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What is a Fuel Surcharge In The Trucking Industry?

The trucking industry keeps the world moving, delivering everything from groceries to construction materials. But there’s one essential (and expensive) resource that trucking relies heavily on: fuel.

Diesel powers the trucks that connect businesses and consumers, but fuel prices are anything but predictable. A sudden spike at the pump can disrupt budgets and eat into your profits, creating serious challenges for carriers and owner-operators.

That’s where fuel surcharges come in. A fuel surcharge offers a system that shares the burden of fluctuating fuel costs. Basically, instead of fuel increases cutting into your profits, a fuel surcharge protects your business when fuel costs rise.

Understanding how these surcharges work is essential for staying profitable and fair, whether you’re a shipper, a carrier, or an independent trucker. We’ll cover everything you need to know in the guide below.

What is a Fuel Surcharge?

A fuel surcharge in the trucking industry is an extra fee added to freight bills that helps carriers offset the fluctuating costs of diesel fuel.

Adding a fuel surcharge became common practice as fuel prices had big ups and downs, making it difficult for trucking companies to maintain stable operating costs. As a result, fuel surcharges became widely adopted, allowing carriers to adjust their rates based on fuel price changes, which often change weekly.

While there’s no standard formula for calculating fuel surcharges, each carrier typically uses their own method to help them manage the impact of volatile fuel expenses.

The Purpose of a Fuel Surcharge

A fuel surcharge helps trucking companies and owner-operators handle the unpredictable changes in diesel fuel prices. It protects carriers from losing money when fuel costs rise, making their operating costs more stable.

This extra fee ensures carriers can keep its business running smoothly without being forced to absorb sudden fuel price spikes. At the same time, it creates a fair system for both carriers and clients by keeping freight pricing transparent and tied to real fuel costs.

Fuel surcharges don’t cover all fuel expenses, but they make the increases more manageable.

How Does the Fuel Surcharge Work?

Freight bills include fuel surcharges to help trucking companies handle changing fuel prices.

Carriers and shippers often agree on surcharge terms in their contracts, using a baseline diesel price. This is typically based on weekly reports from the US Energy Information Administration (EIA).

Surcharge rates go up or down depending on how fuel prices change. For contract freight, these fees are consistent and agreed upon in advance. In spot freight markets, surcharges are adjusted more flexibly to match the current fuel costs.

With a system like this, you maintain fair pricing for both parties while helping carriers manage fuel expenses without constant renegotiation.

How Does Fuel Surcharge Work for Owner-Operators?

As an owner-operator, dealing with fluctuating fuel prices can be a real pain in managing your business operating costs.

Fuel surcharges help owner-operators manage this by compensating for the extra cost of diesel. So, when fuel prices fluctuate, the fuel surcharge ensures the price hike won’t eat into your profits.

These surcharges are typically based on a per-mile rate that adjusts as fuel prices go up or down. While fuel surcharges can sometimes provide extra earnings, they depend heavily on fuel efficiency and proper calculation.

To keep it fair, owner-operators should include clear fuel surcharge terms in their contracts and base calculations on reliable data, like the EIA’s fuel price reports.

Calculating Fuel Surcharge Fees

We calculate fuel surcharges using key variables to fairly offset fuel price fluctuations. Here’s how they work:

The base price of fuel: The base price of fuel is a predetermined “baseline” cost used as a reference. This is an agreed-upon threshold, which is based on national averages like the US Department of Energy’s weekly diesel price reports. If the current price rises above this baseline, it triggers a surcharge.

The truck’s fuel economy: Miles per gallon (MPG) determines how much fuel a truck consumes. A loaded semi-truck averages about 6 MPG, so better fuel efficiency lowers the per-mile cost of fuel. This efficiency directly impacts the surcharge rate.
The fuel price change: Fuel surcharges account for the difference between the base price and the current fuel cost. Regular updates from indexes like the DOE ensure accurate tracking.

How is a Fuel Surcharge Calculated?

While the exact calculation method can change for each carrier, here’s how it’s typically done.

Per Mile Surcharge

Subtract the base fuel price from the current fuel price to find the price difference. Divide this difference by the truck’s MPG to get the cost per mile.

Multiply the cost per mile by the total miles traveled to determine the surcharge amount.

Percentage of Load Price

Some carriers use a percentage surcharge based on the load’s price. The rate increases as fuel prices rise above the base price, using a predefined table.

For example, a surcharge might start at 10.25% and rise to 10.5% as fuel costs increase.

Example of Calculating Fuel Surcharge

Here’s an example of calculating a fuel surcharge. Say the base fuel price is $3.50 per gallon, the current fuel price is $4.00 per gallon, and the truck gets 6 MPG.

First, find the price difference: $4.00 – $3.50 = $0.50.

Next, divide by the truck’s MPG: $0.50 ÷ 6 = $0.083 per mile.

If the trip covers 1,000 miles, the surcharge is $0.083 × 1,000 = $83.

