Keeping cash flow constant in the trucking game can be a hard slog. There are all sorts of overheads that need to be accounted for before a profit can be turned in. Luckily, the modern trucking industry is highly developed. There are plenty of ways you can make sure that money is coming in faster than it is going out. Here are just a few.
Reduce Idling Time
Trucks burn a huge quantity of very expensive fuel when they are idling. Idling is the act of leaving a vehicle engine running while it is stationary. While a truck is in neutral gear, the engine turns over at a regular rate. This releases deadly emissions into the air and also burns through fuel at an alarming rate. For older trucks, idling was a necessary evil. Ignition of an old Cummins or International Harvester engine was a lengthy process that did not have any guarantee of success. Trucks need to be kept idling when stationary at traffic lights or in traffic so that they would be ready to move off in a timely fashion.
Those days are, thankfully, over. Modern trucks have extremely reliable and quick ignitions. The most modern diesel trucks are able to completely eliminate idling – automatically shutting their engines down when the onboard computer recognizes that the vehicle is no longer moving. This is known as a start/stop system and is an industry-standard.
Another, more problematic form of idling is done when truckers are relaxing during their mandated rest period. Electricity is generated using the engine alternator, which means many truckers will keep their engine idling at rest stops so they can use microwave ovens, gaming systems, televisions, and all sorts of home comforts. As you might expect, this leads to some very long idle times and lots of spent fuel. There are a number of technologies that can help reduce idle time during rest stops. One of the simplest and most effective is truck stop electricity provision. If truckers park at a stop where they can plug into a power source, they will have no need to idle during their visit. Equally, fuel-operated heaters can save on using the engine to power air conditioning. Finally, in the summer months, parking in the shade can reduce the need for engine idling. American Trucker magazine recently released a detailed report on how trucking companies can reduce idle time, save money and keep their drivers happy.
Plan Routes Wisely
Sound route planning can be the difference between making a profit and making a loss. A good truck operator knows how to plan a route that will be free of traffic, contain few steep gradients, and cover the least distance. This doesn’t just mean always heading for the highway. Many experienced truckers are well aware that backroads can sometimes prove more efficient than traffic-clogged highways – even if the speed limit is lower. Being aware of pick-up and drop-off points along the way is also important in route planning if a truck driver is carrying several Less Than Load consignments to different places.
Planning a good route used to be an art – now, it is more of a science thanks to the use of routing applications. Routing applications use algorithms to analyze data on everything from traffic to potholes in the road.
Truck drivers have always helped each other out by making good use of VHF radio receivers. Citizen’s Band VHF radios were essential to trucking culture from the 1970s onwards. Truckers would organize convoys and warn each other of traffic and dangers on the road to help out with each others’ routing. Today, truckers help each other out by updating popular routing applications with details of any obstructions. It isn’t quite like the heyday of CB radio collaboration on the road, but it is far more efficient!
Freight Factoring
Freight factoring is one of the most common ways a carrying operation can keep the cash coming in. Truckers typically supply brokers with invoices for their work. Unfortunately, brokers are famously slow to pay up. This is not because they want to cheat carrying companies, but often because they have a huge backlog of invoices to pay. For a trucking company, this can mean that there is a long time to wait before money can be taken in.
Freight factoring is one way of ensuring that jobs are paid for on time. Freight factoring companies essentially buy invoices from trucking companies on the spot. This means that trucking companies instantly get paid for jobs. The factoring company takes a small cut of the invoice when it gets paid by the broker, making their profit.
This guide to freight factoring published by Truck Stop will help you get to grips with the practice, which is an extremely common method of keeping cash flow regular.
Electrification
Sometimes environmentally friendly developments are also friendly to a trucking company’s bank account. The infrastructure necessary for the electrification of trucking is beginning to be rolled out across the United States. There is still a long way to go before traditional trucking companies replace their gas-guzzling monsters for silent electric vehicles, but there are already some companies that have committed to the idea in the near future. The first truly practical electric trucks are beginning to roll off the production lines. Volvo has announced the release of an electric semi-truck that has a 150-mile range on a single charge. As gas becomes more and more scarce, it will become more and more expensive. Electrification could save your trucking company huge stacks of cash in the long run.
Backhauling
Every carrier should know the benefits of backhauling. Backhauling is the practice of finding a load to carry on the return leg of a journey. As might be expected, it allows a trucker to make double the amount they would have if they carried an empty trailer back to their point of origin. Backhauling involves a fair amount of planning but is a vital way to maximize profits.
HussaiN is a full-time professional blogger from India. He is passionate about content writing, tech enthusiasts, and computer technologies. Apart from content writing on the internet, he likes reading various tech magazines and several other blogs on the internet. Email ID: [email protected]
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