Company News

With the second half of the year on the way, truck drivers are going to see increased fuel prices in 12 different states due to rising fuel taxes. Although some states’ have experienced increases that are less than a cent, other states’ taxes on diesel will be immediately noticeable. And, all of the following fuel tax increases took effect on July 1.

Tax rate shifts in a dozen states – from Connecticut to Virginia

In Connecticut, the diesel tax rate increased by 2.6 cents per gallon from 43.9 cents to 46.5 cents per gallon. Diesel taxes in this state are set to vary, mostly based on changes in average fuel price. The state’s new rate is still well below its peak of 54.9 cents in 2013, according to the Institute on Taxation and Economic Policy.

On the other hand, truckers in Illinois will notice the most sizeable increase in fuel prices, as the tax rate jumped by 24 cents on July 1. The increase in diesel tax went up from 21.5 cents per gallon to the current 45.5 cents per gallon. And, further east, the diesel tax in the state of Indiana increased by 1 cent, reaching 49 cents per gallon.

In the state of Maryland, diesel taxes increased by 1.35 cents per gallon, adding it up to a total of 37.45 cents per gallon. Going north, the fuel tax in Michigan went up by 0.2 cents per gallon to 16 cents per gallon. Tax rates in Michigan vary on a monthly basis alongside changes in fuel price. Also, the state of Montana increased its diesel tax by 0.2 cents per gallon to 29.5 cents per gallon.

Nebraska has also increased its diesel tax by 0.1 cents to 29.7 cents per gallon. As in Illinois, truckers in Ohio experienced a sizeable increase at the pump starting from July 1.  Ohio’s new diesel tax is 47 cents per gallon, which is 19 cents more than before the tax rises. 

Rhode Island had first tax increase since 2015, despite the laws allowing adjustments every two years. The state experienced a rise of its fuel taxes by a penny to 34 cents per gallon. Drivers along the I-81 corridor in Virginia saw a 7.7 cent diesel fuel tax increase to help fund improvements along the interstate. The diesel tax along this corridor is now 28 cents per gallon.

South Carolina and Tennesse – multiple parts of tax increase 

The diesel tax in South Carolina jumped 2 cents Monday as the third stage of a six-part increase and the state’s new diesel tax is 22 cents per gallon. The state’s new diesel tax is increasing each year through 2022, topping out at 28 cents per gallon. Also, the diesel tax in Tennessee increased by 3 to 27 cents per gallon in the final stage of a three-year plan to increase fuel taxes.

The per diem deduction benefit for company drivers will be restored by the new bill introduced in both the House of Representatives and the Senate. After it was eliminated in the 2017 Tax Cuts and Jobs Act, the deduction, which saved hundreds, or even thousands of dollars a year in tax liability, depending on how many days a year drivers worked, would again restore per diem deductions.

Two Democrats from Pennsylvania – Sen. Bob Casey and Rep. Conor Lamb – introduced the bills. The Senate bill has been filed to the Senate’s Finance Committee, and the House bill has been filed to the Ways and Means Committee. In Senate, the bill has 13 co-sponsors, all of whom are Democrats, and in the House of Representatives, the bill has 12 co-sponsors – 11 Democrats and one Republican.

What would the new bill allow?

The new bill would allow drivers to resume deducting 80 percent of the federal per diem allowance (which is currently $66 a day) from the annual tax bill. Dubbed the Tax Fairness for Workers Act, this change would include other small changes to the 2017 tax reform package. The 2018 tax year, fillings which were due in mid-April, was the first year that drivers could not take the deduction.

Drivers would be allowed to deduct their per diem only if carriers do not provide per diem reimbursements, according to the new bill. There’s been a growing trend for carriers to incorporate per diem pay into drivers’ pay packages, accelerated by the per diem changes in the 2017 Tax Cuts law, allowing drivers to take advantage of the per diem benefit even if they can’t enter it as an income deduction for tax purposes. Drivers still receive 80 percent of the per diem rate set by the IRS as tax-free earnings under these packages.

How much would the drivers deduct?

Under the current 66$ per diem rate that was set by the IRS, if the bill become law, drivers would a be able to deduct $52.80 from their annual income for every day they spent working away from home. On average, if a driver drove five days a week, that would equate to an annual deduction of $13,728.

Depending on their annual income, that would reduce a drivers’ annual tax bill by $1,300 or more. Although the deduction could be significant, drivers could only take that deduction if they chose to skip the standard deduction of $12,000 for individual filers and $24,000 for married couples.

The bill would allow union dues to be deducted from taxable income, in addition to restoring per diem pay for truck operators and other transportation workers. Owner-operators were not affected by the per diem changes instituted by the 2017 law, and they can still deduct per diem as a business expense.

