Truck Driving Job News

BEAVERTON, Ore. — Spot truckload rates remained near all-time highs during the week ending May 3, one year after bottoming out as U.S. economies closed during the pandemic., according to a report from DAT Freight & Analytics. The seven-day average line-haul rate for dry vans was $2.27 a mile for the week, 95 cents higher than the same period one year ago (line-haul rates exclude a fuel surcharge). Spot refrigerated freight averaged $2.61 per mile, up 94 cents compared to the same week a year ago. The average flatbed rate was $2.62 per mile, a 93-cent increase year over year and 30 cents higher than the same period in 2018, when flatbeds rates were at their previous peaks. With a fuel surcharge, the national average spot van rate was $2.68 a mile during the first three days of May. The reefer rate was $3.10 per mile, and the flatbed rate $3.02. Trends to watch There are more than 102 flatbed loads for every available truck. Flatbed load post volume on the DAT network increased 3% week over week, while the number of available trucks fell 7%. The flatbed load-to-truck ratio topped 100 for the first time this year to reach 102.7, meaning there were more than 102 available flatbed loads for every available truck on the DAT network. The number of loads was more than four times higher than the same week last year, and 21% higher than the highest level reached in 2018. Rates rose despite lower volume. In the 10 largest flatbed markets, the rate increased by 18 cents per mile on average compared to the previous week, despite a 7% decline in available loads. In Houston, flatbed volume was down 5% week over week, yet the average outbound spot line-haul rate increased 17 cents to $2.70 per mile. Dry van volume increased 5%. The number of van loads on the DAT network increased 5% during the week ending May 3 as shippers cleared their docks of month-end freight. Truck posts dropped by the same amount, leaving the van load-to-truck ratio largely unchanged at 4.9. The average line-haul rate for dry van freight was $2.27 per mile last week, up 3 cents compared to the previous week. Van rates declined in large markets. At $2.45 per mile, the average spot rate in the 10 largest van markets fell 1 cent, although the number of available loads was up 2%. Atlanta was the top market for available van loads, as volume increased 9% compared to the previous week. Reefer load posts increase 11%. After falling for the previous three weeks, the national average reefer load-to-truck ratio increased to 10.7 loads per truck. The number of available reefer loads was up 11% last week and capacity tightened with 6% fewer trucks posted. Mother’s Day shipments were in bloom. Mother’s Day is May 9, and the National Retail Federation said U.S. consumers plan to spend an average of $220.48 on gifts and other items for a total of $28.1 billion. Using NAICS (North American Industry Classification System) codes to convert retail revenue into tons, Mother’s Day spending equates to around 150,000 truckloads using $12,000 per ton as a rough guide. In the two weeks leading up to May 9, roughly 70 truckloads per day head north from Miami where 80% of all floral volume is handled by just three carriers. Last week, outbound reefer volume from Miami was up 31%. On the heaviest lanes, including New York City, three-day spot line-haul rates averaged around $3.70 mile last week; Miami to Chicago averaged $2.74 per mile; Miami to Atlanta averaged $2.77 per mile; and Miami to Los Angeles averaged $1.86 per mile excluding fuel.

