Data compiled, with thanks, from the U.S. Bureau of Labor Statistics.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

Don’t feel tied to a recruiter

When you start looking for truck driver jobs, you will probably talk to a recruiter.  However, it is important to realize that recruiters are often working for just one company, so you will want to talk to different recruiters.  This will give you a better view of the spectrum of available truck driver jobs and find the one that best suits your style.  Be sure to keep track of the information that you hear from different recruiters so that you may easily reference the details later when there are multiple positions to consider.

Tell the truth

Whenever you are talking to a recruiter about a CDL job, or at a job interview, it is important to be honest from the very beginning.  Even if you have some negative information to share, it is better to put it out in the open yourself than to have it come to light later on.

Have your information ready

When you are applying to a number of trucking jobs, it is important to have some information ready.  Some of this may be on your resume, and if it isn’t, make sure that you have it handy.  You will need:

• Your current CDL, which should be non-expired and have your correct home address
• At least three years of work history, though more is sometimes wanted by recruiters.  If you were not driving during part of this period, be sure to have other professional references that can speak to your working character.
• Names and contact information of all trucking companies and employers that you have worked for.  It is a good idea to talk to former employers beforehand to let them know you are using them as a reference.
• If any of the former employers are unreachable or out of business, you should have other proof of work history.  This can include letters of reference, DOT numbers, and W2 tax forms from trucking jobs.
• A copy of your driving record.
• Proof of eligibility for work

Know what the recruiters know

Before you can obtain a job in the trucking industry your potential employer will run a background check.  This will include pulling any criminal records, copies of your driving records, your DAC report with previous truck driving jobs, accident history, and more.  It is important to know what is included in that report and be forthcoming with the information before the recruiter finds it.  If the recruiter believes that you were being dishonest or hiding something during the interview, it could cost you the job.  Also, if there is any information in the background check that is false, you will want to get it taken care of before interviewing.

Drug testing

Most reputable companies will do drug screening on potential and current employees.  If interested, the company may require you to take a drug test on the spot to prove that you are drug free.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

4/27/2011

IRVING, Texas — Nearly three-quarters (71 percent) of trucking company executives surveyed expect business conditions to improve in 2011 but they are concerned about the impact of external and internal factors on their profit margins, says GE Capital, Transportation Finance.

The rising price of diesel, a nationwide shortage of drivers and the twin costs of complying with government regulations and maintaining their own aging fleets are all significant concerns.

When asked to identify their company’s top three business opportunities this year, a full 75 percent of respondents said they expect existing customers to ship increasing volumes of goods, according to the survey. The same number said they foresee an increasing rate environment. Sixty-eight percent of respondents expect to acquire new customers in 2011.

 “As the economic expansion gains strength — although it’s clouded by recent global challenges — trucking companies are working hard to communicate with their shippers exactly what’s involved in moving their freight,” said Dan Clark, president and general manager of GE Capital’s Transportation Finance business. “At the same time, shippers in the U.S. should try to understand the challenges that are impacting trucking executives’ business decisions.”

Executives said their biggest challenge will be recruiting and hiring quality drivers, cited by 74 percent of survey respondents. Two other widespread concerns are the rising costs of diesel fuel (67 percent) and equipment parts and maintenance (41 percent). Additionally, they are concerned about the operational costs of complying with recent government regulations related to the hours that drivers may work and the reporting of safety, compliance, vehicle, driver and regulatory violations to the Federal Motor Carrier Safety Administration.

While shipping capacity is tight, nearly half (48 percent) of survey respondents expect the number of competitors in their market to decrease while an additional 39 percent expect the competitive landscape to remain unchanged.

“In previous business cycles, the positive volume and rate conditions that we’re seeing now would’ve primed the market for new entrants,” said Serena Tse, GE Capital, Americas’ senior vice president and transportation industry research manager. “Even though carriers have a tremendously positive outlook on business conditions and revenues, they’re sobered by concerns about profit margins.”

