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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Dec 18 – 24 vs.
Dec 11 – 17
Nov 2016 vs.
Oct 2016
Nov 2016 vs.
Nov 2015
Spot Market Loads +1.2% +4.6% +87%
Spot Market Capacity 11% 3.3% +5.1%
Van Load-To-Truck +9.5% +9.7% +74%
Van Rates (Spot) +0.6% +1.2% 2.3%
Flatbed Load-To-Truck +15% +3.1% +124%
Flatbed Rates (Spot) +1.0% 1.0% 3.6%
Reefer Load-To-Truck +28% +15% +60%
Reefer Rates (Spot) +1.0% +3.2% +0.5%
Fuel Prices +0.4% 0.6% 1.2%
Load-to-Truck Ratios Soar, Heading Into Holiday

Rates Rise Ahead of Christmas

Dec 18 – 24 – It cost a little more to move freight as we got closer to Christmas. Even as activity tapered off near the end of the week, urgency rose, which led to higher rates. Van rates  were up 1¢ nationally, while reefer and flatbed rates were each 2¢ higher than they were the previous week.

The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.

Last update: 12/27/2016 – Next update: 1/3/2017

Fuel Prices
+0.4%$2.54 / gallon
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Dec 11 – 17 vs.
Dec 4 – 10
Nov 2016 vs.
Oct 2016
Nov 2016 vs.
Nov 2015
Spot Market Loads +1.6% +4.6% +87%
Spot Market Capacity 5.3% 3.3% +5.1%
Van Load-To-Truck +4.5% +9.7% +74%
Van Rates (Spot) 1.7% +1.2% 2.3%
Flatbed Load-To-Truck +3.1% +3.1% +124%
Flatbed Rates (Spot) +0.0% 1.0% 3.6%
Reefer Load-To-Truck +21% +15% +60%
Reefer Rates (Spot) 0.5% +3.2% +0.5%
Fuel Prices +0.5% 0.6% 1.2%
Load-to-Truck Ratios Regain Momentum

Rates Dip, But Stay Strong

Dec 11 – 17 – Load-to-truck ratios were already strong, but they went even higher last week, for all equipment types. Van rates dipped 3¢ compared to the previous week, but remain strong for the season. In fact, December is on track to be the peak month for van pricing in 2016. Reefer rates lost 1¢ per mile, and flatbeds were unchanged, week over week.

The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.

Last update: 12/20/2016 – Next update: 12/27/2016

Fuel Prices
+1.6%$2.53 / gallon
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Dec 4 – 10 vs.
Nov 27 – Dec 3
Nov 2016 vs.
Oct 2016
Nov 2016 vs.
Nov 2015
Spot Market Loads 8.6% +4.6% +87%
Spot Market Capacity +15% 3.3% +5.1%
Van Load-To-Truck 28% +9.7% +74%
Van Rates (Spot) 0.6% +1.2% 2.3%
Flatbed Load-To-Truck 5.6% +3.1% +124%
Flatbed Rates (Spot) +0.5% 1.0% 3.6%
Reefer Load-To-Truck 26% +15% +60%
Reefer Rates (Spot) 0.5% +3.2% +0.5%
Fuel Prices +0.4% 0.6% 1.2%
December Freight Stays Strong

Rates Dip 1¢ for Vans and Reefers

Dec 4 – 10 – Load availability edged down last week after a big spike the week before. Load-to-truck ratios declined for all trailer types, but all remain higher than usual for this time of the year. Van rates dipped 1¢ from the previous week’s high, and reefers also lost 1¢ per mile, but flatbed rates rose 1¢.

The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.

Last update: 12/13/2016 – Next update: 12/20/2016

Fuel Prices
+0.4%$2.49 / gallon
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2016 Recap: Tax Provisions for Businesses

Whether you file as a corporation or sole proprietor here’s what business owners need to know about tax changes for 2016.

Standard Mileage Rates
The standard mileage rates in 2016 are as follows: 54 cents per business mile driven, 19 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.

Health Care Tax Credit for Small Businesses
Small business employers who pay at least half the premiums for single health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit as long as they employ fewer than the equivalent of 25 full-time workers and average annual wages do not exceed $52,000 (adjusted annually for inflation) in 2016.

In 2016 (as in 2015 and 2014), the tax credit is worth up to 50 percent of your contribution toward employees’ premium costs (up to 35 percent for tax-exempt employers). For tax years 2010 through 2013, the maximum credit was 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities.

Section 179 Expensing and Depreciation

The Section 179 expense deduction was made permanent at $500,000 by the Protecting Americans from Tax Hikes Act of 2015 (PATH). For equipment purchases, the maximum deduction is $500,000 of the first $2.01 million of qualifying equipment placed in service during the current tax year. The deduction is phased out dollar for dollar on amounts exceeding the $2 million threshold amount (indexed for inflation) and eliminated above amounts exceeding $2.5 million. In addition, Section 179 is now indexed to inflation in increments of $10,000 for future tax years.

The 50 percent bonus depreciation has been extended through 2019. Businesses are able to depreciate 50 percent of the cost of equipment acquired and placed in service during 2015, 2016 and 2017. However, the bonus depreciation is reduced to 40 percent in 2018 and 30 percent in 2019. The standard business depreciation amount is 24 cents per mile.

Please call if you have any questions about Section 179 expensing and the bonus depreciation.

Work Opportunity Tax Credit (WOTC)

Extended through 2019, the Work Opportunity Tax Credit has been modified and enhanced for employers who hire long-term unemployed individuals (unemployed for 27 weeks or more) and is generally equal to 40 percent of the first $6,000 of wages paid to a new hire. Please call if you have any questions about the Work Opportunity Tax Credit.

SIMPLE IRA Plan Contributions
Contribution limits for SIMPLE IRA plans increased to $12,500 for persons under age 50 and $15,500 for persons age 50 or older in 2016. The maximum compensation used to determine contributions increases to $265,000.

Please contact the office if you need help understanding which deductions and tax credits you are entitled to.

DAT News & Blogs

The Android app is included with your DAT Power, Express, TruckersEdge, or MembersEdge account. It gives you access to all the same loads you find with your current load board subscription, but now you get the most advanced tools for owner-operators, carriers, and dispatchers all on your smartphone. Just download the app from the Google Play Store, log in with the same info you use for your DAT subscription, and search for loads from the palm of your hand.

NOTE: The load board app is not yet available for iPhone or iPad.

With DAT Load Board for Truckers, you get easy-to-use tools that you can’t find with any other load board app.

  • Learns how you work – App remembers your preferences so you save time
  • See up to 500 results at once – No need to thumb through pages
  • Save matches to call later
  • Sort search results by offer rate
  • Broker reviews and credit scores
  • Spot market rates for lanes you search (depending on your DAT subscription)
  • Remembers lanes you recently searched
  • Post your available truck so that brokers find you

The mobile app gives you full access to every load on the DAT Network, so you can find freight for dry van, reefer, flatbed, LTL, hot shot, power only, stepdeck, and much more.

Download DAT Load Board for Truckers in the Google Play Store. Not already a DAT customer? Contact us today to get access to more than 95 million loads posted to DAT Load Boards every year. NOTE: DAT Load Board for Truckers is not available yet for iPhone or iPad.

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Nov 27 – Dec 3 vs.
Nov 20 – 26
Nov 2016 vs.
Oct 2016
Nov 2016 vs.
Nov 2015
Spot Market Loads +64% +4.6% +87%
Spot Market Capacity +13% 3.3% +5.1%
Van Load-To-Truck +61% +9.7% +74%
Van Rates (Spot) +4.8% +1.2% 2.3%
Flatbed Load-To-Truck +27% +3.1% +124%
Flatbed Rates (Spot) +1.1% 1.0% 3.6%
Reefer Load-To-Truck +36% +15% +60%
Reefer Rates (Spot) +0.5% +3.2% +0.5%
Fuel Prices +2.4% 0.6% 1.2%
Load-to-Truck Ratios Soar

Rates Climb for Vans, Reefers, Flatbeds

Nov 27 – Dec 3 – As expected, load posts surged last week, following Thanksgiving week in which people took one or more days off. Less expected were the unseasonably high load-to-truck ratios. Last week’s 4.7 load-to-truck ratio for vans is the highest seen since June of 2014. The ratio for reefers was 8.2, the highest since March 2015. Van rates gained 8¢, reefer rates added 1¢, and flatbed rates were up 2¢ compared to the previous week.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.

Last update: 12/6/2016 – Next update: 12/13/2016

Fuel Prices
+2.4%$2.48 / gallon
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Nov 20 – 26 vs.
Nov 13 – 19
Oct 2016 vs.
Sep 2016
Oct 2016 vs.
Oct 2015
Spot Market Loads 30% +2.8% +52%
Spot Market Capacity 28% +3.4% 4.2%
Van Load-To-Truck +2.3% 6.0% +86%
Van Rates (Spot) 0.6% +2.5% 2.9%
Flatbed Load-To-Truck +1.0% +13% +47%
Flatbed Rates (Spot) 1.0% +1.6% 4.5%
Reefer Load-To-Truck 8.9% 0.8% +54%
Reefer Rates (Spot) +0.5% 0.5% 2.1%
Fuel Prices +0.0% +2.5% 2.6%
Van and Flatbed Ratios Rise During Holiday Week

Rates Edge Down

Nov 20 – 26 – Last week began with a flurry of load board activity, but it slowed by Wednesday afternoon for the long Thanksgiving weekend. Rates rose on the high-traffic lanes, but some backhaul lanes lost traction, so adjustments to the national averages were small. Van rates dipped 1¢, reefer rates added 1¢, and flatbed rates fell 2¢, compared to the previous week.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.

Last update: 11/29/2016 – Next update: 12/6/2016

Fuel Prices
+0.0%$2.42 / gallon
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Nov 13 – 19 vs.
Nov 6 – 12
Oct 2016 vs.
Sep 2016
Oct 2016 vs.
Oct 2015
Spot Market Loads +5.3% +2.8% +52%
Spot Market Capacity +2.1% +3.4% 4.2%
Van Load-To-Truck +3.9% 6.0% +86%
Van Rates (Spot) +0.0% +2.5% 2.9%
Flatbed Load-To-Truck +3.8% +13% +47%
Flatbed Rates (Spot) +1.1% +1.6% 4.5%
Reefer Load-To-Truck +2.6% 0.8% +54%
Reefer Rates (Spot) 0.5% 0.5% 2.1%
Fuel Prices 0.8% +2.5% 2.6%
Demand Increases for Vans, Reefers, Flats

Flatbed Rates Rise 2¢

Nov 13 – 19 – Load-to-truck ratios rose for all equipment types last week, on stronger seasonal demand. Load volume was exceptionally high for vans, but the average van rate was unchanged. Flatbed rates rose 2¢ as a national average, while reefer rates dipped 1¢ per mile.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.

Last update: 11/22/2016 – Next update: 11/29/2016

Fuel Prices
-0.8%$2.42 / gallon
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Comparing the outbound rates from 15 regions to each of the same 15 regions as destinations, gives you 225 (15 x 15) origin-destination pairs. In the first week of November, 64 of those region-to-region pairs had a rate increase of at least 6¢ per mile, and the biggest increases were on lanes that originated in the West, heading to destinations along the East Coast.