There’s a lot to consider when planning a route, from transit times to fueling, weather, rest breaks, tolls, personal time for meals and showers, and so much more. Good drivers leave as little to chance as possible, planning in advance for everything they can. One item that often isn’t included in the plan is cargo security. For the vast majority of drivers, the specter of losing a cargo, or a portion of it, has never been encountered. However, cargo theft is big business — and it’s getting bigger. CargoNet, a Jersey City, New Jersey information-sharing system, recently released cargo-theft data for 2020. The CargoNet report stated that 1,676 “supply chain risk events,” involving a theft or attempted theft were reported in 2020, a 16% increase over 2019 events. The totals include events that happened on docks or in warehouses, in addition to cargo stolen from trucks. Of the total number of events, 61% involved theft or attempted theft of cargo; nearly half (48%) included theft or attempted theft of a commercial motor vehicle, including tractors, trailers and intermodal containers. The average cargo theft in 2020 was valued at $166,334, up $27,045 from 2019, according to CargoNet. Five counties were responsible for about 25% of all reported thefts — Dallas County (Dallas), Texas; Cook County (Chicago), Illinois; San Bernardino County (Fontana), California; Los Angeles County (Los Angeles), California; and Shelby County (Memphis), Tennessee. The report states that truck stops and parking lots at retailer locations were the most common locations for theft. Of the cargos stolen, household goods such as appliances, cleaning supplies, furniture and toilet paper were the most common. Food and beverage commodities, especially alcoholic beverages, were also popular among thieves. COVID-related supplies such as pharmaceuticals and hand sanitizer were also targeted, along with an entire truckload of ventilators. Whatever the cargo, there are a few common-sense actions drivers can take to help prevent becoming a victim of cargo theft. Using seals and locks can help keep amateur thieves out of the trailer, but professional thieves can defeat these quickly. Even so, the heavier and stronger the lock, the more likely thieves will be deterred. Parking areas are important. Public, well-lit areas are generally best. Choose a space close to the truck stop or the street. The back row may be quieter, but that isolated location also gives thieves a dark and quiet opportunity to open trailer doors. If possible, back the trailer doors up to a wall, light pole or other object — anything that will prevent criminals from opening the doors more than a few inches. Two trailers parked tail to tail can work — as long as both trucks remain parked. Unfortunately, some cargo thefts occur when thieves physically confront the driver. If this happens to you, remember that absolutely no cargo is worth your life. Thieves are growing more sophisticated, and often gather a great deal of information before planning a theft. Some receive inside information from shippers through friends that work inside or from others. Some may even gather information by posing as drivers, calling in for load details, and some talk to drivers, either in person or on the CB radio. The best practice is to never talk about your cargo to anyone outside of the shipper, your company or law enforcement. Never discuss your load over the CB, as conversations can be heard by anyone with their own radio. Be very suspicious of anyone asking questions about your cargo, pickup or delivery location, shipper or consignee. What seems like an innocent conversation could actually be information-gathering by potential thieves. If someone appears to be more interested in your trip or cargo than usual, protect yourself. Get a description. Take a photo, if you can do so discretely. Call the police, if necessary. Criminals often know which warehouses or distribution centers are destinations for high-value loads. They make a point of knowing the routes in and out of those facilities, sometimes better than the arriving drivers. They may even know which truck and trailer to watch for, and have a good spot planned to make a theft attempt. If you suspect you’re being followed, call the police. Provide as good a description as you can, both of the vehicle and the people in it. Don’t stop in a secluded area unless you can’t safely continue. Find a place that’s well-lit and as public as possible, even if it means stopping in the street. Pull in to the scale house or park in front of a police headquarters. Finally, a word about weapons: Using a firearm or other weapon to protect cargo is not considered self-defense in most jurisdictions. Some states and municipalities mandate automatic jail time for mere possession of a weapon. Use of a weapon, even a “tire thumper” or pepper spray, could put much more at risk than your cargo. Consider use of weapons carefully. Cargo theft can happen anywhere. By taking a few precautions, drivers can help protect against becoming victims.

COLUMBUS, Ind. — The to the latest release of ACT Research’s For-Hire Trucking Index, which includes data for March, shows the Driver Availability Index has tightened to another new low point in the past three years, the fourth in a row. According to Tim Denoyer, vice president and senior analyst for ACT, the Driver Availability Index for March was 16.7, down from 23.6 in February. However, he noted, freight volumes in March were beginning to recover from a drop caused by February’s winter storms. “Capacity remained very tight. The Supply-Demand Balance rose to 68.2 in March, from 60.1 in February,” he said. “In addition to the raft of constraints on driver capacity, from demographics to unemployment benefits to the FMCSA Drug & Alcohol Clearinghouse, constrained Class 8 production and tight vehicle inventories are also likely to limit the pace of recovery this year,” he noted.