Additional findings from the survey include:

• A significant portion of carriers intend to maintain their fleet size in 2011; however, 68 percent anticipate adding to their sleeper cab fleets and 70 percent adding to their trailer fleets in 2012.
• Forty-nine percent of carriers expect the average age of their fleets to decline in 2011, likely a result of replacing older equipment; 25 percent are planning to continue using their existing equipment. The aging is concentrated in the long-haul segment of the industry.
• Carriers are positive about having adequate access to capital this year, with 43 percent expecting it to increase and 46 percent expecting it to stay the same.
• Executives representing fleets with 1,000 or more trucks are generally more optimistic about business conditions than those with smaller fleets, likely due to the latter’s regional exposure.
• Those in the Southeast are the most positive about trucking conditions, while those in the Southwest are least optimistic.

GE Capital surveyed owners, general managers, chief financial offers and other industry executives in March 2011.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

The National Private Truck Council has followed the lead of the American Trucking Associations and the Truckload Carriers Association, coming out with a policy endorsing the federal government’s proposal to mandate electronic onboard recorders to track driver hours of service for nearly all carriers.

The NPTC board of directors adopted the new policy during its meeting at the group’s annual convention in Cincinnati over the weekend. Rick Schweitzer, the group’s counsel, recommended the policy change and announced it to the general membership in attendance Monday.

The group had three conditions for its support:

1. The technology must be cost effective and accurate.

2. It must protect data ownership and access for carriers and drivers. “It’s unnerving for defense attorneys to know there’s going to be an EOBR with information on the driver’s operations and probably a lot of other data, like truck braking speed is available, and we want to protect to the extent we can access to that data,” he said.

3. Eliminate all supporting document requirements. “It makes no sense to have a 21st century electronic system and still have this requirement that you have to have all your fuel receipts and dispatch orders and 32 other documents to check against the electronic logs,” Schweitzer said.

He noted that most private carriers of any size have already adopted some sort of electronic onboard recorders, so it’s not a huge leap for this segment of the industry.

“It’s going to happen,” he said. “This is one time we can be on the side of the angels, we can be the good guys saying we support technology to help us comply with HOS rules.

Probably the most important reason to adopt EOBRs, Schweitzer said, is the Federal Motor Carrier Safety Administration’s new CSA enforcement program.

“One of the BASIC areas where carriers are scored is in driver fatigue, and most of the violations for driver fatigue have nothing to do with fatigue or drivers exceeding their hours — they’re paperwork violations,” he said. “If you go to a complete EOBR system, I think it will eliminate a lot of those violations.”

In March, TCA adopted a new policy in favor of electronic logging and will support the Federal Motor Carrier Safety Administration’s proposed near-universal mandate for electronic onboard recorders (EOBRs) to track driver hours of service.

ATA followed suit earlier this month, announcing that its membership endorsed a policy supporting federal laws and regulations that would require trucking companies to use electronic logging devices to monitor driver hours-of-service.

ATA had the same concerns about the law as NPTC when it came to affordability/accuracy, protection of privacy and supporting documents.

The current FMCSA rule, which will go into effect June 4, 2012, says that carriers that violate hours of service rules 10 percent of the time, based on single compliance review, must use electronic onboard recorders to track driver hours. It will affect only 5,700 interstate carriers.

The rule the agency is now proposing, which will go into effect three years after it is made final, will cover all of the approximately 500,000 carriers now required to maintain driver logs. It will create a market for at least 2 million recorders by one estimate, although other estimates go as high as 3.4 million. It also covers requirements for documentation to prove compliance with the hours of service rule, and it would require carriers to monitor driver compliance with the rule.

Under the proposal, violators of the recorder requirement would face civil penalties of up to $11,000 for each offense. Noncompliance would also negatively impact a carrier’s safety fitness rating and DOT operating authority, the agency said.

The proposal will not apply to short-haul interstate carriers that use timecards to document hours of service.

