Starting your own trucking business as an owner-operator can be a big dream. One of the main hurdles you’ll face is getting a reliable truck. Trucks are expensive, and only some in the trucking business have enough money to buy one upfront.
Lease-purchase trucking is an option if you want to work towards owning a truck while gaining valuable driving experience. However, these programs have rules, and they might not suit everyone.
Given the new Biden regulation on independent contractor classification, much has been talked about lease purchase decisions.
The American Trucking Association (ATA) strongly opposes the recent Biden Administration rule on independent contractor classification, criticizing the decision to replace a clear standard with a more complex one.
ATA President Chris Spear expresses concern about the potential negative impact on the trucking industry and workforce choice, especially for the 350,000 truckers working as independent contractors.
Despite the administration’s arguments, the ATA asserts the vital role of independent contractors in the economy, pledging to work with stakeholders to oppose the rule.
In the end, it should be well thought out by the person getting into a lease purchase program. That’s why we have a detailed guide on what you should and shouldn’t do when considering a lease-purchase trucking arrangement.
What is a lease purchase program?
Lease purchase programs are like rent-to-own plans designed for truck drivers. The trucking companies that lease and sell trucks also manage these programs.
In a lease purchase program, you make an initial payment for a truck and keep making payments for a certain time. While making these payments, you can also work for the company leasing the truck. Once you fully pay for the truck, it becomes yours, and you can use it for your trucking business.
Two kinds of lease drivers
Before we dive into the main part of this article, it’s important to know that there are two types of lease drivers.
1. A lease driver who goes for a lease purchase trucking company and uses their freight.
2. A lease driver who leases from a commercial equipment financing company and arranges their own freight.
You can choose either option, but many drivers find it simpler to lease with a trucking company, especially if they’re new to leasing.
Do’s of a lease purchase program
Stepping into the lease purchase program as a truck driver is a significant move that demands careful consideration. In this section, we’ll walk you through the essential “do’s” to set you on the right path for a successful and fulfilling journey toward truck ownership.
1. Do your homework
Before you sign a lease agreement, it’s essential to do some research and find a company that matches what you’re looking for. Check their policies on time off, the availability of freight, and the expected pay.
Leasing from a carrier means you have the support of that company. They provide tools to help you, and you’ll have access to the freight they offer. Their program will be designed based on the type of freight the carrier transports, giving you a good idea of potential earnings.
Leasing independently from a commercial equipment financing company and working for various freight clients can be challenging, especially if you’re new to leasing. While you can earn significantly more than with a carrier, there’s also the risk of earning much less.
Also, find out what kinds of trucks they offer. They might have limited options, and you’ll need to look elsewhere if you want a different make or model.
2. Go through the contract thoroughly
Review the agreement thoroughly before signing, as many drivers face financial difficulties due to overlooking terms they didn’t understand. If the contract is complex, seeking guidance from a contract lawyer is wise.
Investing in a lawyer’s expertise now, even with a small fee, can prevent potential hardships down the road. Understanding the terms and conditions ensures you know your commitments and rights throughout the lease agreement.
3. Choose a good company to work with
Leasing provides freedom, but it also brings significant responsibilities. While picking your own freight is nice, making wise choices is crucial to avoid problems. You’ll need to make decisions that benefit your business, even if it means spending more time on the road.
Before committing to a lease, thoroughly examine the leasing company and ask to review a sample lease. Ensure there are no unexpected terms or costs, and feel confident about working with the company and transporting their freight.
4. Have a bookkeeper
When you start your lease-to-own trucking adventure, having a bookkeeper and accountant is crucial. Before you begin, discuss your budget with them to get their advice on managing taxes and other business costs.
They can guide you on which expenses to track using receipts. Once you’ve set up this connection, use their expertise; after all, they are professionals for a reason.
Don’ts of a lease purchase program
Starting your journey toward truck ownership through a lease purchase program can be tricky. To make sure things go smoothly and you don’t end up facing unexpected problems, let’s explore the things you shouldn’t do. These pitfalls might hurt your wallet and your dreams of becoming an owner-operator.
