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  • The Best and Worst States for Outbound Freight

    As a truck driver, you want to always be pulling a load. This means that after you deliver a shipment, you want to be loading up a new load quickly and bringing it back home. This is truck driving 101. You know that not all loads are created equal and prices vary dramatically by state. If you are able to control more precisely where you deliver to, then it is best to pay attention to the best and worst states for outbound freight. Let’s take a look at the top and bottom 10 states in flatbed, reefer, and van over the past week (7 days), according to Truckstop . Flatbed - Top 10 10/26/2025 - 11/01/2025 Flatbed - Bottom 10 10/26/2025 - 11/01/2025 Reefer - Top 10 10/26/2025 - 11/01/2025 Reefer - Bottom 10 10/26/2025 - 11/01/2025 Van - Top 10 10/26/2025 - 11/01/2025 Van - Bottom 10 10/26/2025 - 11/01/2025 The idea here is not to boycott the low-paying states, but rather develop relationships with those who pay better than average in those states. By doing so you can guarantee that you will be hired for the job, and through patronizing those that pay better, you can encourage the industry as a whole to pay better. The data above is provided by Truckstop . Interested in learning more, get your first month of Truckstop’s Load Board Pro FREE, https://partners.truckstop.com/48if2i397cyz

  • Business Practices for Successful Owner-Operators

    Working hard and doing your job the best you can are good practices to follow. However, is that all you need to do to succeed in your trucking business? There are more general business practices that should be followed to achieve success. Have a Plan A business plan is a solid foundation for any business owner. You don’t have to spend long hours and a lot of money to develop your plan, but it should contain the basics: What is the feasibility of the business idea?  What can you reasonably expect in revenue and what is your cost to operate? Then determine what profit margin to expect. Know your breakeven point (or breakeven miles).  Your business plan should communicate at what revenue point (daily, weekly, monthly, or at how many miles) you have covered all your costs, known as the breakeven point or breakeven miles. Factor in your personal costs as part of your business plan and re-evaluate costs at least every six months or whenever there is a significant change in your business or personal life. For example, consultants at ATBS work with small business owners on this process regularly and help customize their clients’ plans to become their personal “profit plan.” Manage Time and Produce Efficiently Simply generating more business or running more miles does not always translate to more money in your pocket. Managing your time according to business cycles will help you to predict when a slow time is approaching, so you can be prepared with savings to back up your business. Slow times are also good to know for personal time and vacation. Taking a vacation during a busy season is not a smart business decision. Keep Good Records and Have an Accounting System Record keeping is not only vital for a less stressful tax time , but provides a good base of information to make informed business management decisions. Basic accounting statements , like a Profit and Loss Statement (P&L), compile revenue records and business expense receipts into an easy-to-read snapshot of your business operations. This accounting report should not only communicate the gross revenue and net income of the business but also identify the strengths and weaknesses of your operation as compared to your business plan. This will allow you to place your efforts where they will have the most impact on the bottom line. Respect Your Customers As a small business owner, you have complete control over your relationship with the customer. Trust is an essential element for business success. Develop trust early to watch your business flourish. Do a good job for your customers and don’t make excuses. Comply With Laws and Regulations  Even the most well run and profitable business can fail if it's run outside of established industry laws and regulations. Many of the laws and regulations, especially in the transportation industry, seem cumbersome and can even be annoying, but they are part of every industry. Ignoring laws and regulations will affect your bottom line and possibly put you out of business quickly. Work With Industry Experts Seek the professional advice of business consultants and counselors within your industry. This is the best way to improve your company’s chances of success. You may be the best trucker in the industry, with many years of experience, but the chances of being successful are improved dramatically when you also utilize good basic business practices.

