The way to make money in the trucking industry involves getting a truck, forming a company, and acquiring loads. The key to making the highest possible profits is getting high paying loads, yet how do you get them? Here are some tips to help you earn higher rates per mile.
Freight rates constantly change due to fuel prices, supply and demand, the economy and more. Knowing your current cost is vital to making a profit. A good way to determine a good rate is to multiply the total mileage of a load route by your cost per mile to determine how much it will cost you to haul the load. Make sure that your freight rate is more than what you will spend to get the cargo to its destination.
Also, keep in mind that higher paying freight is relative. What you consider high may not be for the next trucker. Don’t lose sight of basic accounting revenue and profit tactics.
Expect some give and take when finding higher paying loads. Not all loads work for every trucking company. Higher paying loads often require more training and experience, not to mention higher insurance rates. Take these factors into consideration when determining what is best for you and your drivers. Hauling vehicles, hazardous materials, livestock and similar loads will get you a higher per mile rate, but these jobs require special licenses, training, and equipment. Remember that your costs will also be higher.
Flatbed trailers often have high paying loads. This type of shipping may be a good fit for experienced drivers who want a challenge and are willing to do extra work for more pay. Less-than-truckload (LTL) and dedicated lanes are highly prized because of perceived freight rates and the reliability of consistent work. Keep in mind, though that this market is competitive and can be hard to keep.
Load boards can be your key to getting started. Many boards allow you to search for and filter loads by truck and trailer types, destinations and rates.
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