Industry News & Tips for Truckers
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- Written by: Kate Williams
As a self-employed trucker, you're well aware of the overhead costs of your work. There's more to it than just fuel, rig maintenance and over-the-road food costs. Trucking insurance can account for a significant portion of your operating costs. Commercial truck insurance requirements can, in fact, add several thousand dollars per year for each cab.
You're most likely already paying personal disability and health insurance premiums, but the policy types that apply strictly to your rig and your business are worthy of an equal amount of consideration.
A variety of factors can determine your policy rates, such as how long you've been driving and your CDL history. Having a clean driving record with no charges of preventable CDL accidents can, of course, help keep your premium payments low. While it's typical to want to keep your expenses down, keep in mind that a policy with inadequate coverage could leave you with a hefty personal liability if there's a major accident.
Commercial Truck Insurance Requirements
The Federal Motor Carrier Safety Administration (FMCSA) is tasked with regulating the trucking industry to reduce crashes, injuries, and fatalities on American roadways. The agency requires that motor carriers have certain insurance documents on file before they will issue the authority to operate in the United States. Most of the requirements for liability insurance are consistent across the nation, but it is wise to check your state's regulations, as there may be additional coverage required.
Public liability insurance covers your responsibility to any motorists or pedestrians who sustain bodily injury or incur property damage if you are found to be at fault.The FMCSA minimum required coverages depend on the type of freight you haul:
Type of Freight | Minimum Limits |
Non-hazardous freight moved in vehicles under 10,001 lbs. | $300,000 |
Non-hazardous freight in vehicles over 10,001 lbs. | $750,000 |
Oil moved by For-Hire & Private Carriers | $1,000,000 |
Other Hazardous Material moved by For-Hire & Private Carriers | $5,000,000 |
Types of Trucking Insurance
Straight trucks, tractor trailers and other motor vehicles used for commercial deliveries are covered under a broad range of insurance policy types. Many drivers, especially those who are self-employed, purchase additional insurance coverage before taking on any major haul. As a semi-truck operator, four commercial trucking coverage types you'll need to consider are trucking liability and non-trucking liability , cargo, and physical damage insurance.
General Liability Insurance
Trucking general liability coverage is an essential part of your insurance protection plan. This policy addresses physical or bodily injury damages to another party that are caused by your truck or driver while operating it in a commercial capacity. It's basically on-the-job liability insurance that will pay for someone’s property repairs or medical costs if your rig was the cause of an accident. For instance, driver mishaps at truck stops, loading docks, or distribution centers would fall under this coverage.
Non-Trucking Liability or Bobtail Insurance
Similar to General Liability, policy holders may extend coverage to include any potential damages caused while the truck is not in service. Many drivers who own and operate their truck may spend a good deal of time on the road in their rig even when they're not hauling goods. If any harm or damage is done to another party while your truck is being used for personal reasons, non-trucking liability coverage will take care of it. NTL coverage pays for damages done by your rig to property while off-duty. It also covers a person's medical bills if they've been injured by your truck when it wasn't being used commercially.
Bobtail insurance protects a tractor operated without a trailer, during both work and non-work hours.
Cargo Insurance
Even if your rig is fully covered, the goods and commodities you're hauling should also be protected in the event of an accident, theft or damage. Depending on your freight and its value, you may want to consider adding cargo coverage as a separate policy in addition to your basic truck insurance. You'll be able to specify if you want warehouse legal, contingent or terminal coverage.
Physical Damage Coverage
If there's a collision, there can also be some damage to your truck or trailer. The repair costs could be expensive. Instead of worrying about it, adding physical damage coverage to your semi-truck insurance policy ensures that your vehicle will be repaired or replaced without incurring distressing out-of-pocket costs. Physical damage coverage could also provide funds for repairing your truck from damages due to potholes, faulty infrastructure and weather conditions. Basically, you can cover things that are beyond your control.
In addition to these common coverages, other policies may be considered as a prudent means to limit your risk exposure:
- Medical Payments - coverage to pay medical bills for injured parties
- Uninsured/Underinsured Motorists - additional coverage for your property if someone who hits your truck does not have adequate liability insurance.