  • Everything You Need to Know About Chain Laws

    The weather is beginning to get a little cooler across the United States and some of the higher elevations are beginning to see snow. That means it’s time to freshen up on the chain laws in the states that you regularly run. Alabama The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Alaska You are not permitted to use chains from May 1 through September 15 when north of 60 North Latitude. You are not permitted to use chains from April 15 through September 30 when south of 60 North Latitude. If you are operating a vehicle on Sterling Highway, you are not permitted to use chains from May 1 through September 15. You will need to obtain a special permit from the Department of Administration if you would like to use chains in one of these prohibited zones. Arizona The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Arkansas The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. California California does not require trucks to carry chains during any specified time period. When the weather hits, though, it takes at least eight chains for a standard tractor-trailer configuration to comply with the regulations. During the winter months, there might be traction chain controls in the mountain areas. When these are established you will see signs posted along the highway. These signs will also include the type of requirement, which will include one of the following: R1 - Chains, traction devices or snow tires are required on the drive axle of all vehicles except four wheel/ all wheel drive vehicles. R2 - Chains or traction devices are required on all vehicles except four wheel/ all wheel drive vehicles with snow-tread tires on all four wheels. R3 - Chains or traction devices are required on all vehicles, no exceptions. Colorado From September 1 through May 31, all trucks must carry sufficient chains on I-70 when traveling between mile marker 259 outside Golden, CO and mile marker 133 in Dotsero, CO. If you get stopped and do not have chains on your truck, the fine is $50 plus a surcharge of $16. If you do not put chains on your truck when the law is in effect, the fine is $500 plus a $78 surcharge. If you do not put chains on and you end up blocking the highway, then the fine will increase to $1,000 plus a $156 surcharge. Colorado has two different types of chain laws: Level 1 - Single-axle combination commercial vehicles must chain up. Trucks must have all four drive tires in chains. When level 1 is in effect, all other commercial vehicles must have snow tires or chains. Level 2 - When level 2 is in effect, all commercial vehicles are required to chain up the four drive tires. Connecticut Chains are permitted during hazardous weather from November 15 through April 30. The chains can not be damaging to the highway’s surface. Delaware You are permitted to use chains on highways from October 15 through April 15. State officials can restrict travel on highways during emergency situations. Georgia At any time the Georgia Department of Transportation may close or limit access to certain highways during inclement weather. If this occurs, signage will be placed to inform drivers that chains are required in order to proceed. For commercial vehicles, chains must be placed on the outermost drive tires. Idaho Officials with the Idaho Department of Transportation can determine that it is unsafe to drive over Lookout Pass and Fourth of July Pass on I-90, and Lolo Pass on Highway 12. If it is deemed unsafe, then you will be required to chain up a minimum of one tire on each drive axle and one axle at or near the rear. Illinois The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Indiana The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Iowa The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Kansas The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Kentucky No person shall use on a highway not covered with ice a vehicle with a chained wheel unless the wheel rests upon an ice-shoe at least 6 inches wide. When chains are used on rubber-tired vehicles, the cross chains shall be not more than three-fourths (3/4) of an inch in thickness or diameter, and shall be spaced not more than ten inches apart, around the circumference of the tires. Louisiana The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Maine Vehicles cannot have tires with metal studs, wires, spikes or other metal protruding from the tire tread from May 1 through October 1. Other than that the use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Maryland The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Massachusetts Massachusetts prohibits the use of studded tires and chains between May 1 and November 1 without a permit. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Michigan The use of chains is allowed for safety when snow, ice, or other condition are present. If chains are used, they must not come in direct contact with the roads surface. Minnesota The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Mississippi The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Missouri No person shall operate any motor vehicle upon any road or highway of this state between the first day of April and the first day of November while the motor vehicle is equipped with tires containing metal or carbide studs. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Montana You are permitted to use chains on highways from October 1 through May 1. If the Montana Department of Transportation determines that highways are too dangerous for travel, they may establish the following recommendations on traction devices: Chains or other approved traction devices recommended for drive wheels Chains or other approved traction devices required for drive wheels Chains required for driver wheels Nebraska The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways from November 1 to April 1. Nevada It is unlawful for any person to operate a motor vehicle, whether it is an emergency vehicle or otherwise, without traction devices, tire chains or snow tires upon any street or highway, under icy or snowy conditions, when the highway is marked or posted with signs for the requirement of traction devices, chains or snow tires. If a highway is marked or posted with signs requiring the use of traction devices, tire chains or snow tires, a motor vehicle or combination of vehicles must be equipped with: Traction devices, tire chains or snow tires if it has a gross weight or combined gross weight of 10,000 pounds or less. Tire chains if it has a gross weight or combined gross weight of more than 10,000 pounds. New Hampshire The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. New Jersey The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. New Mexico The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. New York The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. North Carolina The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. North Dakota North Dakota also allows metal studs within 1/16 inch beyond tread from October 15 through April 15. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Ohio The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways from November 1 to April 15. Oklahoma The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Oregon Oregon’s law applies to all highways in the state. Signs will tell you when you are required to carry chains and when you are required to use them. You will need to have six chains on hand to comply in Oregon. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Pennsylvania The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Rhode Island The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. South Carolina The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. South Dakota The South Dakota DOT has the authority to restrict travel on roads. Signs will alert you to these restrictions. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Tennessee The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways from October 1 to April 15 . Texas The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Utah When any designated highway is so restricted no vehicle shall be allowed or permitted the use of the highway, during the period between October 1 and April 30, or when conditions warrant due to adverse, or hazardous weather or roadway conditions, as determined by the Utah Department of Transportation, unless: An operator of a commercial vehicle with four or more drive wheels, other than a bus, shall affix tire chains to at least four of the drive wheel tires. Vermont Vermont has a traffic committee that will decide if use of chains will be required. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Vehicles with semitrailers or trailers that have a tandem-drive axle towing a trailer shall have chains: On two tires on each side of the primary drive axle, or if both axles of the vehicle are powered by the drive line, one tire on each side of each drive axle; and On one tire of the front axle and one tire on one of the rear axles of the trailer. Virginia The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Washington Any commercial vehicle over 10,000 lbs. Gross vehicle weight rating should carry chains from November 1 to April 1 when driving on one of the following routes: Blewett Pass SR-97 between MP 145 and Milepost 185 Chinook Pass SR-410 Enumclaw (MP 25) to SR-12 (MP 342) Cle Elum to Teanaway SR-970 Cle Elum (MP 0) to Teanaway (MP 10) Gibbons Creek to Intersection of Cliffs Rd. SR-14 Gibbons Creek (MP 18) to Intersection of Cliffs Rd. (MP 108) Mt. Baker Highway (Ellensburg to Selah) SR-542 (MP22) to (MP 57) I-82 from Ellensburg (MP 3) to Selah (MP 26) Newhalem to Winthrop SR-20 Newhalem (MP 120) to Winthrop (MP 192) Omak to Nespelem SR-155 Omak (MP 79) to Nespelem (MP 45) Satus Pass SR-97 Columbia River (MP 00) to Toppenish (MP 59) Sherman Pass SR-20 Tonasket (MP 262) to Kettle Falls (MP 342) Snoqualmie Pass I-90 North Bend (MP 32) and Ellensburg (MP 101) Stevens Pass SR-2 Dryden (MP 108) to Index (MP 36) White Pass SR-12 Packwood (MP 135) to Naches (MP 187) West Virginia The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Wisconsin The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Wyoming When the chain law is in effect due to snow, ice or other conditions, travel on a highway may be restricted to use only by motor vehicles utilizing adequate snow tires or tire chains. There are two levels. Level 1: When conditions are hazardous, travel can be restricted to vehicles equipped with tire chains, vehicles with adequate snow tires, or all-wheel-drive vehicles. Level 2: When conditions are extremely hazardous, travel can be restricted to vehicles equipped with tire chains or all-wheel-drive vehicles equipped with adequate mud and snow or all-weather-rated tires. The operator of a commercial vehicle shall affix tire chains to at least two (2) of the drive wheels of the vehicle at opposite ends of the same drive axle when the vehicle is required to utilize tire chains under this subsection. Any driver that is in violation will face a fine of no more than $250. If the violation results in the closure of all lanes in one or both directions of a highway, you will face a fine of no more than $750. Image Source - https://www.flickr.com/photos/toddmccann/

  • Maintaining Your Mental Health as a Truck Driver

    The ease at which a trucker's mental health can deteriorate is alarming. Basing my assumptions and framework on the gold standard CBT (cognitive behavioral therapy) I will analyze and comment on these working conditions. To begin, I will grossly oversimplify CBT. Generally, mental health can be conceptualized by three pillars: Diet Exercise Thoughts/mental diet Diet Nutrition is a cornerstone of mental health, the old adage “you are what you eat” can attest to this. With a layman's understanding of nutrition, we can look around any truckstop and see walking, talking big macs. I'm speaking of the trucks, of course. To borrow a metaphor from Ms. Minaj, some drivers have a hard time parking their big macs butts in their little garage, or driver seat. With the coercion of the Cinnabons and the convenience of the calories, is it any wonder why there’s an obesity epidemic in America, with truckers being one of the most at-risk demos? Moving on. Exercise Exercise can be challenging for the best of us, and truckers have additional obstacles. Much like people in the office, their job requires stationary/stationery. Yes, paper and pens, as well as inactivity. However, the driver's constant traveling makes a gym membership and routine a little harder. A small investment in a Fitbit of HRM (heart rate monitor) will bring awareness to your activity level. Valuable insight as to what factors may contribute to mental health. I will also include sleep in this section, because that’s vital, as well. Think of this category as the level of activity. We want to balance well rest with bursts of cardio throughout the week. Thoughts/Mental Diet Finally, the info we choose to consume. It's all too easy to watch the news and stress out. That, combined with shallow entertainment, doesn't add any real value to our life other than to ease boredom and distract from substantive issues in our personal lives and the greater world. We must raise the standards of what we permit into our minds. Consciously selecting the content, as if it were a choice piece of meat or fruit. Being mindful of what we consume mentally and physically, in order to prevent spiraling into unwanted mental states and chemical imbalances. Keep in mind these consumables have been conditioning us for years, so understand it will take slow and steady changes to alter yourself. I've recently been evaluating my environment through the perspective that actions and behaviors reflect values. With this paradigm, I can look at my own beliefs and infer conclusions. Am I acting in harmony with my chosen values? For example, one of my top values is my time. I want to live a long time with a healthy body, but do my actions reflect that? If not, what does that say about my self-care? Do I feel unworthy of my health and happiness? What would I have to do to care about myself enough to act in that way? Same thing with my financial situation - do I commit the acts of a person that deserves wealth and abundance? This goes right into the next highly held value I have: relationships. With myself, my spouse, business partners, and society. They all share the same fundamentals: communication, trust, respect, (self-respect especially), and compassion. When it comes to trucking, maintaining close relationships is very challenging. Having that support system in place can be the difference between life and death in some cases. When people act in self-destructive ways, or any behavior that contradicts their best interests, it's because part of them wanted to. They are "of two minds," but they have yet to set a coherent orientation. This touches on the unconscienced conditioning from our parents and society, but at some point, we get the opportunity to wake up. To wake up is to take responsivity for everything in your life, and it begins with healing the mind. Not all perspectives are equal, but they do deserve respect. Some beliefs reflected by our actions/behaviors are more empowering than others. A healed perspective drops limiting beliefs. An integrated mind does not self-sabotage, that's what healing is. We all deserve the love and prosperity we desire. It's time to start acting like it. Audiobook; How to Do the Work, by Dr. Nicole LePera https://youtu.be/LnfF1xUSOjo Podcast; Optimize & Control Your Brain Chemistry to Improve Health & Performance, by Dr. Andrew Huberman: https://youtu.be/T65RDBiB5Hs Audiobook; Nutrient Power, by William J. Walsh on Audible https://www.audible.com/pd/Nutrient-Power-Audiobook/B00BSH2N0O?source_code=ASSOR150021921000R