Here are the four region-to-region pairs with the biggest rate increases, comparing last week to the third quarter averages: 

1. California to New England – up 18¢ per mile

2. Upper Mountain States to Florida and Southern Georgia – up 17¢ per mile

3. Pacific Northwest to Florida and Southern Georgia – up 16¢ per mile

4. Lower Mountain States to Lower Atlantic States – up 16¢ per mile

 

Rates have been climbing on many west-to-east lanes throughout the fall season. In nearly every case, rates are up by 6¢ per mile or more. On a region-to-region basis, the biggest rate jumps, of 16¢ to 18¢ per mile, are depicted on the map, above. From top left: (1) Upper Mountain to Florida-South Georgia; (2) Pacific Northwest to Florida-South Georgia; (3) California to New England; and, (4) Lower Mountain to Lower Atlantic.

 

The graph shows 24 region-to-region pairs, with changes in rates for freight movements that originated in four Western regions, labeled by color: Upper Mountain, Lower Mountain, California, and Pacific Northwest. The destinations are in six East Coast regions, listed on the X axis: New England, Upper Atlantic, Lower Atlantic, Carolinas, Florida-South Georgia, and Southeast. Of the 24 region-to-region pairs, only three had declining rates during the first week of November: (1) Lower Mountain to New England; (2) Pacific Northwest to New England; and (3) Upper Mountain to Lower Atlantic.

 

These results are atypical, so they may surprise longtime freight trend watchers. In recent years, fall freight has peaked in September and October. But in 2016, those patterns don’t seem to apply. For example, there is usually a peak for van freight in June on the spot market, followed by declining activity after the Fourth of July. That peak was muted this year, but so was the decline. Now we are starting November with no sign of a seasonal decline in activity. Instead, the freight economy appears to be heating up, at least on the spot market.

There is a clear trend of west-to-east movement, with increased activity in California, the Pacific Northwest and Mountain regions adding to rate pressure in other U.S. regions. Rates are also rising on seasonal traffic from Canada to the U.S., but rates are falling on lanes entering Canada from all over the U.S., except the Lower Mountain region.

If you are moving freight in the eastern half of the U.S., you may not be seeing much rate movement. In some regions, including the Great Lakes and Upper Midwest, rates were actually down 6¢ per mile or more last week. The strength of those west-to-east lanes has led the overall rate trend, however, and that trajectory has been up solidly for the past several months. 

Measured at the national level for trips over 250 miles, spot market van rates are up 8¢ per mile in November, compared to the October average. Rates are up 23¢ per mile since the low point in April, including a 6¢ increase in the fuel surcharge.  

We have seen this trend building for a while in the DAT RateView and load board data, and we identified a few factors that are contributing to higher rates:

1. Strong produce harvests, with declines in California being offset by strong numbers elsewhere.  

2. Hanjin bankruptcy, resulting in supply chain disruption and increased amounts of inventory transfers, to prevent stock-outs.  

3. Weather events, including flooding in Louisiana and the Carolinas, which generate demand for emergency relief, followed by construction supplies and equipment.  

4. Some economic improvement, as indicated in recent ISM and other reports. 

Refrigerated freight is showing renewed strength, as strong harvests give way to a pre-Thanksgiving surge. The national average rate rose to $1.97 per mile for reefers last week, the highest since early July. Strong potato harvests in southern Idaho, as well as apples from Washington and Michigan, add to a respectable volume of iceberg lettuce from the San Joaquin Valley and the Imperial Valley near Yuma, AZ.  California continues to produce strawberries from Santa Maria to Watsonville, as well as a good crop of grapes. Add poultry, dairy products, and refrigerated packaged foods to the mix for Thanksgiving, and demand for reefers should keep

Flatbed freight also shows signs of stability, after a prolonged decline. 

The regional views tell us that freight is remarkably strong for this time of year. While the geographic trends may shift in the next four to six weeks, it is reasonable to expect a continuation of the atypically high volume and rates on the spot freight market through the end of the year. 

Track changes in spot market freight rates with DAT RateView, which offers real-time spot market and current contract rates, based on more than $28 billion in actual transactions. 

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Nov 6 – 12 vs.
Oct 30 – Nov 5
Oct 2016 vs.
Sep 2016
Oct 2016 vs.
Oct 2015
Spot Market Loads 1.2% +2.8% +52%
Spot Market Capacity +3.2% +3.4% 4.2%
Van Load-To-Truck 7.2% 6.0% +86%
Van Rates (Spot) 1.8% +2.5% 2.9%
Flatbed Load-To-Truck +0.1% +13% +47%
Flatbed Rates (Spot) 1.0% +1.6% 4.5%
Reefer Load-To-Truck 4.7% 0.8% +54%
Reefer Rates (Spot) 1.0% 0.5% 2.1%
Fuel Prices 1.2% +2.5% 2.6%
Rates Remain Strong for Vans in Mid-November

Rates Decline From Late-Season Peak

Nov 6 – 12 – Rates were down for vansreefers, and flatbeds last week, after a big boost in the first few days of the month. Compared to the previous week, average rates fell 3¢ per mile for vans, 2¢ for reefers and 2¢ for flatbeds. Rates for vans and reefers remain very strong for this time of year, however.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.

Last update: 11/15/2016 – Next update: 11/22/2016

Fuel Prices
-1.2%$2.44 / gallon
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Year-End Tax Planning for Businesses

There are a number of end of year tax planning strategies that businesses can use to reduce their tax burden for 2016. Here are a few of them:

Deferring Income

Businesses using the cash method of accounting can defer income into 2017 by delaying end-of-year invoices so payment is not received until 2017. Businesses using the accrual method can defer income by postponing delivery of goods or services until January 2017.

Purchase New Business Equipment

Section 179 Expensing. Business should take advantage of Section 179 expensing this year for a couple of reasons. First, is that in 2016 businesses can elect to expense (deduct immediately) the entire cost of most new equipment up to a maximum of $500,000 for the first $2,010,000 million of property placed in service by December 31, 2016. Keep in mind that the Section 179 deduction cannot exceed net taxable business income. The deduction is phased out dollar for dollar on amounts exceeding the $2.01 million threshold and eliminated above amounts exceeding $2.5 million.

Bonus Depreciation. Businesses are able to depreciate 50 percent of the cost of equipment acquired and placed in service during 2015, 2016 and 2017. However, the bonus depreciation is reduced to 40 percent in 2018 and 30 percent in 2019.

Qualified property is defined as property that you placed in service during the tax year and used predominantly (more than 50 percent) in your trade or business. Property that is placed in service and then disposed of in that same tax year does not qualify, nor does property converted to personal use in the same tax year it is acquired.

Note: Many states have not matched these amounts and, therefore, state tax may not allow for the maximum federal deduction. In this case, two sets of depreciation records will be needed to track the federal and state tax impact.

Please contact the office if you have any questions regarding qualified property.

Timing. If you plan to purchase business equipment this year, consider the timing. You might be able to increase your tax benefit if you buy equipment at the right time. Here’s a simplified explanation:

Conventions. The tax rules for depreciation include “conventions” or rules for figuring out how many months of depreciation you can claim. There are three types of conventions. To select the correct convention, you must know the type of property and when you placed the property in service.

    1. The half-year convention: This convention applies to all property except residential rental property, nonresidential real property, and railroad gradings and tunnel bores (see mid-month convention below) unless the mid-quarter convention applies. All property that you begin using during the year is treated as “placed in service” (or “disposed of”) at the midpoint of the year. This means that no matter when you begin using (or dispose of) the property, you treat it as if you began using it in the middle of the year.

Example: You buy a $40,000 piece of machinery on December 15. If the half-year convention applies, you get one-half year of depreciation on that machine.

    1. The mid-quarter convention: The mid-quarter convention must be used if the cost of equipment placed in service during the last three months of the tax year is more than 40 percent of the total cost of all property placed in service for the entire year. If the mid-quarter convention applies, the half-year rule does not apply, and you treat all equipment placed in service during the year as if it were placed in service at the midpoint of the quarter in which you began using it.
    2. The mid-month convention: This convention applies only to residential rental property, nonresidential real property, and railroad gradings and tunnel bores. It treats all property placed in service (or disposed of) during any month as placed in service (or disposed of) on the midpoint of that month.

If you’re planning on buying equipment for your business, call the office and speak to a tax professional who can help you figure out the best time to buy that equipment and take full advantage of these tax rules.

Other Year-End Moves to Take Advantage Of

Small Business Health Care Tax Credit. Small business employers with 25 or fewer full-time-equivalent employees (average annual wages of $52,000 in 2016) may qualify for a tax credit to help pay for employees’ health insurance. The credit is 50 percent (35 percent for non-profits).

Business Energy Investment Tax Credit. Business energy investment tax credits are still available for eligible systems placed in service on or before December 31, 2016, and businesses that want to take advantage of these tax credits can still do so.

Business energy credits include solar energy systems (passive solar and solar pool-heating systems excluded), fuel cells and microturbines, and an increased credit amount for fuel cells. The extended tax provision also established new credits for small wind-energy systems, geothermal heat pumps, and combined heat and power (CHP) systems. Utilities are allowed to use the credits as well.

Repair Regulations. Where possible, end of year repairs and expenses should be deducted immediately, rather than capitalized and depreciated. Small businesses lacking applicable financial statements (AFS) are able to take advantage of de minimis safe harbor by electing to deduct smaller purchases ($2,500 or less per purchase or per invoice). Businesses with applicable financial statements are able to deduct $5,000. Small business with gross receipts of $10 million or less can also take advantage of safe harbor for repairs, maintenance, and improvements to eligible buildings. Please call if you would like more information on this topic.

Partnership or S-Corporation Basis. Partners or S corporation shareholders in entities that have a loss for 2016 can deduct that loss only up to their basis in the entity. However, they can take steps to increase their basis to allow a larger deduction. Basis in the entity can be increased by lending the entity money or making a capital contribution by the end of the entity’s tax year.

Caution: Remember that by increasing basis, you’re putting more of your funds at risk. Consider whether the loss signals further troubles ahead.

Section 199 Deduction. Businesses with manufacturing activities could qualify for a Section 199 domestic production activities deduction. By accelerating salaries or bonuses attributable to domestic production gross receipts in the last quarter of 2016, businesses can increase the amount of this deduction. Please call to find out how your business can take advantage of Section 199.

Retirement Plans. Self-employed individuals who have not yet done so should set up self-employed retirement plans before the end of 2016. Call today if you need help setting up a retirement plan.

Dividend Planning. Reduce accumulated corporate profits and earnings by issuing corporate dividends to shareholders.

Budgets. Every business, whether small or large should have a budget. The need for a business budget may seem obvious, but many companies overlook this critical business planning tool.

A budget is extremely effective in making sure your business has adequate cash flow and in ensuring financial success. Once the budget has been created, then monthly actual revenue amounts can be compared to monthly budgeted amounts. If actual revenues fall short of budgeted revenues, expenses must generally be cut.

Tip: Year-end is the best time for business owners to meet with their accountants to budget revenues and expenses for the following year.

If you need help developing a budget for your business, don’t hesitate to call.

Call a Tax Professional First

These are just a few of the year-end planning tax moves that could make a substantial difference in your tax bill for 2016. If you’d like more information about tax planning for 2017, please call to schedule a consultation to discuss your specific tax and financial needs, and develop a plan that works for your business.