Many truckers try to get into the trucking business every year since it can be very profitable but it is also incredibly competitive. That is why the outcome is usually not what they were expecting. Most of the time, this happens to people who are great truckers but are not too good as a business owners.

It takes more than knowing how to drive a truck or choose a route for one to run and grow own trucking business. In the following text, we present a few of the steps that will point you in the right direction and help you make the transition to becoming a successful business owner.

Choose the right market

Supporting the right market niche is the most important step to becoming a successful owner-operator. Small fleet owners are affected by this as well. Choosing the right market is so important because it determines the equipment you buy, the rates you charge, and the freight lanes you can service.

Owner-operators should consider hauling specialized loads in order to avoid markets occupied by the large carriers. There are many markets that you can focus on. But, hauling meat and fresh produce in reefers has many advantages. Firstly, it is resistant to recessions and that is very important. It also includes less competition and year-round work.

Determine the right rate

As an owner-operator, you need to determine the right rate per mile that you want to charge your clients to haul a load. Earning a nice profit and paying all your operation costs is what your rates need to achieve. Before you start calling shippers and make sales, you need to know your rates.

You can do this in a few simple steps: First, you select your freight lane and go to a load board. Then, you find 10 loads going in one direction, call the brokers and find out how much they pay and then get the average of that. On that price, you add about 10 – 15% to get the price brokers charge shippers and repeat the process for the opposite direction.

Know your operating costs

Determine your operating costs in detail because otherwise, you have no idea whether you will make a profit. Firstly, determine your fixed costs. Regardless of how many miles you drive, these costs stay the same. For example, truck payments, insurance, and permits are fixed costs.

Now, you should determine your variable costs. Depending on the number of miles you drive, these costs can vary. For example, fuel is a variable cost. And, the more fuel you use, the more you drive.

By using your fixed and variable costs, you can determine your “all-in-cost per mile”.  This figure is very important because if you subtract “all-in-cost per mile” from your rates, you get the amount of money you keep.

Make right-fuel buying strategy

The largest expense for owner-operators is fuel. However, new and owner-operators often buy their fuel incorrectly. They make the wrong approach of thinking that the cheapest pump price provides them with the cheapest fuel. In fact, you could lose hundreds of dollars by doing this.

Regular drivers pay fuel taxes in the state where they purchased the fuel. On the other hand, truck drivers pay taxes based on fuel used as they drive through states, regardless of where they bought the fuel originally, and they must deal with IFTA.

Develop a shippers client list

If you have an empty truck, load boards and brokers can be very useful for your business. However, they are also pretty expensive. Brokers tend to keep about 10 – 20% of the load price. They must make a living and provide both the shipper and you with a service.

You can minimize the use of brokers and load boards by working directly with shippers. A list of reliable shippers that will keep you busy can be developed if you do things the right way. Charge them a price that matches to what brokers charge but keep everything for yourself instead.

Have an efficient back office

Key to staying profitable and make constant growth lies in having an efficient back office. The importance of the back office grows as you start adding leased drivers to your operation. There are a few options when it comes to having a back office.

First one is that you run your business out of the cab of your truck. An Internet connection, a laptop, and a printer is all that you need. Also, you need accounting software to run your business. Alternatively, an option is to outsource your back office to a dispatcher. But, they can be expensive. The wrong dispatcher can kill your business, so interview them thoroughly.

Solve cash flow problems

As a cash flow-intensive business, you are always buying fuel, making insurance payments, making truck payments, and so on. Therefore, unless you get quick-pays, it can take 15 to 30 for shippers and brokers to pay their invoices. It can even take 45 days sometimes. Cash flow problems can be created for you, especially in the early days of the business.

Using freight bill factoring is one way around the problem. By advancing up to 95% of the invoice, factoring solves your cash flow problem, often the same day you submit it. Less a small fee of the remaining 5% is rebated once your shipper pays. Other services as well, such as fuel advances, cards, etc. are provided by many factoring companies.

We’re proud to announce great news confirming our standard and quality in the trucking industry. The latest confirmation comes from the Great West Casualty Company which awarded Love Freightways Inc. with National safety award.

The gold award is an honor and responsibility

Gold award received by the eminent leader in commercial trucking insurance is one proof more that we’re on a good path, but also it is a reminder to never stop growing and developing. This achievement applies to one of the most crucial priorities in our business considering the fact that our company puts safety and lives first.

We are looking forward to new challenges, and the award for an Outstanding Achievement in Highway safety is also our responsibility to keep on working even harder in the future. Together, we achieve more!

The use of Artificial Intelligence (AI) is starting to be integrated into many industries, especially the supply chain. It is no wonder that the AI is playing a big role in our everyday lives, minding the fact that robots are being built globally.

