So you want to start a trucking business. That’s great! The trucking industry is booming and there’s never been a better time to get involved. In 2021, the trucking industry hauled 10.93 billion tons of freight, which is greater than the 10.23 billion tons from 202. What does this mean for you? It means that there is a lot of work to be done and plenty of room for your new trucking business to grow.
According to the American Trucking Association’s U.S. Freight Transportation Forecast, freight tonnage is expected to grow by 24 percent by 2022. Projections show that revenue in this industry will grow by 66 percent. So, if you’re looking to start a trucking business, now is the time!
But before you jump in, there are a few things you need to know. This article will cover the basics of starting a trucking business, from obtaining the necessary permits and licenses to finding the right insurance policy for your company.
Permits and Licenses
Before you can start your trucking company, you must first get the appropriate permits and licenses. Depending on the type of goods you’ll be transporting and the size of your fleet, you may need to apply for a DOT number, ICC number, or both. You can find more information on the Federal Motor Carrier Safety Administration website.
Ensure that you are properly registered and licensed with the US DOT (Department of Transportation) and the FMCSA (Federal Motor Carrier Safety Administration). You will need these registrations to operate legally.
The next step is to get your Commercial Driver’s License (CDL). To do this, you’ll need to pass a series of tests administered by your state DMV. Once you have your CDL, you’ll be able to start driving trucks for your business.
You will also need to get a Business License from your state or local government. This is generally a simple process, but requirements vary by location. So don’t forget to check with your local authorities to see what’s required.
Another important consideration when starting a trucking business is insurance. You’ll need to make sure you have the right kind of insurance to protect your business in case of an accident. The amount of coverage you’ll need will depend on the size and scope of your operation, so be sure to speak with an insurance agent to get an accurate estimate.
There are a few different types of insurance that trucking businesses need to have:
- Motor vehicle liability insurance: This type of insurance covers damages that you may cause to other vehicles or property while operating your trucks.
- Cargo insurance: This type of insurance covers the loss or damage of the goods you are transporting.
- Non-trucking liability insurance: This type of insurance covers damages that you may cause while your truck is not being used for business purposes (e.g., if you are driving your truck to and from your home).
- Occupational accident insurance: This type of insurance covers injuries that you or your employees may sustain while working.
You can obtain all of these types of insurance from most insurance companies that offer coverage for businesses. Ensure that you are getting the best coverage for your needs by shopping around and comparing rates.
Of course, you can’t start a trucking business without trucks! When purchasing vehicles for your fleet, it’s important to choose ones that are reliable and fuel-efficient. You’ll also want to consider the size of your fleet and the type of goods you’ll be transporting.
For example, if you’re transporting heavy cargo, you’ll need trucks with a higher payload capacity. Purchasing diesel trucks is also a good idea, as they tend to be more reliable and have lower maintenance costs than gasoline-powered trucks.
You’ll also want to make sure that your trucks are equipped with GPS tracking devices so that you can keep tabs on your drivers and ensure that they stay on schedule. This is especially important if you’re transporting time-sensitive cargo.
In addition to trucks, you’ll also need to purchase trailers. Again, you’ll want to choose ones that are durable and fuel-efficient. Be sure to match the size of your trailer to the size of your truck so that it can be properly towed.
Finally, you’ll need to purchase some other essential equipment, such as tarps, chains, and straps. This equipment is necessary for securing cargo and keeping it safe during transport.
Starting a trucking business is a great way to enter the transportation industry. However, there are a few things you need to do before getting started, such as obtaining the necessary permits and licenses and securing insurance for your business. Once you have those things taken care of, you can start shopping for trucks and other equipment for your new company.