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Oct 30 – Nov 5 vs.
Oct 23 – 29
Oct 2016 vs.
Sep 2016
Oct 2016 vs.
Oct 2015
Spot Market Loads +4.8% +2.8% +52%
Spot Market Capacity 2.0% +3.4% 4.2%
Van Load-To-Truck +9.4% 6.0% +86%
Van Rates (Spot) +3.0% +2.5% 2.9%
Flatbed Load-To-Truck 1.6% +13% +47%
Flatbed Rates (Spot) 0.5% +1.6% 4.5%
Reefer Load-To-Truck +13% 0.8% +54%
Reefer Rates (Spot) +3.7% 0.5% 2.1%
Fuel Prices 0.4% +2.5% 2.6%
Van Rates Near 2015 Levels

Rates Rise for Vans and Reefers

Oct 30 – Nov 5 – Rates rose last week for vans and reefers. For vans, rates were up 5¢ week over week, and were just 1¢ below where they were a year ago. For reefers, rates looked more like the June produce peak than the first week in November, jumping 7¢ from the previous week.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.
Last update: 11/8/2016 – Next update: 11/15/2016

Fuel Prices
-0.4%$2.47 / gallon
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Truck  Owner

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Oct 23 – 29 vs.
Oct 16 – 22
Oct 2016 vs.
Sep 2016
Oct 2016 vs.
Oct 2015
Spot Market Loads 3.6% +2.8% +52%
Spot Market Capacity 1.2% +3.4% 4.2%
Van Load-To-Truck 0.2% 6.0% +86%
Van Rates (Spot) 0.6% +2.5% 2.9%
Flatbed Load-To-Truck 8.0% +13% +47%
Flatbed Rates (Spot) +0.5% +1.6% 4.5%
Reefer Load-To-Truck +2.2% 0.8% +54%
Reefer Rates (Spot) +0.0% 0.5% 2.1%
Fuel Prices 0.1% +2.5% 2.6%
October Load Availability Beats 2015 Level

Rates Rise in October for Vans and Flatbeds

Oct 23 – 29 – Load availability and rates rose in October, compared to September. Freight volume also exceeded 2015 levels for the month, but rates did not catch up to the previous year’s highs.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.
Last update: 11/1/2016 – Next update: 11/8/2016

Fuel Prices
+0.0%$2.48 / gallon
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Darker-colored states have higher load-to-truck ratios, meaning that there’s less competition for reefer loads in those states.

TOP MARKETS FOR REEFER LOAD POSTS

  1. Chicago
  2. Charlotte
  3. Dallas
  4. Twin Falls, ID
  5. Grand Rapids, MI

Rates below include fuel surcharges and are based on real transactions between carriers and brokers.

RISING

  • Mexican produce led to more loads and higher rates in Nogales, AZ, and McAllen, TX
  • Volumes were also up in Dallas and Ontario, CA, but rates hadn’t responded yet
  • Several lanes heading into Denver paid better
  • Sacramento to Denver rose ▲20¢ to $2.15/mile
  • Fresno to Denver was up ▲14¢ for an average of $2.24/mile
  • Chicago to Denver also gained ▲14¢ at $2.24/mile
  • Elizabeth, NJ to Atlanta was another lane that added ▲14¢, to $1.78/mile, to compensate for lower rates out of Atlanta.

FALLING

  • There were a lot fewer reefer loads moving out of Grand Rapids, though it’s still in the top 5 for reefer load posts. Rates are trending down on most outbound lanes
  • Long haul reefer freight from the West Coast trended down — for example, Ontario, CA to Chicago lost ▼14¢ to $1.64/mile
  • Regional freight moving from Sacramento to Los Angeles paid less last week, down ▼16¢ to $2.16/mile, which is early for this direction to slip lower.
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Oct 16 – 22 vs.
Oct 9 – 15
Sep 2016 vs.
Aug 2016
Sep 2016 vs.
Sep 2015
Spot Market Loads +1.8% +2.8% +34%
Spot Market Capacity +2.5% 7.2% 1.8%
Van Load-To-Truck 6.4% +9.7% +63%
Van Rates (Spot) +0.0% +1.2% 6.4%
Flatbed Load-To-Truck +6.3% +20% +22%
Flatbed Rates (Spot) 0.5% 1.1% 8.3%
Reefer Load-To-Truck +1.5% +7.8% +26%
Reefer Rates (Spot) 0.5% +1.1% 5.0%
Fuel Prices +0.0% +1.9% 4.4%
Van Load Volume Falls 3% After Brief Surge

Rates Dip 1¢ Per Mile for Reefers and Flatbeds

Oct 16 – 22 – Load posts increased for flatbeds and reefers last week, but van load volume fell 3% after a brief surge in the previous week. Nationally, average rates slipped 1¢ per mile for reefers and flatbeds, but van rates held steady.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.
Last update: 10/25/2016 – Next update: 11/1/2016

Fuel Prices
+0.0%$2.48 / gallon
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Fuel Tax Return

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Oct 9 – 15 vs.
Oct 2 – 8
Sep 2016 vs.
Aug 2016
Sep 2016 vs.
Sep 2015
Spot Market Loads +5.6% +2.8% +34%
Spot Market Capacity +0.5% 7.2% 1.8%
Van Load-To-Truck +3.0% +9.7% +63%
Van Rates (Spot) 1.2% +1.2% 6.4%
Flatbed Load-To-Truck +9.8% +20% +22%
Flatbed Rates (Spot) +0.0% 1.1% 8.3%
Reefer Load-To-Truck +3.7% +7.8% +26%
Reefer Rates (Spot) 0.5% +1.1% 5.0%
Fuel Prices +1.6% +1.9% 4.4%
Van and Reefer Rates Decline

Ratios Rise after Hurricane Matthew

Oct 9 – 15 – Load posts on the West Coast slowed after weeks of high demand, but volumes and rates were up in Southeast markets following Hurricane Matthew. Nationally, the van rate fell 2¢, reefer rates slipped 1¢ and flatbed rates held steady, but the load-to-truck ratios were up for all trailer types.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.
Last update: 10/18/2016 – Next update: 10/25/2016

Fuel Prices
+1.6%$2.48 / gallon
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Oct 2 – 8 vs.
Sep 25 – Oct 1
Sep 2016 vs.
Aug 2016
Sep 2016 vs.
Sep 2015
Spot Market Loads 6.2% +2.8% +34%
Spot Market Capacity +2.3% 7.2% 1.8%
Van Load-To-Truck 9.3% +9.7% +63%
Van Rates (Spot) +3.7% +1.2% 6.4%
Flatbed Load-To-Truck 6.6% +20% +22%
Flatbed Rates (Spot) +2.1% 1.1% 8.3%
Reefer Load-To-Truck 6.6% +7.8% +26%
Reefer Rates (Spot) +0.5% +1.1% 5.0%
Fuel Prices +2.0% +1.9% 4.4%
Vans, Reefers and Flatbeds Get a Boost

Rates Rise, Despite Falling Volumes

Oct 2 – 8 – Rates were up last week, but volumes were down. Hurricane Matthew likely contributed to both, with shippers paying more to move loads ahead of the storm, and then locking everything down at the end of the week, with a lot fewer load posts on Friday before the storm hit. Van rates gained 6¢ per mile as a national average, while reefer rates added 1¢ and flatbed rates increased 4¢. Inbound rates could move higher this week in hard-hit areas like the Carolinas.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.

Last update: 10/11/2016 – Next update: 10/18/2016

Fuel Prices
+2.0%$2.44 / gallon
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Choosing the Right Business

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When you decide to start a business, one of the most important decisions you’ll need to make is choosing the right business entity. It’s a decision that impacts many things–from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face.

Forms of Business

The most common forms of business are Sole Proprietorships, Partnerships, Limited Liability Companies (LLCs), and Corporations (C-Corporations). Federal tax law also recognizes another business form called the S-Corporation. While state law controls the formation of your business, federal tax law controls how your business is taxed.

What to Consider

Businesses fall under one of two federal tax systems:

1. Taxation of both the entity itself on the income it earns and the owners on dividends or other profit participation the owners receive from the business. C-Corporations fall under this system of federal taxation.2. “Pass through” taxation. This type of entity (also called a “flow-through” entity) is not taxed, but its owners are each taxed (more or less) on their proportionate shares of the entity’s income. Pass-through entities include:

  • Sole Proprietorships
  • Partnerships, of various types
  • Limited liability companies (LLCs)
  • “S-Corporations” (S-Corps), as distinguished from C-corporations (C-Corps)

The first major consideration when choosing a business entity is whether to choose one that has two levels of tax on income or one that is a pass-through entity with only one level directly on the owners.

The second consideration, which has more to do with business considerations rather than tax considerations, is the limitation of liability (protecting your assets from claims of business creditors).

Let’s take a general look at each of the options more closely:

Types of Business Entities

Sole Proprietorships

The most common (and easiest) form of business organization is the sole proprietorship. Defined as any unincorporated business owned entirely by one individual, a sole proprietor can operate any kind of business (full or part-time) as long as it is not a hobby or an investment. In general, the owner is also personally liable for all financial obligations and debts of the business.

Note: If you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

Types of businesses that operate as sole proprietorships include retail shops, farmers, large companies with employees, home-based businesses and one-person consulting firms.

As a sole proprietor, your net business income or loss is combined with your other income and deductions and taxed at individual rates on your personal tax return. Because sole proprietors do not have taxes withheld from their business income, you may need to make quarterly estimated tax payments if you expect to make a profit. Also, as a sole proprietor, you must also pay self-employment tax on the net income reported.

Partnerships

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

There are two types of partnerships: Ordinary partnerships, called “general partnerships,” and limited partnerships that limit liability for some partners but not others. Both general and limited partnerships are treated as pass-through entities under federal tax law, but there are some relatively minor differences in tax treatment between general and limited partners.

For example, general partners must pay self-employment tax on their net earnings from self-employment assigned to them from the partnership. Net earnings from self-employment include an individual’s share, distributed or not, of income or loss from any trade or business carried on by a partnership. Limited partners are subject to self-employment tax only on guaranteed payments, such as professional fees for services rendered.

Partners are not employees of the partnership and do not pay any income tax at the partnership level. Partnerships report income and expenses from its operation and pass the information to the individual partners (hence the pass-through designation).

Because taxes are not withheld from any distributions partners generally need to make quarterly estimated tax payments if they expect to make a profit. Partners must report their share of partnership income even if a distribution is not made. Each partner reports his share of the partnership net profit or loss on his or her personal tax return.

Limited Liability Companies (LLC)

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state is different, so it’s important to check the regulations in the state you plan to do business in. Owners of an LLC are called members, which may include individuals, corporations, other LLCs and foreign entities. Most states also permit “single member” LLCs, i.e. those having only one owner.

Depending on elections made by the LLC and the number of members, the IRS treats an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it elects to be treated as a corporation.

An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it elects to be treated as a corporation.

C-Corporations

In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation’s capital stock. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.

A corporate structure is more complex than other business structures. When you form a corporation, you create a separate tax-paying entity. The profit of a corporation is taxed to the corporation when earned and then is taxed to the shareholders when distributed as dividends. This creates a double tax.

The corporation does not get a tax deduction when it distributes dividends to shareholders. Earnings distributed to shareholders in the form of dividends are taxed at individual tax rates on their personal tax returns. Shareholders cannot deduct any loss of the corporation.

If you organize your business as a corporation, generally are not personally liable for the debts of the corporation, although there may be exceptions under state law.

S-Corporations

An S-corporation has the same corporate structure as a standard corporation; however, its owners have elected to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S-corporations generally have limited liability.

Generally, an S-Corporation is exempt from federal income tax other than tax on certain capital gains and passive income. It is treated in the same way as a partnership, in that generally taxes are not paid at the corporate level. S-Corporations may be taxed under state tax law as regular corporations, or in some other way.

Shareholders must pay tax on their share of corporate income, regardless of whether it is actually distributed. Flow-through of income and losses is reported on their personal tax returns and they are assessed tax at their individual income tax rates, allowing S-Corporations to avoid double taxation on the corporate income.

To qualify for S-Corporation status, the corporation must meet a number of requirements. Please call if you would like more information about which requirements must be met to form an S-Corporation.