Now, if the truck’s MPG drops to 5, the per-mile cost increases to $0.10, making the surcharge $100 for the same trip.

Small changes in fuel price or MPG can significantly affect these costs, so accurate calculations are essential.

National Average for Fuel Surcharge

The national average for fuel surcharge is generally determined using the US Energy Information Administration’s (EIA) weekly updates on diesel fuel prices.

Truckers and businesses use this average as a benchmark to set fair and transparent fuel surcharge rates.

This data keeps surcharges accurate, reflecting real market conditions for fair and transparent fuel surcharge calculations.

Where to Find a Current Fuel Surcharge Table

To find a current fuel surcharge table, start with the EIA’s fuel price reports, which provide up-to-date national and regional diesel price averages. There’s also data on alternative fuels on the US Department of Energy’s website.

Many trucking resources, like software tools for truck drivers, offer tools and calculators for tracking and calculating surcharges. Fuel monitoring apps also simplify tracking fuel prices and surcharge adjustments, making it easier for truckers and businesses to stay informed.

Fuel Surcharge Laws and Regulations

Fuel surcharge regulations vary by region and country, but they generally focus on transparency and fairness in pricing.

In many areas, laws require that fuel surcharges are clearly outlined in contracts and adjusted based on verifiable data, such as national fuel price indexes. Some regions may have specific rules about how and when these surcharges can be applied.

It’s important for businesses and truckers to understand and comply with these laws to avoid legal issues and maintain fair pricing for both parties. Staying informed about local regulations helps prevent disputes and keeps the trust in business relationships.

Common Challenges and Pitfalls

While applying a fuel surcharge is important, getting it right can be tricky. Here are three common challenges truckers face when doing this.

Volatility in Fuel Prices

Problem: Sudden spikes or drops in fuel prices can disrupt budgeting and make it hard to predict costs. This is especially challenging for smaller carriers and owner-operators.
Solution: Use reliable tools to track fluctuations. Regularly review and adjust your surcharge agreements to keep them aligned with current market conditions.

Negotiation Disputes

Problem: Disagreements can arise between shippers and carriers over the baseline fuel price or the formula used for calculating surcharges. This can delay payments or strain business relationships.

Solution: Clearly define baseline prices, your fuel surcharge methodologies, and adjustment triggers in your contracts. Referencing standard industry practices helps prevent disputes and ensures consistency.

Owner-Operator Margins

Problem: Owner-operators may not always receive their fair share of the surcharge, reducing their ability to cover rising fuel costs. This can hurt their profitability.

Solution: Advocate for transparency in contracts to ensure surcharges are passed down appropriately. Track fuel expenses rigorously and use tools to verify calculations and fairness in payments.

Final Thoughts

Fuel surcharges are essential for managing the ups and downs of diesel prices in the trucking industry. By understanding how they work, you can protect your business from unexpected costs while still offering fair pricing to your customers.

Whether you’re a carrier, shipper, or owner-operator, staying informed about surcharges and fuel price trends is key to staying competitive.

Are you investing in a new commercial vehicle? Then get in touch with us at Mission Financial Services. We offer flexible, accessible financing for all, making it easy to purchase your dream semi-truck and become an owner-operator or expand your fleet.

Truck Driver Skills for Your Resume

To succeed as a commercial truck driver, you’ll need more than just driving expertise. Mastering technical and soft skills, such as time management, communication with dispatchers, and regulatory compliance, is key.

In this guide, we’ll cover the essential truck driver skills for your resume, how to develop and improve them, and tips for showcasing them effectively. These skills will help you thrive in your career and stand out in the trucking industry.

What are Truck Driving skills?

Truck driver skills are needed to operate commercial vehicles safely and efficiently. These skills help drivers make timely deliveries, maintain trucks, ensure road safety, and provide great customer service. Key skills for success fall into several categories, including:

Key Hard Skills for Truck Drivers

Hard skills are the tangible or technical skills required to operate a commercial truck and perform specific tasks related to maintaining and driving the vehicle. Common hard skills include:

Mechanical Knowledge

While you don’t have to be a certified mechanic, basic practical knowledge of how different parts of the vehicle work is necessary. It’ll help you perform all the various jobs truck drivers do effectively. These include pre-trip inspections and small servicing tasks, like topping off fluids, hitching a trailer, checking tire pressure, and replacing wiper blades.

You’ll also be able to address minor mechanical issues in good time to avoid unnecessary delays and promote safety.

Safe Driving Practices

If you want a successful truck driving career, safe driving skills are vital. These skills include avoiding distractions, driving within the required legal speed limits, and maintaining a safe distance from other vehicles.

You should also be keen enough to identify and respond to challenging situations quickly to avoid road accidents. Failing to observe safe driving practices puts your commercial driver’s license (CDL) on the line.

Logistics Management

Efficient logistics management is an invaluable requirement for a successful career in truck driving. This includes studying routes keenly and knowing how to plan trips to adapt to different road conditions. It helps prevent accidents, ensuring safe and smooth transportation.