BEAVERTON, Ore. — Spot truckload van and refrigerated freight rates hit all-time highs in March, according to DAT Freight & Analytics. Demand for flatbed transportation, driven by strong construction and manufacturing activity, also soared into record territory. The total number of loads posted on the DAT network increased 22.3% month over month, while the number of available trucks was up 30.9%, indicating a return of traffic after being disrupted by winter storms in February. The DAT Truckload Volume Index, a measure of dry van, refrigerated (reefer) and flatbed loads moved by truckload carriers, was up 31% in March to the highest level since the index was rebalanced in January 2015. The previous high was September 2020, when shippers were positioning freight for holiday shopping. “The strength of truckload freight relative to the amount of capacity available in the market, combined with the willingness of shippers to pay high rates, indicates an urgency from businesses to fill orders and meet delivery schedules after a difficult February,” said Ken Adamo, chief of analytics at DAT. “All three equipment types that make up our Truckload Volume Index showed extraordinary growth at a time when capacity is tight and truckload prices are up.” Van and reefer rates hit highs The national average spot truckload van rate was $2.67 a mile, up 13 cents compared to February and almost 30 cents higher than the previous monthly average high in December 2020. The national average spot reefer rate was $2.95 per mile, up 25 cents compared to February and 20 cents higher than the monthly average contract rate. The national average reefer load-to-truck ratio was 12.2, down from 15.9 in February, meaning there were 12.2 reefer loads on the DAT network for every available truck. The van load-to-truck ratio averaged 5.8, down from 7.5 in February, with high ratios in February being exacerbated by the severe winter weather that impacted much of the country. Construction drives flatbed demand  Spot flatbed truckload rates and load-to-truck ratios are at their highest points since the mid-2018. The national average flatbed load-to-truck ratio was 83.7% in March, and spot flatbed volumes increased 34% compared to February on the strength of improved manufacturing output, a booming single-family housing market, and seasonal construction activity. The national average spot flatbed rate was $2.78 per mile, 20 cents higher than February. DAT freight outlook The national average contract van rate was $2.60 a mile in March, 7 cents less than the average spot van rate. The contract reefer rate was $2.75 a mile, 20 cents less than the spot reefer rate. When spot rates exceed contract rates, truckload carriers typically shift capacity to the spot market, creating uncertainty for shippers. According to DAT analysts, year-over-year comparisons of truckload rates and volumes are now less relevant, given the effects of the pandemic on supply chains. The impact of federal stimulus checks; an accumulation in household savings; component shortages in manufacturing; constraints and surcharges in intermodal networks; low inventories; and other supply chain disruptions at ports, canals and elsewhere could push the cresting of contract van and reefer rates into late in the second quarter of 2021. A shortage of semiconductors and other components may delay production and delivery of heavy- and medium-duty trucks ordered in the fourth quarter of 2020 until late 2021 or early 2022, which would affect capacity. The March blockage of Egypt’s Suez Canal is expected to have a negligible impact on U.S. supply chains compared to backlogs processing containers at U.S. West Coast ports. Congestion at the ports of Los Angeles and Long Beach, California, persisted as imports surged in March, as shown by the number of anchored vessels waiting to be offloaded, in addition to tight drayage and intermodal capacity coming off the ports.

COLUMBUS, Ind. — According to ACT Research’s latest release of the North American Commercial Vehicle Outlook, the list of things to like — from the current economic, freight, and commercial vehicle demand perspectives — is long. “From the freight perspective, spot rates continue to post new record levels and are currently inverted relative to contract rates, a clear signal that contract rates will continue to rise. Additionally, low business inventories and backed-up ports on both coasts have created a backlog of freight, providing excellent forward visibility for continued strong demand for freight services,” said Kenny Vieth, ACT’s president and senior analyst. ACT’s Outlook report forecasts the future of the industry, looking at the next one to five years, with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and investment firms the information needed to plan for what is to come. The report provides a complete overview of the North American markets and takes a deep dive into relevant, current market activity to highlight orders, production and backlogs. Information included in the report covers forecasts and current market conditions for medium- and heavy-duty trucks/tractors and trailers; the macroeconomies of the U.S., Canada, and Mexico; publicly traded carrier information; oil and fuel price impacts; freight and intermodal considerations; and regulatory environment impacts. “From a commercial vehicle demand perspective, orders, from medium-duty trucks to heavy-duty tractors and trailers, remain elevated, and backlogs for tractors and van-type trailers, at current build rates, are beyond 12 months, meaning that overall backlog-to-build ratios extend well beyond traditional ranges,” Vieth said. “Our song remains the same — the current business environment for heavy-duty trucks is about as good as any we have seen in 35 years of monitoring heavy-duty market conditions at ACT Research,” he concluded.