Professional Guidance

When making a decision about which type of business entity to choose each business owner must decide which one best meets his or her needs. One form of business entity is not necessarily better than any other and obtaining the advice of a tax professional is critical. If you need assistance figuring out which business entity is best for your business, don’t hesitate to call.

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I recently had the opportunity to look at LTL (Less than truckload or partial truckload) shipments in DAT’s rate and load databases. I think what I learned could help you increase your revenue and help you price LTL freight.

On an average week, about 6% of the loads posted on DAT are LTL shipments. Most truckers on the load board prefer to carry full truckloads, so only 7% of truckers post their trucks as available to carry LTL. For these truckers, the national LTL-to-truck ratio is about 2.2 loads per truck per week. This shows that LTL shipments are available.

Since LTL shipments pay less than truckload, how could they increase a truckload carrier’s revenue per mile?  Although LTL shipments pay less, they’re significantly lighter and take up a smaller percentage of a truck’s volume and weight capacity. Because of that – plus the work in smaller pick-ups along with consolidated LTL freight in the competitive trucking market – LTL shipments pay 2 to 6 times more than truckload freight on a per-pound and per-cubic-foot basis.

HOW DO YOU PRICE LTL LOADS?

Just as full truckload prices vary from lane to lane, so do LTL shipment prices. During my analysis I found that the LTL shipment prices could be shown as a percentage of the going truckload price when grouped into specific weight bands. On average, I found that:

  • Shipments less than 1,000 lbs generally pay about 15% of a truckload while taking well under 5% of a trailer’s total space.
  • Shipments between 1,000 and 5,000 lbs generally pay about 30% of a truckload while taking less than 5% of a trailer’s space.
  • Heavier shipments – greater than 5,000 lbs – generally pay about 60% of a full truckload and max out at about 30% of a trailer’s total space.

You can take the average spot market rates you see in DAT load boards or the broker-to-carrier rates in DAT RateView and multiply that by the percentages above. That can work as a starting price for LTL freight when talking to brokers. If you are pricing directly for a shipper customer, those broker-to-carrier rates are still useful, but you’ll want to add in a margin since you are doing the sales effort. The experts tell me that the margin on LTL freight is typically higher than truckload, so adding around 20% should keep your rate competitive for shipper customers.

A truckload carrier has at least three opportunities to use LTLs when they appear on the load board or from a customer:

1. Couple an LTL or partial load on the trailer with a truckload that doesn’t weigh out and doesn’t fill the full space of the truck.  For example: If you have a truckload that weighs 40,000 lbs and takes up 2,000 cubic feet of space, then adding an LTL load (going to the same destination) that is 3,000 lbs and takes up 150 cubic feet of space would increase your revenue per mile significantly.

2. Consolidate two or more partials into a full or nearly full truckload. Consolidation offers potentially high returns and a rate that’s higher than the standard truckload rate. Just keep in mind that LTL freight can be a lot more labor intensive than truckload. Consolidating several small shipments and loading them in the order in which they need to be delivered can be tricky.

3. Get a partial in a situation where you might otherwise deadhead. Maybe there is an LTL available, but there just isn’t a full truckload. Other times, the lower weight and easier loading/unloading of an LTL could make it work where a full truckload wouldn’t make sense. Besides, receiving a percentage of a truckload price is better than nothing!

Next time you are on the load board, keep an eye out for LTL shipments. Finding the perfect LTL load might make your trip that much more productive.  Tell us in the comments section if your efforts with LTL freight improved your revenue or if you have tried LTL and it didn’t work out.

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Sep 25 – Oct 1 vs.
Sep 18 – 24
Sep 2016 vs.
Aug 2016
Sep 2016 vs.
Sep 2015
Spot Market Loads +7.2% +2.8% +34%
Spot Market Capacity 1.9% 7.2% 1.8%
Van Load-To-Truck +12% +9.7% +63%
Van Rates (Spot) 1.2% +1.2% 6.4%
Flatbed Load-To-Truck +8.6% +20% +22%
Flatbed Rates (Spot) +0.0% 1.1% 8.3%
Reefer Load-To-Truck +8.1% +7.8% +26%
Reefer Rates (Spot) +0.0% +1.1% 5.0%
Fuel Prices +0.4% +1.9% 4.4%
Load Availability Rises 7% as Third Quarter Ends

Van Rates Lose 2¢ on Mixed Regional Results

Sep 25 – Oct 1 – Load availability increased, but van rates lost 2¢ per mile as a national average. Results varied by region, as outbound rates rose in most West Coast markets. Reefer and flatbed rates held steady last week, with seasonal changes in some key markets. Rates may rise in the Southeast this week, as shippers attempt to move freight out of the path of an oncoming hurricane.

The chart above depicts national average spot market rates, including fuel surcharges for the past four weeks. Rates are derived from DAT RateView.
Last update: 10/4/2016 – Next update: 10/11/2016

Fuel Prices
+0.4% – $2.39 / gallon
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Some unlikely places have been popping up at the top of our list of markets with the most reefer loads in the past couple of weeks. If you look at the Hot States Map below, you’ll see that Idaho is deep blue. Twin Falls, in the southern part of the state, has been the number 1 market for reefer load posts on DAT TruckersEdge for two weeks in a row. In other words, there are a lot of potatoes and onions that need shipping, and not enough trucks there to haul them.

Eastern Oregon also grows potatoes and onions, and Pendleton, OR has had more reefer loads in the past couple of weeks than either Dallas or Atlanta.

Darker-colored states have higher load-to-truck ratios, meaning that there’s less competition for reefer loads in those states.

TOP 5 FOR REEFER LOADS

These markets had the most reefer load posts last week:

  1. Twin Falls, ID
  2. Chicago, IL
  3. Elizabeth, NJ
  4. Grand Rapids, MI
  5. Pendleton, OR

Rates below include fuel surcharges and are based on real transactions between carriers and brokers.

RISING:

  • Twin Falls to Chicago rates were up ▲24¢ to $1.89/mile
  • Twin Falls to Baltimore paid an average of $2.17/mile, and there are a lot of miles on that trip
  • Outbound rates in Dallas rebounded last week and are back to about where they were a month ago

Prices were steady in California for the most part, but two lanes got big raises. They both go to difficult markets, though, so you’ll want to make your money going in:

  • L.A. to Denver rose ▲28¢ to $2.52/mile.
  • Sacramento to Portland, OR was up ▲20¢ and also averaged $2.52/mile

Midwest reefer rates were mostly down, but Green Bay to Minneapolis paid ▲20¢ better, at $2.10/mile

FALLING:

Rates out of Chicago took a step back last week.

  • Chicago to Atlanta fell ▼12¢ but still averaged $2.51/mile (That lane has already gained some of that back this week.)
  • Chicago to Kansas City also lost ▼13¢ and paid an average of $2.12/mile

Apple shipments might be slowing down in Michigan. The lane from Grand Rapids to Atlanta fell ▼24¢ to $2.32/mile.

One lane out West saw a big drop: Fresno to Denver lost ▼20¢ at $2.02/mile.

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Darker-colored states have higher load-to-truck ratios, meaning that there’s less competition for van loads in those states.

Retailers are starting to shift inventory from West Coast distribution centers to other DCs out East. L.A. outbound rates are up, especially on eastbound lanes, and the City of Angels jumped up to number 2 in load posts (number 1 is Chicago).

On the top 100 van lanes, more had rates go up than down last week, but prices changes were generally small. Seattle rates have also been trending up, which is partly due to fall harvests in Washington State, but it could also be related to the disruption of ocean freight. There’s extra traffic out of Stockton, CA, too.

Rates below include fuel surcharges and are averages based on real transactions between carriers and brokers.

RISING LANE RATES

  • Seattle to Salt Lake City added ▲13¢ to an average of $1.83/mile
  • The backhaul lane from Portland, OR, to Stockton paid ▲14¢ better, averaging $1.42/mile
  • The headhaul direction also paid better: Rates for Stockton to Portland were up to $2.29/mile

FALLING LANE RATES

There were fewer loads moving out of Columbus and Chicago last week, but rates were still strong. Prices slipped in the Northeast, though.

Two lanes out of Buffalo lost some recent gains:

  • Buffalo to Charlotte fell ▼25¢ to $1.44/mile
  • Buffalo to Chicago also dropped ▼10¢ to just $1.26/mile

The average rate on the lane from Allentown, PA, to Boston fell ▼10¢ to $3.08/mile. That rate might still look good, but loads are hard to come by once you get to Boston.

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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Sep 18 – 24 vs.
Sep 11 – 17
Aug 2016 vs.
Jul 2016
Aug 2016 vs.
Aug 2015
Spot Market Loads 4.5% +0.5% +29%
Spot Market Capacity +3.4% +14% +8.6%
Van Load-To-Truck 10% 4.6% +49%
Van Rates (Spot) +0.0% 1.2% 8.0%
Flatbed Load-To-Truck 0.3% 26% 6.0%
Flatbed Rates (Spot) 0.5% 1.6% 8.2%
Reefer Load-To-Truck 9.2% +4.8% +16%
Reefer Rates (Spot) +0.0% 2.1% 6.9%
Fuel Prices 0.4% 2.2% 9.4%
National Average Rates Hold Steady

Hanjin Woes Boost Spot Market Truck Freight

Sep 18 – 24 – Trucks on the West Coast are feeling some ripple effects from the Hanjin Shipping bankruptcy and resulting supply chain shake-up. Spot market van freight volume and rates surged last week in L.A., but national rate trends were stable.

Last update: 9/27/2016 – Next update: 10/4/2016

Fuel Prices
-0.4%$2.38 / gallon
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Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Sep 11 – 17 vs.
Sep 4 – 10
Aug 2016 vs.
Jul 2016
Aug 2016 vs.
Aug 2015
Spot Market Loads +20% +0.5% +29%
Spot Market Capacity +19% +14% +8.6%
Van Load-To-Truck 4.4% 4.6% +49%
Van Rates (Spot) 1.2% 1.2% 8.0%
Flatbed Load-To-Truck +8.1% 26% 6.0%
Flatbed Rates (Spot) +1.1% 1.6% 8.2%
Reefer Load-To-Truck +0.6% +4.8% +16%
Reefer Rates (Spot) 1.0% 2.1% 6.9%
Fuel Prices 0.4% 2.2% 9.4%
Van and Reefer Rates Drop 2¢, But Remain Strong

Flatbed Rates Recover 2¢

Sep 11 – 17 – Spot market freight trends were out of sync last week. Load-to-truck ratios held steady for vans and reefers, but rates fell 2¢ per mile for both trailer types. Rates are still strong for the season, however. Flatbed rates and ratios recovered, on the other hand, at a time of year when those indicators typically decline.

Last update: 9/20/2016 – Next update: 9/27/2016

Fuel Prices

-0.4%$2.39 / gallon

DAT News & Blogs

This week is National Truck Driver Appreciation Week. We’ve put together a list of five ways that carriers, brokers, and shippers can show appreciation and respect to a driver, including suggestions from the drivers themselves.

1. Respect the Driver’s Time

An extra 15 minutes held up at a loading dock or stuck in traffic can be the difference between a driver getting home to family and being stuck in the sleeper cabin another night. Drivers take extra care to manage their hours-of-service (HOS) and mandatory breaks so they can avoid situations like that.

There might not be anything you can do about the traffic, but you can help by not detaining drivers any longer than necessary when loading and unloading the truck or counting product. Or if the driver is detained longer than the standard two hour grace period, compensate them for their time. Just like yours, the driver’s time is valuable.

2. Fair Pay

Drivers tend to stay with companies that show that their work is appreciated, and driver retention is a key concern for carriers. Truck drivers have unique skill sets, and with the shortage of new drivers entering the industry, those skills are increasingly rare in today’s work force. That’s why they deserve to be well-compensated for the specialized services that they provide, whether that means getting paid by the hour or by the mile.

