haul heavy equipment up or down a mountain.

Owner Operators vs Company Drivers

As you advance your career, you will need to wrestle with an important choice: do you become an owner operator or a company driver?

Owner-operators set their own schedule and choose the loads that they’re willing to take on. They take on more control over the finished product, but also more risk. They tend to have a higher gross pay, ranging anywhere from $1.50 to $3.00 or more per mile, depending on where you live. Having said that, they are also responsible for fuel for their vehicle, maintenance, insurance, paying their own taxes, and more.

Company drivers, on the other hand, have less freedom but far more stability than their owner-operator counterparts. They may only make between $0.40 and $0.80 per mile, but benefits will typically be included. This is the benefit of working with a company as opposed to on your own. You get to collect a paycheck with far fewer business-related issues to concern yourself with.

So, which one is best? The answer to that question will obviously vary depending on the individual. Some want the freedom and the increased pay per mile that only comes with being an owner-operator. Others will want the steadiness of working directly for a company over the long term. Only you can decide.

How Factoring Can Smooth Out Cash Flow

Freight factoring, and by association, the companies that offer it, like Advanced Commercial Capital, can help smooth out your cash flow as a truck driver in a variety of ways. At a high level, they buy your invoices and pay you immediately, minus a small fee for the service. This can help not only cover any fuel and maintenance costs that you’re dealing with, but can also help avoid late bill payments, and more. But more than anything, it’s a way to keep cash flow steady, which is especially critical for new drivers in particular.

If you’d like to find out more information about truckload pay and what drivers can earn for different hauls, 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 Advanced Commercial Capital today.

For independent truckers and small fleet owners, a solid owner-operator lease agreement is key to maintaining control over operations, income, and legal obligations. These agreements outline the working relationship between a trucking company and the owner-operator, detailing everything from payment terms to equipment responsibilities. Whether leasing on with a carrier or operating under your own authority, understanding the structure and terms of a lease agreement is essential for long-term success.

What is an Owner-Operator Lease Agreement

An owner-operator lease agreement is a legal contract between a trucking company (the motor carrier) and an independent driver who owns or leases their own truck. This agreement defines the working relationship, outlining how freight will be hauled, how payments will be issued, and which party is responsible for key expenses like fuel, insurance, and maintenance.

There are generally two main types of lease arrangements: leasing onto a carrier or operating under one’s own authority. In either case, the lease agreement ensures both parties are aligned on rights, responsibilities, and expectations. It also serves as a safeguard, protecting drivers from unexpected costs or liabilities and giving carriers a reliable framework for managing their fleet partnerships.

The Federal Motor Carrier Safety Administration (FMCSA) requires written lease agreements that comply with specific federal regulations when a carrier leases equipment from an owner-operator. These rules help establish transparency and prevent exploitation, making the lease agreement a cornerstone of any trucking business relationship.

Types of Owner Operator Lease Agreements

Owner-operator lease agreements generally fall into three main categories, each offering a different balance of independence, financial responsibility, and business control. Choosing the right type depends on a driver’s goals, level of experience, and willingness to manage the business side of trucking.

1. Lease-On Agreement (Leasing to a Carrier)

In a lease-on agreement, the owner-operator provides their truck and driving services to a licensed motor carrier. The carrier handles most of the operational logistics, including finding loads, dispatching, billing, and compliance. In return, the owner-operator receives a percentage of the load revenue or a mileage-based rate.

Key characteristics:

Operates under the carrier’s DOT authority

Carrier typically covers liability insurance

Owner-operator may still pay for fuel, maintenance, and other operating costs

This option is ideal for those who want to stay on the road without managing all the back-office responsibilities of running a motor carrier.

2. Lease-Purchase Agreement

A lease-purchase agreement is designed for drivers who want to eventually own a truck. The carrier leases a truck to the driver, who makes payments over time with the goal of owning it at the end of the term.
Key characteristics:

Offers a path to ownership without large upfront costs

Often includes a set mileage rate or percentage pay

Owner-operator is responsible for most or all operating costs

While this model provides a way to build equity in a truck, it’s important to read the fine print—some lease-purchase plans can have high interest rates or unfavorable terms.