  • How to Drive a Truck for Maximum Fuel Efficiency

    As a truck driver, there are some expenses you know are going to cost you the most from month to month. Unlike many of your other biggest expenses, fuel is one that you have a lot of control over. Other than choosing stops with the lowest net cost of fuel and adding aerodynamics to your truck, there are many other strategies you can employ while driving in order to spend less on fuel. These strategies are controlled between your ears and are the decisions you make and the habits you form when driving your truck. Here are a few tips for how to drive your truck to maximize fuel efficiency and put thousands of dollars back into your pocket. Drive Slower Truckers don’t get much encouragement from their shipper or receiver to get somewhere slower. But speed is the number one reason for increased fuel consumption and reduced profits. The faster you go, the more fuel you are going to use . In fact, a simplified rule of thumb is every mile per hour driven over 60 mph reduces fuel economy by one-tenth of a mile per gallon. The typical argument against driving slower is that you can make better time by driving faster, and therefore make more money. For the purpose of this article, we are talking about how you can save money on fuel by driving slower. Here is a hypothetical example of how much more a truck driver will have to drive per year to make up the additional fuel cost of driving faster. Compare one driver running at 70 mph getting 6.5 mpg and another running at 60 mph getting 7.5 mpg. Over an hour, driver A is 10 miles further down the road than driver B, but at $3.50/gal., he’s spent around $10 more to go those 10 miles in the same amount of time. That might not seem like much money, but the impact over an entire year is significant. If you drive 110,000 miles per year and average 6.5 mpg vs. 7.5 mpg because you drive faster, you will spend $7,898 more on fuel. Find the Sweet Spot of Your Engine The “ sweet spot ” is the most efficient RPM to run your engine. Running your engine in its sweet spot requires that you drive at a constant speed that is usually slower. If your engine is working harder in order to drive at a certain speed, more fuel is going to be used. Modern engines are designed for high torque at low RPMs. The lower the RPMs your engine is running to pull the load the less fuel it has to burn to create energy and overcome all the forces acting against your truck and load (like gravity, rolling resistance, mechanical resistance, and air pressure). The trick is using torque, not horsepower to pull your load. Pulling with horsepower means you are using more energy and therefore burning more fuel. Pulling with torque means you are sustaining your speed without having to overwork the engine. In general, a good sweet spot tends to be between 1250 - 1350 RPM. The number not to exceed is 1500 RPM. Every truck engine and drivetrain spec varies, which is why your owner’s manual should list the ideal range for your engine. If you don't know it and aren’t able to find it in the owner’s manual, make sure to contact your dealer and they can let you know peak horsepower and peak torque at a specific RPM. Keep in mind that there are external factors that are going to affect your sweet spot. The main takeaway is that the lower the RPM, the less fuel your engine will consume. Be Smart with Braking As you are driving, it's inevitable that you are going to have to use your brakes. In fact, there are going to be times when you need to forcibly apply your brakes to be safe. However, there are ways to drive so you don’t have to use your brakes as much. The problem with braking in terms of fuel efficiency is that every time you touch the brake you lose energy -- you have to accelerate and burn energy (fuel) to get back up to speed. In order to accelerate and get back up to speed, you must put your foot down on the accelerator pedal and work the engine which burns additional fuel. Two of the best ways to reduce braking are to anticipate changes in traffic and follow at an extended distance. By making this a habit, you’ll leave plenty of distance between you and the vehicle in front of you. You won’t have to brake every time the car in front of you does. Also, if a vehicle pulls in front of you, there is plenty of room for that vehicle if they slow down. This way you won’t have to slam on your brakes to prevent rear-ending them. Stay in Higher Gears For those who have experience driving trucks, shifting gears is second nature. However, some may not have thought about shifting gears in relation to fuel efficiency. You’re driving a truck -- not a race car. Every time you hear and feel your RPMs go up you’re burning excess fuel. That’s fine at the race track on Sunday afternoon, but it’s not fine if you’re working to maximize your trucking business’ profits over the next twelve months. At a consistent speed, the lower the gear, the higher the RPM. This means the harder the engine has to work to go that speed, which also means the more fuel is being burned. Paying attention to your gears to maximize fuel efficiency is similar to finding the engine’s sweet spot. This is because the gear you are in determines how much the engine is working. Remember...modern engines are built for high torque at low RPMs. When you are driving it’s better to shift to the next highest gear while still at a low RPM and in the sweet spot of the torque curve, rather than waiting for the engine to run up to a high RPM. Keep in mind, driving fast in a low gear consumes about 45% more fuel than is needed. Additional Tips Think about Your Momentum In order to go forward, you don’t always need to have your foot pressed all the way down. If you need to accelerate, think about speeding up gradually. Be aware when going up and down hills and try to safely build momentum going downhill so that you don’t have to use so much fuel to get up the next hill. Utilize Cruise Control If you are on a stretch of highway that isn’t busy, don’t be hesitant to use cruise control. Using cruise control can help you go at a consistent speed and keep you from doing unnecessary accelerations and decelerations. Cruise control can actually save you up to 6% in fuel consumption. Cut Out of Route Miles Use your atlas or GPS to take the shortest and quickest reasonable route with the least stops to your destination. If you need to stop, try to plan that stop for filling up, going to the restroom, eating, and anything else you need to get done in order to avoid going off route to stop again. Typically 6-10% of owner-operators’ miles are out of route. Try cutting this in half by really thinking about your stops and staying consistent with your route. Minimize Idling The average truck burns a half-gallon of fuel at 650 RPM to one full gallon of fuel at 1,000 RPM per hour of idling. Idling 8 hours a day can cost $200 a week, and increases maintenance costs. Many states, counties, and cities actually have idling reduction laws with fines. Aside from saving fuel, an unattended truck that is idling is also easier to steal and creates unnecessary security issues. Do you now know how to drive a truck for maximum fuel efficiency? Thinking about these things while driving is important for any trucker. As a company driver, you may get bonuses from your carrier if you are consistently driving efficiently. For owner-operators, fuel costs almost always rank as the number one expense. Because of this, it's crucial that you drive your truck for maximum fuel efficiency. These aren’t the only things you can do to maximize fuel efficiency but these are some of the free things that you can easily put into practice today while driving in order to spend less money on fuel. Every penny you save by cutting your fuel costs goes directly into your pocket!