3. Honesty

Will the load be available in the morning? Is there anywhere to park the truck if the driver arrives at the destination early? Will there be lumpers, and who’s paying the fee? Are the pallets shrinkwrapped?

Letting the driver know everything there is to know about the load shows that you appreciate what goes into doing the job well.

4. Time at Home

A lot of drivers got into the job because they like the open road. That doesn’t mean they want to live there. Home time matters big time.

For carriers, that means learning your drivers’ preferences. Some may want short runs, while others are happy to be away from home for long stretches. Show your appreciation by doing your best to match each driver with the schedule that best fits his or her needs.

5. Access to Facilities

When drivers arrive at the delivery dock, they’ve likely just spent a few hours behind the wheel. Give them access to the facilities. A couch, cup of coffee, or just access to the bathroom is a simple gesture of appreciation for the person who just safely delivered your valuable freight.

DAT News & Blogs

DAT Trendlines

Learn how to start your business – Start a truck dispatch business

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Sep 4 – 10 vs.
Aug 28 – Sep 3
Aug 2016 vs.
Jul 2016
Aug 2016 vs.
Aug 2015
Spot Market Loads 13% +0.5% +29%
Spot Market Capacity 15% +14% +8.6%
Van Load-To-Truck 0.4% 4.6% +49%
Van Rates (Spot) +0.0% 1.2% 8.0%
Flatbed Load-To-Truck +21% 26% 6.0%
Flatbed Rates (Spot) 1.6% 1.6% 8.2%
Reefer Load-To-Truck 9.1% +4.8% +16%
Reefer Rates (Spot) +0.5% 2.1% 6.9%
Fuel Prices 0.4% 2.2% 9.4%
Van and Reefer Rates Hold Up in Post-Holiday Week

Flatbed Rates Slip 3¢

Sep 4 – 10 – Van rates held onto the previous week’s gains, and reefer rates rose another 1¢ last week, but flatbeds slipped 3¢ per mile, as a national average. Load-to-truck ratios remained stable for vans, but the reefer ratio declined and flatbed demand increased relative to capacity.
Last update: 9/13/2016 – Next update: 9/20/2016

Fuel Prices
-0.4%$2.40 / gallon

DAT News & Blogs

 
Darker-colored states have higher load-to-truck ratios, meaning that there’s less competition for van loads in those states.

Texas volumes have improved, and outbound rates were up the major van lanes from Dallas. Prices in Chicago, Columbus, Seattle, and Philadelphia are all higher than they were a month ago.

Demand for vans has been highest across the northern band of states, and the Midwest has a top region for loads and rates. Chicago, Cleveland, Columbus, Indianapolis, and Joliet, IL, were all in the top 10 for load posts on DAT Load Boards last week. Rates on the lane from Columbus to Buffalo rose 27¢ and paid $2.76/mile on average.

Outbound rates were down in Buffalo, and a couple inbound lanes also paid less: The lane from Charlotte was down 28¢ to $1.90/mile. Chicago to Buffalo also fell 20¢, but it’s still averaging $2.17/mile, which is higher than it was three weeks ago. Out West, the backhaul from Denver to Stockton only paid an average of $0.96/mile.


Darker-colored states have higher load-to-truck ratios, meaning that there’s less competition for reefer loads in those states.

Reefer volumes also held up during the 4-day work week. Of the top 72 reefer lanes, 35 of them paid better, while rates slipped lower on 32 lanes. Northern markets have shown the highest demand: Chicago; Elizabeth, NJ; and Grand Rapids, MI were numbers 1, 2, and 3 for reefer load posts last week.

The two biggest gains on lane rates were also out of the Midwest: Grand Rapids to Madison, WI, was up 29¢ to $2.75/mile, while Green Bay to Joliet rose 29¢ to a nice $3.35/mile. Chicago to Minneapolis dropped 18¢ to $1.93/mile, but you can make more money right now going the other direction. Minneapolis to Chicago rates were up to $2.01/mile.

Out West, the outbound average in Sacramento surged to $2.39/mile, which is just 2¢ shy of the average reefer rate out of Los Angeles.

 

DAT News & Blogs

Identity Theft

Identity Theft and Your Taxes

Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. It presents challenges to individuals, businesses, organizations and government agencies, including the IRS.

Learning that you are a victim of identity theft can be a stressful event and you may not be aware that someone has stolen your identity. In many cases, the IRS may be the first to let you know you’re a victim of ID theft after you try to file your taxes.

The IRS is working hard to stop identity theft using a strategy of prevention, detection, and victim assistance. In 2015, the IRS stopped 1.4 million confirmed ID theft returns and protected $8.7 billion. In the past couple of years, more than 2,000 people have been convicted of filing fraudulent ID theft returns. And, in 2014, the IRS stopped more than $15 billion of fraudulent refunds, including those related to identity theft. Additionally, as the IRS improves its processing filters, the agency has also been able to halt more suspicious returns before they are processed.

Here’s what you should know about identity theft:

1. Protect your Records. Do not carry your Social Security card or other documents with your SSN on them. Only provide your SSN (social Security Number) if it’s necessary and you know the person requesting it. Protect your personal information at home and protect your computers with anti-spam and anti-virus software. Routinely change passwords for all of your Internet accounts.

2. Don’t Fall for Scams. Criminals often try to impersonate your bank, credit card company, and even the IRS in order to steal your personal data. Learn to recognize and avoid those fake emails and texts.

3. Beware of Threatening Phone Calls. Correspondence from the IRS is always in the form of a letter in the mail. The IRS will not call you threatening a lawsuit, arrest, or to demand an immediate tax payment using a prepaid debit card, gift card, or wire transfer.

As schools around the nation re-open, it is important for taxpayers to be particularly aware of a new scam going after students and parents. In this latest scheme, telephone scammers have been targeting students and parents and demanding payments for non-existent taxes, such as the “Federal Student Tax.”

People should be on the lookout for IRS impersonators calling students and demanding that they wire money immediately to pay a fake “federal student tax.” If the person does not comply, the scammer becomes aggressive and threatens to report the student to the police to be arrested.

4. Report ID Theft to Law Enforcement. If you cannot e-file your return because a tax return already was filed using your SSN, consider the following steps:

  • File your taxes by paper and pay any taxes owed.
  • File an IRS Form 14039 Identity Theft Affidavit. Print the form and mail or fax it according to the instructions. You may include it with your paper return.
  • File a report with the Federal Trade Commission using the FTC Complaint Assistant.
  • Contact one of the three credit bureaus so they can place a fraud alert or credit freeze on your account.

5. Complete an IRS Form 14039 Identity Theft Affidavit. Once you’ve filed a police report, file an IRS Form 14039 Identity Theft Affidavit (see below). Print the form and mail or fax it according to the instructions. Continue to pay your taxes and file your tax return, even if you must do so by filing on paper.

6. IRS Notices and Letters. If the IRS identifies a suspicious tax return with your SSN, it may send you a letter asking you to verify your identity by calling a special number or visiting a Taxpayer Assistance Center. This is to protect you from tax-related identity theft.

7. IP PINs. If a taxpayer reports that they are a victim of ID theft or the IRS identifies a taxpayer as being a victim, he or she will be issued an IP PIN. The IP PIN is a unique six-digit number that a victim of ID theft uses to file a tax return. Each year, you will receive an IRS letter with a new IP PIN.

8. Data Breaches. If you learn about a data breach that may have compromised your personal information, keep in mind that not every data breach results in identity theft. Furthermore, not every identity theft case involves taxes. Make sure you know what kind of information has been stolen so you can take the appropriate steps before contacting the IRS.

9. Report Suspicious Activity. If you suspect or know of an individual or business that is committing tax fraud, you can report it on the IRS.gov website.

10. IRS Options. Information about tax-related identity theft is available online at IRS.gov. The IRS has a special section on IRS.gov devoted to identity theft and a phone number available for victims to obtain assistance.

If you have any questions about identity theft and your taxes, don’t hesitate to call the office for assistance. Call 480-940-8351

DAT News & Blogs

Tax Planning

Tax Planning for Small Business Owners

Tax planning is the process of looking at various tax options to determine when, whether, and how to conduct business transactions to reduce or eliminate tax liability.

Many small business owners ignore tax planning. They don’t even think about their taxes until it’s time to meet with their accountants, but tax planning is an ongoing process and good tax advice is a valuable commodity. It is to your benefit to review your income and expenses monthly and meet with your CPA or tax advisor quarterly to analyze how you can take full advantage of the provisions, credits and deductions that are legally available to you.

Although tax avoidance planning is legal, tax evasion – the reduction of tax through deceit, subterfuge, or concealment – is not. Frequently what sets tax evasion apart from tax avoidance is the IRS’s finding that there was fraudulent intent on the part of the business owner. The following are four of the areas the IRS examiners commonly focus on as pointing to possible fraud:

  1. Failure to report substantial amounts of income such as a shareholder’s failure to report dividends or a store owner’s failure to report a portion of the daily business receipts.
  2. Claims for fictitious or improper deductions on a return such as a sales representative’s substantial overstatement of travel expenses or a taxpayer’s claim of a large deduction for charitable contributions when no verification exists.
  3. Accounting irregularities such as a business’s failure to keep adequate records or a discrepancy between amounts reported on a corporation’s return and amounts reported on its financial statements.
  4. Improper allocation of income to a related taxpayer who is in a lower tax bracket such as where a corporation makes distributions to the controlling shareholder’s children.

Tax Planning Strategies

Countless tax planning strategies are available to small business owners. Some are aimed at the owner’s individual tax situation and some at the business itself, but regardless of how simple or how complex a tax strategy is, it will be based on structuring the strategy to accomplish one or more of these often overlapping goals:

  • Reducing the amount of taxable income
  • Lowering your tax rate
  • Controlling the time when the tax must be paid
  • Claiming any available tax credits
  • Controlling the effects of the Alternative Minimum Tax
  • Avoiding the most common tax planning mistakes

In order to plan effectively, you’ll need to estimate your personal and business income for the next few years. This is necessary because many tax planning strategies will save tax dollars at one income level, but will create a larger tax bill at other income levels. You will want to avoid having the “right” tax plan made “wrong” by erroneous income projections. Once you know what your approximate income will be, you can take the next step: estimating your tax bracket.

The effort to come up with crystal-ball estimates may be difficult and by its very nature will be inexact. On the other hand, you should already be projecting your sales revenues, income, and cash flow for general business planning purposes. The better your estimates are, the better the odds that your tax planning efforts will succeed.

Maximizing Business Entertainment Expenses

Entertainment expenses are legitimate deductions that can lower your tax bill and save you money, provided you follow certain guidelines.

In order to qualify as a deduction, business must be discussed before, during, or after the meal and the surroundings must be conducive to a business discussion. For instance, a small, quiet restaurant would be an ideal location for a business dinner. A nightclub would not. Be careful of locations that include ongoing floor shows or other distracting events that inhibit business discussions. Prime distractions are theater locations, ski trips, golf courses, sports events, and hunting trips.

The IRS allows up to a 50 percent deduction on entertainment expenses, but you must keep good records and the business meal must be arranged with the purpose of conducting specific business. Bon appetite!

Important Business Automobile Deductions

If you use your car for business such as visiting clients or going to business meetings away from your regular workplace you may be able to take certain deductions for the cost of operating and maintaining your vehicle. You can deduct car expenses by taking either the standard mileage rate or using actual expenses. In 2016, the mileage reimbursement rate is 54 cents per business mile (57 cents per mile in 2015).