Proper route planning or logistics management also promotes timely deliveries. Meeting delivery schedules is essential to providing excellent service in this high-stakes transportation industry.

Regulatory Understanding

The Federal Motor Carrier Safety Administration (FMCSA) sets regulations to ensure road safety, including weight limits and hours of service.

Truckers must understand and follow these rules, keeping accurate logbooks to track hours, miles, and rest breaks. Failure to comply can result in fines or license revocation.

Technical Skills and Tools

Other relevant hard skills and tools include:

Proficiency in GPS Systems: Effective navigation skills involve reading maps and using GPS systems to avoid costly errors, such as driving on restricted roads or getting stuck on low or weight-restricted bridges.

Familiarity with Logistical Software: Trucks with logistics systems improve efficiency and customer satisfaction, and reduce costs. These systems assist with inventory management, route optimization, and freight tracking. Familiarity with basic logistics software gives you a competitive edge in the industry.

Load Securing Techniques: Proper load securement prevents accidents, cargo damage, and hazards. With the right skills, you can avoid weight imbalances and maintain vehicle control. This includes using chains, straps, and tie-downs to keep cargo in place.

Vehicle Inspection Skills: Pre-trip inspections ensure your truck is safe and well-maintained. The Department of Transportation (DOT) provides a checklist for inspections, repairs, and maintenance. Mastering these skills helps you comply with regulations and avoid costly repairs. Here’s a quick guide to vehicle inspections.

Essential Soft Skills

Unlike hard skills, soft skills are intangible and usually focus on building positive relationships. They include behavioral, communication, and interpersonal skills. Essential soft skills that make successful truck drivers include the following:

Strong Communication: Truck driving requires effective communication with dispatchers, customers, and fellow drivers. Strong communication helps build relationships, update customers on shipments, and share safety information, ensuring customer satisfaction and road safety.

Time Management: Many drivers get paid by the mile or hour. That means managing your time well can increase your earnings. You can plan to stay on the road longer and cover more miles. Managing your time ensures you make timely deliveries while complying with FMCSA’s driving hours of service regulations to avoid penalties or losing your CDL.

Adaptability: As a truck driver, you’ll face challenges like traffic and weather. Adaptability allows you to adjust to changing conditions, such as rerouting or altering schedules, ensuring success. It also helps you stay open to industry trends and new technologies, making you a versatile driver employers seek.

Patience: Truck driving involves stressors like traffic, aggressive drivers, long fuel lines, and delays at weigh stations or loading docks. Patience helps you stay calm and manage these situations, leading to a more enjoyable and less stressful career.

Importance of Skills in the Trucking Industry

Having the correct set of skills for trucking is essential for three main reasons:

Enhancing Safety

When you drive properly following safe driving practices, are well-versed with the required navigation skills, and comply with applicable regulations, you enhance overall road safety.

Improving Efficiency

Both hard and soft skills increase efficiency and productivity while reducing operations costs. Specifically, proper planning, good customer service, communication, and organization skills help you meet delivery deadlines and offer excellent customer service to clients.

Complying with Regulations

Complying with regulations is non-negotiable if you want to thrive in the transportation industry long-term. Specific technical expertise, such as load-securing techniques and vehicle inspection skills, help you comply with various regulations easily.

Securing New Job Opportunities

Highly skilled truck drivers are always in high demand. Not only that, they can also explore more job opportunities and negotiate higher pay than their less-skilled counterparts.

How to Improve Your Truck Driving Skills

While soft skills come naturally for some individuals, you can gain almost all the necessary skills through consistent learning and practice. A few common ways to build and improve the skillset you need to thrive in trucking include:

Attending Training Programs

Several defensive driving courses exist to help you learn defensive driving skills and stay up-to-date with the industry’s best practices. Most trucking companies also offer training programs. You can take advantage of all these programs to improve your expertise.

Practice Driving

Practical experience is one of the best ways to master a skill. Spend more time on the road to refine your driving skills, mechanical knowledge, and other skills. You can also simulate challenging situations, such as backing into tight spaces, for additional practice to improve your skills.

Learn from Other Drivers

Don’t be afraid to seek advice and learn from other drivers, especially veteran truckers. Most are knowledgeable in almost all aspects of the field and can offer valuable insights you can use to improve your skills. For example, they can share information on specific routes, delivery procedures, and traffic patterns that can help increase your efficiency.

Stay Updated on Driving Regulations

Truck driving regulations change. Staying up-to-date with the latest developments is, therefore, necessary for you to improve your trucking skills accordingly and operate within the law. You can stay updated by attending industry conferences, joining professional organizations, and following reputable online resources or publications.