Spend some time on any highway that’s frequented by trucks and you’ll soon realize that trailers come in an amazing variety of shapes and styles. The jobs involved in pulling those trailers do, too. While many drivers prefer to stay with a single type of trailer, others keep their trucking careers fresh and interesting by trying something different. Here are some of the different trailer types and a few tips on what the drivers who pull them experience in their daily work. Dry van, or “box” trailers, are the most popular. The most common cargo is boxes of product, stacked on pallets or on “slip sheets” and loaded by forklift. Products that are too big for boxing, such as paper rolls, tires or carpet, can be placed as necessary to balance the weight properly. Some loads fill the trailer and don’t require securing, while smaller loads may require securing. When freight securement is necessary, many trailers are equipped with tracks in the sidewalls where straps can be anchored, helping prevent cargo from shifting during travel. Load locks, adjustable bars or pipes with rubber feet that are held in place by tension, are used in some trailers. Dry vans typically have wood floors so bracing can be nailed down to help minimize shifting. Even when secured by straps or load bars, some freight can suddenly shift during a hard stop or on a sharp curve. This can cause damage to the cargo or make unloading difficult and — if severe enough — cause the truck to roll over. Refrigerated trailers, or “reefers,” can help maintain either cold or warm temperatures for cargo. Temperatures can be set as needed to keep products frozen or simply refrigerated. Reefers are often used in winter to provide warmth, preventing sensitive products from freezing. Because the refrigeration units and the diesel tanks that power them add weight, refrigerated trailers can’t haul quite as much as a typical van trailer. One advantage, however, is that reefers can haul dry freight too, increasing the number of available loads. Drivers who work with refrigerated trailers are responsible for making sure cargo is kept at the temperature specified by the customer and for keeping enough diesel fuel to run the unit until delivery. Depending on the cargo, reefers can have a higher center of gravity than some dry vans, requiring caution on turns and curves. Many pickups and deliveries are to grocery warehouses and other locations where wait time can be excessive, and drivers are often called on to handle at least a part of the freight, or to contract with “lumpers” to load or unload. Flatbed trailers are typically used to transport construction materials, vehicles or anything too large or difficult to load in a van-type trailer. They can be loaded from the rear when backed into a dock, or from either side; flatbed trailers are frequently loaded by overhead crane. Drivers are responsible for safely securing whatever is loaded on the trailer, following Federal Motor Carrier Safety Regulations (FMCSR). Chains, straps and other methods are used. Heavy items such as steel coils or pipe can be deadly in an accident if not properly secured. Drivers must protect some cargo from water damage by covering it with a tarp, which must be tightly secured to make sure water can’t get in and to keep the cover from being pulled off or damaged in the vehicle’s wind stream. Securing and tarping cargo can require handling heavy tie-down equipment and climbing on the trailer. Physical strength and agility are important. Depending on the cargo and customer, loading and unloading can sometimes be quick, and flatbed drivers aren’t often required to handle the cargo itself. Other types of flatbed trailer include drop deck, double drop and removable gooseneck (RGN), commonly known as a “low boy.” These trailers are often used to haul vehicles or equipment that would be too large to legally transport on a flatbed. Driving with a flatbed requires constant monitoring for loose chains or straps and blowing tarps. Cargo that is over-dimensional or heavy may require extra permits and, depending on the jurisdiction, can be subject to special rules, such as daylight hours only. Tank trailers can be easy to load and unload, and there is often no line at the delivery point. Due to the high center of gravity, trailers tend to be top-heavy. Drivers must exercise caution on turns and curves. Additionally, liquids hauled in tanks can slosh (move from side to side) and surge (end to end), especially when the tank isn’t completely full. Either can exert force on the vehicle and could contribute to a rollover. Because many tank loads are hazardous materials, some jobs require a Haz-Mat (hazardous materials) endorsement and special rules may apply, such as a prohibition against using tunnels or certain bridges. Pneumatic tanks are used to haul dry, powdered or granular substances such as sand or popcorn, and baking products such as flour and sugar. A stream of pressurized air carries the product through tubes and hoses into silos or storage containers. These tanks can be dusty and noisy, but they load and unload reasonably quickly. Pressurized tanks are used for compressed gases such as propane, oxygen and more. Dump trailers are often used in construction for dirt, gravel and asphalt, but can also haul other dry products such as lime or fertilizer. Many unload through a tailgate but those designed to haul grain often “belly dump” through openings under the trailer. Dump trailers can be very unstable when the box is raised for unloading and can be top-heavy when driving, depending on the cargo. Loading and unloading is usually quick and easy. Auto haulers are often responsible for loading and unloading vehicles without damaging them. They must be loaded correctly for proper weight distribution, with each vehicle properly secured against movement. Deliveries are sometimes tricky, as the driver may have to park on or next to the highway when unloading. Livestock haulers must be knowledgeable about the animals they transport and able to ensure the animals’ safety and comfort during the trip. Pickups and deliveries are often in rural areas on roads not designed for tractor-trailers. Space doesn’t permit a more detailed explanation of each type of trucking, and there are other trailer types not listed here. Many drivers enjoy talking about their craft and will be glad to tell you all about the trucking niche they find most rewarding. All you have to do is ask.