  • Per Diem Tax Deduction Tips for Truck Drivers in 2025

    Per Diem (per day) is one of your largest tax deductions as an owner-operator, but what is it exactly? The Per Diem deduction is a tax deduction that the Internal Revenue Service (IRS) allows to substantiate ordinary and necessary business meals and incidental expenses paid or incurred while traveling for business while away from home. In this article, we address the specific rules around using this significant tax deduction. As a result of the Tax Cuts and Jobs Act, W-2 employees, sometimes referred to as company drivers, are no longer eligible to claim the Per Diem deduction. The IRS allows contractors and self-employed transportation workers, subject to the hours of service regulations, to deduct their meal expenses while traveling for business. The Per Diem rate is set by the IRS. The Per Diem rate, effective October 1, 2024, is $80 per full day and $60 per partial day in the Continental United States. You may see the deduction amount quoted as $64 per full day and $48 per partial day. That is because the IRS only allows you to deduct 80% of the Per Diem rate. Non-CDL riders who are performing other duties (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $80 rate which comes out to $40 per full day. For travel outside the Continental United States, the Per Diem rate effective October 1, 2024, is $86 per full day and $64.50 per partial day. You may see the amount of the deduction quoted as $68.80 per full day and $51.60 per partial day. Non-CDL riders who are performing other duties (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $86 rate which comes out to $43 per full day. IMPORTANT NOTICE: The Per Diem rate from January 1, 2024 - September 30, 2024, was $69 per day in the Continental United States and $68 per day in Canada. This means you will need to calculate your total Per Diem deduction using two different Per Diem rates . You need to keep this in mind when you are filing your 2024 taxes. If you need help calculating your Per Diem deduction and filing your taxes, please click here . In order to qualify for these deductions, IRS publication 463 states that you are traveling from home if: Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work, AND You need to sleep or rest to meet the demands of your work while away from home. It further states that taking a nap does not satisfy the requirement. However, “you do not need to be away from home for a whole day, as long as your relief from duty is long enough to get necessary sleep or rest.” What does this mean to a driver? If you are an owner-operator, the rule is simple you get to claim the tax deduction for each day that you are away from your “tax home.” On the days that you depart and the days that you arrive at home, you must claim a partial day allowance instead of a full day allowance. The partial day allowance is 75% of the full day allowance. Things become a little more complicated if you are a local driver. Local and regional drivers are frequently away from their home much longer than an average eight-hour workday. Therefore, fulfilling the first part of the requirements is simple. However, notice the “AND” between the two requirements? This means that you must meet both conditions in order to claim the deduction. Another way to think of it is, drivers who start and end a trip at home on the same Department of Transportation (DOT) Hours of Service (HOS) work day cannot claim Per Diem. Easily keep track of your days away from home with the ATBS Per Diem Tracker! Furthermore, IRS publication 463 states that you must have a “tax home”. There are three tests to determine your tax home. In order to meet the requirements, you must satisfy at least two of the three following items: You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. You have living expenses at your main home that you duplicate because your business requires you to be away from that home. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. So what does this all mean? In a nutshell: You must be away from home for 'substantially longer than a normal work day', per the IRS. You must have a home from which to be away from. If you meet both requirements above, for any days on or after October 1, 2024, you can deduct $64 for each full day away from home as a driver and $40 as a ride-along that assists in business functions. You can deduct $48 per partial day as a driver. At ATBS, we believe that a good way to track is by using the ATBS Hub . Since the Per Diem rate changed during 2024, the ATBS Hub will track exact dates and changes in Per Diem rates. That way you can determine exactly how many full and partial days you have to report to your tax preparer . In order to substantiate your Per Diem, you may need to provide DOT electronic logging device information with time, date, and location. It is good practice to keep all receipts and documentation for this Per Diem deduction for at least three years. If you have any questions on Per Diem, please contact ATBS by clicking here or giving us a call at 866-920-2827.

  • How to Manage a Successful Trucking Company

    As an owner-operator, you are just as much of a business owner as you are a truck driver. There is a lot more to manage that you previously didn’t have to as a company driver. Your ability to manage your business will determine whether or not your trucking company will be able to survive. Let’s take a look at a few of the major responsibilities that come with being an owner-operator managing your own trucking company. Manage Clients Managing the clients you work with will be critical. As an owner-operator with your own trucking business, nobody will tell you what you need to haul and where you need to deliver it. It will be up to you to create a consistent flow of work in order to keep your company profitable. It’s important for you to make new customer relationships and maintain them with hard work and good communication. An online load board is an important tool that can help you find new business if needed. There are a variety of free and paid subscription options available for you to choose from. When initially choosing a load board, keep in mind your budget and the reputation of the load board you want to use. Once you’ve found new customers, you will need to focus on maintaining good relationships. You can do this by planning your route and keeping a consistent schedule. This way you will be able to stay busy with work while being reliable for your customers. If anything happens that takes you off your schedule, communicate all details with your customers to stay on good terms. Manage Expenses As the owner of a trucking business, you need to focus on the money that is going out just as much as the money that is coming in. It’s important to keep good records of all your company expenses to make sure you're not losing money. If your expenses outweigh your income, you will need to change the way you manage your business. ATBS can help you manage expenses by working with you to build a profit plan and by providing monthly profit and loss statements to help you stay on track. Major expenses that you’ll face as an owner-operator include fuel, insurance , and maintenance on your truck. We go into detail on all of these expenses in our “ 5 Biggest Owner-Operator Expenses ” article. There will also be sporadic one-time and unforeseen expenses that you need to be prepared for. We recommend you keep an emergency savings fund to help manage these unexpected expenses. Over time, you will become better at managing the expected and unexpected expenses. Once you have an idea of how much you spend each month, it will be good for you to come up with ways to operate more efficiently to lower the cost of these expenses. It will be at this point that you will truly be managing your expenses. Manage Fuel As mentioned earlier, fuel is one of your biggest expenses as an owner-operator. However, fuel is an expense that you have the ability to manage more than your other major expenses. Even though you can’t control the price of fuel, you’re able to control how much fuel you are using . In our article, “ Top 25 Ways for Truck Drivers to Improve Fuel Efficiency ” we give many ways to help you save money on fuel. A few of the easiest ways to improve your fuel efficiency are: Monitor Tire Pressure Minimize Idling Moderate Braking Manage Cruise RPM These are changes that you can make immediately to help better manage your fuel. Keep track of your fuel expenses before and after you try a few of these tips and see how much your fuel bill decreases. Compared to other expenses like truck payments and insurance, you don’t have to sacrifice much to pay less for fuel. Manage Health Managing your health often goes overlooked when managing a trucking company. You are the most important asset of your trucking business and if you aren’t healthy enough to drive, then your company isn’t going to be able to make money. The combination of sitting for long periods of time, eating poorly, and not sleeping well can lead to a multitude of health problems. Fortunately, there are plenty of ways to improve your health: Whenever you are stopped for the day, get out of the truck to move around and exercise Consider cooking for yourself rather than buying cheap fast food Give up smoking in order to improve lung and heart health Drink plenty of water to avoid getting dehydrated Get plenty of sleep the night before to avoid drowsiness behind the wheel As an owner-operator, you don’t get sick days. Any day that you aren’t on the road is a day that you aren’t generating revenue. Of course, there will be days when you are too sick to drive, and that will be out of your control. Try to limit your days off the road to days when you are truly sick and can’t drive. Manage Taxes One of the biggest differences between a company driver and an owner-operator is the way taxes are paid. As a company driver, your taxes are automatically taken out of your paycheck by your employer. When you have your own trucking company, you are responsible for calculating your taxes due and paying the correct amount each quarter. It’s important for you to keep an accurate profit and loss statement of your company in order to pay the appropriate amount of taxes each quarter. ATBS recommends you set aside 25%-30% of your weekly net income for quarterly estimated tax payments. Not paying quarterly tax payments will result in penalties that will increase the amount you will eventually have to pay. If you don’t manage your taxes , your company will begin to fall behind and it will become increasingly more difficult to get caught back up. Owner-operators also have to fill out different tax forms (and often more complicated forms) than company drivers. As a company driver, you will most likely only fill out a W-2 form. When you manage your own trucking company, you now have to fill out a W-9 and you will receive a 1099 from anywhere you earn income. You will then have to file Form 1040 and likely additional schedules, which becomes significantly more complicated. Paying taxes on a quarterly basis and filing a different type of tax return are major differences between being a company driver and managing your own trucking company. Need help managing your trucking company? If you need help managing your trucking company, consider hiring ATBS to help you out. ATBS has been in the industry for more than 25 years and has helped over 150,000 owner-operators. We offer a variety of services including accounting, bookkeeping, and tax preparation, specifically for truck drivers. We also offer unlimited business consulting for our RumbleStrip Professional clients. If you’d like to learn more about ATBS services or want to get started today, give us a call at 866-920-2827.