Showcase Skills on a Resume

Gaining the correct skills is one thing, and showcasing these skills on your resume so potential employers can know what you’re capable of is another. Here are a few tips on showcasing your skills effectively on your resume:

Highlighting Hard skills

Create a dedicated section on your resume to showcase your most relevant hard skills. This section should be clearly visible and organized, making it easy for potential employers to identify your expertise at a glance. Use bullet points to list your skills, ensuring each one stands out.

Be specific about technical abilities like driving certifications, knowledge of logistics software, or maintenance skills, and tailor this section to match the job requirements. By doing so, you’ll make a strong impression and demonstrate that you have the practical skills needed to succeed in the role.

Demonstrating Soft Skills

Demonstrate your competence by providing examples of how various skills helped you to take specific actions. For example, you can include real-life examples of your accomplishments by giving information on the number of deliveries made, miles driven, and special awards or recognition because you provided excellent customer service.

Tailoring to Job Descriptions

Personalize your resume for different opportunities you apply for. You can do this by emphasizing the relevant skills that’ll benefit the employer for the specific position you’re after.

Final Thoughts

Mastering hard and soft skills is crucial for standing out and succeeding in the trucking industry. By developing a well-rounded skillset, you’ll position yourself for rapid career growth as opportunities in trucking continue to expand.

To ensure you’re on the right path, assess your current skills and identify areas for improvement. Create a list of what you’ve mastered, what needs work, and what new skills you should acquire. Then, use the strategies we’ve outlined to improve your skills step by step. As you grow in competence, you’ll gain more confidence behind the wheel and experience greater fulfillment in your career.

Remember, consistent learning and practice are the keys to skill development. For more valuable lessons and tips to help you succeed as a truck driver, visit our Mission Financial Services blog.

Interpreting Semi Truck Warning Lights

Interpreting semi truck warning lights is essential to keeping your truck in top condition and ensuring road safety. These lights are your vehicle’s way of signaling either a potential issue that requires immediate attention to prevent a malfunction or a fatal accident, or a reminder for routine maintenance.

The problem is that semi trucks have many warning lights, and new ones are added as technology improves. This can make it hard to know what each warning light means and what to do when they come on.

We’ve created a quick guide to help you understand common dashboard warning lights, their meanings, and the actions required. By following this guide, you can maintain your truck’s safety and reliability.

Common Dashboard Warning Lights

Even though the symbols and location of warning lights differ based on a truck’s age or model, some lights are present in all semi-trucks. These conventional warning lights include:

Check Engine Light

The check engine light is one of the most common and often misunderstood dashboard warnings. It can appear in different colors and signal a range of engine issues.

Shaped like an engine, the engine warning light may illuminate in orange, yellow, amber, or red. It can flash or stay on, indicating anything from minor issues, like a loose gas cap, to more serious problems, such as a faulty catalytic converter.

When it lights up, it’s best to visit a qualified mechanic for a diagnostic check and repairs to prevent further damage.

Fuel Gauge Warning

The fuel gauge warning light appears as an image of a fuel pump beside your fuel gauge. It lights up to let you know you’re running out of fuel. In some trucks, this light comes with an alarm to alert you to take action as soon as possible.

Fill your fuel tank soon to avoid running on low fuel. Continuing to drive your semi-truck on low fuel might force your engine to pick up the sediment and sludge at the bottom of your fuel tank, potentially causing preventable damage.

Engine Oil Pressure Light

In most vehicles, the engine oil pressure light resembles an old-fashioned oil can or a genie lamp, but some dashboards display the word OIL. It will light up red to inform you that your engine oil levels are too low.

When this light appears, pull over to a safe location. Often, topping off the oil will resolve the issue. However, if the light stays on, visit a certified mechanic for a professional diagnosis. It could indicate an oil leak, incorrect oil viscosity, or the need for an oil change.

Coolant Level Indicator

The coolant level indicator resembles a box or thermometer and has wavy lines representing a liquid. It comes on to signal that your engine’s coolant level is too low. This requires immediate action to prevent overheating, which can cause permanent engine damage.

Anti Lock Brake System (ABS) Light

Semi-trucks and other heavy commercial vehicles use sophisticated braking systems, including air brakes and an anti-lock braking system (ABS). The braking system has a warning light to notify you of any problem that may prevent it from working effectively. Such issues include worn-out brake pads, low brake fluid, or more severe problems.

If your ABS light flashes, address the issue immediately to avoid putting yourself and other road users at risk. Brake problems are one of the top causes of truck accidents.

Tire Pressure Warning Light

Modern trucks have systems to monitor tire pressure. When the pressure in one or more of your tires drops below the recommended minimum, the tire pressure monitoring systems (TPMS) warning lights will alert you.

Ensure you check your tire’s pressure at your earliest convenience when you notice this light. Underinflated tires are likely to fail, leading to fatal crashes. They can also increase your fuel costs.