In addition, two senators have restarted last year’s effort to pass a bill that would mandate electronic onboard recorders on most trucks.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.

The hearing, “Reforming the Nation’s Surface Transportation Programs,” focused on a variety of transportation issues. Tonko used his testimony to talk about Jason Rivenburg, a truck driver who was murdered while parked overnight at an abandoned gas station. The hearing is part of the effort by Congress to write a new highway re-authorization bill.

“We are hopeful that Mr. Tonko’s words will hit home with the committee and we thank him for his ongoing, bipartisan efforts,” said Todd Spencer, Executive Vice President of OOIDA. “The trucking industry faces a litany of issues and the least we can do is to make sure drivers have a safe place to rest while delivering the nation’s goods.”

Tonko had previously introduced Jason’s Law in the U.S. House to address the truck parking shortage and improve conditions at current truck parking facilities.

“Mr. Tonko truly understands the connection between truckers and the role they play in the success of all small businesses,” said Spencer. “Protecting their safety is one of many key issues that need to be addressed as more and more expectations are placed upon them.”

The Owner-Operator Independent Drivers Association is the largest national trade association representing the interests of small-business trucking professionals and professional truck drivers. The Association currently has more than 151,000 members nationwide. OOIDA was established in 1973 and is headquartered in the greater Kansas City, Mo., area.

Formal fuel surcharge programs include a guaranteed minimum fuel payment on every load, a graduated fuel payment that increases with the weight of the cargo being shipped, and an empty mile fuel payment.

Daily Express says it was the first carrier to create a formal weight-based fuel payment system five years ago. This weight-based fuel payment is a benefit to owner-operators hauling overweight machinery, equipment and wind energy products, since extra weight cuts fuel mileage. Daily Express also formed a fuel surcharge using a base cost of $1.10 per gallon and a fuel economy of 5 mpg. Owner-operators receive extra compensation for any time fuel is $1.15 or greater.

Daily Express is also promoting its empty mile fuel payment to cover the owner-operator’s uncompensated fuel cost for empty miles. It is common for carriers to offer some form of fuel surcharge payment for loaded miles however Daily Express has a formal fuel payment to help cover empty miles.

Cutler recently was hailed by Owner-Operator Independent Drivers Association (OOIDA) for 34 years of accident-free driving. According to OOIDA, the Safe Driving Award Program is designed to “recognize and reward OOIDA members for their safe, accident-free years while operating a commercial vehicle.

“Safe driving awards are available to all eligible OOIDA members who qualify based upon the number of years for which the member has operated a commercial vehicle without being involved in a preventable accident.”

The long-haul trucker and Vietnam veteran said he got his start driving large vehicles in the Navy while on shore duty, and hasn’t stopped since.

“I’ve stuck with it because I want to do my part to keep America moving,” Cutler said. “People don’t realize that truckers are the life-blood of this country. I do what I do so when moms need to get milk from the grocery store, it’s there to pick up.

“ I’ve put a lot of effort into this industry and devoted my life to driving. America stops without truckers.”

Cutler said he drives seven days a week and has logged more than 7 1/2 million miles.

“I’ve covered 48 states in my career and have even driven to Alaska from Florida,” he said. “The hardest part of my job is getting the commodity, whatever it happens to be, delivered on time, no matter what Mother Nature happens to be doing. Whether it’s storming, sleeting or the sun is beating down, we have to get the product there. I’ve been over every mountain range in this country in every kind of weather.”

Cutler says the best part of his job is “being a paid tourist.”

“I’ve been all over and seen the changes in this country,” he said. “The camaraderie between truckers is also really great. You can sit down at a counter at a truck stop and talk to anyone. If you see another truck broken down on the side of the road, you stop, no matter when your load is due and help them out.

“It’s been that way since I started, and I love it.”

As for his clean driving record, Cutler said he considers safety number one.

