What is a Freight Truck?

If you had to make a list of all the industries in this country that many people take for granted, transportation and logistics would undoubtedly be right at the top. Most of us don’t spend too much time thinking about the origins of that new furniture we bought, or that car, or all those items we ordered on Amazon. We just enjoy them. But without logistics professionals, they never would have made it into our lives.

In terms of the transportation industry itself, freight trucks are crucial. They’re designed to transport items safely and efficiently, no matter what. But obviously, different types of items have different requirements. You wouldn’t be able to haul gasoline to the local gas station for a refill using the same type of freight truck you would to get all those dairy items down to the local grocery store. You’d use freight trucks in both situations – just two different kinds.

When people talk about the sensitive nature of supply chain operations, not only in this country but around the world, understand that freight trucks of all shapes, sizes, and types are an integral part of that.

8 Types of Freight Trucks

All told freight trucks have a variety of intended purposes depending on what type you’re talking about. Some look very different from the next and many require specific types of experience to safely operate. They all have the same overall purpose, however: to make sure important items get where they need to be, no matter what.

1. Dry Van

A dry van is the type of freight truck that most people are familiar with. Indeed, if you’ve ever ridden on the highway for any appreciable length of time, you’ve likely passed more than a few of these. Dry vans have 53-foot-long trailers and are not temperature-controlled. If you’ve ever worked in a warehouse and had to unload pallets or even furniture, the chances are high that it all arrived at your destination via a dry van.

2. Refrigerated (Reefer)

Refrigerated trucks are sometimes called reefer trucks. They look similar to a traditional dry van, except the trailer itself is temperature-controlled. This makes it perfect for hauling items that need to stay within a precise temperature range, with food and beverages being the top example. Many pharmaceuticals and even sensitive chemicals are often hauled this way, too.

3. Flatbed

Flatbed trucks don’t carry their loads in an enclosed trailer. Instead, as the name implies, they use a flat, open trailer. There are no sides or even a roof. This is what makes them perfect for oversized cargo in particular. They’re easier to load than a traditional truck and can carry the type of weight that you’d be hard-pressed to match elsewhere.

4. Step Deck (Drop Deck)

Also commonly referred to as a drop deck, a step deck trailer is not too dissimilar to a flatbed truck. You still have a flat, open space with which to store items. However, the unique construction of a step deck makes it the ideal solution for tall cargo in particular. Not only do they have more overhead clearance, but they’re also easier to load and unload as well because they’re closer to the ground.

5. Tanker

Tanker trucks are designed very precisely to carry the types of loads that would largely be impossible to transport in any other way. A lot of construction materials make it to their destination this way – like sand or even concrete.

Here, there are two main types of tankers that you’re talking about. The first are dry bulk tankers, which can carry items like sugar and grain. Liquid tankers are also available, which are great for hauling beverages or even chemicals like gasoline. Most of these have different compartments to keep multiple loads separated from one another. They are both equally challenging to load and operate, albeit in their own unique ways.

6. Dump

Dump trailers, also commonly referred to as dump trucks, are designed to easily transport loose materials. One might be used to remove debris from a construction site, for example. Another might take essential materials like gravel to that same construction site. They’re also regularly used in the landscaping and agricultural sectors. The point is that whatever you’re hauling, you can do so quickly and efficiently. A dump truck is open on the top so whatever you’re hauling will be exposed to the elements to a certain extent, but that likely won’t matter.

7. Auto-Transporter (Car Hauler)

Auto-transporters are a type of freight truck designed for a single purpose: to safely carry multiple vehicles at one time. They’re built in a way that makes loading them easy – you essentially just drive the car right into an enclosed space, at which point it is secured. Depending on the size of the vehicles, it’s not unusual to see a car hauler with six or more cars at one time. These auto-transporters typically get used by car dealerships, for example, to transfer cars from one location to another. Regardless, if you need to transport vehicles over long distances, and you don’t want to actually drive them, an auto-transporter is likely how you’re going to get the job done.