As if 2020 didn’t bring enough problems, your tax bill for the year could be impacted. Consulting a professional tax preparer between now and April 15 — one that is familiar with trucking — is a good idea. Whether you operate your own trucking business or drive for someone else, your tax liability could be different this year. Since many drivers suffered a reduction in income for 2020, a tax surprise when filing could be devastating. First, the good news. Any economic impact payments you received aren’t taxable unless your total income was more than $75,000 (single) or $150,000 (married). That includes both the $1,200 per person payments sent out in April and the second payment of $600 that was distributed in late December. The amounts will be listed as both income and a tax credit on your tax return. There’s more good news for those who pay the 15.3% Self-Employment tax. Under the CARES Act, up to 50% of the amount earned between March 27 and Dec. 31 can be deferred. Because so many people worked from home during the pandemic, you may also be able to claim a deduction for using a part of your residence for work. Be careful, however, if your work and your residence are in different states. It’s possible you worked at a different location enough days for a second state to claim you as a resident. Your tax professional can help you sort it out. Many people were helped by the $600 per week supplement to unemployment compensation included in the CARES Act (Coronavirus Aid, Relief and Economic Security). The supplement, along with the state’s normal unemployment amount, is taxable on federal returns and on most state returns. Under legislation signed by former president Donald Trump on Dec. 27, a second round of Paycheck Protection Program loans will soon be available for businesses with less than 300 employees, sole proprietorships and self-employed individuals. Since President Joe Biden was inaugurated Jan. 20, more relief related to the pandemic may be in the works. A tax professional can help you take advantage of any new breaks or benefits. Even though 2020 has ended, there’s still time to help your tax preparer and yourself. Make sure you’ve gathered receipts for all your expenses. Keep in mind that some of those receipts won’t of the paper variety received from stores and fuel stops. If, for example, you have a separate meter for electricity used in your shop or you pay for a dedicated phone line for your business, you’ll need evidence of those expenses. Vendors you’ve bought from online often save the invoices indefinitely, so you may be able to retrieve any you’ve misplaced. Credit card bills are often available for a year or more and can be accessed online. Even a review of your checkbook register, whether paper or online, could help you identify tax-deductible expenses. Another review that could be important is your records-of-duty status. This can mean poring through a year’s worth of log books or reviewing printouts from an ELD. The IRS allows a deduction of up to 80% of the cost for meals and incidentals. There’s a standard deduction that can be used instead of actual expenses, but you’ll need proof that you were on the road for each day you claim. Those meal deductions will be even more important in 2021, since the December stimulus bill increased the deduction percentage from 80% to 100% for truckers. A large deduction that can confuse owners is depreciation of equipment. The value of your truck is spread out over its perceived useful life. Once the depreciation is written off, it can’t be claimed again. If your income suffered substantially last year, it might be possible to defer the depreciation deduction until 2021. Your tax professional can help you determine what options are available. It’s not too late to make important business decisions for 2021. As the pandemic winds down, lower fuel prices caused by lowered demand will undoubtedly end. Environmental policies enacted by the Biden administration could drive prices upward. The time may be right to invest in aerodynamic treatments for truck or trailer, or in other equipment needs. Finally, if you don’t have a tax advisor who is knowledgeable about the unique circumstances of trucking, it’s a good time to find one. You might easily find someone that can complete tax forms, but you should be confident that your advisor is taking advantage of every opportunity to save you money on the taxes you pay this year while helping you prepare for the next. Editor’s note: The advice offered in this article is not that of an accountant or tax attorney. The intent of this article is to offer helpful tips — not apply tax law and accounting processes to every situation.

