Truckers

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Sunday, February 20, 2011

Flat Rate Or Mileage?



When operating an Oregon authority whether you are an Intrastate Carrier or Interstate Carrier with an IRP License you will be assessed road fees in the form of the weight/mile Tax. The decision to pay road taxes as a flat rate or based on mileage is a very critical decision. As of October 2010 all road assessments went up across the board. Oregon DOT encourages all carriers to use the Trucking Online website to pay road taxes and to make sure there are no mathematical errors when reporting.


To give you an example of how much these road fees have climbed to, a unit that is licensed for 80,000 lbs will pay approximately $16.00 for every 1000 miles traveled. As I have stated earlier it is critical to make the best decision as to how you will pay road fees. How many miles your company runs isn’t the only consideration, but generally those operations that run a lot of miles will save money by paying a flat rate. When registering your power units for flat rate you must also declare a commodity to be hauled. Any time your vehicles haul something that is not the declared commodity you will be subject to pay fees based on mileage for that commodity. Carriers are only allowed to change the status of how they pay road taxes once per year, you cannot go back and forth based on jobs that require that a lot of miles be logged.


For you heavy haulers you will be required to pay an additional annual extended weight permit in addition to be charged by axle weights. Remember that flat monthly fee reports are due by the 10th of every month and payments are to be included. A late report not postmarked by the 10th of the month will be subject to a 10% fee.


I highly recommend using MCTD (Motor Carrier Trucking division) Trucking Online website. Simply enter you Oregon mileages and the program calculates all fees error free and allows for direct payments. You can keep abreast of your account and make changes online really saving time and money.

Saturday, February 12, 2011

Fuel Saving Tips For Fleet Managers

   Fuel expense is the number one expenditure in any type of trucking business no matter the size. I have several fuel saving tips that may be helpful in protecting your companies bottom line. If you are the owner of a single truck operation or a fleet manager at a much larger transportation business the fuel saving tips I suggest may very well help in saving thousands of dollars per/year.


   In no particular order there are many actions you can take to save fuel in a trucking operation. Institute a tire program that includes proper rotation and more importantly correct tire inflation. Each tire that is under inflated by 10% can reduce fuel economy by about 3.3 %. When purchasing tires keep in mind that ones that have the least rolling resistance will save the most fuel. Did you no that worn tires get better fuel economy than new tires by approximately 7%?


   Setting an idle shutdown on every truck in the fleet at about 6 min will ensure that precious fuel isn’t being consumed while the engine idles. A big rig burns about ½ gallon of diesel per/hour, which can really add up in larger fleets. You should also install or program engines to be governed at a top speed of 62 mph. Your drivers may not like this reduced speed limitation but in most states the commercial truck speed limit is only 55 mpg.


   Have you ever heard of air tabs? There are a couple of companies that manufacture a stick on plastic device that improves vehicle aerodynamics. These devices are placed 3 per-linear foot and have proven success-reducing drag on tractors and trailers.


   Another great tactic that has helped the company I work for save many thousands of dollars on fuel is to purchase diesel in lots locking in prices now on the assumption prices will rise dramatically in the future. This concept in fuel purchasing is not unlike trading futures for corn or any other commodity. Just be careful because buying fuel in lots can backfire as well, when the fuel prices begin to fall you may end up paying more for the fuel that has previously 
been locked in at a higher price.


   The way that your drivers operate the vehicle is huge in saving or wasting fuel. We know that we have controlled the speed issue with engine governors but lets look at shifting habits. It is proven that progressive shifting improves fuel efficiency. Basically progressive shifting is the act of up shifting into higher gears as soon as possible allowing the big rig to achieve maximum speed sooner; diesel engines are designed to produce more torque at lower rpm’s. Also when training your drivers to use progressive shifting techniques have them use cruise control when applicable road conditions allow. Cruise control saves fuel.


   I think I have offered some valid advice on how to increase fuel economy in trucking fleets, lets re-cap:


· Tires- Proper Inflation And Rotation
· Idle Shutdown Timers
· Air-Tabs- Increase Aerodynamics
· Purchase Fuel In Lots
· Progressive Shifting Techniques
· Cruise Control
· Use Of Engine Governors 


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TheTruckersReport.com

Wednesday, February 2, 2011

A Focus On Compliance Issues

   Running a trucking company regardless of the number of employees must be compliant with all sorts of regulation to remain legal and viable. There are many issues that must be covered and conveyed to your staff and employees that a required by the state corporate division, O.D.O.T, Federal Motor Carrier Safety Division, O.S.H.A and the Department of Environmental Quality to name a few. It can be somewhat overwhelming to keep track of all these trucking compliance issues. I strongly suggest that you owners assign one individual to be the safety/compliance liaison. If you a very small trucking company with less than 10 employees than you as the owner or CEO may have to wear several hats. For instance my wife and co-owner of our Dump Trucking business was the secretary and treasurer who also dealt with payroll and compliance issues.

   If your company is incorporated there is the matter of keeping Corporate Minutes and holding an Annual Shareholders Meeting. To remain solvent as a corporation you must comply with the requirements from the State Corporate Division even if that only includes a wife and husband. The beautiful thing about this requirement is that the state doesn’t specify where the annual shareholders meeting must be conducted. Plan a weeklong trip to Hawaii or some other sought after destination to hold your company’s Annual Shareholders Meeting. As long as you can prove to the IRS that this meeting occurred during that time period and there was an agenda and corporate minutes were recorded than it’s very possible to write off most of your trips expenditures. (Check with your accountant on all tax ramifications) Corporate minutes don’t have to be a complicated thing at all. In our business we simply kept a 3-ring binder and labeled it Corporate Minutes. Any time there is a meeting or change in the companies procedures simply type up what has transpired and place a copy in the binder. For a full list of Oregon’s corporate requirements go here.

   Here is a list of a few key issues that your new compliance assignee may need to follow or implement:

  • Truck Licensing: plate renewal including IFTA (International Fuel Tax Agreement) placing decals and reprinting licenses.
  • Special Licensing i.e.: overweight and over size permits, running out of state, base plate changes (apportioned)
  • Weight-Mile Tax Reporting
  • Trusted Carrier Status- (obtaining transponders)
  • Adding vehicles to the fleet
  • Dealing with tickets and road use assessments
  • Fleet Safety – Personnel Safety-Holding Safety Meetings
  • Maintenance Programs
  • Fleet Insurance Issues
  • Scale Crossing Reports

As you can see the compliance person will hold a very important position within the trucking company with a lot of responsibility, finding the right individual is key in running a successful trucking business.