8. Double Trailer

Finally, we arrive at double trailers. They’re essentially two dry trailers that are being pulled by a single truck. In terms of their design, think of them a bit like a train, only on the road. Multiple trailers are all being pulled via a locomotive, only in this case it’s a standard truck. You often see a lot of these carrying around large quantities of items in the retail or e-commerce industry. Some package delivery services also use them when they need to move high volumes of goods. Regardless, double trailers are understandably difficult to operate, which is why it takes an experienced driver to make sure things get where they’re going as safely and as efficiently as possible.

In the end, the type of freight truck you should use will vary depending on exactly what type of cargo you’re hauling. Typically, the job itself will dictate what type of truck is required. If something must be temperature controlled, you begin to narrow down your transportation options fairly quickly. If you’re having a hard time deciding, don’t worry – the team at Advanced Commercial Capital is happy to help.

If you’d like to find out more information about the different types of freight trucks, or if you’d just like to discuss your business’ own needs with someone in a bit more detail, please don’t hesitate to contact Advanced Commercial Capital today.

Also commonly referred to as OTR for short, over-the-road trucking is exactly what it sounds like. As a logistics professional, you’ll be tasked with hauling cargo over long distances, typically crossing state lines. You may even venture into other countries depending on the nature of the freight you’re carrying.

Over-the-road truck drivers can spend three to four weeks on the open road sometimes, seeing the best that Mother Nature has to offer while also making a satisfying living for themselves at the same time. They can sleep in either the cabin of their truck or at a nearby hotel or motel depending on their preferences.

Indeed, OTR truck driving professionals are the backbone of logistics in this country – they’re a significant contributor to the way our economy functions. But what is OTR in a general sense, and how does it differ from regional or even local truck driving? The answers to questions like those require you to keep a number of important things in mind.

OTR vs. Regional vs. Local

It’s entirely possible for over-the-road, regional, and local truck drivers to be carrying similar types of freight at a given time. It’s just that beyond this, the nature of their job (and the length of each commitment) can vary wildly.

Local trucking is exactly that – short-range trucking that likely involves hauling cargo from one part of a city to another. Most of these truck drivers work a typical 9-to-5 work day, or at the very least have something that resembles a traditional hourly job. A local truck driver might pick up a load of goods at a warehouse and take it to a specific business, for example. They’ll also likely drive smaller trucks simply due to the nature of their job.

Regional truck driving kicks things up a notch by breaking free of the confines of one particular area. Here, truck drivers will travel an entire region which can involve multiple states depending on the logistics network someone is a part of.

Most larger organizations that do a lot of shipping break the country up into a series of smaller states. Each of those collections of states is called a region and a regional truck driver could find themselves in various locations across the Northeast, Midwest, Southwest, or more depending on the day.

Regional truck driving is a bit more time-consuming and labor-intensive than local truck driving, but not nearly to the extent that OTR trucking is. Regional truck drivers could be engaged in one job for a few days at a time, but they’ll still get to spend more time with their friends and family members than their OTR counterparts. They regularly find themselves away from home, but never too far away from home.

As stated. OTR truck drivers can find themselves on-the-road for literally weeks at a time. It’s not inconceivable that they could have to haul a load from one corner of the country to another, or from Washington state across the border into Mexico. It all depends on who they’re working for and what the needs of the job are. Anywhere you can get to on the continent via truck is a place that an OTR truck driver could find themselves in at some point.

OTR Trucking Job Requirements

The number one OTR trucking job requirement to concern yourself with has to do with a CDL, or commercial driver’s license. Just like you need a driver’s license to operate your personal motor vehicle to show that you have the skills and judgment necessary to do so safely, the same is true of commercial trucks.

There are three main classes of CDL to choose from depending on your needs. These include:

It’s also important to note that the actual licensing process you’ll go through varies depending on which state you’re in. They all, at a minimum, will require you to take both a written test and a practical one. To that end, it will be not unlike when you got your regular driver’s license as a teenager, albeit on a much larger scale.

In an over-arching sense, you’ll always have to prove that you’re capable of safely operating the vehicle that you’ll be driving and that you’re capable of adhering to state and federal regulations. It’s just that some states are a bit more intense when it comes to proving exactly that.