3. Operating Under Own Authority

In this setup, the owner-operator runs completely independently, securing their own operating authority through the FMCSA. They handle everything from finding freight to managing paperwork, compliance, and customer relationships.

Key characteristics:

Full control over routes, clients, and rates

Must obtain and maintain DOT and MC numbers

Responsible for all business operations, including insurance, compliance, and back-office tasks

This option offers the greatest potential for profit and the highest level of responsibility.

Key Components of a Lease Agreement

A solid lease agreement should be clear, detailed, and compliant with federal regulations. Here are the key elements that should always be included:

Parties and Equipment Details

Names and contact information of the carrier and owner-operator

Description of leased equipment (make, model, VIN, plate number)

Lease Term

Start and end dates

Renewal or termination terms

Conditions for early cancellation

Payment Terms

How compensation is calculated (percentage of revenue, per-mile, etc.)

Payment frequency and method

List of any allowable deductions (fuel, insurance, maintenance escrow)

Expense Responsibilities

Clear breakdown of who covers costs, such as:

Fuel and tolls

Routine maintenance and repairs

Permits and registration fees

Insurance premiums

Operating Authority and Control

Which party holds the DOT operating authority

Level of operational control (dispatch, route planning, etc.)

Insurance Requirements

Types of required coverage: liability, cargo, physical damage

Who provides and pays for each type of insurance

Any escrow requirements

Termination Terms

Required notice period

Process for final settlements

Handling of outstanding balances and escrow funds

Regulatory Considerations

Owner-operator lease agreements must comply with FMCSA regulations, specifically 49 CFR Part 376, which governs leasing between carriers and independent drivers. Key requirements include:

Written Contract: All lease agreements must be in writing and signed by both parties.

Operating Authority: When leasing to a carrier, the truck operates under the carrier’s DOT authority.

Compensation Terms: The lease must clearly outline pay structure and include itemized settlement statements.

Control and Compliance: The carrier assumes responsibility for regulatory compliance while the truck operates under their authority.

Insurance Responsibilities: The agreement must define who provides liability, cargo, and physical damage coverage.

Escrow Funds: If escrow is required, the lease must explain how it’s collected, used, and refunded.

Benefits and Challenges of Owner-Operator Lease Agreements

These agreements can offer stability and support, but they may also limit flexibility or increase financial risk.

Benefits

Consistent Freight Access: Leasing to a carrier often means steady loads without the need to find freight independently.

Back-Office Support: Carriers typically handle billing, compliance, and paperwork, allowing drivers to focus on driving.

Reduced Upfront Costs: Some lease programs cover permits, insurance, or even truck payments, lowering entry barriers.

Fuel and Maintenance Discounts: Larger carriers may offer access to cost-saving programs that independent operators wouldn’t get on their own.

Simplified Operations: With dispatching and logistics handled by the carrier, daily decision-making becomes easier.

Challenges

Limited Independence: Drivers may have less control over loads, routes, and schedules when leasing to a carrier.

Payment Deductions: Fuel, insurance, maintenance, and other fees can reduce take-home pay, especially if not clearly outlined.

Restrictive Contracts: Some agreements include penalties for early termination or limit opportunities to work with other carriers.

Equipment Responsibility: Even with carrier support, the owner-operator is usually responsible for maintenance and repairs.

Lack of Transparency: Without clear communication, issues with settlements or deductions can lead to disputes.

Tips for Negotiating a Fair Lease Agreement

Read Every Clause: Review the entire agreement carefully. Pay attention to pay structure, deductions, insurance, and termination terms.

Ask Questions: Clarify anything that seems vague or confusing. Make sure verbal promises are included in writing.

Compare Multiple Offers: Look at lease options from different carriers to ensure you’re getting favorable terms.

Watch for Hidden Costs: Examine all deductions such as fuel charges, maintenance fees, insurance, and administrative costs.

Request Settlement Statements: Confirm the agreement includes itemized settlement breakdowns for full transparency.

Consider Legal Review: Have a legal professional review the agreement if you’re unsure about any terms.

Key Takeaways

A lease agreement can directly impact your success as an owner-operator. Knowing what to look for and how to negotiate helps you protect your income and avoid unnecessary setbacks.