Understanding Warning Light Colors

Warning lights have different colors. Understanding what these colors mean can give you a hint of how urgent the message they’re trying to send is. You’ll know what action to take and how fast you need to act to keep your vehicle healthy and safe. The most well-known colors include:

Red Lights

Red lights signal severe problems that require immediate attention. These include issues that can lead to equipment failure if left unattended, such as low oil pressure, engine overheating, and brake system failure. Equipment failure is a proven cause of semi-truck driver accidents.

Yellow/Amber Lights

Yellow or amber lights indicate issues that require your attention, but they may not be as pressing as the issues signaled by red lights. These might include issues with your truck’s emissions control system, low fuel, or minor engine problems.

Although they’re not immediate emergencies, don’t ignore the problems highlighted by these lights. Ensure you get your trusted mechanic to check and repair them as soon as possible to avoid engine shutdowns or potential vehicle breakdowns, which might lead to more costly repairs.

Green/Blue Lights

Green or blue lights are informational or confirmatory. They indicate the condition or status of different systems in your semi-truck. While they represent non-critical notifications, paying attention to them is still essential. They’ll remind you of specific actions to ensure you’re driving safely and your vehicle remains in good condition.

Green lights, in particular, can let you know if your lights are engaged, turn signals are on, or other systems are active. On the other hand, blue lights will tell you if your high-beam headlights are on or if your coolant temperature is at a normal level.

Responding to Warning Lights

There are three main ways to respond effectively to warning lights: pulling over, troubleshooting, and consulting your mechanic.

Pull Over: If your check engine light flashes or turns red, pull over, turn off the engine, and contact your mechanic. This typically signals a serious engine issue that could compromise safety.
Troubleshooting: Consult your manual to handle common minor issues. It often explains warning lights and may include model-specific instructions.
Consult a Mechanic: Red, yellow, or amber lights should be checked by a certified mechanic for an accurate diagnosis and proper repair advice.

Final Thoughts

Warning lights are your truck’s way of saying things are not fine. Listening and addressing them effectively ensures proper vehicle maintenance and maximum safety.

Remember, if a warning light comes on and you realize there’s an issue, the earlier you visit a qualified mechanic for professional diagnostics and repair, the better. This is because car problems worsen with time. Taking too long to fix issues will lead to costly repairs that might dent your finances.

If you ever need help financing your semi-truck repairs, call or e-mail us. We offer affordable semi-truck repair loans to help you minimize downtime and get the most out of your trucking venture.

Paid CDL Training Programs

If you want to enroll in a paid CDL program but don’t know where to start, we’re here to help.

Joining a paid CDL training program is an excellent way to start your truck driving career. Unlike private programs, these often cover tuition and guarantee employment upon completion, though they may come with certain conditions.

Below, we’ll outline the essentials of paid CDL programs, including types, benefits, and the training process, and recommend top trucking companies with reliable programs to consider.

Overview of CDL and its Importance

A commercial driver’s license (CDL) opens the door to various careers in the transportation industry. It is required to legally operate commercial vehicles with a Gross Vehicle Weight Rating (GVWR) of 10,000 lbs. or more, or those designed to transport 16 or more people, including the driver. This includes trucks, transit buses, and other public service vehicles.

Many people pursue a CDL for the financial stability that comes with commercial truck-driving jobs. Entry-level drivers typically earn around $30,000 per year, with earnings increasing as they gain experience in the industry. Experienced professional truck drivers can earn over $60,000 annually.

You can join a private CDL school or participate in different types of paid CDL training programs for your CDL.

Types of Paid CDL Training Programs

Several types of CDL training programs exist to help you launch and pursue your truck driving career with ease. Let’s look at the most common types.

Company-sponsored training programs

In company-sponsored CDL training programs, trucking companies pay or offer free CDL training to potential truck drivers.

In return, the drivers commit to driving for the trucking company for a specific period once they complete the training. They can also agree to have the company deduct a portion of their paycheck as reimbursement for the training costs.

These programs work in 3 different ways:

You receive free CDL training and sign a contract to work for the trucking company that pays your training costs for a certain period (usually 6 to 24 months).
You receive free CDL training and get paid during training, but you must work for the company for a set period (often 6 to 24 months).
You receive free training, but the trucking company recovers its training costs by deducting a portion of your paycheck afterward.

There are two kinds of company-sponsored training programs: in-house and external programs. In-house programs mean a trucking business owns and runs its paid CDL program. In this case, the company controls the program and will customize the curricula to prepare drivers for various business operations.

An external company-sponsored program involves a paid partnership between a trucking company and a third party, often a private truck driving school. The trucking company pays the school to train its drivers. Here, the training focuses on completing the CDL exam successfully and may not include training drivers on the company’s systems or operations.

Tuition reimbursement programs

Tuition reimbursement programs work almost the same as external company-sponsored programs, where a trucking company partners with a third-party driving school. The difference is the company will only cover the tuition fee for your training. You may also pay for your tuition and then get reimbursed after graduation.

Independent driving schools

Some independent driving schools offer paid CDL training by partnering with trucking companies. They cover most of your tuition, allowing you to pay the remainder through a payment plan. While there are no upfront costs, you must commit to working for a partner trucking company after graduation to repay the investment.