  • 5 Questions a CPA Must Know About Owner-Operator Taxes

    When was the last time your CPA or tax professional updated you on the current Per Diem rates you are entitled to? Have they ever explained why you need to deduct actual expenses instead of using the standard mileage deduction? Did you know that you can deduct expenses for your dog as security for your truck in many cases? Taxes, in general, are complicated, but taxes for owner-operators are even more complicated. It’s crucial to have a tax professional who knows the trucking industry handle your business’s taxes. Unfortunately, the reality is that most tax professionals and CPAs are generalists - meaning they file taxes for people across many different industries, but they aren’t experts in any single industry or area. This lack of specific industry knowledge can lead to you paying more than you should in taxes. Or, in some cases, incorrectly taking deductions on your tax return that you shouldn’t have... which may put you at risk in the event of an IRS audit. Don’t get us wrong. Many CPAs or tax professionals can do a fine job of handling taxes for owner-operators. Still, their knowledge often doesn’t go deep enough to truly minimize your money owed to the IRS - simply because they don’t know the industry inside and out. One way to determine if your CPA or tax professional really knows the trucking industry is to ask some trucking-specific questions related to taxes. Here are five trucking questions that your CPA should know the answers to for their owner-operator clients. If they don't know the answers, maybe it's time to open up the conversation about finding a better, trucking-specific solution for your business' tax needs. Are you a self-employed truck driver that needs help with your taxes, accounting, or bookkeeping? Click here! Question 1) What Per Diem rate am I entitled to as an over-the-road Owner-Operator? Correct Answer: As of October 1st, 2024, you are entitled to 80% of $80 ($64) per day in the continental United States. How most CPAs/Tax Professionals answer: You are entitled to 50% of $80 ($40) per day because that’s the standard rate for most other professionals who are allowed to claim Per Diem - or, even worse, many CPAs will give you 50% of actual meal receipts, which is most likely not even close to $80/day in actual meal spending. Truckers are allowed to take 80% of the allotted amount, which tends to be one of the biggest missed deductions truckers face every year. If you claim 300 days per year of Per Diem, the difference between the full 80% deduction vs. the 50% deduction is nearly $6,000 of missed tax write-offs! Bonus Question: Can my spouse claim a Per Diem deduction if they ride in the truck with me? Correct Answer: Yes! Non-CDL riders who perform other duties related to your business operation (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $80, which is $40/day. How most CPAs/Tax Professionals answer: No! This is another huge deduction that is often missed and leads to thousands of dollars in unclaimed deductions come tax time. Question 2: Can I use the standard mileage deduction method for my trucking business? Correct Answer: No, the IRS considers a tractor to be a qualified non-personal-use vehicle, which means you need to claim actual expenses instead of the standard mileage method. That means you need to track all of your reasonable and necessary business expenses and deduct them when you file your taxes. How most CPAs/Tax Professionals answer: Unfortunately, many tax professionals (especially at large-chain tax offices) will offer to use the mileage method to keep things simple for them when filing your taxes. This is a huge mistake since you aren’t allowed to do so! This could put you in serious trouble in the event of an IRS audit. Question 3: I’m a driver trainer. Can I deduct the meals I pay for my student drivers? Correct Answer: Yes! Many times trainers end up footing the bill to keep their students fed on the road, and you can claim this as a deduction. How most CPAs/Tax Professionals answer: Many times they say no because they figure the company you contract with will reimburse you for the expense. If you are not reimbursed for the meals you pay for, you can deduct those expenses on your tax return! Question 4: Can I deduct expenses for my dog that travels in the truck with me? Correct Answer: Yes! Many times your furry companion can be classified as a security system for your truck. There’s a lot of grey area here, but if your dog can meet the requirements, you can deduct expenses like pet food, vet care, etc. How most CPAs/Tax Professionals answer: They almost always say no! Why? Because they don’t know the industry. They don’t realize that your dog can qualify as a reasonable and necessary part of your business on the road - it all comes back to knowing the trucking industry inside & out! Question 5: Do you have a way for me to submit receipts to you electronically, 24/7/365? CPA/Tax Professional’s Answer: No, we don’t. ATBS’ Answer: Yes, we do! The ATBS Hub allows our Owner-Operator clients to submit paperwork/receipts/documentation 24/7/365, taking paperwork and bookkeeping tasks entirely off of their hands on the road. This lets our clients spend their non-driving time on more important things, like improving their business or enjoying their free time. Bonus Question: Do you help your clients year-round or only during tax season? CPA/Tax Professional’s Answer: Only during tax season… we’ll see you on April 15th! ATBS’ Answer: We work with our clients year-round! Why? Because properly managing your taxes - and ensuring you pay as little as possible to the IRS - requires 12 months of work. You need to manage your bookkeeping so you can track business performance each month, calculate & pay your quarterly tax estimates to avoid interest and penalties to the IRS, and continuously find ways to improve your bottom line by reviewing your business and benchmarking yourself against industry performance data. ATBS works with clients year-round to ensure they pay as little as possible to the IRS while also maximizing their net income at the same time - we work full-time, year-round, to help you manage your business, same as you! Bonus Question: Do you charge by the hour? CPA/Tax Professional’s Answer: Yes, even if we’re just answering simple questions instead of working on your tax returns… ATBS’ Answer: No, we charge a flat fee on either a weekly or monthly basis. We aren’t afraid to work with you as often as needed to help you run a successful business and keep the IRS off your back. Based on your ATBS service level, we can work with you as often as needed to help you succeed. At the end of the day, ATBS has been helping owner-operators for over two decades, and our entire business is dedicated to working with truckers. If your CPA or Tax Professional can answer all of these questions accurately, they have a pricing model that’s fair and reasonable, and you feel like they’re doing a great job, then there’s no need to think about potentially finding a new tax professional. However, if your CPA or Tax Professional: Couldn’t answer those questions accurately; Is only willing to work with you once per year; Charges you by the hour, even to answer simple questions; Generally doesn’t know trucking and isn’t interested in learning the trucking industry; Then it never hurts to look at other options! If you want to learn more about ATBS and our services, please visit our website to learn more and give me a call if you want to talk. And remember, we won’t charge you by the hour to talk about our services either!

