Chris is going from behind the desk to behind the wheel and starting his own trucking company.
Episodes
7 days ago
7 days ago
In the last episode on safety, we talked about CSA scores and how they work and some best practices. Managing the safety program for a trucking company is not an easy job, whether you are an O/O or have a fleet. There is a lot to know and do. So, what happens if you didn’t do a good job with those things and you are under the FMCSA’s microscope?
In these two episodes, Craig and Chris are joined by Alex from Motor Carrier HQ to pick her brain about her experience with the FMCSA, maintaining good ISS scores, and how to get yourself out of a hole if you find yourself in one.
Get the full show notes at haulinassetsllc.com
Check out MotorcarrierHQ.com
Find our courses at haulinassetsacademy.com
Wednesday Aug 21, 2024
Wednesday Aug 21, 2024
Haulin Assets T-shirts and More
This year has been better than last year, but we are still not where we want to be. Hopefully, things continue to gradually improve as the year goes on. Here is what July looked like.
- Total miles ran– 118,563
- Deadhead miles– 9,649
- Total revenue- $243,804.91
- All-in rate-per-mile- $2.06
Haulin Assets realized another small profit of $10,342.41. That continues our profitability streak of 10 months, but cashflow is still negative and we talk about that a bit, including a big change to help alleviate some of the pressure that causes.
Here are some areas of the P&L that we highlight.
- Factoring
- Fuel
- Repairs
- Taxes and licenses
Wednesday Aug 07, 2024
Wednesday Aug 07, 2024
What do peaches and the FMCSA Safety program have in common. You'll have to listen to find out, but I will tell you, understanding the low hanging fruit principle can help you stay out of hot water with the FMCSA. We cover a lot in this first episode of a two part series on the FMCSA Safety program. It can be tempting to neglect safety, especially when you are struggling to survive in a tough market. However, failing to manage your safety and your FMCSA scores can sink your company faster than low freight rates. Listen to the episode as Craig and I share some great tips when it comes to safety.
What To Expect From Episode 160
BLUF (Bottom Line Up Front), If you want to have good CSA scores, be safe, maintain your vehicles, obey traffic laws, and don't break the hours of service rules. With that being said, we give a lot of tips about what the CSA scores are, how they are calculated, and some of the best practices to keep them low. Lower is better. Here is an outline of what we cover.
What Are CSA Scores
Most Motor Carriers receive scores in 7 Behavior Analysis and Safety Improvement Categories, which wrapped up in a nice little acronym called BASICs. The categories are:
- Unsafe Driving 65%
- Crash Indicator 65%
- Hours-of-Service Compliance 65%
- Vehicle Maintenance 80%
- Controlled Substance 80%
- Hazardous Materials Compliance 80%
- Driver Fitness 80%
- Insurance and Other (This one isn't really scored, it's more like pass or fail)
The percentages are the thresholds, we explain those during the episode.
How You Get Your CSA Score
The simple answer to this question is they come from interventions with the FMCSA/DOT Officers. Those can be anything from roadside inspections to an audit. Most inspections occur at Ports of Entry or because of an inspection that happens when a driver is pulled over for a moving violation or obvious vehicle maintenance issue. One of the biggest contributors to the number of inspections you get is your ISS Score (Inspection Selection System). You can check your score and a lot of other important things regarding your company's history with the FMCSA by logging into their system here.
Understanding The Scoring System
The scoring process is a bit complicated. I am going to over simplify it, but here is the general idea. Every time you are inspected your company receives a score. If there is a violation, you get bad points. If the inspection report is clean, you get good points. The formula the FMCSA uses basically divides the bad points by the good points. If you have more good points than bad, your resulting "measure" will be less than one. If you have more bad points than good points, your "measure" will be higher than one. Good inspections will give you more good points and lower your "measure". Your "measure" is then compared to all the other fleets that are roughly your same size. If you are right in the middle, meaning half the companies have a "measure" lower than yours and half the companies have a "measure" higher than yours, your BASIC score will be 50%. If you are in the top 10%, your score will be 10%, etc. Every BASIC has a threshold, if you are above the threshold you are going to be on the FMCSA's radar. You just became low hanging fruit, if you don't know what that means, listen to the episode.
If you really want to nerd out and dive deep into the methodology and calculations, you can learn a lot by clicking on this link and reading the document.
Understanding The Consequences Of Your CSA Scores
There are several things that happen if your CSA Score exceeds the threshold.