If you own two cars, another way to increase deductions is to include both cars in your deductions. This works because business miles driven is determined by business use. To figure business use, divide the business miles driven by the total miles driven. This strategy can result in significant deductions.

Whichever method you decide to use to take the deduction, always be sure to keep accurate records such as a mileage log and receipts. If you need assistance figuring out which method is best for your business, don’t hesitate to contact the office.

Increase Your Bottom Line When You Work At Home

The home office deduction is quite possibly one of the most difficult deductions ever to come around the block. Yet, there are so many tax advantages it becomes worth the navigational trouble. Here are a few tips for home office deductions that can make tax season significantly less traumatic for those of you with a home office.

Try prominently displaying your home business phone number and address on business cards, have business guests sign a guest log book when they visit your office, deduct long-distance phone charges, keep a time and work activity log, retain receipts and paid invoices. Keeping these receipts makes it so much easier to determine percentages of deductions later on in the year.

Section 179 expensing for tax year 2016 allows you to immediately deduct, rather than depreciate over time, up to $500,000, with a cap of $2,000,000 worth of qualified business property that you purchase during the year. The key word is “purchase.” Equipment can be new or used and includes certain software. All home office depreciable equipment meets the qualification. Some deductions can be taken whether or not you qualify for the home office deduction itself.

If you’re ready to meet with a tax professional to discuss tax planning strategies for your business, call the office today. Call 480-940-8351

DAT News & Blogs

Home Based Truck Dispatch

Get the inside with our “Truck Dispatch Seminar”

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Aug 28 – Sep 3 vs.
Aug 21 – 27
Aug 2016 vs.
Jul 2016
Aug 2016 vs.
Aug 2015
Spot Market Loads +8.4% +0.5% +29%
Spot Market Capacity 2.5% +14% +8.6%
Van Load-To-Truck +16% 4.6% +49%
Van Rates (Spot) +3.7% 1.2% 8.0%
Flatbed Load-To-Truck +4.4% 26% 6.0%
Flatbed Rates (Spot) +0.5% 1.6% 8.2%
Reefer Load-To-Truck +14% +4.8% +16%
Reefer Rates (Spot) +1.6% 2.1% 6.9%
Fuel Prices +0.0% 2.2% 9.4%
Freight Rates and Ratios Rise at End of Month

Van Rates Add 6¢

Aug 28 – Sep 3 – Van rates jumped 6¢ and reefers added 3¢ last week. Even flatbeds got a 1¢ raise, due to an increase in the fuel surcharge. Load-to-truck ratios got a healthy boost, so the higher rates may outlast end-of-month and pre-holiday pressure.
Last update: 9/6/2016 – Next update: 9/13/2016

Fuel Prices
+0.0%$2.41 / gallon

DAT News & Blogs

Dispatch Trucks

Attend our Seminar, One on One,  3 days, 2 hours per day via Skype.

After you signed up for our 3 day seminar, we will contact you and arrange a schedule at your convenience. You can attend a seminar only by phone, however if you are not familiar with certain forms and documents, we like to show these forms and documents via Skype, scan if necessary and forward them to your email account for an immediate learning process.

The seminar will teach the entrepreneur planning to start a dispatch service business. We will also help you finding clients for your new business. (Free advertising on TruckingSuccess.com and free ads on Facebook and Twitter.) We offer continue support for our clients, even after the seminar has ended, anytime, no additional charge. In addition you will receive a certificate stating that you have attended our seminar and that you are now part of a professional group of  independent dispatchers.

What will you learn attending our seminar?  –  What you need to know starting a Home Based Business  –

We will provide information to successfully dispatch your clients truck(s). We list important business contacts, and provide information about laws and regulations as well as required documents. We describe how to provide excellent customer service, build successful business relationships and effectively manage time and stress. It explains freight volume and facts affecting load availability. It guides you through the process of obtaining your own loads and dispatching your clients truck(s). And you also learn about proper freight handling and important delivery procedures. Finally, we will dispel myths and common misconceptions about the trucking industry, provide you with facts to disprove “truck stop” gossip, and make the process of dispatching transparent. Best of all, we will tell you the truth what you can really earn as an independent dispatcher. We will not give you an unrealistic number, like many of our competitors offer on their websites only to wheel you into their service scam. We came to the realization that these companies don’t care about your success, only their own success, meaning their own revenue. We offer continue support for our clients, even after the seminar has ended, anytime, no additional charge. One more advice, be aware when someone is telling you that you can charge a percentage of the load you are dispatching, you can’t, because you are not a broker and you don’t have a broker’s license. You don’t carry a $75,000 bond and you may be subject to all kinds of lawsuits when things go wrong.

Below you can see one of the important learning tools, the round trip concept.

 

Our Skype ID is: trucking.success

To order click here

DAT News

Trucking USA

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Aug 21 – 27 vs.
Aug 14 – 20
Jul 2016 vs.
Jun 2016
Jul 2016 vs.
Jul 2015
Spot Market Loads +4.7% 15% +19%
Spot Market Capacity +0.0% 6.4% 9.6%
Van Load-To-Truck +8.4% 2.4% +60%
Van Rates (Spot) +0.0% +1.2% 9.4%
Flatbed Load-To-Truck 5.2% 20% +6.7%
Flatbed Rates (Spot) 1.6% 2.0% 9.4%
Reefer Load-To-Truck +12% 8.4% +16%
Reefer Rates (Spot) +0.0% 2.0% 9.0%
Fuel Prices +1.7% 0.7% 14%
More Loads, Steady Rates for Vans and Reefers

Flatbed Rates Decline 3¢

Aug 21 – 27 – More loads were available last week for vans and reefers on the spot market, and national average rates were unchanged. Load volume and rates declined 3¢ for flatbeds, however.
Last update: 8/30/2016 – Next update: 9/6/2016

Fuel Prices
+1.7%$2.41 / gallon

DAT News

Many new trucking companies close their doors within the first year of operation. Why? There are a few of the common mistakes that I’ve seen owner-operators and small carriers make, and as a result I’ve seen a huge number of them close their doors before their first anniversary.

Below are four of the most common mistakes a trucking company might make – plus ways you can avoid them.

How to survive as a trucking business

1. Growing Too Quickly

Running a small fleet is a daily challenge that requires patience, organization and hard work. However, some owners jump out and hire too many people to help them through this process. Hiring people is often the single largest expense for a company – in trucking, it’s usually only surpassed by fuel costs.

Outsourcing simple tasks will allow you to focus on what you’re best at: hauling freight. Good examples of items that can be outsourced: back-office functions, payroll processing, human resources and marketing. You can also use a load board or a dispatch service instead of hiring a salesperson. Most of these services can be handled by experts at a much cheaper rate, while also ensuring that you meet all state and federal guidelines related to these functions.

Before hiring staff members, see if your current staff is overwhelmed and often working overtime. Ask them to outline all of their tasks for the week, plus how much time they spend on each task. Ask yourself: Are these tasks essential to meeting our goals? Can we eliminate this task? Can we outsource this task? You’ll need to answer these questions, so that you don’t outspend your revenue.

2. Not Meeting “New Entrant” CSA Guidelines

The “new entrant” guidelines state that all new fleets filing for DOT registration will be audited WITHIN the first 18 months. Many new entrants assume this means that they have 18 months to meet all of the guidelines before they are audited, but I’ve known many fleets that were audited on month 3 and were shut down for 30 days until they met all of the requirements. This temporary shut-down almost always results in bankruptcy.

New entrants will AUTOMATICALLY FAIL the CSA Safety audit for the following violations:

Alcohol and Drug Violations

  • No alcohol and/or drug testing program
  • No RANDOM alcohol and/or drug testing program
  • Using a driver who refused a required alcohol or drug test
  • Using a driver the company knows had a blood alcohol content of 0.04 or greater
  • Using a driver who failed to complete required follow-up procedures after testing positive for drugs

Driver Violations

  • Using a driver without a valid CDL
  • Using a disqualified driver
  • Using a driver with a revoked, suspended, or cancelled CDL
  • Using a medically unqualified driver

Operations Violations

  • Operating a motor vehicle without having the required level of insurance
  • Failing to require drivers to make hours-of-service records

Repairs and Inspections Violations

  • Operating a vehicle declared Out-of-Service for safety deficiencies before repairs are made
  • Not performing OOS repairs reported in driver-vehicle inspection reports (DVIRs)
  • Operating a CMV not periodically inspected

See the full list of carrier requirements at the FMCSA website.

3. Not Having Enough Insurance Coverage

Most fleets realize that they need liability and cargo insurance, and most fleets generally meet the base guidelines. However, it’s also important to have coverage for physical damage of non-owned trailers and general liability protecting your drivers or others when the truck is not involved. Some examples: customers slipping or falling on your premises, erroneous delivery of products resulting in damage, actions of a driver at loading docks, truck stops, etc. Some fleets, based on size and type, may also need Workers Compensation coverage – too many fleets are not carrying enough in this area.

Not having enough insurance has left many fleets with the inability to pay for damages. They just purchased enough to meet the minimum requirements and didn’t fully understand the long-term effects of their decisions.

4. Not Understanding Your True Costs per Mile

You need to know both the fixed and variable costs to operate your business. Fixed costs are the expenses you incur even if your truck isn’t running, like truck payments, insurance, building rent, etc. Variable costs are what you spend to move a load: fuel, tires, maintenance, etc. Starting out, you should have enough cash on hand to cover your expenses for 3-6 months, since you’ll need to cover these costs before money starts coming in. Plus, your business might not grow as fast as you expected at the beginning. Knowing your costs per mile will help you manage that cash flow.

The cost per mile and other financial reports are also a good barometer for the financial health of your business. It’s best to understand your basic cost per mile based on the annual mileage and annual expenses for all of your vehicles. The simplest way to do it is divide the annual costs by the number of miles run that year. The challenge is to accurately allocate ALL of the expenses – the key reason many fleets don’t survive. All too often, new fleets do NOT take the time to understand their expenses, document their expenses, and then fully understand their cost per mile. They then accept nearly any rate just to get a load. Over time, this model gets them upside down with their cash flow. Before long, bills aren’t getting paid, drivers aren’t making the amount of money they need, and the entire business starts to collapse from within.

DAT News

Van Reefer Flatbed Rates

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Aug 14 – 20 vs.
Aug 7 – 13
Jul 2016 vs.
Jun 2016
Jul 2016 vs.
Jul 2015
Spot Market Loads 0.9% 15% +19%
Spot Market Capacity 0.2% 6.4% 9.6%
Van Load-To-Truck +1.7% 2.4% +60%
Van Rates (Spot) 0.6% +1.2% 9.4%
Flatbed Load-To-Truck 7.1% 20% +6.7%
Flatbed Rates (Spot) +0.0% 2.0% 9.4%
Reefer Load-To-Truck +4.3% 8.4% +16%
Reefer Rates (Spot) 0.5% 2.0% 9.0%
Fuel Prices +2.5% 0.7% 14%
Load Volume Rises for Vans and Reefers

Are Van Rates Ready to Rebound?

Aug 14 – 20 – Spot market rates edged down 1¢ per mile for vans and reefers last week, but load posts increased for both trailer types, so rates could be ready to rebound. The national average flatbed rate was unchanged, week over week, and flatbed load volume declined.
Last update: 8/22/2016 – Next update: 8/29/2016

Fuel Prices
+2.5%$2.37 / gallon

Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up for TruckersEdge today and get your first 30 days free by signing up at http://www.truckersedge.net/promo123 or entering “promo123” during sign up.

DAT News

Most years, van volumes and rates fall in July and pick back up again in August. The timing is off this year. Rates and volumes mostly held steady this past July, but loads and rates dropped off last week. We could still see another rebound in a couple of weeks.