Advanced Commercial Capital offers factoring solutions that provide quick access to cash for fuel, maintenance, insurance, and more. With no setup fees and no long-term contracts, we make it simple to get the support you need.

Have questions or ready to get started? Contact us today.

There are a wide range of different reasons why being a truck driver is often a more enjoyable professional than people realize.

If you’re the type of person who likes to drive and spend time out on the open road, you’d be hard-pressed to find a better option. Truck driving also offers a high earning potential in many situations, flexible schedules, and the type of job security that few can match.

But it is that “high earning potential” that often gives people pause, especially if they don’t understand what a quote for an entry-level truck driving position is really saying. In reality, there are a wide range of different ways in which truck drivers get paid, and the more you understand them, the more you can begin to see that the sky really is the limit in terms of what you can make and how.

Common Ways Truck Drivers Are Paid

How you are paid as a truck driver will ultimately come down to who you work for and what types of jobs you take. Just a few of the various pay structures include but are not limited to the following.

Pay per Mile

As the term implies, here, you get paid based on the total number of miles you drive. Rates will vary depending on the company, the type of freight you’re hauling, and even the distance you’re being asked to travel.

Hourly Pay

Hourly pay is particularly common when it comes to truck drivers who make local deliveries, as they’re over shorter distances. The pay structure is intentionally very straightforward.

Fixed Salary

With a fixed salary, you’re getting a set amount of money for your services regardless of how long you drive or how far you travel.

Stop & Detention Pay

This type of pay is essentially compensation that you’re given for any stop you make during the trip that isn’t at the final destination. You would get this if you had to first go somewhere and pick up the cargo, for example.

Load Percentage

Under this type of pay structure, you’ll be getting a percentage of the revenue that each load generates. This is a common type of pay structure among truck driver owners/operators who are responsible for securing their own loads.

Team Driver Pay

As the term implies, this is the type of pay structure you enjoy when you’re on a truck-driving team working in pairs. This allows the truck itself to operate 24 hours a day, seven days a week, 365 days a year, as you’ll essentially be working in shifts. This means faster delivery times, but it also means that you’ll have to split one amount of money between two people.

Per Diem Pay

This is a set amount of money that you’ll receive every day to cover things like meals, room and board, and other incidental expenses. If the trip that you’re on will take multiple days, and you know that you’ll have to purchase three meals a day over this period, your per diem pay would be used to cover that expense, so you don’t have to go out of pocket, for example.

Accessorial Pay

This is an additional type of pay that truck drivers enjoy when they go above and beyond the traditional call of duty. If you’re tasked with securing a particularly heavy load, for example, or if you’ll be working with hazardous materials, you’ll likely get accessorial pay.

Guaranteed Pay

As the term implies, this is a pay structure where a truck driver will earn a specific amount of money within a specific time frame, regardless of how many miles they actually drive or how much time they spend on the clock. This offers a level of stability and predictability to the world of truck driving that not everyone gets to enjoy.

Sliding Scale Pay

Here, the amount of money that a truck driver is paid per mile will likely vary depending on the exact number of miles that they drive. If they hit a certain number of miles in a week or even a month, their per-mile rate may increase. It’s a way to tie performance metrics more closely into the pay structure someone receives, essentially.

Incentives Pay

This is often employed when a company wants to encourage a truck driver to meet or exceed expectations. If a company has an issue with trucker safety, for example, they might use incentives and pay as a way to entice more people to maintain the best safety record that they can. They could also use incentive spaying to encourage truck drivers to deliver a load ahead of schedule – safely, of course.

Bonuses

Finally, we arrive at bonuses – something of a “catch-all” term in this context. Sometimes, a truck driver might get a signing bonus for coming on with a new company. Other times, they might get a bonus for hitting mileage goals. Regardless, it’s a way to earn extra income that is typically appreciated.

How Often Are Truckers Paid?

How truckers get paid will largely depend on exactly what type of company they’re working for. If you receive hourly or per-mile pay, you typically get paid out on a weekly basis. Some trucking companies, particularly the ones that employ a lot of owners/operators, will pay every two weeks. It’s rare to get paid out once a month – usually, it’s only those truck drivers who are on fixed salaries.

