Jan 26, 2023

How Often Do Truckers Prefer To Return Home? How Often Do They Actually Return Home?

One-stop-shop: How a fledgling small fleet found organization, efficiency with TMS Published on Overdrive (overdriveonline.com) on November 10, 2022. Matt Cole – November 10, 2022 – Dorian Acosta Sr. started <a href="https://www.shippingteleporters.com/">Shipping Teleporters Trucking Company</a> as a family business in late 2020, after spending about a decade driving for other trucking companies. In May of 2021, the company got authority, and Senior turned the company over to his son, Dorian Acosta Jr., who had been handling paperwork and some other duties in the back office. Acosta Sr. still works for the Middletown, Connecticut-based company managing maintenance on their three trucks and four trailers, along with other duties around the business. “My dad, he’s my partner -- we’re right there neck-and-neck,” Acosta Jr. said. “He definitely introduced me into the industry. He had the primary trucking background.” When Acosta Jr. took over as CEO, it was a “baptism by fire,” he said, as he started handling the booking of loads, accounting, driver management and more. “I had no experience in the logistics industry until last year," he said. The company hauls a variety of freight, mostly working the spot market and primarily sticking to the tri-state area of Connecticut, New York and New Jersey, and surrounding states. The company’s three trucks are a 2012 Freightliner Cascadia daycab, a 2011 Volvo VNL and a 2012 Kenworth T700. While the company owns a flatbed and walking floor trailer, the two dry vans butter the bread of the business, moving dry goods such as sugar, bottled water and more. Like many small fleet owners, Acosta Jr. had cobbled together a working system for back-office management that hinged in part on the QuickBooks accounting software. “I used QuickBooks for accounting purposes, and they also have an employee time-tracking side of their offerings where drivers can clock in and out to track their time,” he said. “Whenever I was dispatching a driver, I would include what time I needed them. I’d include in the comments section their truck and trailer number, where they have to go, the load numbers, everything.” He acknowledged that people with more experience in the industry “obviously would have known to sign up for some sort of access” to transportation management system (TMS) software, but he was “just learning as we went, dispatching drivers and putting information into the comment section” of the QuickBooks timesheet. “We made do, but we got to a really stressful point where, in April [2022] we ended up researching” TMS software to help the business run more smoothly, he said. After trial runs with a number of providers, Acosta decided to go with Trucker Path Command, which had just launched in March. Trucker Path, of course, has long offered an app geared toward operators that offers navigation, truck stop information, weigh station information, truck parking information and more, leaning on users to provide the in-app community with useful updates about specific locations. “Just the way everything was, the ease and functionality, being able to log in, dispatch a driver, provide them all the information, and they can upload the documents” made the decision easy for Acosta, who said he’s always valued a “one-stop-shop” approach, whether in business or as a consumer. Shipping Teleporters has used the DAT load board since its inception, but since choosing Trucker Path Command as its TMS software, Acosta has started to also rely on Trucker Path’s own TruckLoads board -- access to it is included in Command’s monthly fee. He’s also found great value in the system’s document management and scanning capabilities, through which drivers scan and upload paperwork, receipts and anything else that’s needed in the office. <img src="https://truckerpath.com/uploads/2022/11/Portal-300x152.png" alt="Rather than having to physically get the paperwork out of his trucks every day, or having his drivers text sometimes poor-quality images of the paperwork, Acosta and his operators now have access to intuitive tools for the purpose of sharing documents, stored for easy access all in one place." /> “Before everything was digitized, I was heading down to my truck lot to get paperwork for the drivers, putting proofs of delivery in there for them to get signed,” Acosta said. “Every single day after their load assignments, I would pick up paperwork from their trucks.” Now, he said, the drivers upload the paperwork for him to create invoices within the system, and with its integration with his QuickBooks, he’s able to automatically send invoices either direct to customers or to the factoring company he uses, Factoring Express. When using the load board and negotiating with brokers, Acosta said another valuable tool is a rate calculator that allows him to input all the relevant information to see what he needs to make on a load for it to meet his profit expectations. Command has also been helpful for his drivers, he added. Once he books a load through the software, he can dispatch his drivers by sending the load directly to their phones, and the drivers can use the Trucker Path app’s routing, or Acosta can route the drivers through the app himself to make their jobs easier. I can pull up points of interest -- weigh stations, places to eat and park, fuel stations” -- to help drivers find the best deal on fuel and more, he said. With crowdsourced fuel pricing information from the more than 1 million driver users of the Trucker Path app, managers using Command can send “the route that has the perfect fuel optimization to fuel up, tell them when and where,” said Tom Wulf, senior vice president of sales and strategic partnerships for Trucker Path. <img src="https://truckerpath.com/uploads/2022/11/Truck-Water-Tower-300x221.png" alt="While the company's primary focus is dry van freight, Acosta keeps the fleet's options open with a flatbed trailer, shown here hooked to the company's 2012 Freightliner Cascadia, and a walking floor trailer." /> With future growth in mind, Acosta believes Command will be an invaluable tool as he looks to grow his fleet, integrating in one system a variety of management tools -- from finding and booking a load to dispatching the driver and sending the driver route information, having the fleet’s Motive ELDs integrated into Trucker Path to track hours of service and location information for customers that want load updates, the document-management functions already described... The list goes on. Financial benefits are already apparent, he believes. The company grossed $106,000 from its launch in May of 2021 through the end of the year with two trucks (the third was purchased last December). This year so far, it's pulled in $275,000 in revenue, on pace to pass $330,000 by the end of the year. “It manages the rest of your operation,” Wulf said of Command. “It is a complete, robust system, and it can scale. If you’re a small fleet or owner-operator and you start growing, which is the goal in many cases, you don’t have to switch -- it can scale right with you.” Wulf added that the price point, given the combination of features, “is designed to make this affordable to even the playing field” for owner-operators and small fleets. Acosta agreed, saying that just having a subscription to multiple load boards prior to purchasing Trucker Path Command was more expensive than the monthly subscription. A Command subscription starts at $99 a month, which includes one Operator (manager) license and two Diamond-level Trucker Path driver app subscriptions, which are $29.99 a month if purchased by a driver. An additional Operator seat adds $50 to the monthly cost, and additional driver seats cost an extra $30. Discounts are also available once you surpass 10 drivers. “For everything that [Trucker Path] offers, I can’t believe how affordable the software is,” Acosta said.