So, where can you find a load for your van right now? The top five markets for load posts on DAT TruckersEdge are Atlanta, Chicago, Elizabeth NJ, Dallas, and Indianapolis. There were more loads in Northern New Jersey last week, and Indy had a good week, too. The other three markets (Atlanta, Chicago, and Dallas) lost traction, but they are not moving out of the top 5.

Darker colored states above have higher load-to-truck ratios, meaning there’s less competition for van freight in those states.

The rates below include fuel surcharges and are averages based on real transactions between carriers and brokers.

RISING

43 of the top 100 van lanes saw prices go up last week, but most of the increases were small.

  • Biggest gain last week: Philadelphia to Boston up ▲10¢ to $3.19/mile (That rate sounds great but you have traffic and tolls on I-95, plus it can be tough to find a load out of the Boston area)
  • Second-biggest gain last week: Chicago to Buffalo up ▲8¢ to pay $2.26/mile on average
  • Seattle and Denver had the biggest improvements in volumes last week.
  • Rates didn’t change in Denver, but Seattle prices got a boost
  • The bad news is that the Seattle average was still just $1.19/mile outbound.

Also, some truckers are getting loads from FEMA this week to bring emergency supplies to the flood zones in Louisiana. That can be dangerous work, and it’s hard to find a load back out, so be careful out there.

FALLING

  • Los Angeles rates dropped to a 6-week low last week, an average of $2.07/mile.
  • The lane rate from L.A. to Chicago dropped ▼17¢ to just $1.16/mile, which makes your trucks more competitive with the railroad, but that’s just not an attractive rate for 2,000 miles
  • Memphis to Charlotte fell ▼14¢ to just $1.67/mile
  • Charlotte to Buffalo rates lost ▼22¢ to $1.95/mile, the first time that lane has averaged less than $2.00 in a while.
  • Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up for TruckersEdge today and get your first 30 days free by signing up at http://www.truckersedge.net/promo123 or entering “promo123” during sign up.

DAT News

Truck Load Boards

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Aug 7 – 13 vs.
Jul 31 – Aug 6
Jul 2016 vs.
Jun 2016
Jul 2016 vs.
Jul 2015
Spot Market Loads 6.2% 15% +19%
Spot Market Capacity +3.1% 6.4% 9.6%
Van Load-To-Truck 7.0% 2.4% +60%
Van Rates (Spot) 1.8% +1.2% 9.4%
Flatbed Load-To-Truck 14% 20% +6.7%
Flatbed Rates (Spot) 0.5% 2.0% 9.4%
Reefer Load-To-Truck 5.5% 8.4% +16%
Reefer Rates (Spot) 1.6% 2.0% 9.0%
Fuel Prices 0.4% 0.7% 14%
Volumes and Rates Take a Late-Summer Dip

Van Rates Drop 3¢

Aug 7 – 13 – Spot market demand dipped 6% last week, accompanied by a 3¢ decline in the national average van rate. It’s now lower than the June average, for the first time in six weeks, a transition that typically occurs in the first week of July. Reefer rates also fell 3¢, and the national average flatbed rate edged down 1¢ on declining fuel surcharges.

Fuel Prices
-0.4%$2.31 / gallon

Last update: 8/16/2016 – Next update: 8/23/2016

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DAT News

Recent blog posts about the DAT survey on driver detention have yielded lots of comments, including sad stories, but also recommendations for brokers as well as carriers.

Bottom line: When carriers and brokers work together effectively, they can help reduce excess detention and its impact.

motor carrier detention
The graph above shows responses from 257 carriers surveyed

Communication is Key

Many comments emphasized the importance of communication. Reader Bob Farrell noted that both the carrier and broker need to communicate more:

Carriers should know the ‘game rules’ in advance and notify the broker when they: 1) have arrived. 2) have been placed to the dock. 3) are approaching the end of the free time (i.e., at 60 minutes, 90 minutes, etc.).

Likewise, Farrell says that the broker needs to notify the customer that the time window is closing. Another commenter, Chris, pointed out:

If you speak with your broker, they can help most of the time. They just don’t want to have the conflict and potential loss of income. Drivers think load by load, brokers think about overall volume from the customer.

Need for Documentation

When detention does occur, having the proper documentation is critical. Catherine Mallery, a 3PL, says:

We have a standard detention policy that outlines free time, rates per hour, and necessary actions/documents to qualify for detention. Each customer has their own policy and we have to manage all these expectations to try and recover detention. 

Many carriers, however, complained that getting detention pay is nearly impossible, even with proper documentation. Mitch writes:

What about the broker who tells you they can’t pay detention without the in and out times being stamped on the bill of lading, and the dock worker tells the driver they do not stamp bills with in and out times?

Julie, who identified herself as a former owner-operator and now a broker, said this about detention pay:

We tried putting it in our contracts, but now shippers don’t want to sign our contract. They want us to sign theirs, which of course doesn’t include detention. 

More on Driver Detention

We’ve also received a lot of comments on Facebook

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DAT News

Semi Truck Shipping Quotes

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Jul 31 – Aug 6 vs.
Jul 24 – 30
Jul 2016 vs.
Jun 2016
Jul 2016 vs.
Jul 2015
Spot Market Loads 3.9% 15% +19%
Spot Market Capacity +0.1% 6.4% 9.6%
Van Load-To-Truck 2.2% 2.4% +60%
Van Rates (Spot) +0.0% +1.2% 9.4%
Flatbed Load-To-Truck 11% 20% +6.7%
Flatbed Rates (Spot) +0.5% 2.0% 9.4%
Reefer Load-To-Truck +3.6% 8.4% +16%
Reefer Rates (Spot) +0.0% 2.0% 9.0%
Fuel Prices 1.3% 0.7% 14%
Spot Market Rates in a Holding Pattern

Reefer Demand Picks Up

Jul 31 – Aug 6 – Prices held steady for vans and reefers on the spot market, despite falling fuel surcharges, while the national flatbed rate added 1¢. Load availability slipped, but reefer demand was up, as the back-to-school grocery season coincides with late summer harvests.

Last update: 8/9/2016 – Next update: 8/16/2016

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The Most Accurate Freight Rates

DAT RateView is an innovative online tool that puts real-time spot market and current contract freight rates at your fingertips. Rates are based on $28 billion of actual transactions—what brokers and shippers are actually paying carriers. There are two ways to buy RateView: as a standalone cloud-based software service, or as an integrated solution on some load board packages.

 

DAT News

Truck Engine Repair

7 Signs Your Truck’s Engine Might Give Up on You

By CAG Truck Capital

Trucking is tough. Anyone who knows a trucker is well aware of the long hours and hard work involved in providing for your family. Your truck is your livelihood, and when yours starts creeping towards the million mile mark, it’s easy to get blindsided by an engine that gives up on you. While it’s painful to be down, it’s always better to have it happen on your terms. Keep an eye out for these warning signs, and you’ll avoid getting stuck on the side of the road.

  1. Low Fuel Economy

Are you spending more at the pump? When your engine needs help, poor fuel economy can be one of the signs. Worn or damaged injectors can be a likely cause.

  1. Loss of Engine Power

Does your engine give you less? Is your truck not pulling the same? Is your top speed a fraction of what it once was? It’s possible that you’ve lost cylinder compression. Piston rings, valves, or the head gasket can cause your truck to lose its muscle.

  1. Increased Oil Consumption

Always checking your oil? Are you constantly adding more between oil changes, fearing that you’ll run dry? Your engine might be leaking or burning oil, caused by issues with your piston rings or cylinder liner.

  1. Blue or Black Exhaust

Has the exhaust from your truck taken a different color? Blue or black exhaust tells you that you’re either burning oil or the fuel environment in your engine is too rich or lean. This can be caused by issues with your piston rings, injectors or cylinder liner.

  1. Excessive Blow-By

Do you have excessive amounts of smoke or unburnt fuel blowing into your crankcase? This could be caused by wear on your piston liners or an issue with the steel rings.

  1. Poor Engine Brake Performance

Is your engine brake not working as well as it used to? Does going down a long hill make you more nervous every day? You could have lost cylinder compression. Piston rings and the cylinder liner could be the cause.

  1. Engine Knocking

Does something sound a bit out of the ordinary? Did the hum your engine normally produces get replaced with something terrible? This could mean that your combustion timing might be off or oil contamination. Engine knocking could be caused by worn or damaged liner seals, main bearings or piston skirt.

It might be tempting to keep going when your engine is giving you these warning signs but continuing on could cause catastrophic engine failure. Listen to your truck, and avoid getting an unrepairable issue like a cracked engine block. Finding a nationally certified CAT, Cummins, Detroit, Volvo, Mack or PACCAR repair shop can help give you a quick answer and let you service your truck on your terms instead of being forced into a tough situation. Peace of mind is important to everyone, so ensure that your business keeps rolling without unexpected down time.

Established in 1984, CAG Truck Capital helps customers of all credit types get the financing they need to keep their business going. CAG Truck Capital works with customers looking to either purchase a truck or finance big repairs such as engine overhauls.

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* This offer is available to new TruckersEdge subscribers only

About TruckersEdge®, powered by DAT®

TruckersEdge® Load Board is part of the trusted DAT® Load Board Network. DAT offers more than 68 million live loads and trucks per year. Tens of thousands of loads per day are found first or exclusively on the DAT Network through TruckersEdge.

 

DAT News

Freight Business

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Jul 24 – 30 vs.
Jul 17 – 23
Jul 2016 vs.
Jun 2016
Jul 2016 vs.
Jul 2015
Spot Market Loads +3.5% 16% +18%
Spot Market Capacity 5.0% 6.6% 9.7%
Van Load-To-Truck +11% 2.6% +60%
Van Rates (Spot) 0.6% +1.2% 9.4%
Flatbed Load-To-Truck +4.9% 20% +6.6%
Flatbed Rates (Spot) +0.5% 2.0% 9.4%
Reefer Load-To-Truck +18% 8.4% +16%
Reefer Rates (Spot) 1.5% 2.0% 9.0%
Fuel Prices 1.3% 0.7% 14%
Surprise! July Van Rates Exceed June Averages

Demand Rises at Month’s End

Jul 24 – 30 – More loads were available as July ended, so load-to-truck ratios rose for vans, reefers and flatbeds. Van rates lost a penny and reefer rates dropped 3¢ per mile for the week, but flatbeds added 1¢. The big surprise: the monthly average rate for vans in July topped June levels by 2¢.
Last update: 8/2/2016 – Next update: 8/9/2016

Fuel Prices
-1.3%$2.35 / gallon

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Heavy Vehicle Use Tax

Heavy Vehicle Use Tax

Heavy Vehicle Use Tax Update:
Time to file Form 2290

The annual filing for Form 2290 must be
completed by 8/31/16
J. J. Keller is an IRS-approved 2290 e-file provider and we look forward to helping you painlessly file your taxes. You can file online today at 2290online.com:

  • If you have vehicles with a gross weight of 55,000 pounds or more, you must file IRS Form 2290 Heavy Vehicle Use Tax
  • If you have 25 or more vehicles that are 55,000 pounds or more, you must file electronically
  • E-Filing is quick, and you get a laser-printed, stamped Schedule 1 in no time
  • Thousands of fleets rely on us for annual 2290 filing

Visit 2290online.com and e-file today to get your proof of tax payment, which is needed to register annually with your state.

E-filing is quick and easy to do… visit 2290online.com to get started today!

Regards,

2290 Team
2290Online.com

DAT News

Reefer load volumes continued to drop seasonally, especially in Southern California. Reefer prices are also lower than they were in June, but that’s normal for this time of year. The good news is it’s happening slower than it did in 2015.