What is the Cost of Commerical Truck Insurance?
According to a 2022 study conducted by one major insuring company, the national average monthly cost of commercial truck insurance for commercial truck drivers ranged from $736 to $1,125. These calculations were based on new policies including both primarily liability and physical damage coverages and assume drivers have a clean driving record.
Other industry experts break down the cost of commercial truck insurance and provide a range by product. It is important to note, however, that many factors, such as driving and employment history, experience level, location, and age of equipment may all play a part in the underwriting decision. Therefore, it is essential to shop various agents before you purchase your coverage.
Coverage | Average Cost |
Primary Liability | $4000-5000 |
General Liability | $200-600 |
Umbrella Policy | $200-500 |
Physical Damage | $2000-3000 |
Bobtail Insurance | $350-400 |
Un-/Underinsured Motorist | $50-100 |
Cargo Insurance | Varies |
Other Endorsements | Varies |
Some Tips for Purchasing Commercial Trucking Insurance
Shopping around for truck insurance could take time; do your homework before you make a commitment. There's no one-size-fits-all policy when it comes to trucks and tractor trailers. Each driver specializes in their own routes and cargo types, so you'll need to find insurance that covers your specific needs and routines. Different states also have different requirements, so make sure you know the laws before purchasing a policy.
Some insurance companies will advertise attractive low rates, but it's best to be cautious before making a purchase. Read the fine print to see if the provider is offering inexpensive premiums in exchange for unusually high deductibles. This could possibly put a trucker out of business if there's a serious accident. It's in your best interests to be sure you're balancing your premium payments and deductibles against your regular and expected income. Make sure the types of loads you're hauling are fully covered also.
In order to give yourself the best chance of finding the right trucking coverage, get about ten quotes from a range of insurance companies. Don't be shy about asking a pushy insurance sales rep as many questions as necessary to be sure you've learned all you need to know about the different policy types. It works to your advantage to be as fully informed as possible when selecting a plan that's the best match between your needs and your operating budget.
Whenever you can, ask other truckers about their policies and find out if they're happy with them. This could be a good starting point in narrowing things down to the trucking insurance plan that fits in with your hauling patterns. If another driver has the same routes and cargo types as you, the common ground could provide some valuable insights that will help you get what you need at the best possible premium rate. Take your time; shop around, read the policy carefully and ask questions — you'll be glad you did.
*The information contained in this article is for general informational purposes only. CDLjobs.com makes no representation or warranty, express or implied. You are encouraged to contact your own agents for coverage requirements applicable in your situation .
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- Written by: Tyson Williams
Key statistics in trucking explain current trends in the industry. Understanding these metrics should help guide drivers and trucking companies as they work to navigate the ever-changing landscape of the transportation industry.
Making informed decisions starts with the empirical data contained below.
How Many Truck Drivers In The US?
The ongoing truck driver shortage begs the question: how many truckers are in the United States? The number of drivers stands at 3.54 million, according to data compiled during 2022 by the American Trucking Associations. Yet even with an unprecedented amount of drivers available, the United States still has a historic shortage of roughly 80,000 truckers. Many believe the problem is only going to get worse.
TheAmerican Trucking Associations (ATA) estimates the driver shortage could surpass 160,000 as soon as 2030. Their forecast analyzes current trends like driver demographics and expected freight growth to predict future industry dynamics. For example, truckers are older than other workers on average, with a median age of 46 for truckers compared to 41 for all workers. Looming higher rates of retirement for drivers will only accelerate the existing shortage.
However, many factors fuel the issue and there’s no singular cause or solution. The ATA claims, “The solution to the truck driver shortage will most certainly require increased pay, regulatory changes, and modifications to shippers’, receivers’ and carriers’ business practices to improve conditions for drivers.”
Trucker Salaries
With more truckers in the United States than ever before, you might be concerned that wages are deflated because the market is oversaturated with drivers. That’s not the case. Even though there has never been more drivers than right now, trucking remains a stable and lucrative career path because of the industry’s inability to fill open positions and accommodate growing employment needs with qualified truckers.