- You are going to get a letter from the FMCSA saying you need to behave and do better
- Your ISS Score is going to increase and your are going to get inspected more, when that happens, most scores get even worse
- If your score stays elevated for a while or if you exceed the threshold in multiple categories, you are way more likely to be audited, that's when the fun really begins
Most audits result in a Safety Rating, either Satisfactory, Conditional or Unsatisfactory. In part two of the series we will talk about what happens if you get a bad safety rating or if the FMCSA tells you that you need to complete Corrective Action Plan.
Wednesday Jul 24, 2024
Wednesday Jul 24, 2024
Haulin Assets Academy: https://www.haulinassetsacademy.com/
Motor Carrier HQ: https://www.motorcarrierhq.com/
This is a topic I wish I did not have to cover, but fraud in the trucking industry is going crazy right now and it is affecting all of us. Being dishonest is very short sided and will catch up with you in the long run. There is no place for dishonesty in the business world. In my opinion, fraud is one of the worst forms of dishonesty.
What To Expect From Episode 159
Why is fraud so rampant right now? I have my theories that Craig and I discuss, but I think it stems from the tough market we are in. Here are some of the more common types of fraud that we talk about:
- Double brokered loads (We spend a lot of time on this one)
- Companies that pretend to be the FMCSA, DOT, IRS or State Agency
- Emails from government entities should end with a .gov not .com
- Card skimmers
- New Entrant Audit scams
- Watch out for these domains
Being vigilant and skeptical is your best weapon. Here are some of the things we talk about watching out for:
- Formatting is off on the rate confirmation
- Rate confirmation is missing information, like your company name
- The logo looks blurred or otherwise messed up
- The rate is well above market rate
- Email addresses with a domain that does not match the company
- Gmail, Outlook, iÇloud, Yahoo, etc email domains are a big red flag
- New domains, you can check the domains age at https://www.whatsmydns.net/domain-age
Verify everything, especially when working with someone for the first time
- Independent internet searches
- Call the phone number you find independently, not the one on the paperwork they gave you
- Your factoring company
- Get a second opinion from someone you trust or someone who is an expert
Wednesday Jul 10, 2024
Wednesday Jul 10, 2024
Haulin Assets Academy: https://www.haulinassetsacademy.com/
I start off this episode ranting a bit about a couple of challenges I faced recently. One involved being dropped from a load that I think was completely unwarranted. The second situation was because of a strong oder in a trailer that wouldn't go away, even after a washout.
What To Expect From Episode 158
We are not where we want to be, but if you look at June of last year verse June of this year, we are in a much better spot. All the trucks are running. Here are the numbers:
- Total miles ran– 118,237 (The sitting truck was back working for about half the month)
- Deadhead miles– 8,806 (7.5%, Creeping up. I have expected this and explain why)
- Total revenue- $244, 523.12
- All-in rate-per-mile- $2.07 (Drop from last month)
Haulin Assets realized a profit of $23,521.93, that is the second best of the year. What has me even happier is that it is $46,983.01 better than last year when we had a loss of $23,461.08. We continue to extend our streak of being in the black, that makes me happy. If we continue to see profit through the summer I will continue to get more and more optimistic that the market is finally turning the corner.
The P&L was pretty bland this month. Additionally, I explain why we were able to have a lower all-in rate-per-mile, but had a higher profit than last month.
Wednesday Jun 26, 2024
Wednesday Jun 26, 2024
Haulin Assets Academy: https://www.haulinassetsacademy.com/
Throughout my military, business ownership and corporate careers I have held many different types of leadership positions. I have lead groups with just a few people to groups with hundreds of people. I am a much better leader today than I was 20 years ago. I hope this episode will give you some things to think about so you have a leg up to becoming a better leader. Keep in mind that a great leader positively impacts an organization in ways that are immeasurable. Great leadership is a multiplier for your organization.
What To Expect From Episode 157
Whether you are a single owner operator or the owner of a fleet of trucks, you are the leader of your trucking company. I want to share some of the things I have learned over the years about being a good leader. Some of the greatest leadership lessons I have learned came during difficult circumstances. Here are a few of the leadership experiences I have had that have helped me gain experience: Army Engineer Company Commander in Afghanistan, starting and running multiple businesses, running businesses in difficult times and learning how to lead at the Army's Sapper Leader Course under extreme hunger and fatigue.