“I didn’t expect the recognition at all, but it means I’ve been doing something right,” he said. “So many truckers say it can’t be done, that there are too many variables on the road, but I am living proof.

“Pay attention to the road, concentrate and keep your mind on what you’re doing. Safety has to be first.”

Source: http://www2.mooresvilletribune.com/news/2011/apr/11/local-long-haul-driver-saluted-trucking-industry-ar-939185/

The United States and Mexico recently agreed to implement the long-delayed cross-border trucking provisions of the North American Free Trade Agreement, whereby Mexican fleets must demonstrate that they meet the same safety standards as U.S. fleets and Mexican trucks are prohibited from hauling freight between destinations within the United States.

Through the new program, the U.S. Department of Transportation will lift tariffs and allow GPS systems to be used for tracking to ensure compliance.

“This announcement is good news for the U.S. businesses that have been hurt by Mexico’s retaliatory tariffs, including the trucking industry, and we look forward to the U.S. finally living up to its commitments under the North American Free Trade Agreement,” ATA CEO Bill Graves said in a statement. “ATA is hopeful that the lifting of the retaliatory tariffs that were imposed after a previous cross-border trucking pilot program was abolished by Congress in 2009 will help the two countries resume more normal trading patterns and increase the flow of commerce between the two countries.”

Final negotiations to get the program started are expected to take several months.

Mexico is the second-largest export market for the United States.

In an industry update earlier this month, Overland Park-based trucker YRC Worldwide Inc. (Nasdaq: YRCW) referred to reports that transportation between the United States and its NAFTA partners was up almost 20 percent in January compared with a year earlier, and 85 percent of that freight was being moved by rail or truck.
Read more: American Trucking Associations praises restart of U.S.-Mexico program | Kansas City Business Journal

Recognizing the demand for a viable alternative, many trucking companies have put together lease purchase, lease option, and drive-to-own opportunities for drivers unable to pursue their dreams through more traditional financing sources.

The question is: Does leasing a truck from a carrier ever make financial sense for the driver — or should you avoid all of them like the plague?

The answer to that question depends upon your individual circumstances — and whose message you choose to believe.

The Carrier

From the carrier’s perspective, leasing a truck makes perfect sense for those drivers who are credit-challenged or have a lack of down payment money and other start-up costs.

Carriers have heavily marketed lease opportunities to would-drivers as a short-term path to truck ownership, and thousands of drivers have taken the bait.  While the terms vary from carrier to carrier, carriers claim that leases benefit drivers in a variety of ways, including:

• Low Down Payments (in some cases — no down payment)
• Low deposits
• No long-term commitment
• Opportunity to drive up-spec equipment
• Pride of Ownership
• Relaxed credit standards (in some cases no credit checks)
• Lease completion incentives (cash back, lease buy-outs, etc.)

This gives lease operators the chance to experience first-hand the perks of ownership, while limiting their financial risk.  Many carriers advertise their leases as being “walk-away” leases, meaning that the driver can simply walk away from their lease obligation if for some reason things don’t work out.

Driver Advocacy Groups

Driver advocacy groups have a different take on carrier-sponsored semi truck lease opportunities.  Some, such as the Owner-Operator Independent Drivers Association (OOIDA) have successfully filed class-action lawsuits on behalf of drivers who have fallen prey to unfair or illegal carrier leasing practices.

In recent years OOIDA has successfully won large settlements for drivers in high profile cases against carriers such as C.R. England, Inc., Landstar, Inc., Ledar Express, and Arctic Express, Inc.

Some of the issues raised in these lawsuits have been violations of federal truth in leasing laws, the failure of carriers to return escrowed funds at the end of the lease or when it is terminated, illegal or improper deductions, and in some cases — outright fraud.

Driver Complaints

For many drivers, leasing a truck has been nothing short of a financial disaster.  Instead of allowing them to experience the joys of truck ownership and the fulfillment of a dream, what they have experienced instead has been a protracted nightmare: low miles, unauthorized deductions at the hands of sometimes unscrupulous carriers, and confusing lease contracts written to heavily benefit carriers.