Benefits of Paid CDL Training

Training programs vary from one trucking company to the next. But most paid CDL training offers several benefits, including the following:

Earning while learning

Some companies offer compensation during training, either as a flat rate or other benefits. For instance, Hirschbach provides trainees a weekly payment of around $475, while Pam Transport offers new drivers a $100 Walmart gift card each week.

Reduced financial burden

Private CDL training schools charge approximately $4,000 to $12,000 for the course. This might be a high amount to raise, especially if you’re getting started. But, with paid programs, you won’t have to worry about such costs since the company takes up the financial burden.

Job placement assistance

With paid CDL programs, you’re assured of employment at the end of the training. It’s different from private training schools, where you’ll have to hunt for jobs after graduation.

Support resources for trainees

Most programs provide additional support resources for all trainees. These may include – free practice tests, full scholarships for veterans, and networking opportunities that’ll help you thrive within the industry.

Drawbacks of Paid CDL Training

While there are many benefits to a paid CDL course, it’s important to be aware of the downsides.

Additional expenses while in training: Not all companies will pay you during training. You may have to cover your travel, accommodation, and meal expenses during the training period if the training school is far from your home state. Always confirm the terms of your contract to ensure there are no hidden costs before you commit to it.
Short training period: Some company-sponsored CDL programs are rushed and may not cover the required curricula in-depth within a few weeks. This can put you at a disadvantage with some employers as they’ll doubt your competence.
Less flexibility: With paid CDL, you’re locked into an agreement with one company for 6 to 24 months and cannot leave even if it’s not a good fit for you.
Wages in the first year of employment may be average.

Key Steps to Obtain a CDL

CDL licenses come in three classes—A, B, and C—each allowing you to operate different types of commercial vehicles based on size and weight. Higher weight limits open more trucking and career opportunities.

To obtain a CDL, you must complete key steps: secure a commercial learner’s permit, fulfill training requirements, and pass the CDL exam. Here’s a step-by-step guide to help you navigate the process of becoming a semi-truck driver.

Training Process in Paid CDL Programs

The training process in paid CDL programs involves three main parts:

Classroom Instruction: Begin with classroom learning led by a certified instructor, covering the theoretical aspects of truck driving.
Hands-On Driving: Gain supervised, on-road experience using your CDL permit to practice essential skills for the CDL exam.
Safety and Compliance: Learn safe driving practices. For over-the-road (OTR) trucking, many programs require at least 30,000 miles of supervised driving before solo hauling.

Major Companies Offering Paid CDL Training

Here is a list of a few reputable companies running some of the best-paid CDL training programs in the transportation industry. Almost all of them will pay you nearly $475 – $600+ during training and an above-average wage upon completion. Also, their employment opportunities include several employee benefits such as health, dental, and vision plans, 401(k) with company match, paid time off (PTO), and paid vacations with family.

Schneider
Roehl Transport
Knight Transportation
Maverick USA
TMC Transportation
Halvor Lines
Swift Transportation

Conclusion

Paid CDL training remains the simplest and most affordable way to get your trucking career going. You have to choose a program that best suits you for it to work well, though, since CDL training programs are not created equal.

Carefully review the terms and conditions of each program before committing. Breaching a contract can lead to serious consequences, such as repaying the full training cost, additional fees, or even being barred from working with other trucking companies. The penalties depend on the contract’s terms and the severity of the breach.

If you fulfill your contract and aspire to become an owner-operator, Mission Financial Services is here to help. Contact us for tailored commercial vehicle loans and financing options to make purchasing your first truck simple and stress-free.

Choosing the Right Trucking Accounting Software

One of the most important parts of running and growing a trucking business is careful financial management. To get this right, you need to use the right accounting software.

The trouble is that trucking companies have many unique accounting needs. This means regular business accounting solutions won’t always cut it. Instead, you must use specific trucking accounting software to help you stay compliant and manage all of the essential financial elements of running a trucking operation.

In this guide, we’ll cover everything you need to know about finding the right trucking software.

Trucking Accounting Software vs. General Accounting Software

Of course, the main difference between trucking accounting software and general accounting software is in their focus.

General accounting software, like QuickBooks, is designed for any business. It handles all the core accounting and bookkeeping tasks, like invoicing, payroll, profit and loss reports, and financial reporting. However, general platforms like this lack trucking company-specific features, such as International Fuel Tax Agreement (IFTA) reporting or cost-per-mile tracking.

These gaps often require trucking companies to rely on extra tools for those specific business accounting functions.

In contrast, trucking accounting software is built specifically for the trucking industry. It includes a range of features designed to manage trucking-specific needs, such as load tracking, fuel expense monitoring through fuel receipts, monitoring the latest fuel tax rates, and automated IFTA compliance.