Anyone who’s followed the trucking industry knows that carriers who complain about a driver shortage are often regarded with the same disdain as the boy who cried “wolf.” It’s been suggested by many that more pay and better working conditions might attract enough new drivers to the industry to alleviate any perceived shortage. This year, however, is different — and that could be good news for drivers everywhere. When a handful of COVID-19 cases exploded into a pandemic in the U.S. back in March and April 2020, freight levels dwindled as manufacturing plants shut down or severely restricted output. Imports plummeted as factories in other countries did the same. Many carriers reduced their driving staff with furloughs or layoffs. By May, things started picking up. But a funny thing happened with those out-of-work drivers. They didn’t come back. Some of them who were nearing the end of their trucking careers simply retired. Those who intended to return to trucking were given an incentive to delay their return by the U.S. Congress: A $600 per week supplement to unemployment compensation was included in a stimulus package passed near the end of March. The government helped other drivers stay home in a different way. In January, before the onset of the pandemic, the Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse went into effect. The intent of the Clearinghouse is to consolidate drug and alcohol testing information so it’s more readily available to carriers who are considering a driver hire when compared to the older process of contacting each of a driver’s past employers and hoping for an answer. An added benefit of the Clearinghouse is that drivers who test positive or refuse to test can’t return to work without complying with the terms of a return-to-duty program monitored by a substance-abuse professional. To the surprise of many, a huge percentage of drivers who have tested positive in the Clearinghouse have chosen to simply leave the trucking industry rather than undergo a treatment program. And, with many states legalizing the sale and use of marijuana — the substance responsible for the largest number of positive tests — the problem won’t go away any time soon. For 2020, the Clearinghouse reported 51,998 drivers with at least one violation (positive, refusal, etc.). Of those, 34,769 (nearly 67%) did not even attempt the return-to-work process. Add in the number of those who started but did not complete the process, and the total of drivers lost to drug and alcohol testing in 2020 climbs to 45,475 (87.5%) of all drivers with violations. As the industry was losing drivers last year, the pipeline that creates new drivers for the industry slowed to a trickle. CDL schools nationwide either shut down entirely or reduced enrollment in response to the COVID-19 pandemic. New drivers who found a school to attend found that many states had closed down driver-testing facilities, causing huge delays in issuing new commercial driver’s licenses (CDLs). As the number of drivers available to hire continues to shrink, some drivers who are staying in trucking still impact the driver shortage by moving to different types of jobs. As the economy rebounded from its April low point, freight levels have grown faster than available trucks, pushing freight rates to record levels. Drivers who want to own their own trucks find these higher rates attractive. Until 2020, monthly registrations for new authority (government permission to operate a trucking company) only reached 4,000 a few times. According to DOT statistics, registrations topped 5,000 for six consecutive months as truckers opted to strike out on their own. (Note: Drivers who become owner-operators don’t necessarily leave the industry, but they exacerbate the driver shortage because they are no longer available for carriers to hire to fill their own trucks.) COVID-19 has caused another change to trucking: The pandemic has resulted in many people staying home, and those people are purchasing goods like never before. According to the Bureau of Labor Statistics, the number of parcel and local delivery jobs grew by more than 8% in 2020. Some drivers took advantage, exchanging over-the-road positions for jobs that paid well and allowed them to be home every night. While a driver shortage is a huge concern for carriers that are trying to keep a fleet of expensive trucks rolling, it can actually be a boon to drivers. Many carriers turn to pay increases to attract and retain drivers, while others implement large sign-on bonuses. Some offer expanded vacation options, better equipment or other perks. All of these, and more, are expected in 2021 as competition intensifies for qualified drivers. Figuratively and literally, that puts trucking professionals right where they belong — in the driver’s seat.