1. Take your time, don’t hurry
Starting your journey toward truck ownership through a lease purchase program requires careful consideration. Don’t rush into deciding about the lease. Take your time to understand the terms and conditions thoroughly.
It’s a significant commitment, and being in a hurry might lead to unforeseen issues that can cause financial troubles or other complications down the road. Spend time checking every aspect to ensure the deal aligns with your goals and financial capabilities.
2. Don’t disregard insurance coverage
It is essential not to overlook the critical aspect of insurance coverage when engaging in a lease purchase program. Ensuring that the leased truck has comprehensive and adequate insurance coverage is important.
Neglecting this consideration can expose you to significant financial risks, especially in the unfortunate occurrence of accidents or unforeseen incidents during your trucking operations.
Having good insurance coverage acts as a protective shield, providing financial security and mitigating potential liabilities that may arise on the road. Therefore, thoroughly assessing the insurance coverage for the leased truck is a proactive step toward safeguarding your lease.
3. Don’t ignore industry trends
Staying well-informed about the latest industry trends is of utmost importance. Ignoring these industry dynamics can profoundly impact your decision-making process, influencing not only the terms of your lease but also shaping your overall business strategy.
Recognizing and adapting to emerging trends is instrumental in positioning your trucking business for success, ensuring that you are well-prepared to navigate the ever-evolving landscape of the trucking industry.
4. Don’t skip customer reviews
Conducting thorough research into customer reviews about the leasing company is crucial in the decision-making process. Disregarding valuable feedback from fellow lessees may lead to overlooking potential challenges or advantages associated with the services provided by the company.
Customer reviews offer insights into the firsthand experiences of individuals who have engaged with the leasing company, providing valuable information that can influence your choice and contribute to a more informed decision. By actively considering and analyzing customer reviews, you can gain a comprehensive understanding of the leasing company’s reputation, customer satisfaction levels, and potential areas of improvement, ensuring a well-rounded assessment before entering into a lease agreement.
May you make the best choice!
Now that you’ve gone through the do’s and don’ts of the lease-purchase in trucking, we hope it helps you make the right decision. Becoming an owner-operator through a lease purchase program needs careful thinking and smart moves. By doing what you should and avoiding what you shouldn’t, you set the stage for a successful journey. Think of it as a roadmap to owning your truck and making it big in the trucking business.
Freight brokers play a crucial role in connecting shippers with carriers, ensuring goods move swiftly and smoothly from one point to another. With the boom in online shopping, especially during the global pandemic, there has been an increasing demand for efficient freight transportation.
To streamline their operations and improve their capacity to move freight quickly, many freight brokers employ Transportation Management Systems (TMSs) to source and manage their carriers. However, the importance of integrating these TMSs with load boards cannot be overstated.
Let’s look into the significance of TMS and load board integrations in the freight industry, emphasizing their potential to provide value-added benefits to brokers.
The Role of TMS in Freight Brokerage
TMSs have revolutionized the freight brokerage industry. As the center of operations for freight brokers, TMSs enable brokers to efficiently manage and monitor shipments, carriers, and customers. TMSs offer features like order management, cargo tracking, and delivery planning, making them indispensable tools for brokers seeking to increase efficiency and customer satisfaction.
Some popular TMSs include McLeod, Samsara, MercuryGate, Aljex, 3PL Systems, Oracle, PCS, and Transport Pro, all of which are widely used and offer some kind of load-sourcing option for their users. However, what many brokers may not realize is that these TMSs can be further empowered by integrating them with multiple load boards.
Unlocking Greater Capacity through Load Board Integrations
Load boards are web-based platforms where shippers or brokers can post available loads, and carriers search for and book loads that match their availability. By integrating their TMS with load boards, brokers can significantly expand their reach and gain access to an expanded network of carriers. This integration allows brokers to source carriers quickly and efficiently, resulting in faster freight movement, happy customers and increased profitability.