In 2022, the Bureau of Labor Statistics (BLS) reported that heavy and tractor-trailer truck drivers’ median pay was $49,920 per year, or $24.00 per hour. Truck driver pay is above the median national annual wage for all workers, which is slightly lower at $46,310. Trucker pay has skyrocketed in recent years. Two years prior in 2019, truckers’ median pay was $3,764 below the national median. In 2022, it’s $3,610 above it. Experts expect this trend to continue in a society becoming evermore reliant on innovation like online shopping and home deliveries.
What does the trucking industry look like?
BLS projects that trucking employment will grow 6% by 2030, suggesting a bright job outlook for drivers. Nearly 250,000 additional job openings for heavy and tractor-trailer drivers are expected to be available each year over the next decade. In the current market, and likely well into the future, competent drivers will continue to have their choosing of vacant trucking job postings. Even though the number of truck drivers in the US is higher than ever, the demand for drivers is increasing much faster.
These U.S. Census demographics statistics paint the truck driving landscape compared to the rest of the workforce:
- Truck driving is largely a male dominated field, with over 90% of truck driving jobs held by men.
- As previously mentioned, the average trucker (46) is older than the average worker (41).
- Only 7% of truckers have a bachelor’s degree, meaning most truckers enjoy wages above the national average without facing America’s crippling student loan debt crisis.
- Trucking has an unemployment rate of 4.1%, lower than the national unemployment of 5.3%
- Truckers are less likely to be covered by health insurance than other workers (15% of truckers are uninsured versus 10% for all workers).
- Almost half of truck drivers work more than 40 hours per week. Only about a quarter of workers in general labor work more than 40 hours per week.
- More than 10% of truckers are veterans — double the rate of the workforce at large.
- Average payroll per employee is highest in the long-distance industry ($48,920), slightly lower in specialized trucking businesses ($46,084), and lowest among local freight haulers ($42,203).
Hauling Statistics
As a whole, the transportation system in the United States hauls over $2 billion worth of freight each day. Truck driving remains king, as shown by economic and industry data. By weight, trucks move 72.5% of freight in the United States, a total of 10.23 billion tons in 2020. By value, 80.4% of the nation’s freight bill is transported by truck, a total of $732.3 billion in 2020. Freight railroads, the next largest transporter, only haul about 10% of those figures.
37.9 million trucks are registered for business purposes, making up 23.9% of all registered trucks. In 2019, they travelled a compiled distance of 300.05 billion miles and paid $48.6 billion in taxes for federal and state highways. Truckers use 45.6 billion gallons of fuel on an annual basis, 36.5 billion gallons of diesel fuel and 9.1 billion gallons of gasoline.
The U.S. Department of Transportation reports there are 996,894 for-hire carriers on file with the Federal Motor Carrier Safety Administration: 813,440 private carriers and 83,325 other interstate motor carriers. Of these companies, 97.4% operate 20 or fewer trucks and 91.5% operate fewer than 6 trucks.
Take Advantage Of A Strong Market
It’s a great time to be a trucker. Truck driver pay is soaring, and with so many open jobs, trucking companies are begging for qualified drivers. Finding local, regional & OTR truck driving jobs near you has never been easier. Apply to hundreds of jobs instantly using our online application.
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- Written by: Kate Williams
With unlimited access to smartphones and other handheld devices, there’s always a temptation to take your eyes off the road. Many drivers don’t realize the harm in looking away to check a text message or making a phone call. However, holding your phone isn’t only dangerous—it’s also illegal.