Owner Operators vs Company Drivers

The biggest difference between owner/operators and company drivers is that the former usually gets paid based on either a percentage of the revenue generated by the load or on a per-mile basis. A company driver will typically receive either a fixed salary or an hourly wage.

This is largely because an owner/operator is an independent contractor, whereas a company driver would be considered an employee. One comes with a higher earning potential, but it comes with a lot more risk for the driver as well.

Key Takeaways

One of the most common ways to answer the question “How do truck drivers get paid?” is on a per-mile basis.

Hourly pay and even a fixed salary are also common, particularly among company drivers.

Some types of payment are a way for truck drivers to earn extra income. Examples of this would include incentive pay or stop & detention pay.

If you’d like to find out more information about the many common ways in which truck drivers get paid, 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 Advanced Commercial Capital team today.

What is Interstate Trucking?

When a truck driver is tasked with taking a load of freight from one state to another, this is referred to as interstate trucking. The term applies anytime you must cross state lines in the course of duty.

This is a very common type of trucking, and you’ll see it a lot with large providers in particular. It’s a regular part of long-haul travel, which is where truckers know that they’ll be gone for days or even weeks at a time while traveling very long distances.

What is Intrastate Trucking?

Intrastate trucking, however, involves a trucker transporting freight within the boundaries of a single state. If you’re a truck driver in Ohio, you never have to take anything into Michigan or another state that borders your own – you stay strictly in Ohio while on the job.

Interstate vs Intrastate: Types of Vehicles Used

First and foremost, the type of vehicle used in any type of trucking will always come down to the requirements of the job. If you’re talking about transporting consumer goods, you’ll have different considerations to account for than if you were transporting heavy machinery. That is to say, the demands of the job and safety requirements will always dictate the type of vehicle used, regardless of whether you’re talking about interstate vs intrastate jobs.

Having said that, interstate trucking vehicles are typically designed for long-haul trips because they travel over great distances. This can include tractor-trailers, semi-trucks, and more.

Intrastate trucking vehicles tend to be on the smaller side because they’re not expected to be used for the same distances. These can include smaller box trucks, local delivery trucks, and others.

Interstate vs Intrastate: Pay Differences

In terms of pay, interstate truck drivers tend to make more money than intrastate drivers – or at least, the potential for a higher earning is there.

This is because interstate trucking companies need to pay for long distances and extended hours. Depending on the complexity of the job, they may also have to pay more per mile. Drivers may also get additional bonuses and other types of compensation for completing a job quickly or for finishing a particularly dangerous job as safely as possible.

That is not to say that it is a guarantee that interstate drivers will always make more money than their intrastate counterparts. It’s just that, given the myriad of factors that impact the pay structure, it is likely.

Interstate vs Intrastate: Rules & Regulations

As you would expect, any truck driver who is working across state lines will need to comply with federal laws. These cover everything from the safety standards that the vehicle itself must adhere to, as well as how long that driver can be on the road at all. Intrastate truck drivers, on the other hand, are only subject to the rules and regulations of that particular state. If you work in Ohio, you don’t have to worry about trucking laws in Florida.

Interstate vs Intrastate: Insurance

Similar to the differences dictated by rules and regulations, there are also several factors to consider when it comes to insurance coverage and interstate vs intrastate trucking. Because interstate trucking involves traveling across state lines, the insurance requirements are usually higher. Federal law mandates that interstate carriers carry at least $750,000 in liability insurance, though this amount can vary depending on the type of cargo being transported.

When it comes to interstate trucking insurance, the exact coverage depends on the state, but many states have lower minimum insurance requirements for local operations. However, insurance providers still often require certain levels of liability and cargo insurance to protect both the driver and the public.

Similarities Between Interstate & Intrastate

Even though interstate and intrastate truck drivers are different in a lot of ways, they’re also very similar in others. Whether it’s interstate or intrastate, trucking is crucial for moving goods across the country or within a state. Businesses of all types depend on their services. Truck drivers, in general, are a core part of the economic backbone of the United States. Without them, entire sectors would cease to function. Whether you’re driving a truck from one corner of the state to the other or from coast to coast doesn’t change that.