The Benefits of TMS and Load Board Integrations
Expanded Capacity: Perhaps the most evident advantage of TMS and load board integrations is the expanded capacity. Through the load boards, brokers can tap into a vast pool of carriers, ensuring they never face a shortage of options to move freight. This capacity expansion is vital during times of high demand when securing reliable carriers can be very challenging.
Streamlined Operations: The integration between platforms can lead to streamlined and simplified operations, as brokers no longer need to switch between multiple platforms to source carriers. Instead, they can access load board information directly from their TMS, saving time and effort.
Real-Time Updates: Integrations also mean that real-time updates on load availability and carrier status can be viewed directly via the TMS. Brokers can make informed decisions quickly, resulting in faster response times and better customer service.
Enhanced Visibility: TMS and load board integration also results in improved visibility into the entire freight movement process. Brokers can track shipments, monitor carrier performance, and analyze data effortlessly directly from their TMS, leading to better decision-making.
Cost Efficiency: In many cases, load board integrations do not incur additional costs for TMS providers or users. The integration costs are often shouldered by the load board, making it a cost-effective solution for brokers.
Trucker Path’s Integration with Leading TMSs
Most leading TMS providers offer seamless integration options with popular load boards, making it easy for brokers to connect and expand their capabilities. Trucker Path integrates with many popular TMSs, such as McLeod, Transport Pro, 3PL Systems, Aljex, MercuryGate, and many others. These integrations give brokers direct access to the nearly one million carriers who rely on the Trucker Path app.
Final Thoughts
The importance of TMS and load board integrations in the freight industry cannot be emphasized enough. It is a win-win situation for both brokers and TMS providers. Brokers gain access to a wider pool of carriers, enabling them to move freight more efficiently and profitably. TMS providers are able to offer a value-added service to their broker customers without incurring significant integration costs.
All in all, TMSs should, and often do, wholeheartedly embrace load board integrations as an essential component of their offerings. It is a strategic move that not only enhances the competitiveness of their broker customers but also solidifies the position of TMS providers as a true partner in the fast-paced and ever-evolving freight industry.
Oct 31, 2023
Austin, Texas – Today, American Trucking Associations' Women in Motion proudly announces a strategic partnership with Trucker Path, a significant stride towards addressing and improving the concerns of women while on the road.
“ATA is committed to bringing more women into our industry and addressing their concerns. This partnership between Women in Motion and Trucker Path is a way to address one of the persistent concerns women in trucking express – safety,” said ATA President and CEO Chris Spear. “Helping women drivers identify truck parking facilities with essential amenities like well-lit parking, bathroom access and on-site security will play a role in addressing this longtime challenge for our industry.”
Through this new partnership with Women in Motion, Trucker Path will be adding a number of features to its existing mobile app that will help women identify and locate facilities that have seven specific features:
• Lighted parking
• Lighted bathroom access
• Lighted lounge areas
• Lighted shower facilities with 24/7 access
• Lighted laundry facilities with 24/7 access
• Round-the-clock maintenance
• Onsite security
Facilities with all seven will be marked with the Women in Motion logo. Drivers will be able to provide updates on the condition of these amenities through the Trucker Path mobile app.
“We are thrilled to introduce this innovative feature to our platform, a decision that deeply resonates with our commitment to inclusivity,” said Trucker Path CMO Chris Oliver. “Through our platform, women can seamlessly identify stops along their routes offering amenities catering to their needs, all while accessing real-time information on parking availability. Moreover, they can contribute valuable comments and reviews that will serve as a valuable resource for fellow women drivers. We eagerly anticipate our continued growth alongside Women in Motion as we collectively endeavor to make our industry more inclusive and welcoming for all.”
“Women in Motion and ATA have made increasing access to safe truck parking a primary mission, so helping women find those facilities while on the road is the next logical step in our furthering that mission,” said Women in Motion Co-Chair Sarah Rajtik, ATA Executive Vice President of Human Resources, Operations and Industry Affairs. “We’re proud to announce this partnership here, and we are looking forward to continuing our important work to make the trucking industry safer and more inclusive.”