  • How Have Owner-Operators Performed So Far in 2025?

    The first half of 2025 has been tough for many owner-operators, with high costs and weak freight keeping profits tight. But some drivers are finding ways to thrive despite the challenges. In this article, we’ll dig into the latest numbers and answer questions, including: How can owner-operators benefit from the One Big Beautiful Bill Act? What are the latest miles, rates, fuel costs, and maintenance trends? What are large carriers saying about freight rates and volumes going forward? Why have maintenance costs shot up year over year? How are the best owner-operators thriving in a prolonged, difficult freight environment? Interested in learning more? Check out our full 2025 Mid-Year Owner-Operator Trucking Trends Webinar , where we give a more in-depth recap of how owner-operators have performed so far in 2025! Table of Contents Freight Rates Miles Revenue Fuel Maintenance Fixed Costs Net Income +1/-10 Rest of 2025 Outlook Freight Rates From May 2020 through April 2022, we saw one of the biggest increases in spot market load volumes and rates in the history of trucking. However, in April 2022, while contract rates remained somewhat stable, spot market rates and load volumes began falling dramatically. Here are some numbers to illustrate this shift in the market: Peak - November of 2021 Loads: 240 loads per 1 truck looking for a load. Rates: $2.74 per mile (without fuel surcharge). September 2024 Loads: 60 loads per 1 truck looking for a load. Rates: $1.84 per mile (without fuel surcharge) April 2025 Loads: 91 loads per 1 truck looking for a load. Rates: $2.13 per mile (without fuel surcharge) Today - September 2025 Loads: 88 loads per 1 truck looking for a load. Rates: $1.88 per mile (without fuel surcharge) As September rolled in, the load-to-truck ratio climbed to around 88. For independent operators who rely on the spot market, that means a few more freight opportunities and less downtime, though rates haven’t followed suit. The average spot rate remains flat at about $1.88 per mile, roughly where it was three and a half years ago. So while load availability is improving, pricing remains under pressure, suggesting continued bumpy conditions. Operators who stay disciplined with expenses and strategic about their loads will be best positioned when the market fully rebounds. Miles Miles continue to trend up year over year. This was needed in order for drivers to stay in business during a prolonged difficult market. However, drivers running more miles have had a direct correlation to more capacity, which has likely extended the down spot market! Overall, miles have dropped significantly over the past 20 years. In 2003, owner-operators averaged about 140,000 miles per year. At a minimum, in a booming freight market, it dropped to 85,000 miles per year. Today it is up to 94,000 per year. Some carriers think we are at the peak of miles now as truck drivers’ work-life balance. Revenue Owner-operator revenue per mile is down 3.7%, or 7 cents per mile on a year-over-year basis. A significant portion of that has come from the reduced cost of fuel resulting in a lower fuel surcharge. True rates have also fallen simultaneously. ICs are working a lot harder to reach the revenue needed to remain in business. Due to the increase in miles, total revenue is only down 2% and we are starting to see signs of recovery. Fuel Fuel cost per mile is down 10% and continues to go down. This type of trend can be expected to continue throughout the year. Many ICs perceive this as a good thing but savvy drivers know they can take advantage of high fuel costs by making money off the fuel surcharge. As freight rates have continued to decrease, we’ve seen owner-operators focus more on fuel mileage. Our average client is up to 7.12 MPG and we’ve seen increases in MPG across all segments. New technology on trucks and better driving habits can be attributed to why we’ve seen this increase. Maintenance Maintenance costs have risen more than any other expense this year—up about 10%, or roughly $100 more per month. Higher wages, pricier parts, and fewer new trucks on the market are all driving the increase, as many independent contractors keep older equipment running longer. Some drivers are also delaying maintenance due to cash flow issues, which can lead to even costlier repairs later. On average, contractors now spend around $1,234 per month on maintenance, though that varies by truck age, freight type, and miles driven. The key takeaway: maintenance planning isn’t optional anymore. A strong plan that covers repairs, fixed expenses, and downtime helps drivers stay prepared, protect their income, and keep rolling when surprises hit. Fixed Costs Fixed costs are up 2% or $1,189 year over year. Over the past few years, fixed cost averages have been a roller coaster. However, we seem to be back to normal levels for the first time since the pandemic as fixed costs increased accordingly with inflation. Net Income Overall, owner-operator net income is up 2.5% to $64,524. Reefer has hurt the worst but we’ve actually seen increases in dry, flatbed, and independents. Most of the damage to net income occurred last year and we are starting to see positive signs. The hungry drivers who have taken extra miles and focused on their fuel economy have started to see gains over the past few months. ATBS clients who are using our services effectively are averaging a net income of $87,614. +1/-10 Incremental and small changes are the best thing you can continue to do today. The two charts above illustrate the top two things the average IC can do to dramatically increase their income, increase their revenue, and decrease their costs. Increasing your revenue could just mean one more load a month, which is illustrated above. There are many ways to decrease your costs, but fuel is your biggest cost and the one you can control the most. Just one mpg better means taking home $8,000 or more in profit! If you do one of the two things above, you’ll increase your net income by $150 a week or $8,000 per year. If you do both, you’ll take home nearly $300 more per week, or $15,000 a year. It might not be possible to run 500 more miles a month or get one mpg better, but if you do a little bit of each, you’ll see drastic improvements to your net income. Rest of 2025 Freight Outlook The best businesses and owner-operators are still doing well. The bottom line is that owner-operators control their own destiny, and they can make changes today to ensure profitability and success!

  • How Much Do Truck Drivers Make?