The biggest contribution of this technology is considering the fact that it helps to lower costs, increase productivity, and improve key performance metrics. In the following text, we will point out a few examples of how Artificial Intelligence is used in the area of logistics.

The lack of a human operator

With the improvement of AI, the human-less operator technology is on the rise. One of those examples in the industry is Tesla’s self-driving semi-trucks. With the increased productivity that saves money, these trucks can drive up to 500 miles on a full tank. Also, with the driver shortage that the industry is currently facing, this technology could be the solution in the next few years.

The Automated Packaging Solution is another autonomous machine produced by Neopost. This machine takes fan-fold corrugate and after that, it creates a custom fit-to-size box. The way it works is when the operator places an item(s) on the fan-fold corrugate. When the item is placed, a box is created by cutting and tapping the corrugate accordingly once the 3D scanners have determined the minimum box size.

Once the box is made, the shipment goes through a weigh station in order to rate shop and label is both printed and applied automatically. There are a lot of benefits of using this machine, but certainly, the biggest one is the fact that it reduces packaging labor by 88% and that helps to fight the labor crisis.

Robots in warehouses

By using robots, warehouses are starting to become 100% autonomous. In order to fulfill orders, robots are being used and this increases order picking accuracy and cuts down on the time to fulfill orders. Another part of inventory management are drones.

By using drones, time-consuming and error-prone process of inventory management makes the work done in less time. Two drones can do the work of 100 workers in 2 hours with a higher accuracy rate. Alongside that, drones can work at night, survey the warehouse multiple times and create a more accurate picture by comparing results.

IoT as the next step in logistics

The next step for AI becoming more integrated with logistics is the use of Internet of Things (IoT). An infrastructure of technology in common items to send and receive data is created by the concept of IoT. For example, company Solar Roadways, who are testing a road made of solar panels, strong enough to be driven on and equipped with LED lights to mark lanes and warn drivers of traffic accidents.Smart technology like this will enable information to be sent to logistics companies on the status of deliveries. Information on the delayed shipment due to a traffic accident can be sent to update arrival times and create a seamless process for loading and unloading trucks.

The truck driving industry considers driver safety as one of the most important topics. Following certain procedures can prevent many accidents and injuries from happening. Safety of every truck driver as well as the safety of every other participant in the traffic and on the road can be increased with a few simple things. In the following text, we present some of those safety tips highlighted by America Truck Driving School.

Get your seatbelt on and your phone off

Some studies have shown that roughly 1 out of 6 truck drivers do not wear their safety bells. In order to reduce injury, there is no better preventable way than using a seatbelt. Having said that, more than 40% of crash-related deaths occur every year from not wearing a seatbelt.

Another careless and highly dangerous habit that is on the rise in recent years is using your cell phone while driving. Apart from the fact that it is careless, in some states, it is even illegal to use a handheld mobile phone while driving. A serious accident can occur when talking, texting or looking at your phone screen.

Watch out for speed limits – do not use drugs and alcohol

Next advice is about being aware of speed limits. Speed limits especially one specifically noted for trucks are important guidelines that drivers need to apply to. You will stay safer on the road if you stay within speed limits.

Another advice, directly related to the one above considers the usage of drugs and alcohol on the road. This one sounds obvious but it is important to mention that drivers must not use drugs or alcohol because of its bad influence on your judgment and physical condition. Use of both drugs and alcohol can cost you your job, so you should not even consider getting away with it.

Trip planning alongside minding your truck’s space

Having planned a trip in advance can prepare you and help you cope out with all sorts of unexpected events that could occur on the road. If you have planned out your driving hours, routes, the weather, scouting, etc. your journey will be much safer.

Another thing you should consider while preparing for a road trip is your truck’s space cushion. Truck’s height and weight should be taken into consideration in order to make sure that enough safe space is provided in all sides of the vehicle hence accident occurs or in order to prevent accidents.

Slow down for turns – maintain stopping distance

While driving, you should be careful when making turns on a curvy road or at an off-ramp. Adjusting for lane changes and other vehicles can be easier if you slow down accordingly both for turns and curves. Another tip includes maintaining ample stopping distance between you and any vehicles ahead. Reducing distractions and keeping head forward help drivers avoid close interactions.

Follow weather forecast – eat healthy and rest well

Since some parts of the country can have unpredictable weather, you should keep tracks of weather changes and avoid dangerous driving conditions whenever it is possible. Apart from watching out for the weather, another tip is revolving around the fact that healthy food and proper rest can make you sharper and increase your cognitive performance.

Be sure to skip out on sugar flowing meals and eating junk food, as well as drinking sufficient amounts of water. Following these tips can lead to a safer drive and will keep you and other drivers safe on the road.