Everyone loves a tax deduction, and billions of dollars are spent each year making sure those deductions are maximized. When you own your own business, however, tax deductions can have a huge impact on your profit and loss statement. When you become an owner-operator, you’ve gone into business. You’ll pay income tax on the profit (the cash left over after your expenses are paid). You’ll pay another tax, too — the self-employment tax. When you work for someone else, 6.2% of your income is collected for Social Security tax and another 1.45% for Medicare tax. The total, 7.65% of your income, is only half the total tax. The other half is paid by your employer. When you’re self-employed, you pay both halves, or a total of 15.3%. That’s on top of the income tax, which starts at 10% and goes up. That’s more than a quarter of your profits gone to taxes — and it’s why deducting every business expense you can is vital to the bottom line of your business. Your goal is to show as little profit as possible on your taxes. If you’re paid on a Form 1099, you’re considered a contractor, not an employee, even if you are driving someone else’s truck. That makes you self-employed, too. The business deductions begin as soon as your business does. Any fees you pay for authority, registration, permits, tolls and other expenses are deductible. You’ll be paying for a variety of insurance policies, possibly including truck insurance such as liability, collision and comprehensive, etc. You’ll spend for a worker’s compensation or occupational accident policy. Personal health policies for you and your family may be deductible, too. Save every receipt. If you purchase something online, save that receipt, too. Receipts for fuel, repairs, and maintenance and truck items are a no-brainer, but drivers often overlook smaller expenses that add up. Products like cleaners and accessories for the truck — including bedding, air fresheners and other items — can be considered business expenses. Tools, flashlights and batteries, sunglasses and other items are business expenses that can be claimed if they’re used for the business. If you rent clothing or purchase items with your business logo, such as hats and shirts, you can most likely deduct those costs. Safety equipment, such as steel-toed shoes or boots, goggles, hard hats and gloves, are business expenses. Rain gear may be deductible, and the IRS allows a deduction for a percentage of phone and internet expense. Industry publications can also be business expenses, too, and dues to trucking unions or organizations such as the Owner-Operator Independent Drivers Association (OOIDA) are business expenses. You use both in your business, so take maximum advantage. If you claim the standard IRS deduction for meals and incidentals, your records should include documentation of the days you spend away from home. Copies of your records-of-duty status will do the trick, but if you’re using electronic logs you may need a printout for your records in case of an audit. Motels, parking fees and shower costs that aren’t reimbursed may be deductible. Don’t forget ATM or fuel card fees, and if your bank charges service fees for your business account, subtract those, too The timing of purchases can impact your business, too. Take steer tires, for example. A quality set can easily cost $1,000 including mounting and balancing. If the year is coming to an end and you’ve made a tidy profit that you’d like to reduce your taxes on, you’ll want to spend that $1,000 before the calendar runs out at the end of the year. That’s another $1,000 that you won’t have to pay the 25% or more tax on, since it’s no longer counted as profit. On the other hand, if you expect that your business will break even or even show a loss for the year, it might be better to hold off on that tire purchase until after Jan. 1, so the expense counts for the following tax year instead. You can make the same type of decision about needed repairs or other expenses, including the last fuel fill of the year. You may even be able to pay your insurance bill early so you can count the expense for the current calendar year — although paying that premium late is not an option. Don’t forget depreciation. Your truck, for example, loses value over time, and the IRS allows you to claim that loss against your earnings. Rather than claiming the purchase price as an expense in the year you bought it, you would spread that expense over the life of the asset, generally five years, so you would benefit from a tax deduction each year. Other types of property, such as phones, computers and even the garage you had built for the truck may be deductible. However, the rules can be complicated. Unless you’re a tax expert, it’s wise to get professional help (an added benefit is that the cost of tax service is deductible, too). Let’s clear up one common misconception. Deductions for expenses can lower your tax burden — but you’ve still spent the money. “Writing off” an expensive purchase may mean saving the tax you would have paid on the money used for the purchase, but the cash is still spent. It does NOT mean that the item was free. If you don’t already have a tax advisor, find one. Don’t wait until tax time. A good tax professional can provide business advice that can help you minimize your tax obligation. Make sure your advisor knows the trucking business. While there are similarities with other business types, there are some unique characteristics in trucking that impact your tax liability. Discuss your business plan with your tax professional as early as possible. As a self-employed individual, you may be subject to making quarterly payments of your estimated income tax. Your tax adviser can help keep you in good standing with the IRS while keeping the payments as small as possible. If you wait until tax time, you might easily find someone that can complete tax forms for you, but you need to be confident that your advisor knows the trucking business and is taking advantage of every opportunity to save you money. Owning your own trucking business can be a rewarding experience, but just how rewarding may depend on how well you manage your expenses and tax liability. Editor’s note: The advice offered in this article is not that of an accountant or tax attorney. The intent of this article is to offer helpful tips — not apply tax law and accounting processes to every situation.