In many cases, trucking office software streamlines operations by integrating bookkeeping software with fleet management, dispatching, and equipment tracking. This makes it a one-stop solution for trucking businesses, saving time and improving accuracy.

While general accounting software can be cheaper and easier to set up, trucking accounting software is a better investment if you want an all-in-one platform to handle financial and operational tasks.

Why You Need Accounting Software for Your Trucking Business

Finding the best trucking accounting software for your business can save time, reduce stress, and improve accuracy.

Beyond the general reasons to use good accounting software, like generating expense reports and managing your financial statements, here’s why it’s essential for truckers.

1. Streamline Billing and Invoicing

Trucking businesses often deal with multiple clients, loads, and payment terms.

Accounting software helps you create and send invoices quickly. Invoices can be automatically generated. Plus, the software automatically tracks unpaid bills, reducing the risk of errors or missed payments.

With organized billing, you can focus more on running your business instead of chasing payments.

2. Meet IFTA Compliance

Tracking fuel use across state lines for IFTA reporting can be a headache.

Accounting software designed for trucking automates this process. It calculates and prepares your IFTA reports by pulling data from your trips and fuel purchases. This saves loads of time, especially as an owner-operator, and ensures compliance, helping you avoid penalties.

3. Accurate Driver Pay

Paying company drivers fairly and on time is crucial for your business.

Trucking accounting software can calculate driver wages based on mileage, hours worked, or percentage of load revenue.

This eliminates guesswork and ensures drivers are paid accurately. It also helps you track payroll costs for better financial management.

How to Choose the Right Trucking Accounting Software (Key Features)

Choosing the right trucking accounting software is key to keeping your business efficient and your finances in order. To help you find the right solution, here are the most important features to look for.

1. Cost vs. Value

Don’t just go for the cheapest option – focus on value.

Look for software that fits your budget while providing all the tools you need. A slightly more expensive program might save you time and money in the long run by streamlining tasks like IFTA reporting, billing, and expense tracking.

Think about how much time and effort the software will save you, allowing you to focus on growing your business.

2. Key Features and Integrations

Make sure the software offers trucking-specific features like cost-per-mile tracking, IFTA compliance, and load management.

It should also integrate seamlessly with your existing systems, like ELDs, fuel cards, or dispatching tools. A lack of integration can create gaps in your data, causing inefficiencies or errors.

3. User-Friendliness

Good software should be easy to learn and use.

Look for a system your team can adapt to quickly, even if they’re not tech-savvy. The sooner everyone is comfortable using the software, the faster you’ll see the benefits.

4. Scalability

Choose software that can grow with your business. If you only have a few trucks now but plan to expand, pick a program that can handle larger fleets and more complex operations in the future.

This prevents the hassle of switching systems later on.

Cost of Trucking Accounting Software

The cost of trucking accounting software can vary widely depending on your business size and needs.

For owner-operators or small fleets, basic trucking accounting software typically costs between $5 and $25 per month. This is great for smaller businesses with straightforward needs like basic invoicing, expense tracking, and IFTA reporting.

For larger fleets, the price goes up. Trucking management software designed for bigger operations usually costs $100 to $500+ per month.

The price often depends on the number of trucks or users. Some providers offer customized pricing for large businesses based on their specific requirements, which could include advanced features like fleet tracking and detailed payroll management.

Keep in mind that some businesses may need to combine multiple systems to get all the features they need. For example, you might use one tool for trucking-specific tasks like load tracking and another for payroll.

While this offers flexibility, it can increase the overall cost. Carefully consider pricing and functionality to ensure you’re getting good value for your investment.

Final Thoughts

Ultimately, the best accounting software solution comes down to your trucking company and its unique needs. Compare different options, trial different software where possible, and look for a solution that offers the exact set of features and integrations to make sunning your business an easier process.

If you’re starting or operating a trucking business, then getting the right commercial vehicle financing is also essential. At Mission Financial Services, we offer easy financing solutions for everyone, no matter what your credit score looks like or what type of truck you’re after. Get started today.

Benefits of Being a Truck Driver

Truck driving is more than just a job – it’s one of the most exciting and rewarding career paths. That’s not to mention how important truck drivers are for the economy.

Being a professional truck driver opens up a lifestyle that many desk workers would only dream of. You get absolute freedom, you get to see the world, and every day is a new adventure. Plus, truck drivers can enjoy a very stable and fruitful career.

Thinking of becoming a professional truck driver? Here’s why you should consider it.

The Critical Role of Truck Drivers

Truck drivers are the backbone of the US economy, transporting over 70% of all freight tonnage country-wide.

Without truck drivers, industries like retail and manufacturing would face major disruptions, causing shortages of goods and a halt in production. With around 3.54 million people employed in the truck driving profession in the US, they play a critical role in connecting factories to warehouses, delivering essential items to stores, and ensuring businesses and consumers receive what they need on time.

Trucking companies play a vital role in supporting economic growth and job creation. They’re indispensable to the nation’s supply chain.