Read on to learn more about the dangers of phone use while driving and other dangerous habits that can cause an accident
The Dangers of Distracted Driving
The National Safety Council presents a sobering statistic: at least eight people die daily from distracted driving. Although phone usage is the most common form of distracted driving, there are other behaviors you should avoid while operating a vehicle. Additional examples of activities that can pose a risk while driving include:
- Eating and drinking
- Adjusting the radio
- Setting the GPS
- Applying makeup
- Fixing hair
In 2021, distracted driving accidents resulted in 3,522 fatalities, according to the National Highway Traffic Safety Administration. Moreover, at least 8 percent of all fatal crashes have involved one or more distracted drivers. The nation's Secretary of Transportation Pete Buttigieg calls these statistics a "national crisis." Distracted driving can include people of all age groups and experiences. However, drivers between 16 and 24 have the highest rate of distracted driving citations.
What is Being Done About Distracted Driving Dangers?
As of March 2023, the Governors Highway Safety Association reports that 31 states and the District of Columbia have entirely banned the use of hand-held electronic devices while driving. This trend is being hailed as “hands-free” driving. Additionally, 47 states and D.C. have completely banned texting while driving. In Nebraska, the act of texting behind the wheel is a secondary offense, charged only with another moving violation. Missouri and Montana are the only states that currently do not prohibit texting while driving.
Some local municipalities have gone as far as to prohibit even talking on a cell phone while driving. This is largely due to the cognitive distraction that results in drivers sometimes swaying from their lane. All of these state laws apply to professional truck drivers as well. At the state level, these are considered to be among the top most stringent laws against texting while driving.
- Oregon: $1,000 fine - 10 times the average of other states but no license points are incurred
- Utah: $750 fine for the first offense and 50 points added to your license; if 200 points accrue, your license will be suspended.
- Illinois: $75 fine with escalating fees for subsequent violations. Considered a "moving violation," Illinois authorities will tack on 20 to 30 demerit points and may suspend your license if 3 moving violations occur in a year.
- Wisconsin: Four demerit points and a hefty fine up to $400 plus costs
High Cost of Distracted Driving for Truck Drivers
Distracted driving is more than dangerous for others on the road—the act can prove financially costly. As part of Distracted Driving Awareness Month, agencies have created a campaign called “U Drive. U Text. U Pay.” The ads under the campaign are meant to remind all, including truck drivers, of the financial repercussions of using your phone while on the road. As a professional driver, you should also remember your career is at risk when violating distracted driving laws.
In addition to state repurcussions, the fines and penalties currently reported by the Federal Motor Carrier Safety Administration include the following:
- Drivers face a penalty of up to $2,750 for distracted driving offenses. Employers also face fines if they permit their drivers to use handheld devices. Companies may have to pay a maximum of $11,000 per violation.
- Multiple distracted driving convictions may result in the truck driver losing their CDL. In some states, a distracted driving conviction could cause a 120-day suspension of a CDL license.
- Violations will also directly affect Safety Measurement System (SMS) results. When truck drivers disobey distracted driving laws, SMS results will get impacted negatively.
Types of Distracted Driving
Distracted driving behaviors typically fall into three categories: visual, cognitive, and manual. Each type will steal your focus away from the road. Drivers should be proactive in not engaging in activities that put them and others at risk. Although most state laws prohibit texting and using a handheld device while driving, you should still be mindful of other distractions.
Visual distractions include texting, adjusting the car radio, reaching down to grab something from the truck floor, and programming the GPS. Visual distractions take your eyes off the road, allowing plenty of time for accidents. You may miss a traffic light or stop sign within seconds. You could also fail to see a pedestrian or animal in your path.
Cognitive distractions refer to when drivers may still look at the road, but their minds are elsewhere. Fatigue or daydreaming could result in them not fully being aware of what’s happening in front of them. You may drift into the wrong lane or go through stop signs and traffic lights without stopping. Rear-end crashes could also occur when you’re distracted.
Manual distractions involve taking one or both hands off the wheel to perform an activity. Common manual distractions are eating, drinking, seat adjustment, and smoking. Manual distractions increase your accident risk by as much as 800 percent. You can end up crashing into another vehicle, striking a pedestrian, or veering off the roadway.