One of the most common mistakes new truck drivers make occurs before they even get their commercial driver’s license (CDL). New drivers often have a good idea of what job they will be taking once they have their license, and often obtain only the endorsements they’ll need for that job. An example is the driver who accepts a job while still in CDL school with a company that pulls dry van trailers. Aside from air brakes, no other endorsements are required. After months on the road, it becomes evident that the weeks away from home are putting a strain on family relationships — and the search is on for a local job that allows more time at home. One local job involves tankers pulling petroleum products. Another opportunity with great pay requires a doubles endorsement. The driver isn’t qualified for either job and will need to find a way to study — and then use up more valuable home time to take the exam for the required endorsements. The reality is that the trucking industry routinely reports an annual turnover rate approaching 100%. That means that, on the average, almost every driver makes a job change once per year. Of course, that’s only a statistical average; some drivers stay with one company for many years while others switch companies after only a few months. Still, new drivers are highly likely to have more than one job in their first year of employment. So, the question for every driver is this: Why wouldn’t you want to be as qualified as possible to accept any job in the industry? CDL manuals from nearly every state contain study sections for each endorsement, and CDL schools often cover those endorsements in the classroom curriculum. It’s usually easier to pass the state exams while the information is fresh. Available endorsements include the following: Air Brake It may seem like a given that you’ll need this endorsement, but it is possible to obtain a CDL without it. Some vehicles require a CDL because of weight or the cargo they haul, and when hooked to trailers may require a Class A license. Doubles-Triples Shorter “pup” trailers are often used by less-than-truckload (LTL) carriers, including package and parcel carriers. Some of the jobs LTL carriers offer are over the road, while many are “pedal” runs to and from the same terminal. Depending on the distance, the driver may get home every night, every other night, weekly or some other schedule. Most of these jobs are in demand, and turnover among them is generally low, meaning that drivers tend to stay. Some LTL jobs offer excellent pay and benefits. To pass the exam, you’ll need to know how to properly hook up multiple trailers and understand weight distribution and special driving techniques. Tanker These jobs can be local or long-haul, and many involve hazardous materials. Many people think of liquids when they think of tank trailers, but powdered or granular products are often hauled in “pneumatic” tankers that can be unloaded through a hose by trickling the product into a stream of air. Local jobs often deliver petroleum products to gas stations, airports, trucking terminals and other locations. Another common local job is concrete hauling; both the Class B mixer trucks and the Class A tractors pulling pneumatic tankers full of concrete powder require tanker endorsements. Over-the-road tanker drivers haul food-grade materials and other products anywhere there are roads. Food manufacturers and bakeries often buy products such as corn syrup, juices, flour, sugar and more a truckload at a time. Acids and other industrial products keep manufacturers running. In addition, the practice of fracking (hydraulic fracturing) requires tanker loads of sand and lubricants and has grown substantially in recent years, although it is currently slow. Passing the tanker exam will require knowledge of how liquids act and knowing terms like “surge” and “outage,” as well as construction and handling characteristics of a tanker. Passenger While it’s true that passenger-hauling trailers aren’t in common use in the U.S., buses are everywhere. Many communities provide local bus-driving jobs, some with excellent pay and benefits. Charter or tour buses provide long-haul opportunities with cargo that loads and unloads itself. Bus drivers are home often, and when they aren’t, they are often provided lodging where the bus passengers lodge; these lodgings can include resorts, casinos or other luxurious accommodations. Some drivers use their passenger endorsement in volunteer work at their church or other local organization. Passing the passenger exam requires knowledge of driving and passenger rules as well as driving characteristics. Hazardous Materials This is the one endorsement that requires periodic renewal as well as a second part — a background check through the Transportation Security Administration (TSA). Some carriers require the endorsement for hire, others have drivers with and without it, and some simply don’t haul cargo that requires the endorsement. The exam for the endorsement is straightforward and involves knowledge of the various classes of HAZMAT (hazardous materials), information about labeling and placarding, special driving rules, and which substances must be separated from one another in a trailer or can’t be hauled together at all. The background check isn’t cheap. The TSA currently charges a nonrefundable $86.50 for the background check, including fingerprinting, but the check is good for five years. A TSA background check is also required for the Transportation Workers Identification Card (TWIC), so if you have one, the fee for the HAZMAT check is reduced to $67. Some states require you to pass the background check before taking the exam; others provide the exam and keep the results on file until you pass the background check. It’s a good idea to pass the exam at least once, so you’ll know what to expect if you need to pass it again in the future. You may never need most of the CDL endorsements offered by your state, but obtaining as many as you can could pay off in the future when you need to make a job change. Trucking offers an incredible variety of jobs. Be qualified for as many of them as you can.