To learn more about Women in Motion, visit https://www.trucking.org/WomenInMotion.
American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight. Follow ATA on Twitter or on Facebook. Trucking Moves America Forward
Contact: Sean McNally
703-838-1995
Oct 15, 2023
The health stakes are high for truck drivers. According to information shared by the Centers for Disease Control (CDC),truck drivers are twice as likely to smoke and be obese compared to other U.S. workers, generally leading to high blood pressure and diabetes. There's no way around the fact that the lifestyle of a truck driver can be damaging to one's health and well-being. High demands, long hours spent seated behind the wheel, poor eating habits and lack of exercise while on the road all create a perfect storm for obesity and illness.
A CDC survey shows that three out of four truckers say that they do not get the recommended amount of physical activity, that being 2.5 hours of combined moderate-intensity and muscle-strengthening training a week for adults. In fact, only one out of four male truck drivers say that they fit 30 minutes of exercise into their schedules five days a week.
Lack of exercise isn't just dangerous for a truck driver's health. It can also threaten their livelihood. If a professional truck driver develops a medical condition that impacts their ability to drive, they may be in jeopardy of losing their commercial operating license. Fortunately, truck drivers don't need to resign themselves to living sedentary lifestyles just because they spend a great deal of time on the road. There are many hacks for staying fit and active while pulling long hours.
Tips for Exercising as a Truck Driver
Trucks drivers don't have the luxury of enjoying a consistent, home-based schedule. They need dynamic, adaptive exercise protocols that work anywhere. These tips can help your health for the long run even if you drive the long haul!
Be Opportunistic
The world is your gym when you're a long-haul truck driver. When presented with downtime, it's important to scope out areas in the vicinity that are fit for exercise. Look online for nearby trails, public parks with running loops, truck stops with gyms, or school running tracks that are open to the public. Even a neighborhood with sidewalks can be enough to get in a good walk or jog. Just make sure it’s legal and safe to park your truck while you’re getting your exercise.
Bring Travel Workout Equipment on the Road
You can build a scaled-down gym in your cab if you know what to pack! Portable, lightweight exercise equipment that works out the same parts of the body as massive pieces of gym equipment are easy to find. Resistance bands, kettlebells, and dumbbells are all great for building lean muscle. If you're looking for a fun way to get in your daily cardio, a folding bike is excellent. Don't forget to invest in a pair of sturdy, comfortable sneakers to prevent foot injuries that could impede your driving abilities!
Log Your Exercise
It's easy to lose track of time when you're pulling long hours. Unfortunately, the blur of the road causes many long-haul truckers to lose motivation. Log your exercise daily to stay accountable! You can also consider enlisting the help of friends, family, or fellow truck drivers to stay accountable. Research shows that having a weight-loss "buddy" actually helps individuals to lose more weight compared to people who attempt to make changes without peer support.
Worker Smarter to Avoid Working Harder
Time is the most precious resource any trucker has. That's why optimizing workouts to burn as much fat as quickly as possible is often a good approach for drivers. Heat is one option. Time-pressed people in every profession are increasingly "working smarter" using infrared workouts that turn up the heat to tone up the body.
During an infrared workout, the body is oxidizing fat as part of a chemical reaction that transforms fatty acids into energy. The best way to describe infrared training is to say that it makes fat "scream" by using elevated temperatures to increase heart rate for greater caloric expenditure and fat burning. Additionally, infrared heat boosts blood circulation to muscle tissues to enhance exercise performance.
A Healthy Lifestyle on the Road Is Possible
A thousand miles can create a thousand excuses to not get fit when you're a long-haul truck driver. Everything changes once you realize that fitness is one of the keys to success on the road. Being consistent, working smarter, and understanding that healthy living is the only choice for long term success as a truck driver.