Nov 16, 2022

You’re Only in a Down Market if You Say So. Trucking rates have fallen substantially, fuel prices are sky high and it takes considerably more time and effort to secure the highest-paying loads out there. These statements are all true. But believing them without gaining the proper perspective can get you in trouble in today’s freight market. Perspective is everything. The stop-and-go traffic in front of you isn’t so bad when your GPS informs you that it’ll only last a quarter of a mile. There’s no need to do anything rash. So just chill and listen to your podcast. Likewise, it’s important to keep today’s freight market in perspective. Otherwise you might make a rash decision or miss the opportunities right in front of you. You’re Only in a Down Market if You Say So. When you hear that rates are down 30%, remind yourself that was from December 2021 when rates were at a historic peak. $3.57 per mile and above was as good as it gets. We were spoiled. Our expectations have gotten out of whack. <img src="https://truckerpath.com/uploads/2022/12/NTI_USA-300x124.png" alt="Freightwaves National Truckload Index 7 day average" /> If we reach back to 2018 and 2019 when most drivers and analysts would agree rates were pretty good, $2 was normal. Spot rates as of September 2022 have hovered around $2.65. For much of 2022, they’ve been 30% above what is considered normal or pretty good by historic standards. Freight Volumes are Up from 2018-2019. No doubt we’ve seen a dramatic decrease in freight volumes over the last year. They’ve dropped 30% as of October 11th, 2022, from their peak on August 22nd of 2021. Ouch, yes. But at the same time, we're still higher than we were in the two years pre-COVID. If you look at the volumes shown in the chart below, you’ll see volumes as of the 11th of October 2022 are 16% higher than they were at the same time in 2019, and they're 18% higher than they were in 2018. The industry was generally happy, or as happy as truckers tend to get anyway, with 2018. If you look at the volume since then, there are ups and downs, but it’s pretty level all the way through until the uptick from COVID when volumes went through the roof. <img src="https://truckerpath.com/uploads/2022/12/img_v2_3d028dc9-413a-401f-be52-b5dbbc561cdg-300x122.jpg" alt="Outbound Tender Volume Index" /> The point to remember is that today’s volumes are still significantly above “normal” pre-COVID levels. How Are Today’s High Fuel Prices Factoring in? Considering that freight volumes are above 2018/2019 norms and rates are, too, shouldn’t we all be making money? Yes and no. The main reason for the no, is that fuel prices are 70% higher than they were in 2019. <img src="https://truckerpath.com/uploads/2022/12/img_v2_22d49630-b957-4371-a4fd-6c147ffa788g-300x124.jpg" alt="Diesel Truck Stop Actual Price Per Gallon" /> The jump from the national average of $3.02 a gallon for diesel this time in 2019 to $5.15 as of October 11th, 2022, is having a significant impact on profitability—especially for owner-operators and small fleets. Billy Forkey, Manager at Trucker Path DISPATCH, explains that while large carriers with fuel charges built into their contracts are typically somewhat insulated from the impact of fuel hikes, owner-operators and small fleets aren’t. They’re booking loads off the load board or are working with brokers. It’s a one-time load and a one-time rate with everything built in and there’s no fuel surcharge broken out. The lack of flexibility has added to the challenge of maintaining profitability in today’s market. Forkey says that “With the national average driving rate at right around $2.581 today, and most carriers cost per mile (CPM) floating right around $2.25 to $2.50 per mile, there's just not a whole lot of room for profit there.” Can You Make Money in Today’s Freight Market? There’s money to be made, but it’s not from holding out for the rates of yesteryear or from discovering an overlooked and lucrative lane. According to Forkey, powering through today’s diesel-fueled challenges and maintaining a healthy profit margin all comes down to managing your cost per mile. “If you calculate in the 70% increase in fuel, we're probably closer to that same profit margin as far as cost per mile versus rate per mile (RPM). And then your profit per miles is probably the same,” he says. “To clarify, margins today are like margins most trucking companies were experiencing in 2019. The average cost per mile is up around $.40 - $.50 with today’s fuel price and the RPM is up about $.50 -$.60 per mile. If you calculate the increased cost for parts, labor and maintenance, the profit margins are about the same.” In other words, it is still possible to make money in today’s markets. Where