Advantages of OTR Trucking

By far, one of the biggest advantages that comes with OTR trucking has to do with earnings potential. Yes, it’s a significant time commitment, and you’re almost guaranteed to spend a lot of time away from your friends and family members. But according to one recent study, the average starting salary for drivers is about $64,000 per year. Depending on the amount of experience you have, coupled with certain endorsements, you could easily make $120,000 or more.

All this and you also have more job security than most people get to enjoy. Right now, there is actually a truck driver shortage in this country – a problem that is only expected to get worse as time goes on. Over the next decade companies will be so desperate for truck drivers that you essentially never have to worry about being out of work for too long. You’ll also likely get perks like a fuel card while over the road trucking so you don’t have to worry about how you’re going to get from one location to another.

Many people also enjoy the fact that there are few requirements needed in order to begin a career (only the aforementioned licensing), and professionals often cite the decidedly unique lifestyle they get to live as a major selling point.

If you’re interested in finding out more information about over-the-road truck driving and why it might be an ideal career choice for you, or if you just have any additional questions that you’d like to discuss with someone in a bit more detail, please don’t delay – contact the team at Advanced Commercial Capital today.

Understanding LTL Freight

Less than truckload freight, also commonly referred to as LTL for short, is exactly what it sounds like — the process of transporting products and other goods that don’t necessitate a full tractor-trailer or other large commercial truck to do so.

Because of this configuration, one business may share space with others during transportation. They will pay only for the space their pallets are using, at which point the remainder of the truck will be filled up with assets relating to other businesses. Usually, these LTL freight shipments can range from between 150 pounds to 10,000 pounds, although there may be some exceptions.

Weighing the Pros and Cons of LTL Freight

As is true with any type of shipping, LTL freight has both its advantages and disadvantages. Only by understanding the intricacies of each will you be able to determine which approach is most appropriate for your needs.

Advantages

The most immediate benefit of LTL freight has to do with cost savings. It’s simply far cheaper to pay for a portion of the space on a truck than it is for the entirety of the vehicle. Depending on what you’re shipping, LTL could wind up being exponentially less than what you would otherwise pay.

Because of this, LTL freight is notorious for being small business-friendly in particular. Smaller organizations don’t necessarily have the available funds necessary for full truckload freight. If what they’re shipping doesn’t take up enough physical space to actually require that full truckload, they’re also paying for resources that they’re not utilizing. So not only does LTL freight become the more cost-effective option, but the most efficient one as well.

LTL freight by design is also very environmentally friendly. Due to things like fuel costs, it’s unrealistic to ship a truck with anything less than maximum capacity — especially if it’s going to be traveling large distances. Rather than having five businesses pay for five separate trucks that they won’t be utilizing 100% of, all that can be condensed into a single shipment — creating a beneficial situation for all parties.

Disadvantages

Of course, that’s not to say that LTL freight isn’t without its potential obstacles — chief among them being the added time that it adds to the shipping process.

If a business was paying for a full truckload, that driver would answer exclusively to them. It would pick up those products and head right to their final destination as quickly as possible. With LTL freight, you are sharing space with other businesses that will also need to be attended to. This could cause an appreciable delay in the amount of time it takes for a shipment to reach its destination.

LTL shipping is also inherently complicated due to the ever-fluctuating rates that organizations are charged. It isn’t just your shipment’s destination that carriers are concerned about. They also want to know the total weight, the pickup location, the deadline, and other factors. Everything impacts how much you will pay, which can make it a time-consuming process in and of itself to determine how much you’ll spend and where to go to find the perfect balance between price and the level of service you get in return.

Navigating LTL Freight Rates

As stated, a number of different factors determine the LTL shipping rate that you’ll pay. The dimensions of your shipment determine the class itself, which impacts — but does not totally dictate — the rate. The destination of the shipment will also play a role. The farther it has to go, the more money you can expect to spend.

Some shipments require special handling, which will also add to the cost. Examples include but are not limited to perishable items, fragile items, and anything that is particularly hazardous. Finally, if you choose to expedite your shipment, you can expect to pay an additional fee.