Both interstate and intrastate truck drivers also need to have commercial driver’s licenses. This is because they’ll be operating large vehicles during the course of a day, though some vehicles are obviously larger than others. Depending on the type of job they’ve been tasked with, they may also have to possess a license for a specific type of vehicle.

Truck drivers also need to put in a lot of work before they ever get out on the open road – something that people who are just coming into the profession tend to overlook. Essential tasks that would fall under this description include but are not limited to planning routes, managing logistics, maintaining records, and coordinating with customers for the timely delivery of goods. Naturally, the extent to which these are requirements will vary depending on whether you’re an owner/operator or you work for a trucking company.

Which Path is Right for You?

With all that in mind, the answer to the question of whether you should become an interstate vs an intrastate truck driver will always be a resounding “It depends.”

If pay is your top concern and you’re trying to enter the industry to make as much money as possible, interstate trucking will certainly allow you to do that. The potential earnings are higher faster.

But interstate trucking also requires longer hours and for you to drive much further distances – both things that you might not necessarily be comfortable with. If you’re someone who wants to sleep in your own bed at the end of every night, interstate trucking is likely not for you. If you don’t mind being away for long periods, it might be.

Because of that, you need to carefully weigh your options in terms of what you’re looking to get out of a career and what level of risk you’re comfortable with. Don’t start with a career and hope that it meets your needs. Make a list of your top priorities and work your way back to a type of trucking that meets them. Whether that is interstate vs intrastate trucking will come down to the individual, exactly as it should be.

If you’d like to find out more information about the intricacies of interstate vs. intrastate trucking, or if you’d just like to discuss your own needs with someone in a bit more detail, please don’t hesitate to reach out to Advanced Commercial Capital today.

While it’s true that there is certainly a wide range of different opportunities open to you as a truck driver, you’ll still have to work at your career – the same as anything else. A job isn’t just going to fall into your lap, so to speak. You need to be proactive about earning that next position, and you’ll want to lean into any source of help you can find along the way.

One such resource that will be used during this period is a DAC report. It’s a bit like a credit report for CDL drivers, and it’s something that any potential employers will absolutely look at when deciding whether to hire you. Because of that, you need to know exactly what they’re looking for and other key insights that will be relied on moving forward.

What is a DAC Report?

In a broad sense, a DAC report is a type of specialized background check that dives into more detail about the driving and employment history of truck drivers. Potential employers will use it as a way to find out more about who you are, how you perform as an employee, and if there are any type of issues in your past that may impact your job performance in the future.

Again – it’s not unlike a credit report, which a potential lender will pull before deciding whether to give you a credit card in the future. If your history is filled with abandoned accounts and delinquent payments, a new lender probably isn’t going to give you a brand-new card with a high credit limit. If your credit history is immaculate with absolutely no issues, they might. The point is that they have easy access to the data so they can decide for themselves.

Who Keeps DAC Reports?

All DAC reports are managed, maintained, and provided by a private company called HireRight. They’re an organization that specializes in exactly this type of industry-specific employee background screening.

It can be strange for one company to have so much of a foothold in an entire industry, but it does. A significant majority of medium and large trucking companies in particular will pull a DAC report as a part of their hiring process, which means you really need to concern yourself with what is on it and how accurate it is.

What are the Benefits of DAC Reports?

From the perspective of a carrier, the major benefit of a DAC report has to do with the improved hiring decisions that come with it.

Trucking companies no longer have to rely on just the word of a potential hire when making a decision. They have a document they can turn to with detailed, verified, and accurate information about someone’s entire work performance. They won’t have to guess whether someone is the safe driver they claim to be. The carrier can make the most informed decisions possible regarding who they hire and what kinds of tasks they’re assigned to.

Along the same lines, this also helps to mitigate a significant amount of risk on behalf of the employers themselves. If you’re a trucking company, and you hire someone with a known history of accidents, violations, and other examples of poor performance, and that driver gets on the road and eventually has an accident that causes serious injury, you could be held responsible for hiring that person in the first place. It will literally be argued in a court of law that you should have known better than to give that driver a job.