However, the trucking industry faces many challenges, including a growing shortage of drivers. This shortage leads to delayed deliveries, higher transportation costs, and increased pressure on current truck drivers, who often work long hours under demanding conditions.

These issues ripple across the economy, affecting everything from food availability to construction supplies.

11 Truck Driver Benefits

Truck driving offers a rewarding career with excellent benefits and the freedom to shape your work life to suit your needs. Whether you value financial security, independence, or adventure, it’s a profession with something for everyone.

Here’s a closer look at what this profession offers:

Steady Pay and Job Security

Being a professional truck driver means earning competitive wages, with steady paychecks increasing with experience.

Because trucking is vital to keeping the economy running, the demand for drivers remains high. This ensures excellent job security and makes it a stable career choice.

Experienced drivers can also choose from a wide range of jobs, or decide to work for themselves. Overall, it’s an enormous industry that’s been facing a shortage of drivers. This means there’s plenty of opportunity to build a reliable truck driving career.

Travel and Adventure

Truck driving is the perfect career fit for those who enjoy traveling.

Drivers get to see new parts of the country, from big cities to scenic rural areas. Truck drivers are always on the move, always seeing new places. For many truck drivers, no two days are the same.

Every trip can bring a new adventure, making the job exciting for those who love life on the move. Of course, this is particularly true for long-haul trucking, where you drive across the country.

Independence and Flexibility

Few jobs offer the level of independence that trucking does.

Drivers spend much of their time on the road, managing their time and tasks without constant supervision. Plus, many companies offer flexible schedules, so you can choose routes and working hours that suit your lifestyle.

New drivers need to be self-reliant and able to work independently.

Career Opportunities and Growth

The trucking industry offers diverse opportunities for growth.

Drivers can specialize in local deliveries, regional hauls, or long-distance routes. With experience, you could transition into roles like fleet management and logistics or start your own trucking business.

The possibilities in trucking are vast, with numerous companies and career paths to choose from. As you embark on your journey as a truck driver, consider the direction you want your career to take and explore the opportunities that align with your goals.

Improved Driver Experience

Modern trucks are more comfortable and advanced than ever.

Many feature ergonomic seating, climate control, entertainment systems, and Wi-Fi. These upgrades make life on the road easier and help drivers feel at home, even while working.

While there are often concerns that your personal life will take a hit as a truck driver, your comfort on the road should never be an issue.

Employee Benefits and Insurance

Many trucking companies provide comprehensive benefits packages. These include health insurance, retirement plans, and paid time off.

Such benefits add financial security and peace of mind for drivers and their families.

With the high demand for truck drivers, many trucking companies are enhancing job appeal by offering better benefits and more competitive pay.

Bonuses and Incentives

On top of base pay, many companies offer bonuses for things like safe driving, fuel efficiency, and on-time deliveries. These incentives add up and can make a big difference in your overall earnings.

Education and Training Costs

Starting a trucking career has relatively low barriers compared to other professions.

You don’t need a college degree, and many companies cover training costs or reimburse you for earning your commercial driver’s license (CDL). This makes it an accessible and cost-effective career path.

Choosing Driving Distance

One of the biggest perks of trucking is the flexibility to choose how far you want to drive.

Whether you prefer staying local and being home daily, working regionally, or exploring the open road on long-haul trips, there’s an option that fits your lifestyle.

Time on the Road and Community

For those who enjoy solitude and time to themselves, trucking offers plenty of it. Long hours on the road can be peaceful and reflective.

At the same time, the trucking community is close-knit, with drivers often forming bonds and supporting each other out on the highways.

Bring Pets Along

Many trucking companies now allow drivers to bring their pets along for the ride. This perk is a game-changer for animal lovers, providing companionship during long trips and making the job feel less lonely.

The Impact of Driver Benefits

While the truck driving profession has seen a significant drop-off, all of these benefits of becoming a truck driver could turn things around.

When drivers receive good pay, insurance, retirement plans, and paid time off, they feel valued and secure. This leads to better job satisfaction, lower turnover rates, and improved performance.

Flexible schedules and options to choose driving distances also help drivers maintain a better work-life balance, making the career more sustainable long-term.

Perks like modern truck features and bonuses for good driving skills improve life on the road, reducing stress and isolation. These incentives motivate drivers to prioritize safety and efficiency.

For companies in the trucking industry, offering strong benefits attracts skilled drivers, which helps address shortages and keeps the supply chain moving smoothly.

Final Thoughts

Truck drivers don’t always have the easiest time striking a good work-life balance. They spend long hours on the road, they’re often away from family, and life on the road could get lonely. However, all of the benefits of being a professional truck driver often make up for this.

For the right person, truck driving offers an unbeatable sense of freedom, independence, job security, and satisfaction.

Interested in becoming your boss as an owner-operator in the trucking industry? Then the first step is investing in the right commercial vehicle. At Mission Financial Services, we make this easy through accessible financing options. Get started today.