    Asking “How much do truck drivers make?” is not an easy question. This is because the amount of money a truck driver can make varies depending on many different factors. Some of these factors include freight type, where, how often, and how far a trucker drives, years of experience, and more. For example, each year, ATBS analyzes the average net income for its truck driver clients. Even though all of our clients are truck drivers, their average net income ranges anywhere from $50,000 to $1,000,000 depending on a multitude of factors. One of the best predictors of income for truck drivers is where the driver is in their career. This means looking at the difference in revenue potential between company drivers, lease-purchase owner-operators, owner-operators under carrier authority, owner-operators under their own authority, and owner-operators who are small fleet owners. Company Driver Company drivers generally earn, on average, anywhere from $50,000 to $75,000 a year depending on experience, licenses and certificates, driving record, and the type of fleet they drive for. Of the career stages, company drivers generally have the lowest revenue potential, although there are certainly exceptions to that. Generally, a company driver’s revenue is limited by the salary they are paid by their company. Each year, a company driver knows about how much money they are going to make and their potential to earn bonuses. There is always the chance a company driver can negotiate a higher salary depending on how they’ve performed over time, but their earnings will likely be capped at a certain amount. This is different from all the other career stages because, unlike the company driver, owner-operator truck drivers have a lot more control of their revenue and costs each year. This does not mean you can’t live a quality life as a company driver. Company drivers don’t have the same worries and stresses that come with being an owner-operator. When they are home, they don’t have to worry about truck payments, maintenance, finding loads, and other factors that come with owning a trucking business. Also, if you decide being a truck driver isn’t for you, it’s not hard to leave knowing you don’t have to get out of a lease or lose the money you’ve invested into the profession. Even though the earning potential for company drivers isn’t always as high as the other career stages, being a company driver comes with minimal expenses and less stress. Owner-Operator Under Carrier Authority (Pioneer and Hired Gun) Owner-operators under a carrier’s authority have the next highest earning potential of the truck driver career stages. We call drivers in this group Pioneers and Hired Guns. ( Learn more about the driver career journey here ). Lease-purchase owner-operators who drive under carrier authority and lease their truck are considered Pioneers. Owner-operators who drive under a carrier’s authority but own their trucks are considered Hired Guns. As a Pioneer or Hired Gun, you are still getting paid a percentage of the total revenue you are earning per mile by the carrier, but at a far greater percentage compared to a company driver. This is because you are taking the risk of being financially responsible for yourself and your truck. Pioneers and Hired Guns are independent business owners responsible for their own success or failure. Even though they are earning more revenue, they need to manage their costs in order to be successful. Failure to generate consistent revenue and control costs will end in a failed business due to inadequate earnings. The biggest difference between these two types of owner-operators is that owning your truck gives you greater choice and control over some of the truck expenses compared to leasing one through your carrier. This means that by properly managing these additional expenses you are responsible for, you can keep more money in your pocket than you would by leasing your truck through the company you drive for. Leasing your truck through the company you drive for can increase earning potential by 10% to 30% over a company driver, and owning your own truck while continuing to drive under carrier authority can increase earning potential by an additional 10% to 20%. Owner-Operator Under Own Authority (Lone Ranger) When you become an owner-operator under your own authority , your revenue potential can increase by up to 50% depending on how well you are managing your business and how good the current trucking cycle is. Owner-operators negotiate their rates directly with customers and don’t lose any of the revenue they earn to a company taking a percentage. This means that you are in complete control of your earnings based on your revenue and how you manage your expenses. Some of the expenses you have to consider include truck payments, trailer payments, insurance , different licenses, etc. You will also have to work to find your own customers as they won’t be provided to you by a carrier. Lastly, you must deal with market forces like the economy and how it affects the availability of freight and rates. So unlike a company driver, the amount of money you are going to make in a given year is not guaranteed. However, with proper business management skills, you really don’t have a ceiling on how much money you can potentially make. Even though there is a great risk when you decide to be an owner-operator under your own authority, when things are going well, the reward can be even greater. There is a huge upside to this career stage if you focus on working with high-quality customers who pay on time, and pay what you agreed to. Click here to download our list  of industry partners who provide services for truck drivers with their own authority and take advantage of exclusive discounts . Owner-Operator w/ Small Fleet (Trail Blazer) Being an owner-operator under your own authority with other trucks running for you gives you the most revenue potential you can have as a truck driver. In this stage of your career, your revenue is only limited by the number of trucks that you can keep productive. This means that your revenue potential is essentially unlimited, but this career stage comes with the most risk. Every time you hire a new employee, your revenue increases, but so do your costs and responsibilities. As a small fleet owner, you are in charge of all the freight, the employees, the trucks, the insurances, the liabilities, the laws & regulations, and any other responsibility that comes with running a business with people working for you. If you have the money and are confident that you have good business controls in place to manage your employees, the sky is the limit on the revenue you can earn. Of course, all of that revenue won’t go into your pocket as there are high costs that come with managing a small fleet. However, if each new employee wasn’t helping you make a profit, you wouldn’t have hired them in the first place. In this stage of your trucking career, the amount of money you can make is only bound by your motivation, desire, and market forces. So how much do truck drivers make? The simple answer is that it really just depends on your unique situation. The stage you are in as a truck driver and the risk you want to take are just some of the many factors that will affect how much you make. This means that if you are thinking about becoming a truck driver or changing where you are in the truck driver career path, it’s going to take some additional research and real-world experience to figure out what’s right for you!

  • How to Create a Successful Trucking Business Plan: A Step-by-Step Guide

    Writing up your trucking business plan is one of the first things you need to do when you start a trucking company. Your plan will allow you to clearly define your trucking business and give you some direction before you get out on the road. Your plan should include your goals, define how your company will be different, explain how you will grow, how you are going to acquire clients, and a financial plan that shows how you are going to make money. This business plan will be a fluid document and should be updated every year or so. Steps to consider prior to creating a business plan for a trucking company Before you start writing a business plan for your trucking company, there are several important steps you need to take. These steps will help ensure that you’re officially registered, and in compliance, with trucking industry regulations. First, you'll need to register your trucking company as a business with the appropriate state and local authorities. This typically involves filing the necessary paperwork and paying any required fees. Not sure what business structure you should be? Click here to learn about the different options. Next, you'll need to obtain an Employer Identification Number (EIN) from the IRS. This number is used for tax purposes and is also required when applying for certain licenses and permits. In addition to the EIN, you'll need to obtain a USDOT number. This number is issued by the Department of Transportation and is required for any commercial motor vehicle that transports cargo or passengers across state lines. You'll also need to apply for a Motor Carrier number from the Federal Motor Carrier Safety Administration. This number is necessary if your company operates as a for-hire carrier and requires you to comply with FMCSA regulations. Another important step is filing a BOC-3, or a Designation of Process Agent form. This form designates a person or company to receive legal documents on behalf of your trucking company. Additionally, it's crucial to obtain truck insurance that meets the minimum requirements set by your state and the FMCSA. This will protect you, your drivers, and your client's cargo in the event of an accident or damage. Other steps to consider include setting up an International Registration Plan and International Fuel Tax Agreement , which allow your company to operate across state borders and file fuel taxes accordingly. Lastly, you'll need to obtain a Unified Carrier Registration, which is an annual fee paid to the UCR program. By completing these steps, you'll ensure that your company is legally registered and operating in compliance with industry regulations. This will not only give you peace of mind but will also help attract potential customers. Essential information for creating your trucking business plan When creating a trucking business plan, it is crucial to gather all the necessary information to ensure its success. Here is a list of key details that need to be considered: Determine assets and liabilities: Assess your financial situation, including the availability of trucks, finances, and other resources. Understand spot market vs. contract market rates: Differentiate between the two types of pricing models to develop a clear revenue strategy for your trucking business. Research going rates in freight lanes: Analyze the current rates in the specific freight lanes you plan to operate in to accurately determine your pricing strategies. Calculate operating costs and cash flow: Conduct a comprehensive analysis of all expenses , such as fuel, maintenance, insurance, and permits, to determine the company's financial viability. Know where to find loads: Research and identify reliable load boards or freight brokers to ensure a consistent stream of work for your trucking business. By obtaining this information, you can lay a solid foundation for your trucking business plan. Success in the trucking industry requires a thorough understanding of assets, liabilities, market rates, operating costs, and load availability. A well-informed and comprehensive plan will increase your chances of attracting potential clients, securing loans, and ultimately thriving against your competitors in the trucking industry. What to include in a trucking company business plan When starting a trucking company, having a solid plan is essential for success. A trucking company business plan outlines the strategy and goals of the business, as well as the targeted market and potential customers. It serves as a roadmap for the company's operations and provides crucial information for potential customers or lenders. In order to create an effective business plan, there are several key components that should be covered. This includes a company description, market analysis, operational plan, financial plan, and marketing strategies. Additionally, details about the management team, target market, types of freight, and potential competitors should also be considered. By including all of these essential elements, a trucking business can set itself up for success against its competitors. Executive summary This is a summary of your company and your personal reasons for starting a trucking company. It is important to highlight your unique qualities and make a positive impression. It is recommended to seek assistance from an editor to refine your executive summary. It is advised to write this section last for optimal results. Company Description Your plan should start with a general description of your company. Begin with the background of the business and how it got started. It should also include the overall mission statement of the company and some of the key facts. The overall mission of the company should go into what you plan on delivering and how you are going to differentiate yourself from the competition . Key facts could include when the company was founded, the number of employees on the team, what states you plan on operating in, and any other facts you feel are important about the company. Services Within the services section of your trucking business plan, explain what materials you plan on hauling and what industries you plan on operating in. You should also go into detail about how the service you provide will be beneficial to the clients in the locations you are operating in. This will help justify why you will be successful and why your services will be in demand. Market Analysis In the market analysis, you should portray how well you know the industry. It should give insight into where the industry is going and how you will capitalize on the changes. In addition to the industry outlook, your market analysis should include your target market, the characteristics of the market, the market's size, and how much of the market you want to capture. Thinking about these things will take time but will help you set goals you'd like to accomplish. Management and personnel If you plan to have staff or additional office help, your business plan should include details on your approach to hiring people. This should encompass your hiring process and how you will onboard new employees. Owner-operators will need to adhere to the compliance standards set by the shippers and brokers they collaborate with. It is important to familiarize yourself with basic industry standards, regulatory compliance, and safety records. Hiring skilled drivers with strong performance records will greatly contribute to the growth of your business, allowing for expansion into additional freight lanes. It is essential to have a retention plan in place due to the highly competitive market and high demand for qualified drivers. If you find that managing people and paperwork is not your strength, it may be worth considering hiring additional personnel or a trucking business service partner to assist with running your business. Sales and Marketing Knowing what part of the market you want to capture is only half the story. You need to figure out how you're going to get the word out about your company. Specifically, what channels you will utilize to market your business and where you want to promote your business will be important for not just acquiring customers but keeping them long-term. Through your marketing tactics, you will be able to build up a pipeline of potential clients. However, it is not likely that all your contacts will reach out to you first. You will need to come up with a plan for how you're going to engage those people who know about your company but aren't yet convinced they need your services. This part of the trucking business plan will be crucial for the success of your company. It is easy to describe your business and what type of customers you want to serve but actually coming up with a strategy to acquire those potential customers will take time and effort. Financial Projections Within your financial projections, you will prove how your company will be able to stay in business and meet its goals. You should provide basic statements like profit & loss , cash flow, and a balance sheet. You will also need a sales forecast for the next three to five years. Making financial projections might be difficult for those who are not experts in finance and who have never prepared information like this before. If you need assistance with your financial projections, give ATBS a call at 866-920-2827. We have been in the industry for over 25 years helping owner-operators keep track of their finances. Finishing your trucking business plan A trucking business plan may be time-consuming and seen as an obstacle getting in the way of getting out on the road. However, your plan will allow you to think about the big picture of your company and it will help you realize what it will take to be successful. You might also discover things that could stand in your way. Not all business plans need to look exactly like this and there are plenty of sources online to help you get started. Don't skip out on this important step in starting your trucking business!