With a DAC report, on the other hand, you can show you’ve done your due diligence. Not only do you have a document that shows you that someone is a reliable driver to begin with, but if they do have a big accident, you’re protected from the aforementioned argument.

What Information is Contained in DAC Reports?

DAC reports contain quite a bit of information, including any relevant driver identification like a driver’s name, address, and license number.

Someone’s employment history is a big part of what a DAC report will contain. This will include the length of time they worked for particular jobs, performance details, and even reasons for leaving.

Given the fact that you’re talking about a truck driver who is trying to find a job in the transportation industry, that person’s accident history and violations will also be included and are very relevant. Any accidents that someone has been involved in during their career will be included, including the date the accident happened, the circumstances under which it took place, and more. You’ll also be able to see whether they got not just a speeding ticket, but also a DUI or other driving-related violations as well.

Along those same lines, any available drug and alcohol testing information will also be contained within the DAC report. Other pieces of data that a carrier will be able to rely on when making a hiring decision include any endorsements or restrictions that the driver has had, as well as any claims of litigation. That last part is particularly important, as you’ll be able to see the details of any lawsuits that someone has been involved in, any claims that have been made against them, any disputes they may have had with other drivers, and more.

How to Fix Inaccuracies in DAC Reports

Not unlike a credit report, it’s important to note that all truck drivers are entitled to get a free copy of their DAC report directly from HireRight. They’ll be able to verify that what employers see when they pull the report is actually correct. If there are any inaccuracies, you can file a dispute with HireRight to have it taken care of.

Key Points to Understand About DAC Reports

While the easiest way to understand a DAC report is to use a credit report as an example, know that these are two different things. A DAC report relates to someone’s professional history within the trucking industry in general. A credit report can relate to someone’s both personal and professional life in a much broader way as it relates to finances.

Also, understand that DAC reports are not infallible – errors can and often do occur. Some entries may not have the correct dates. Others may be devoid of important information that would give an employer context. That’s why drivers need to be proactive about getting their free copy of their DAC report to file any necessary disputes and to otherwise correct any inaccuracies that may be found.

To find out even more information about what is a DAC report and why it’s ultimately so important, or to discuss the future of the industry in general, please reach out to the Advanced Commercial Capital team today.

Commercial truck driving is an incredibly important profession, serving as the backbone of the United States economy. It’s also dangerous, as accidents involving tractor-trailers and other heavy commercial vehicles can be quite severe in a worst-case scenario.

Thankfully, the Department of Transportation, otherwise known as the DOT for short, has taken steps to mitigate this as much as possible. One such step is the 14-hour rule – understanding what it is and what it means for truck drivers is the key to making the most informed decisions possible moving forward.

What is the DOT 14-Hour Rule?

As the name implies, the DOT 14-hour rule is a new rule that says that a truck driver can only work a maximum of 14 consecutive hours within a single 24-hour period. This is to limit the amount of time that one person can spend on duty during a work day, thus reducing fatigue and helping to curb accidents across the country.

What Other Time-Based Rules Does the DOT Enforce?

Note that the 14-hour rule is hardly the only (or even the first) time-based rule that the Department of Transportation enforces. Others include the following.

11-Hour Rule

The 11-Hour Rule states that drivers are allowed to drive a maximum of 11 hours during 14 hours. This limits the amount of time they can spend actively driving, hopefully giving them more than enough time to rest and recover before they get back on the road.

70-Hour Rule

The 70-Hour Rule limits the total number of hours a driver can work in a 7-day or 8-day period. Once they hit 70 hours of time spent performing the duties of their job, they need to rest for at least 34 hours in a row before they can begin what is considered to be a new work week.

How Do DOT Time Rules Work Together?

The Department of Transportation’s time-based rules all work together to help create more of a work/life balance for truck drivers everywhere. Collectively, they give truckers rest periods that make sense – hopefully minimizing the amount of fatigue they experience while still allowing them to achieve maximum productivity on behalf of their employer.

The 14-hour rule includes both driving and other duties like loading and unloading, for example. The 11-hour rule relates specifically to driving time, giving the trucker three additional hours for non-driving activity.