Optimizing LTL Freight Management

One of the best ways to optimize your LTL freight management efforts involves the use of a transportation management system, otherwise known as a TMS for short. This is a software-based tool that not only provides shipping optimization on a case-by-case basis, but also global visibility and business intelligence into everything that you have in transit.

Once all information is entered accurately, a TMS will be able to consider every LTL load you have in the context of your entire business. It can then help you identify opportunities to combine with other loads on nearby routes. It can also help you select an LTL carrier, better anticipate your rates, and more — all so that you can have the most complete and accurate picture to work from when making decisions.

Choosing Between LTL and Parcel Shipping

Generally speaking, LTL shipping is ideal for organizations that A) do not require a full trailer to transport their items, and B) are dealing with a shipment that is under 15,000 pounds. Any more than that and you would obviously want a full trailer. Any less than that and LTL still might be a bit too much effort given what you’re trying to accomplish.

Depending on current freight rates, parcel shipping might be the way to go. This is especially true if the items you’re shipping are under 150 pounds individually. In that case, you’d probably be able to find more competitive rates with a parcel service.

Addressing Common Issues in LTL Shipping

One of the most common issues that businesses often face with LTL shipping has to do with misunderstood shipping windows. When your average person buys a product online that is shipped to their home, they’re very used to “three-day shipping” translating to “three days or less.” When you’re talking about large, complex situations involving LTL freight, a quote of “three days” likely means a “minimum of three days.” Because of that, you need to calibrate your own expectations accordingly and make appropriate arrangements with your customers or those waiting for your shipments.

Another common issue that many have with LTL shipping has to do with rates that seem to fluctuate far more than they really are. If you’re getting a quote based on inaccurate information, that quote will be adjusted appropriately once the carrier actually has possession of your shipment.

For the best results, always weigh and measure as accurately as possible. If a product weighs 10 pounds, but it’s in a box with a lot of empty space, that’s a lot of wasted room that will only add to your costs. Try to package things as carefully as you can to avoid running into these types of problems moving forward.

To find out more information about the ins and outs of LTL freight, or to get answers to any other questions about the process that you may have, please don’t delay — contact Advanced Commercial Capital today.

Trucking remains a vital industry in the modern world. Trucking companies transport over 72% of all goods across the United States, and that number is expected to increase in the coming decade. When done well, a trucking company can be a lucrative business venture that’s in high demand. In general, you should plan to invest $100,000 to $200,000 at a minimum to start a trucking company, and those costs can increase based on the size of your operation, the number of employees you intend to hire, and the number of trucks you wish to own. Rather than asking, “How much does it cost to start a trucking company?” and looking for a flat figure, a better strategy to understand these costs is to look at the various costs you will need to cover to launch and run a freight or tucking occupancy. At Advanced Commercial Capital, we work with trucking and freight companies of all sizes, and we understand the industry well. Here is a breakdown of the different costs of a trucking company that you would need to factor into your plans.

Investment Breakdown

Starting your own trucking company comes with a variety of costs. Whether you start with one truck or 10, there are specific costs that you have to tackle to launch your business. Here is a general breakdown of the things you will need and their initial investments:

• CDL – Your commercial driver’s license is a necessity, and these costs vary from state to state, as does the cost of taking the CDL training course. Plan several thousand dollars for this expense.

• Truck and Trailer – To start your own trucking company, you must purchase a truck and trailer. The age, size, and type will all impact the cost. This cost can be as low as $15,000 and as high as $150,000 for just the truck and an additional $30,000 to $50,000 for the trailer.

• Insurance – Commercial trucking insurance can be as much as $12,000 to $18,000 a year per truck.

• USDOT and Motor Carrier Numbers – To operate legally, you must have an MC and USDOT number. The total cost is $300 per operating authority

• Business Entity – For your protection, you will want to set up an official business entity, such as a Limited Liability Company or S-Corp. The cost for this varies by state but is usually less than $2,000 for a simple business structure.

• Electronic Logging Device – Finally, you’ll need to invest in an ELD system to ensure your drivers remain compliant with hours on duty regulations. There are only a handful of exceptions to ELD regulations, so plan to invest in one of these systems at the launch of your business. These can cost as much as $950 per year to operate.

Before you can launch your business, you will need to have all of these costs covered, and our financing options can help.