  • Preventive Maintenance as a Form of Asset Management

    Preventive Maintenance done on a regular basis and performed properly puts the owner-operator in charge. It drives costs down while simultaneously driving revenue up. That means real profits! A successful PM program will: Lower total maintenance cost Lower fuel cost through better MPG Lower tire cost Have fewer service failures Have zero towing costs Have less downtime which leads to increased revenue Be a major factor in running a business profitably Good PM’s Produce Repairs You should expect to see repairs if the PM is done right. The flip side is that if the PM is done improperly then you have to accept the consequences of unpredictable breakdowns plus all the extra costs that go with them. There are two types of repairs for purposes of this newsletter – planned and unplanned. (You can substitute “Controlled” and “Uncontrolled”.) Planned (controlled) repairs give you the opportunity to schedule the repair at the best possible time for you and at a negotiated or known price. Unplanned (uncontrolled) repairs mean it can happen at the worst possible time for you. Costs for the unplanned repair can escalate out of control. Since you can’t shop around you’re not in a good position to negotiate. You might feel pressured to make hasty decisions especially if the breakdown puts you behind schedule. Pre-Trip and Post-Trip inspections complement Preventive Maintenance. All have something in common – all three are intended to prevent costly breakdowns and promote safety. Pre-Trip and Post-Trip inspections should be performed personally and in a systematic way until they become natural and effortless. While a Pre-Trip inspection is required, the Post-Trip inspection can be the most beneficial to running a business. The Post-Trip gives you the opportunity to make repairs during a scheduled stop at the end of the day instead of at the beginning of the day when you should be running. A Post Trip can complement preserving your personal time and also can preserve your record for on-time service. Ten Preventive Maintenance Tips You Can Do Yourself 1. Set aside a maintenance reserve fund based on the age of your tractor. A major engine repair can cost you thousands of dollars so don’t spend the funds from this account on other things because you think you have enough saved for maintenance. If you save too much and don’t have to use it, it’s still in the bank! Consider the guidelines below: Age of Truck and Maintenance Savings New: 7 cents/mile 1 Year or 150,000 miles: 9 cents/mile 2 Years or 250,000 miles: 10 cents/mile 3 Years or 350,000 miles: 11 cents/mile 4 Years or 450,000 miles: 13 cents/mile 5 Years or 500,000+ miles: 15 cents/mile* *Add 2 CPM for every 100,000 miles over 500,000 miles 2. Get the correct maintenance manuals for your truck and its major components. Be sure that you have read them and understood them. 3. Obtain a quality Preventive Maintenance (PM) form and use it. This form should be customized for your truck and your type of work (long trips vs. short trips, light loads vs. heavy loads, on-road vs. off-road, etc.). 4. Commit to following the set intervals for your truck’s PM schedule. 5. Learn your truck’s grease points and grease your truck yourself. Grease is always cheaper than repair. “Lube it or lose it” is the way it works. This is not the place to skimp so use high-quality grease. You can set up a weekly rotation to grease a small part of the truck on a certain day of the week. This makes a big job smaller and easier. It’s a small thing, but if you grease your truck, wipe the dirt off of the zerks before pumping grease into them. If you don’t you’ll be pumping dirt into the joint. 6. Your driving will affect maintenance costs. 75 mph vs. 65 mph means that the engine and drive train components as well as brakes and suspension are all going to be working harder and they will wear out faster. Aggressive driving and high speeds cost you money – lots of money. 7. Check the oil level every day. Look for substances that shouldn’t be present like coolant or metal. 8. Check the tire air pressure for all tires with an air gauge, every day. When a breakdown happens the chances are really good that it will be related to tires and most of those tire failures are caused by simple under-inflation. 9. Cavitation will ruin your engine. Prevent cavitation damage by using the proper coolant and the proper coolant additive package. Coolant additive test strips will tell you the quality of your coolant package. Do this yourself and don’t trust this critical inspection to the service technician. Not all coolant is the same so look in the engine owner’s manual for the proper coolant for your specific engine. 10. When buying tires or parts, make yourself acquainted with the warranty before you buy. Then carry photocopies of the warranty and the receipt in the truck with you in case there are problems while over the road.

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