How are Driver Hours of Service (HOS) Tracked?

In the modern era, driver hours of service are tracked automatically through electronic logging devices provided by their employer. These devices automatically record not only the amount of time someone spends driving, but also the length of time that the truck’s engine is on, and other essential information. It is actually mandated that commercial drivers use electronic devices that are compliant with all current rules and regulations.

These devices sync with the vehicle’s engine to track the driver’s time behind the wheel and help make sure that they do not exceed daily and weekly driving limits. These devices also allow for easier enforcement of current commercial trucking rules by law enforcement agencies, as they can access a driver’s log data during roadside inspections.

The Importance of the 14-Hour Rule

Again – the number one reason why the 14-hour rule is important and why it’s in place at all has to do with helping to cut down on driver fatigue as much as possible.

It’s been said that fatigue is the number one cause of truck driving-related accidents in the United States. Think about how dangerous it can be to get behind the wheel of a standard passenger vehicle if you haven’t slept for many hours or if you’ve been on the road for long periods of time. They have rest stops alongside most major turnpikes for a reason.

Now, multiply the dangers of that situation exponentially when you consider how large commercial vehicles are and you begin to get a sense of just how devastating fatigue is.

From a logistical perspective, the rule also encourages better planning and scheduling for transportation companies, helping drivers and managers stay within legal driving limits while still meeting delivery deadlines.

Who Needs to Follow the New 14-Hour Rule?

The 14-hour rule established by the Department of Transportation applies to any commercial truck driver who is taking part in interstate commerce. This includes those who are transporting loads across state lines, as well as those who are working in long-haul transportation.

Consequences of Violating the 14-Hour Rule

In addition to potentially severe fines and penalties, any drivers found to violate the 14-hour rule will go through increased scrutiny (and likely audits) in the future. They’ll probably start to see repeated inspections from regulators that they weren’t previously subject to in the past.

From a broader perspective, one of the biggest consequences of violating the 14-hour rule has to do with the legal liability that all parties expose themselves to. In the event of an accident, especially one involving driver fatigue, violating the 14-hour rule can lead to legal actions and claims for negligence. This could be costly for the driver or the trucking company.

Driver Challenges & Concerns

Obviously, the number one challenge concerning the 14-hour rule is the time pressure that drivers are normally under. Drivers are hired to meet delivery deadlines and they must do so without working too long or violating the 14-hour limit in any way. This could have an impact on their earnings, which could make it more difficult to enjoy the type of career they had always seen for themselves.

Strategies to Manage Drive Time Within the 14-Hour Limit

Luckily, there is a wide range of strategies that can be used to manage drive time within the 14-hour limit moving forward.

Maybe the number one best practice that all parties should follow involves effective, proactive route planning. Careful planning can help drivers optimize their driving hours, avoid traffic delays, and reduce the chances of running out of available driving time before reaching their destination. It’s not a foolproof way to avoid issues, but it will go a long way towards mitigating risk from unexpected delays versus heading out onto the road without a plan.

But beyond that, drivers need to know their limits and make smart decisions whenever possible. Drivers must be mindful of the time they spend not only on the road but loading and unloading as well. Practice time management skills to make the most of the time you do have available for the best results.

If you’re interested in finding out even more information about the new 14-hour rule for truck drivers, or if you have any additional questions about rules and regulations that you’d like to go over in a bit more detail, please don’t hesitate to contact Advanced Commercial Capital today.

There’s an old saying that reminds us “time is money” – whoever coined that phrase was likely talking about an owner-operator in the logistics industry whether they realized it or not.

When taking on work, it’s important to acknowledge that not all jobs are created equally. If you have two tasks ahead of you with both requiring you to drive 100 miles, one could still be profitable while the other is woefully inadequate. This is because different factors determine your owner-operator cost per mile.

Understanding what those factors are – and how to calculate that cost before you take the job – is the key to making the most profitable decisions possible when it comes to your career.

How Much Do Owner Operator Truck Drivers Make?

Owner-operator truck drivers can earn between $150,000 and $300,000 annually, depending on factors such as freight type, distance traveled, and operational efficiency. Actual earnings vary widely based on market conditions and individual business strategies, but the role offers significant income potential for those who manage their operations effectively.