Many drivers have been taken advantage of by these deals and — frequently — the lease drivers are left holding the financial bag, owing their carriers more at the end of the week than they have managed to earn by driving.

Some of the chief complaints that some drivers have about these lease contracts is that most carriers make it nearly impossible to earn a living due to:

• Large Payments
• Inflated fees for insurance
• carriers that over-charge them for fuel taxes
• carrier-mandated repairs at company-owned repair facilities (with repair rates set by the carrier)
• Large deposits, escrow, and repair accounts

In addition, some drivers charge that their carriers don’t clearly spell out in the lease agreement under what terms drivers can access tire and repair money — and some carriers make it impossible to access those funds by setting very high minimum spending limits before the funds can be tapped.

Adding insult to injury, many carriers promising drivers that they can walk away from their lease purchase obligations if things don’t work out keep escrowed repair funds and deposits if the driver elects not to complete the lease.  This has caused many drivers to question whether lease opportunities are an opportunity — or a pathway to certain financial ruin.

Some Drivers ARE making money

While there’s very little doubt that leasing a truck may very well be a huge gamble for some drivers, it’s also true that there ARE drivers making money with a truck lease opportunity.  Some earn a very good living.

Since there is no national database available with statistics showing how successful or unsuccessful drivers can be with commercial truck leasing, drivers are left to form their own conclusion.

The best policy is to do your homework

If you’re determined to roll the entrepreneurial dice — and your current credit situation doesn’t allow it — you are basically left with the choices of driving a company truck until your credit situation improves or finding a trustworthy carrier from whom you can lease a truck, as a lease operator.

If you elect to lease a truck, the best advice you can follow is to:

Talk to other drivers — If you’ve spent any time listening to truckers talk on the CB or in a truckstop, you’re very well aware that some drivers love to hear themselves talk.  Some are more reliable than others, so don’t automatically assume that the picture a particular driver paints of their company bears even a faint resemblance to the reality that you’ll experience of you opt to go to work for them.

Some drivers have nothing but venom for their carrier, regardless of how driver-friendly they might be, while others will portray their carrier as heaven on Earth — even if they’re losing their shirt and are on the verge of quitting.  A good report will spell out the good, the bad, and the ugly, but it will ultimately be up to you to piece it all together and decide how accurate each report is.

Carefully research carriers — Since you’re not looking for a company driving job, do a thorough job of researching carriers.  While there are many outstanding companies in this industry, there are also some duds.

Keep in mind, too, that your initial point of contact at most companies will be the recruiting department — and recruiters are under constant pressure to fill seats with quality drivers.  This pressure can bend some to the breaking point, which can lead to recruiters telling applicants what they want to hear in order to get them to orientation.  Once you’ve signed on the dotted line and have begun leasing a truck is a terrible time to find out that a company is a poor fit.  So do your homework — and ask lots of questions, being ever-mindful that the answers that you’re hearing could very well be sweet nothings designed to win your trust and entice you to agree to their sales pitch.

Find out what’s in the contract — The amount of money that you will make leasing a truck from any company or truck leasing company will depend largely on what it costs to operate the truck.  In addition to the cost of the tractor lease payment, many carriers will expect you to pay:

• A deposit or a down payment (sometimes financed over a short period of time at the beginning of a lease)
• For Base Plates and permits
• For deadhead and/or bobtail insurance
• Pay for cargo insurance
• Pay for cargo insurance or accept responsibility for freight claims
• Set money aside for maintenance, towing, repairs, or tires

It’s important to note that just because a carrier has you set money aside for a specific purpose that that’s not necessarily how it will be utilized.  For instance, if your tire escrow account has $1,000 in it, but the carrier requires a tire repair expense to be at least $500 before you can tap into it, you will be forced to pay most tire-related expenses yourself.