Below is a look at some of the biggest price changes for spot market reefer freight last week.

All rates include fuel surcharges and are based on real transactions between carriers and brokers.


Darker-colored states have higher load-to-truck ratios, meaning that there’s less competition for reefer loads in those states.

RISING

Chicago reefer volumes have been building up for a while, and outbound rates finally started to improve last week.

  • Chicago to Atlanta paid ▲14¢ more for an average of $2.20/mile
  • Green Bay to Minneapolis rose ▲14¢, to $1.90/mile
  • Reefer rates and volumes were up slightly in Dallas
  • Southern California lagged, but volume is rising in Sacramento. Hopefully that’ll lead to some higher rates this week

FALLING

Rates are still falling out of Florida, and California prices have also started tapering off.

  • Lakeland, FL to Charlotte rates plunged ▼28¢ to just $1.18/mile. The lane from Lakeland to Atlanta also lost ▼16¢
  • Atlanta to Philadelphia lost another ▼17¢, to $2.36/mile
  • Outbound rates slipped across the board in Los Angeles, Fresno, and Ontario, but prices are otherwise holding up pretty well
  • L.A. to Portland, OR lost ▼18¢, but it’s still paying an average of $2.43/mile
  • Fresno to Denver dropped ▼14¢ to $2.42/mile

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DAT News

Truck Loads for Owner Operators

DAT Trendlines

               Powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Jul 17 – 23 vs.
Jul 10 – 16
Jun 2016 vs.
May 2016
Jun 2016 vs.
Jun 2015
Spot Market Loads 5.3% +29% +0.8%
Spot Market Capacity 1.2% 7.6% 1.9%
Van Load-To-Truck 5.0% +63% +22%
Van Rates (Spot) 0.6% +5.2% 13%
Flatbed Load-To-Truck +2.5% +7.5% 20%
Flatbed Rates (Spot) +1.1% +1.6% 11%
Reefer Load-To-Truck 8.1% +65% 2.9%
Reefer Rates (Spot) 1.0% +4.2% 11%
Fuel Prices 0.8% +4.7% 16%
Demand Slips for Vans and Reefers in Mid-July Lull

Rates Drift Down

Jul 17 – 23 – Spot market demand and rates drifted down again last week for vans and reefers, a typical trend for mid-July. Flatbed rates edged up, however, compared to the previous week.

Last update: 7/26/2016 – Next update: 8/2/2016

Fuel Prices
-0.8%$2.38 / gallon

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DAT News

Drivers: Find Loads On the Road

More than 250,000 drivers have installed the DAT Trucker mobile app for iPhone and Android. The free trucker app provides drivers with all the services they need while on the road. Owner operators and carriers can access a limited number of nearby DAT Extended Network loads and get other community resources.

Already using our app?  Learn more about our services

DAT Trucker

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DAT News

Truck Loads Available

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Jul 10 – 16 vs.
Jul 3 – 9
Jun 2016 vs.
May 2016
Jun 2016 vs.
Jun 2015
Spot Market Loads +6.6% +29% +0.8%
Spot Market Capacity +37% 7.6% 1.9%
Van Load-To-Truck 26% +63% +22%
Van Rates (Spot) 2.4% +5.2% 13%
Flatbed Load-To-Truck 14% +7.5% 20%
Flatbed Rates (Spot) +2.2% +1.6% 11%
Reefer Load-To-Truck 27% +65% 2.9%
Reefer Rates (Spot) 2.0% +4.2% 11%
Fuel Prices 0.4% +4.7% 16%
Van and Reefer Rates Fall From Seasonal High

Ratios Trend Downward

Jul 10 – 16 – Spot market demand and rates typically fall after July 4th, but that decline came a little later than usual this year. National average spot market rates for vans and reefers declined 4¢ per mile, after hitting their highest marks of the year in the previous week. Flatbed rates added 4¢.

Last update: 7/19/2016 – Next update: 7/26/2016

Fuel Prices
-0.4%$2.40 / gallon

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DAT News

Where can I find more loads.

The Panama Canal opened a new lane for larger ships this week, and East Coast ports have been expanding efforts to attract Asian imports that would otherwise arrive on the West Coast. The canal expansion has run into plenty of obstacles along the way, and many East Coast ports still aren’t ready to accommodate the larger ships. 


Expansion at the Panama Canal, pictured above, has led to a business boom in South Carolina. Photo by Stan Shebs.

But the South Carolina freight market has already gotten a boost thanks to the expansion, and the industrial boom has been evident on DAT Load Boards. Greenville, SC, rose to 11th place for the number of van load posts last year, and its average load-to-truck ratio in 2015 was higher than any other “top 30” market. Last week’s load-to-truck ratio in Greenville rose to 7.4, well above the national average of 2.7 loads per truck. 

Warehouses and industrial parks continue to grow in and around Greenville and Spartanburg, according to the Wall Street Journal, and more goods are expected to arrive from the Port of Charleston, some 200 miles away. 

Cities from the Gulf Coast to New York are also trying to lure more Asian imports once the canal opens. Economists and developers say the Upstate’s low labor costs and acres of cheap, undeveloped land, give the region an edge. They also cite its manufacturing base, as the auto industry draws suppliers to locate closer to factories, and growing auto exports require bigger ocean vessels to reach customers around the world.

The expanded Panama Canal “is going to drive industry and create even more businesses there,” said Joel Sutherland, director of the Supply Chain Management Institute at the University of San Diego. “Having a regular flow of containers…will attract major manufacturing, then their suppliers, then their suppliers’ suppliers, and ultimately more people.”

The rates are also trending up. The top outbound lane from Greenville is a short hop over to Atlanta. That lane paid an average of $3.09 per mile last week, which is 20¢ higher than it was a month ago.

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DAT News

Most drivers spend 3 to 4 hours waiting to get loaded or unloaded, according to a DAT survey of 257 carriers and owner-operators. Of the carriers surveyed, 54% of them said they had to wait between 3 to 5 hours every time they’re at a shipper’s dock.

Another 9% said that they wait more than 5 hours on average.

You don’t have to crunch a lot of numbers to figure out how that’s bad for business.

motor carrier detention
The graph above shows responses from 257 carriers surveyed

Detention fees usually range from $30 to $50 an hour after the driver has been detained for more than two hours, based on responses those same carriers plus 50 brokers who were also surveyed. And that’s if the carrier is actually lucky enough to collect a detention fee.

Two-thirds of the brokers said that they only paid detention when they were able to collect a fee from the shipper or consignee. When a broker is able to collect from the shipper, they were twice as likely to pay detention fees to the carrier.

But those fees are just a drop in the bucket compared to how much that detention time actually costs trucking companies. One owner-operator cited a $1,900 loss due to two loads he was unable to accept because of a lengthy detention at a receiver’s dock.

Get the full survey results.

DAT News

Trucking Freight Rates

DAT Trendlines

powered by DAT RateView

Industry Trends - Spot Market Industry Trends - Van Industry Trends - Flatbed Industry Trends - Reefer Industry Trends - Fuel Prices
Industry Trends WEEK MONTH YEAR
Jul 3 – 9 vs.
Jun 26 – Jul 2
Jun 2016 vs.
May 2016
Jun 2016 vs.
Jun 2015
Spot Market Loads 19% +29% +0.8%
Spot Market Capacity 22% 7.6% 1.9%
Van Load-To-Truck +5.8% +63% +22%
Van Rates (Spot) +4.9% +5.2% 13%
Flatbed Load-To-Truck 0.7% +7.5% 20%
Flatbed Rates (Spot) 5.1% +1.6% 11%
Reefer Load-To-Truck +0.9% +65% 2.9%
Reefer Rates (Spot) +2.5% +4.2% 11%
Fuel Prices 0.1% +4.7% 16%
Rates Continue to Rise for Vans and Reefers

July Freight Gets Strong Start

Jul 3 – 9 – Load-to-truck ratios and rates continued to rise last week for vans and reefers, which is not a typical trend for July. Flatbed rates declined, however.        Last update: 7/12/2016 – Next update: 7/19/2016

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DAT News

Truckload Rates

Today’s Truckload Rates Based on Actual Transactions

When you talk to brokers or shippers, do you know what the market rate is for the lanes where the loads are? When you put hundreds of thousands of miles each year on your trucks, if your average rate per mile is two cents too low, it’s a huge hit to your bottom line. That’s why having the most accurate freight rate data in the trucking industry matters. With DAT RateView™, carriers gain access to:

  • Real-time truckload rates for lanes throughout North America
  • Freight rates compiled from $28 billion in actual transactions
  • True broker-buy rates updated daily
  • Monthly contract rate averages by lane
 
Increase Revenue Per Loaded Mile
  • Get suggestions for triangle routing to improve revenue and asset utilization
  • Know where your truck capacity is most valuable with Hot Market Maps
  • Respond to RFPs with bids based on today’s rate, 30-day and 13-month lane histories

Download RateView Carrier Product Sheet

RateView Features Include:
  • View rates for the past 7- or 15-day period in popular lanes
  • Get 13-month historic rate data for thousands of lanes
  • Track rate trends lane by lane to predict and adjust for seasonal changes
  • See load-to-truck ratios on specific lanes based on rolling 30-day averages

DAT News

Do you have shipper customers who need to move more freight than you can service with the current size of your fleet? You could buy more trucks to move that extra freight, but adding a brokerage is another option. If you already have relationships with shippers, know their lanes, and know the capacity that they need, then brokering their freight could add another source of revenue for your transportation business.

There are 6 steps you’ll need to take before you can start brokering freight.

GROW YOUR BUSINESS

DAT Solutions can help you add a brokerage to your carrier business

1. Apply for operating authority

You’ll have to apply for broker authority through the United Registration System. This will be separate from your carrier authority. You’ll also need to decide how to organize this separate company: sole proprietorship, partnership, LLC, S corp., etc.

Getting your broker authority means you have to designate process agents in every state you’re doing business, just like you did to get your carrier authority. Our fleet services team can help with all the paperwork.

2. Get a broker bond

Every freight broker has to have a $75,000 surety bond or trust fund. It’s similar to the liability insurance required for your trucks, and it’s there to ensure that a carrier can get paid if a broker doesn’t fulfill a contract. The bond covers the entire brokering side of your business. DAT customers can get a broker bond at a special price.

3. File state permits

Some states require extra permits to set up your business, so be sure to check the requirements in your state. DAT Fleet Services can help with that too.

4. Invest in a TMS

Managing your cash flow is key to your brokerage’s success. You’re already familiar with days-to-pay – the number of days a broker has to pay the carrier – but as a broker, you won’t always get money from the shipper before you have to pay the carrier. TMS software like DAT Keypoint is the easiest way to manage your transactions, keep records, and manage the company’s cash flow.

TMS software also lets you manage all your new brokerage’s operations in one place, so you can move more freight with a smaller back-office staff. A streamlined, entry-level TMS like DAT Keypoint Ops requires minimal training and lets you control all your operations on one screen. You can also upgrade it seamlessly to fit your business needs as your company grows.

5. Make personnel decisions

Are you going to be the one working the phones, or will you need new employees? Would you be better off working with independent agents? Will your brokerage share the same office space as your carrier business?

6. Anticipate hidden startup costs

When you started your carrier business, most of the startup costs were tied to equipment. For a brokerage, some of those costs are a lot less obvious – contingent cargo insurance policies, for example. Meet with a business attorney who has experience with brokers. That will save you some headaches.

DAT can help get your brokerage off and running, whether that means getting your broker authority or streamlining your business with broker TMS software. Call 800.551.8847 for more info.

Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up for TruckersEdge today and get your first 30 days free by signing up at http://www.truckersedge.net/promo123 or entering “promo123” during sign up.