During this episode, Craig and I break down and expound on the following keys I feel like are imperative to being a good leader for your trucking company. Here they are:
- Provide good direction and guidance
- Good company policies
- The type of drivers you hire
- How big of a company you will be
- Build a good culture
- Safety
- How hard your drivers run
- How your drivers are treated
- Hiring process
- Be a servant leader
- Find ways you can serve your drivers
- Find ways to give your drivers a win
- Be self-aware
- Be honest with yourself, change the things you do that cause problems
Leadership is a life-long endeavor. You should always work on your leadership skills. Here are some ways I like hone my leadership skills.
- Read great books on leadership, here is a list of some of my favorites:
- Good to Great, Jim Collins
- Speed of Trust, Steven
- Start With Why, Simon Sinek
- Biographies
- Ulysses S Grant
- Alexander Hamilton
- Buffet: Making of an American Capitalist, by Roger Lowenstein
- Steve Jobs, Walter Isaacson
- Elon Musk, Walter Isaacson
- Be reflective
- Get feedback
Wednesday Jun 12, 2024
Wednesday Jun 12, 2024
This month is a really good indicator of what happens when you have a truck sitting for too long. We had a truck sit the entire month and the impact on the bottom line is pretty easy to calculate. Craig and I spend a few minutes of this episode showing the impact that a sitting truck has on your net income. It's a pretty interesting case study. Be sure to listen in.
What To Expect From Episode 156
We took a step back this month. Largely because of the truck without a driver. Here are the numbers:
- Total miles ran– 109,840 (Lowest since September of last year)
- Deadhead miles– 7,578 (6.9%)
- Total revenue- $239,743.84
- All-in rate-per-mile- $2.18 (Moving in the right direction, three months in a row of improvement)
Haulin Assets realized another little profit of $4,688.82. This is a decrease from last month and we ended our streak of doubling every month. But, at least we extend our streak of being in the black. June of last year was the beginning of a really bad streak of losses, I am super interested to see what happens this June. I am crossing my fingers that we can keep the numbers in the black through the summer. That will be a win compared to last year.
There were a few expenses to take note of on the P&L, here are the areas we dive a little deeper into:
- 5 Payrolls
- Tolls keep going up and up
- Fuel is 27% of revenue
Wednesday May 29, 2024
Wednesday May 29, 2024
We just completed our 2024 insurance renewal last month, so I thought this world be a good time to revisit the subject of insurance. It's been several years since we have taken a serious swing at the topic and high time we do it again. Especially since insurance is in the top 5 expenses for most trucking companies and a little savings on your insurance bill can go a long way towards improving your bottom line.
What To Expect From Episode 155
Buying truck insurance is a pretty complicated and sophisticated purchase. The better you understand it, the better product and service you will receive and the better price you will pay. Understanding the players in the truck insurance world is step one in building your insurance knowledge. Craig and I start off the episode talking about the difference between insurance agents/agencies and insurance companies. We also discuss how many agents should you have giving you quotes. I typically recommend that you work with 2-3 agents, because that is usually enough to get you quotes from most, if not all of the major truck insurance companies.
It's good to get an early start whether you are getting a quote for the first time or working on a renewal. I recommend you start gathering all the information needed for the agents giving you quotes around 60 days before your renewal. Here is what you will usually need to provide:
- A completed application, your agent can often take the information over the phone, fill it out and provide you a document to sign.
- Your equipment list with all your trucks and trailers listed along with their current values. The value you list is critical. Listen to the episode and I explain why.
- Driver list
- Loss runs
Timing is critical. I recommend you have all the info your agent needs to get a quote to them at least 30 days before your policy expires so you get the quotes back in a timely manner. I also recommend you bind the new policy, that means making the down payment, at least 1 week before your policy ends. That ensures you don't miss out on any loads. About a week before your policy expires some shippers and brokers won't book loads with you because they see your policy is expiring and they want to see you have a new one in place first.
How much your policy is going to cost depends on a lot of different factors. It really boils down to risk. We talk about some of the main risk factors that affect your pricing, to include:
- How long you have been in business
- How many claims you have had and how much has been paid out in the past
- Experience of your drivers
- Equipment values
- Where your home base is and where your truck(s) travel to
Not all insurance policies are equal. Price is an important factor, but you also want to make sure you are getting adequate coverage for the type of operation you run. For example, if you have reefers, make sure you get reefer breakdown coverage. If you are hauling something super expensive, make sure your cargo insurance is high enough. If you haul HAZMAT make sure you have the right coverage at the right limits. A good agent who primarily does truck insurance will be able to help you through all of this. Don't work with an agent just because they are someone you know. If they don't regularly write truck insurance they can get you in a lot of trouble by not providing you the coverage you need.