Why You Should Calculate Your Cost Per Mile

One of the biggest reasons why you should always calculate your owner-operator cost per mile is because it helps you remain profitable. If you know how much you’re spending to drive one mile on an average job, you know whether your rates will actually be able to cover your expenses. Not only do you know how much of a profit you’re making, but you also have actionable information that you can use to increase those profits as much as possible.

Having said that, knowing your owner-operator cost per mile also helps to keep you competitive. You can strike that delicate balance between making as much profit as you can and making sure that your rates aren’t set so high that you have a hard time getting attention.

Beyond that, knowing your owner-operator cost per mile is all about the foresight it gives you. If you know how much you’re spending per mile, you can focus on things like route optimization, for example. You can also concern yourself with better budgeting and planning, all of which will help make sure that you’re operating as efficiently and as cost-effectively as possible. This is in comparison to owner-operators who don’t know their cost per mile, who probably end up spending a lot more than they realize on an average job.

Factors That Determine Cost Per Mile

Many new owner operators in particular make the mistake of assuming “cost per mile” and “cost for gas” are the same thing. In reality, that is just one small part of a much larger story. Other critical factors that you must track include the following.

Travel Distance

Obviously, one of the main things you’ll want to look at to determine your cost per mile is the travel distance. Believe it or not, short-haul trips usually result in a higher cost per mile because a lot of the fixed costs you’re dealing with, like insurance, are distributed over fewer miles.

Weight & Dimensions of Shipment

Heavier loads will typically be associated with a higher cost per mile because they require more fuel, more of your time, and sometimes even specialized equipment that ends up being more expensive.

Freight Classification

Freight that is of a higher freight classification tends to be bulkier, more fragile, or just more difficult to handle. This will increase the amount of time it takes to move them properly, which will ultimately raise your cost per mile as well.

How to Calculate Your Cost Per Mile

Once you know which fixed and variable factors impact cost per mile, you can begin to calculate your own. You should do this before accepting or even bidding on a job so that you know exactly how much you can expect to make from it if all goes to plan.

Determine Expected Mileage

First, look at the route you’ve laid out for yourself and determine how many miles you expect to drive. Thankfully, this is something that can be done right online these days.

Calculate Your Fixed Expenses

Next, look at all the fixed expenses that you have that will not actually change depending on the length of the trip. These still impact your cost per mile because they still need to be accounted for. This includes but is not limited to things like any truck payments or leasing costs that are still outstanding, the amount you’re paying for insurance, and even depreciation.

Determine Your Variable Costs

Next, you can take a look at all your variable costs. These will always fluctuate based on the amount of miles you’re traveling, which is why you need to re-run these numbers with every trip.

Factors that would fall into this category include fuel because you can’t control (nor can you predict it). Any maintenance or repairs that are needed for the upcoming trip in particular would also qualify. As would tolls, fees, and any driver costs (like wages for someone other than yourself) that need to be accounted for.

Include Salary Expenses

Speaking of wages, always include your own salary (or the salary of someone else) in your calculation.

Calculate Cost Per Mile

Finally, you can get down to actually calculating the cost per mile. To do this, take the total fixed costs you have and add to them the total variable costs. Take the number you arrive at and divide it by the total number of miles you’ll be driving for this trip. At that point, you have your cost per mile, and you can set bids (and make other financial-related decisions) accordingly.

Start Optimizing Your Earnings Today!

Once you learn how to calculate your cost per mile (and use that information to your advantage), you can begin to explore other techniques that optimize your earnings – like freight factoring.

Also commonly referred to as invoice factoring, freight factoring is a type of financial service that allows you to sell your invoice to a third party to get paid immediately – all to free up cash flow so that you can devote the majority of your attention to the task ahead.

Just because you know how much your cost per mile is doesn’t mean a client will necessarily pay you on time. With freight factoring, you can take care of those outstanding invoices and spend less time collecting so that you can spend more time driving – which in and of itself is the most important benefit of all.

If you’d like to find out more information about how you can easily calculate your cost per mile as an owner-operator, 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.