Are the Best Lanes and Rates? Two fallacies that are sure to hurt drivers in today’s freight market are believing that there are magic lanes out there and if you just wait long enough, a nice, high pandemic-priced load will pop up on the load board. Regarding the first fallacy, Forkey warns that there are no honey holes out there and the occasional super-high-paying loads are anomalies. With the exposure on load boards and competition today, rates are naturally evened out and the exceptional dollar figures are snapped up in minutes if they ever exist at all. Believing fallacy number two—that it pays to hold out a few days for a high-paying load—can bleed a driver right out of business. “When a guy waits around for a good paying load and misses three or four days, his fixed costs don't change. His insurance is still the same. His truck payment is still the same. If he's paying his driver's salary, that's still the same. He may save on his variable costs like fuel and maintenance, but he's losing money. He really needs to lower that cost per mile by just putting in more miles,” Forkey says. The Importance of Knowing Cost Per Mile Today. High cost per mile is the force that’s taking down many owner-operators and small fleets in today’s market. Many got into business as high rates peaked. A major problem is that many operating costs also peaked at the same time. Now with the drops in rates, lots of truckers are strained under the weight of big truck and trailer payments, costly insurance policies and a long list of often unforeseen expenses. Knowing your costs, right down to estimated maintenance, depreciation, factoring fees and more is essential to surviving and thriving in today’s market. The other key is understanding that while these costs are fixed, your ability to lower cost per mile isn’t. The truth is the more you drive, the lower your cost per mile. Here’s how Forkey nutshells it: cost per mile depends upon how many miles you actually run. “If you run one mile on your truck and you have $1,000 a month cost, the cost per mile is a thousand bucks. But if you run 100 miles, it's $10. And if you run 1000 miles, it's $1.” The winning strategy is asking how many miles you can get in—and then not being picky. Overcapacity Is a Reality We All Must Face. As long as we’re comparing 2018 and 2019 to today, it’s crucial to point out that there are considerably more trucks in the market now. 50% more than in 2018 and 40% more than 2019. Yes, volumes are up and rates are up since 2018-2019, but there are also more trucks competing for loads. <img src="https://truckerpath.com/uploads/2022/12/img_v2_36a05ccb-6892-4f6c-ac86-3ed6457294fg-300x116.jpg" alt="Total count of Fleets with 1-6 Power Units For Hire" /> Many of those new trucks entered the market during the pandemic peak. For these and other owner-operators and small fleets it is a war of attrition fought on the battlefield of cost per mile. Industry publications are predicting a bloodbath, as many new entrants realize that the truck and trailer payments, insurance premiums, fuel costs and low rates are unsustainable, forcing them to leave the market. Forkey believes that maintaining profit margin will be the main challenge in the immediate future, but that the market will correct itself. “It only gets worse before it gets better. And better times are around the corner, maybe a year out, but they're there. They're coming. They always do,” he says. Strategies for Competing Amidst Today’s Overcapacity. Success in the current environment comes down to two words: lane development. Forkey describes it as a combination of building relationships and working the same lanes. In doing so, you can become an expert in that lane. Once you’ve proven yourself, you have an opportunity to push rates up. And once you become known to brokers or shippers in the lane, they start offering you freight. “Really, all you can do is work on lane development and build relationships. Those are the only tools that you have in your bag in this market as a carrier—or get contracted freight. But it's hard to get contracted freight with a 1 to 6 truck fleet,” he says. With 135 freight markets2 across the U.S., most carriers are located close to a major trucking market that has enough volume to develop a lane. With market understanding and a commitment of time, it can be done. It all hinges on a carrier’s understanding of their cost per mile. For that reason, calculating cost per mile may be the greatest opportunity in trucking today. Get to work on yours. And if you have any questions, our <a href="https://www.truckerpath.com/dispatch">dispatch service</a> will be happy to help. 1. Freightwaves National Truckload Index, 7 Day Average 2. Freightwaves Tracked Markets