Wednesday May 15, 2024
Wednesday May 15, 2024
We keep moving in the right direction, April 2024 Financials were better than March. If you remember I mentioned I would be happy if we can keep doubling our net income for 4-5 months. April is the third month in a row we have been able to do that. We start off the episode talking about the importance of being agile. If you aren't agile in this kind of a market, you are going to be hurting.
What To Expect From Episode 154
Even though we keep moving in the right direction, there is still a decent way to go. Here are the numbers:
- Total miles ran– 113,066 (Lowest in a while, had a truck sitting for a while. Larry had to step a way from over the road for a while. He is a great driver, we’ll miss him)
- Deadhead miles– 7,551 (6.7%, slight increase)
- Total revenue- $241,614.25 (Decrease, for the number of miles, it’s an improvement)
- All-in rate-per-mile- $2.14 (Moving in the right direction)
Haulin Assets realized another baby profit of $10,565.31. That is also 7 months in a row in the black.
Here are some of the P&L items we discuss during this episode:
- Revenue was down
- Rate per mile was up.
- Most expenses were pretty normal, but here are the exceptions:
- Bad debt
- Maintenance and repairs
- I did another CPM analysis and we went from $1.97 in October 2023 to $1.87 now
Wednesday May 01, 2024
Wednesday May 01, 2024
Independent Owner Operator verses Leased Owner Operator is a bit of a controversial topic because you get strong opinions on both sides of the argument. I think that is because being an independent Owner Operator is the right thing for some people, while leasing on to another company can be the right thing for someone else. In this Episode of Haulin Assets the Podcast, I want to talk about the pros and cons of both, along with the things you need to keep in mind and watch out for to help you make the decision for yourself.
What To Expect From Episode 153
Let’s define each.
Independent Owner Operator, just like the name implies, you are truly independent. You have your own DOT number, you own or lease the truck you drive, in most cases, you have your own Operating Authority (MC Number) with the FMCSA (Federal Motor Carrier Safety Administration).
Leased Owner Operators, own or lease a truck and operate under the authority of another motor carrier.
Where things get confusing is the term leased is also used when leasing vehicles, think of that kind of lease as a long-term rental of the vehicle. That type of vehicle lease/rental is different the leasing on as an owner operator, they are two very different types of leases, but often happen at the same time between the same companies and can cause some very serious problems. We talk about that and why you have to be super careful in that type of situation. I'll put it this way, we don't recommend leasing or buying a truck directly from the motor carrier you are going to lease on to. Craig and I talk about why that is.
There are pros and cons of both and we talk about each.
Independent Owner Operator
Pros
- Truly Independent
- Higher financial upside
- You get to decide the type of loads you haul
- Lots of tax benefits
- Investment control
- Strong sense of ownership
Cons
- You have to find your own loads
- All responsibility falls on you
- Bookkeeping
- Sales
- Maintenance
- Admin tasks
- MCHQ and Trackin Assets can help you navigate a lot of these
- Higher stress
- Takes more money to start
- Your insurance will likely be higher for the first year or two
- Isolation
- Unknown, unknowns
Leased Owner Operator
Pros
- Many administrative tasks are handled for you
- You don’t have to find loads
- You will get some cost savings operating as part of a larger fleet
- Less financial risk
- Should have access to steady work
- Training and safety programs
- Great way to gain experience and use it as a stepping stone to becoming an independent OO
Cons
- You sharing the profit with another carrier
- You’re working for someone else and have to follow their rules and do what they say, you lose control
- Some companies will take advantage of you
- You may be the low man on the totem pole
- Some contracts can be very restrictive
- Ownership transfer issues
Other considerations
Independent Owner Operator
- Fraud
- You'll need a bigger reserve of money
Leased Owner Operator
- Talk to several owner operators who do work for the any company you are thinking about leasing on to
- Make sure you read through the entire lease agreement. Consider having an attorney review it. I know it costs money to do so, but it could save you money in the long run and prevent a lot of heartache.
- At Haulin Assets we don’t come down hard on either side of Independent O/O vs Leased O/O. We generally advise against lease to own. It’s not the subject of this episode so we won’t go into depth but things just seem to be more likely to go wrong with lease to own. The agreement is riskier, the lessees are generally not starting on a firm footing, and the lessors can have incentives for you to fail.Buy or lease your own truck, from somewhere other than the company you are leasing on too
- Do your own truck registration/IRP plan (Another way they trap you)
- This will take a bit more money, but is a much safer way to do it, less likely to be taken advantage of