The same holds true for breakdowns and repairs not covered by any existing truck warranties.  So find out what the details are before agreeing to contract provisions that could make profitability a pipe dream.

Run the numbers — Finally, before agreeing to any carrier truck lease contract, it’s critically important that you run the numbers and make sure that you will be able to make money.  If you can’t make money on paper, it’s highly unlikely that you’ll be able to make it work in the real world.

The following income and expense budget will help you to decide whether you should be able to make it as a truck lease operator.  While some carriers will pay for certain items, this gives you a good idea of some of the expenses that you might incur.

• Income
• linehaul revenue (mileage or percentage-based)
• fuel surcharges
• stop pay/unloading/etc.
• Fixed Expenses
• Tractor payment
• Trailer rental
• BT/DH Insurance
• Cargo Insurance
• Licensing
• Permits
• Accounting/administrative expenses
• Variable Expenses
• Truck fuel
• Reefer fuel (if refrigerated)
• Mileage fees
• Excess mileage fees
• Tires
• Repairs
• Maintenance
• Truck/trailer washes/trailer washouts
• Cellular services
• Tolls
• Workman’s compensation insurance
• Road, fuel, usage, mileage taxes
• Cargo claims
• Lumpers/gate fees
• Scale/weight tickets
• Fines
• Parking
• Legal fees
• Check cashing fees
• Qualcomm rental/usage fees

When figuring how much you can expect to earn, it’s of critical importance that you have accurate (and realistic) numbers.  For instance, if you base your profitability on your ability to drive an average of 3800 miles week in, week out, you will find that it’s impossible to meet that threshold if you take four or five days off in a given month.

Run several sets of numbers based on varying mileage totals to see if you stand a good chance of meeting your income needs.

While these are the most-commonly seen income and expense items, some carriers may have additional expenses not listed here.  If that is the case, be sure to include those items in your projections to ensure that you’ve taken everything into consideration.

Tax and insurance considerations

As a company driver, many carriers have fringe benefits — health, dental, vision, and life insurance — available for their drivers.  However, most carriers will not offer the same benefits to you as a lease operator, and if they do, you won’t be able to get them nearly as cheaply as you would as a company driver.  In addition, as a lease operator you will be responsible for your own retirement planning, which will come out of the ever-dwindling pool of money left over at the end of each week.

Taxes, too, will be your responsibility.  Instead of your carrier deducting money from your settlement checks to cover federal and state withholding requirements, you will be required to file quarterly federal and state income tax returns, as well as to make estimated tax payments based upon those returns.  Remember, too, that as a self-employed entrepreneur, you will also be responsible for paying self-employment taxes, which reflects the employer’s share of social security and Medicare taxes.

The bottom line

When you add it all up, leasing a truck will be a daunting financial endeavor under the best of circumstances.  However, times are tough in the transportation industry.  Some drivers have the business savvy, perseverance, and the luck it will take to survive — and thrive — in today’s trucking environment.

Unless you go into a truck lease arrangement with your eyes wide open, are aware of every minute detail, and can manage your business like a true professional, then you don’t stand a chance.

However, if you can, you might be one of the extraordinary drivers that proves that some people can succeed even in very difficult circumstances with sheer determination and a can-do spirit.

Are you one of them?  If you are, this might be the deal for you.  If not, or you’re not sure, your best bet is to stay behind the wheel of a company truck and take the safer, less risky path to your destination.

Are you interested in purchasing or leasing a truck and becoming an owner/operator?

Landstar is always recruiting drivers interested in becoming an owner/operator.  If you are interested in obtaining more information about purchasing or leasing a truck and driving for Landstar please call Darla, Barb or Mike at the RKY Recruiting Agency, 330-484-6013 option 2.  You can also go to our website, www.nonforceddispatch.com, to obtain information and download our 10 page driver application.

If you are interested in being a driver only please give us a call at 330-484-6013 option 2 as we are always looking for drivers for Landstar fleet owners.