Dec 21, 2022

Food Logistics Names Trucker Path a 2022 Top Software & Technology Provider Award honors software and technology providers that ensure a safe, efficient and reliable global cold food and beverage supply chain PHOENIX – December 12, 2022 – Trucker Path, the most comprehensive and most used mobile app for North American truckers, today announced it has been named a recipient of the 2022 Top Software & Technology Providers award by Food Logistics, the only publication exclusively dedicated to covering the movement of product through the global cold food supply chain. “The drivers, and small and mid-size fleets, who rely on Trucker Path are key players in making sure food supplies reach store shelves,” said Chris Oliver, CMO at Trucker Path. “The Food Logistics 2022 Top Software & Technology Providers award validates that the tools we provide like the Trucker Path app, TruckLoads load board, and COMMAND Operations & Driver Relationship (ODR) TMS platform help truckers haul food and beverages safely, reliably and effectively.” The Top Software & Technology Providers award honors companies that ensure a safe, efficient and reliable global cold food and beverage supply chain. As a recipient of this year’s award, Trucker Path will be profiled in the Nov/Dec 2022 print edition of Food Logistics and is included in the publication’s<a href="https://www.foodlogistics.com/software-technology/article/22419155/top-software-tech-providers-award-visibility-supply-chain-management-lead-the-way"> full list of winners.</a> About Food Logistics Food Logistics reaches more than 26,000 supply chain executives in the global food and beverage industries, including executives in the food sector (growers, producers, manufacturers, wholesalers and grocers) and the logistics section (transportation, warehousing, distribution, software and technology) who share a mutual interest in the operations and business aspects of the global cold food supply chain.Food Logistics and sister publication Supply & Demand Chain Executive are also home to L.I.N.K. and L.I.N.K. Educate podcast channels, L.I.N.K. Live, SCN Summit, <a href="https://www.supplychainlearningcenter.com/"> SupplyChainLearningCenter.com</a>and more. Go to <a href="https://www.foodlogistics.com/"> www.FoodLogistics.com </a>to learn more. About Trucker Path Phoenix-based Trucker Path is the provider of a wide range of truck driver-centric mobility products. Its Trucker Path app is currently in use by over 1 million professional truck drivers. Offering best-in-class navigation with truck optimized routing, the Trucker Path app also provides access to vital up-to-date information about truck stops, real-time available parking, fuel prices, weigh station status, and truck scales and wash locations. The company also offers TruckLoads, a digital freight exchange that connects drivers, carriers and brokers; COMMAND™, the industry’s first and only Operations & Driver Relationship (ODR) platform that provides small to mid-size fleets with the necessary driver and TMS technologies to successfully run a fleet; and DISPATCH, a full-service dispatch service designed specifically to serve the back-office needs of small carriers and owner-operators. For more information, visit <a href="https://www.truckerpath.com/">www.truckerpath.com.</a> Media Contact: Susan Fall LaunchIt Public Relations <a href="tel:8584901050">858-490-1050</a> <a href="mailto:susan@launchitpr.com">susan@launchitpr.com</a>

Dec 13, 2022