Are you thinking of starting a trucking company, and you don’t know where to start? You must first understand that the trucking business is a lucrative one with a lot of potential. But you only get to reap the benefits if you know the business well and know how to go about it.
Trucking companies deliver nearly 70% of cargo in the United States. This is also a business with a growing demand, which means there is a ready market for you with a huge profit margin.
But how do trucking companies operate and what do you need to know before you start one? You need to know about different types of trucking businesses and how each operates.
This article outlines different types of trucking companies that you can choose.
Private Fleets Trucking Companies
Private fleets trucking companies belong to the manufacturers of goods. They not only supply the actual freight but also give out their trucks with drivers to other companies. The trucks are company equipment, and the drivers are employees of the same company.
These companies do all trucking services in-house. But they also reach a time when they need external help and can hire a fleet from an outside trucking company.
This happens when they have too much workload but not enough trucks nor drivers to facilitate the process. They’ll need additional help to support their huge work demand.
Truckload Carriers for Hire
These are trucking companies that offer trucking services to other companies’ freight. These companies do not manufacture or produce the goods they transport. Instead, they sell their fleet capacities to other companies that need support with their supply chain management and logistic support.
Truckload carriers are not in any way affiliated with goods manufacturing. Their entire business focuses on fulfilling the freight demands of other companies. They contract out their trailers, trucks, and drivers for the company upon request.
Less Than Truckload Movers
Less than truckload movers are also known as LTL companies. These trucking companies ship different products from point A to B, delivering to different consumers daily. They mostly handle products that are too big to be sent through postal services.
They mostly handle smaller products that need to be delivered to businesses or homes. They also operate a 53’ trailer that handles heavier products. They sometimes ship more than 20 different products delivered to different types of customers within a given area.
The companies schedule these deliveries to homes or businesses that need their services. They’re in constant communication with the customers up to the point where they deliver the products. Sometimes they may have the customer come pick the products at their local distribution centers.
Intrastate or Interstate Types of Trucking
Another thing to consider when starting a trucking company is the geographical area you intend to cover. You must compare interstate vs intrastate in terms of coverage, requirements, benefits, etc. This will help you know the kind you’re able to carry out.
Interstate trucking means driving your cargo vehicle across state lines. It involves transporting merchandise within the state boundaries with the intention of making deliveries outside the state.
Intrastate means transporting goods within the boundaries of your state. The goods do not have to leave the particular state as their final destination is within the state.
You need to understand the difference between the two before engaging in any of them. There are laws governing the company, the vehicle, and the driver which you must adhere to. The trucks involved in interstate trucking are usually large and transport bigger loads than those that engage in intrastate trucking.
In case of an accident, interstate trucks may be exposed to stricter rules and need more insurance coverage. Interstate vehicles must ensure they have proper registration. Intrastate also needs to adhere to proper registration and insurance coverage.
Another type of tracking company is household movers. These companies work with customers that are relocating from one point to another. The people need professionals to help move their household goods.
People move every day for different reasons, and whether it’s within the state or across the country, they’ll need movers to help.
The companies have different moving packages to suit their customers. Some may offer additional services such as packing and unpacking. When your company offers a different service apart from moving goods, you’ll have a chance to generate more revenue.
One thing about this type of trucking company is that it requires limited finance to start and operate. The job also requires heavy lifting. You need to prepare everything including getting employees willing to do the heavy work.
These companies’ business is mostly within the rail yard. They haul rail containers that ship goods through the railway. Intermodal companies use different modes of transportation to deliver goods, including trains, ships, and trucks.
These companies use special standardized containers that enable freight transportation through trucks, trains, and ships. The containers are made special to make the transfer to different modes easy. The containers also eliminate any mishandling of goods and the risks involved with direct handling.
These companies come through for manufacturers that need long-distance shipment solutions. They mostly help with freights moving more than 300 miles and may take longer than a day to reach the destination. They are also perfect for moving cargo with intermediate value and provide continuous cargo flow.
Understand Trucking Business Before You Engage
The trucking business does not just involve buying a vehicle and getting to work. You need to understand the ins and outs of this industry. Know the different types of trucking companies and the ones that will suit your expertise before you engage.
If you take your time to do the research, you will have an easier time running the business. Once you get started, stay on this site for more tips and tricks to help you run your business. Our site has all kinds of articles touching on different aspects of business and life in general.