Operation and Overhead Costs

Once the business is up and running, there are additional operation and overhead costs you’ll need to account for as you work to bring in income. Advanced Commercial Capital can help you account for the following:

1. Driver Salaries

Unless you are going to be an owner/operator, you will need to hire drivers to drive your trucks. Expect to pay a salary and mileage of around $70,000 a year to attract and retain reliable drivers. You may also choose to pay mileage in addition to a base salary, and a standard of 40 cents per mile is common.

2. Fuel and Tolls

Fuel is another cost you must account for once you’re up and running. You should expect about 6 miles for every gallon of fuel in your semi-truck, and the actual cost of fuel will depend on the current prices at the pump. Similarly, you will need to invest in EZ Pass to cover tolls for your drivers.

3. Technology

Many trucking companies find technology is essential to their operations. Advanced mathematics systems can help you keep your trucks on the road more accurately, and automated routing and dispatch systems will help improve the efficiency of your business. All of these systems cost something to operate.

4. Business Overhead Costs

Finally, a trucking company is, at its heart, a business. This means you will have costs for marketing, keeping up an office, invoicing your clients, creating rate confirmation and freight contract documents, organizing notice of assignment documents, and tracking payments, similar to any business. It can cost around $5,000 to start and run your initial marketing campaigns, and you will also need to account for other office-based expenses. In trucking, these operational costs include dispatch, which many new companies outsource, so plan on dispatch fees of around 5 to 10% per load.

Navigating Regulatory and Compliance Fees

The trucking industry is quite heavily regulated due to the serious nature of accidents involving semi-trucks. Here are some of the compliance and regulatory costs you’ll have to cover:

• BOC-3 Form – If you’re doing interstate business, you will need to have a BOC-3 Form, which shows you can operate legally in your various states. This costs between $20 and $40.

• International Registration Plan Credentials – The International Registration Plan Credential is also required if you cross state lines. The IRP averages about $1,700 a year, but these plates can cost between $500 and $3,000 per truck.

• International Fuel Tax Agreement Decal – Yet another regulation required for crossing state lines, the IFTA costs about $10 a year.

• Heavy Highway Vehicle Use Tax – The HVUT is applied to all trucks weighing over 55,000 pounds. It runs between $100 and $550 a year. You will also need to pay business income taxes each year.

• Unified Carrier Registration – The UCR for up to two trucks is $69, but for three to five vehicles, it is $206. Larger trucking companies will need to spend even more.

Choosing the Right Financing Strategy

The costs to start a trucking company do vary from one to the next. The right financing strategy starts with the right finance company that understands the intricacies of running a trucking company. Advanced Commercial Capital works with trucking and freight companies, offering factoring, freight capital, and cash flow solutions tailored to the trucking industry. We help our clients finance their startup costs, avoid financial pitfalls, such as scams and double brokering, and create a financial plan that will work for the long term. Transportation financing is all we do, so we are well-positioned to help you launch your trucking company and keep it running through factoring or lines of credit that will keep the cash flow in play as you need it. To learn more about the costs of starting a trucking company, reach out to our team today.

With over 2 million truck drivers in the U.S. alone, it’s no surprise that companies are looking for ways to save money when managing their fleets. One question they ask is whether to use a fuel card or a credit card. When it comes to managing the finances of a trucking business, there’s often confusion between fuel card vs credit card. It’s important to understand the differences between these two payment methods to make an informed decision when selecting one for your business.

Whether you’re a fleet manager or a truck driver, here are some key differences to consider when deciding between fuel and credit cards. Fuel cards are specifically designed for use at fueling stations and provide access to discounted fuel prices and other features that can help reduce costs associated with running a trucking operation. Credit cards offer more flexibility but have higher fees and interest rates. In this article, we’ll look at fuel card vs credit card comparison so you can determine which is best suited for your needs.

What is a Fuel Card?

A fuel card is a payment card issued by commercial fueling companies that allows businesses to purchase fuel from participating service stations. It can also be used to pay for other services such as car washes, lubricants, and maintenance. Fuel cards offer a convenient way to manage your company’s fuel expenses and can provide discounts on fuel purchases.

To improve efficiency and cost-effectiveness, businesses can assign fuel cards to individual drivers or fleets of vehicles. This allows you to track the quantity and type of fuel purchased and the cost of each purchase. Fuel cards are also useful for identifying fraud or unauthorized purchases. They provide detailed reports of purchase activity that can be used for auditing or expense management.

Fuel cards offer many benefits for businesses, including discounts on fuel, convenience, and the ability to track and manage expenses. If you are considering using a fuel card, compare the features and fees of different providers to ensure you get the best deal. A fuel card can effectively reduce costs and maximize savings with careful monitoring and management.

What is a Credit Card?

A credit card is a payment card that allows you to make purchases without using cash. It enables you to borrow money from the credit issuer to make purchases, and then you can pay off the balance over time with regular payments (called minimum monthly payments). Credit cards also often offer rewards and cashback when you use them for certain purchases.

A credit card is like a loan for a business, but with much less paperwork and an easier approval process. You can use your credit card to make purchases or withdraw cash from ATMs, and it’s often more convenient than using a check or cash. Plus, credit cards are accepted almost everywhere, so you can use them to make purchases worldwide.

What are the Differences?

When it comes to fuel cards and credit cards, there are some key differences that truck owners should be aware of. They include:

Fuel Discounts

A fuel card comes with various discounts, making it an incredibly attractive option for truck owners. With a fuel card, you can benefit from discounts on fuel purchases, meaning you can make the most of your money. Some cards also offer rebates to get a percentage back on fuel bills. You’ll also get discounts on other essential items like lubricants, spare parts, and tires from participating partners. You won’t get the same discounts or rebates with a credit card.

Fuel Tracking

With a fuel card, you can track and monitor your fuel purchases. You can see where and when each purchase was made, what kind and quantity of fuel was purchased, and other details. This makes it easier to stay on top of your fuel expenses, which can be incredibly helpful for budgeting, tax season, and more. You don’t have that kind of insight into your expenses with a credit card. Instead, you get a bill at the end of the month with no easy way to track your fuel purchases.

Security and Fraud Protection

Fuel cards offer security and fraud protection layers that help business owners keep their funds safe. Unlike credit cards, fuel cards have a range of anti-theft and fraud prevention features, such as PIN authentication and driver identification. Additionally, fuel cards are associated with an account that only has enough funds for fuel and transportation-related expenses, reducing the risk of fraud compared to a credit card that can be used for any purchase. Combining these features helps ensure that fuel card users can enjoy secure transactions.

Do Companies Prefer a Fuel Card or Credit Card?

According to a report by Allied Market Research, the fuel card market has grown exponentially over the past few years, and it’s no surprise that many companies are taking advantage of these benefits. Fuel cards can be incredibly helpful for trucking businesses, providing discounts on fuel, detailed tracking of purchases, and enhanced security to protect against fraud. Fuel cards offer more advantages than credit cards for businesses looking to manage their transportation or fuel costs. Fuel cards give companies greater visibility and control over their drivers’ purchases, with data that can be tracked and reported on.

Fuel cards are also typically more secure than credit cards, as they typically don’t require personal information to be used; this makes them less vulnerable to fraud. As a bonus, fuel cards often come with discounts to help companies save on fuel costs. On the other hand, credit cards may offer traditional reward points, but they often come with higher interest rates and fees.

Conclusion

Choosing between a fuel card and a credit card is an important decision for trucking companies. A fuel card can provide multiple financial benefits when used responsibly and offers significant convenience for refueling and payment processing. It also helps maintain better control over your account while providing you with key data to help send rate confirmation, manage fuel costs, optimize routes, and maintain reasonable budgets. On the other hand, credit cards certainly have their place but tend to come with high fees and interest rates, which can quickly add up for commercial truckers.
At Advanced Commercial Capital, we understand the needs of truckers when it comes to cash flow and want you to succeed with your business. We provide trucking companies with custom-tailored factoring solutions so they can save money, improve their cash flow, and stay profitable. Our team of experts is available to answer any questions regarding fuel cards and credit cards. If you want to learn more about how we can help your business reach its full potential, contact us today.