Surveyed Drivers Continue to Participate in Distracted Driving
Despite the risks, many drivers admit to some form of distracted driving. For example, over half of all drivers surveyed reported eating or drinking while operating a vehicle. Also, 36 percent admitted to using a cell phone at some point while they were driving. Young adults have a higher rate of cell phone usage while operating a car. The CDC reported that 39 percent of all high school drivers texted or emailed at least once over the last 30 days. Ages 18 to 24 reported feeling more pressure to respond to a text while driving than drivers aged 25 and older.
All drivers are starting to realize the consequences of distracted driving. Getting pulled over while using a cell phone could lead to a fine and points added to a driving record. In 2021 alone, the California Highway Patrol issued nearly 56,000 citations for distracted driving.
Tips to Avoid Distracted Driving
Truck drivers often feel physically and emotionally distant from loved ones while on the road. They may want to connect as often as possible, even when calling or texting someone back is unsafe. To limit cell phone usage, stick to the following:
- Make an emergency-only phone policy. Even though you could talk hands-free with Bluetooth devices, you may not be able to concentrate fully on your driving. You should even stow away your phone to keep it out of your mind.
- Schedule set call times. CDL drivers can set aside time daily to make and receive calls while parked or on a break.
- Consider blocking calls or texts temporarily. Adjust phone settings to driving mode. The phone can stop texts or calls from connecting while travelling in a motor vehicle.
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- Written by: HandshakeFleet
Technological advances happen in a blink of an eye. When you think of transportation innovations, what comes to your mind?
How will transportation change in the future?
Why does transportation need to change?
In this article, we will discuss the future of transportation.
Future Transportation Ideas
Scientists have come to the conclusion that transportation technology is all about efficiency, ease, and safety. Here are some future transportation ideas.
Hyperloops
Hyperloops are a proposed transportation system for freight and passengers. Their speed would surpass the speed of a commercial airline. Using powerful magnets to propel the passenger tube would save on energy and the cost it takes to operate the technology. Hyperloops are still being put to the test, but are a travel method of the future.
Underground tunneling
There’s no mystery to underground tunneling. It’s exactly what it sounds like. This is a transportation method and system to transport people or goods below the Earth’s surface. This form of travel minimizes traffic congestion and can travel at higher speeds. Underground tunneling would also improve the overall environmental effects of current car travel.
Autonomous vehicles
Autonomous or self-driving vehicles are something every major car manufacturer hopes to achieve. Something like this at one point seemed impossible, but now self-driving cars are becoming a reality. These vehicles take millions of data points into account every second through a variety of sensors, software, and GPS. This method of transportation is relatively new but will ultimately have a massive impact on the overall future of transportation.
Last-mile robots
Last-mile robots will change how the shipping industry operates. Instead of relying on a delivery driver or postal worker to drop off the item at your front door, companies are now employing robots that traverse cities and glide down sidewalks to deliver your package straight to your door.
Electric vehicles
Electric vehicles have advanced transportation. Because electric vehicles rely on a battery charge, refueling at a gas station is slowly becoming a thing of the past. Also, electric bikes and scooters have become viable transportation methods for traversing neighborhoods or entire cities. These vehicles provide ease of use and convenience that hasn’t been provided by other last-mile forms of transport.
Flying taxis
Companies like Uber, Boeing, and Airbus have started developing flying taxi technology. Uber is working towards building flying taxis. The goal is to build a flying taxi that is electrically powered and that will take passengers to their destinations.
An example of such a flying taxi is the Volocopter, an autonomous aircraft powered by electrical energy. NASA will use the latest airspace management computer models and simulations to assess the impact of small aircraft – from delivery drones to passenger aircraft with vertical take-off and landing capabilities – in crowded environments.
Multi-directional elevators
These elevators would move horizontally rather than vertically up and down a shaft. They would consist of several elevators that operate on an electromagnetic track. Following the principles of maglev (magnetic levitation), the cabins move up one shaft, move horizontally, and descend to another shaft, creating a continuous loop.
Compared to conventional cable-operated elevators, the new system requires fewer and smaller shafts, which increases the usable area of a building by up to 25 percent.
Transportation in the Future
The pandemic has certainly changed transportation and how people think about it. Here are some future transportation trends.
Remote work and distance learning
The pandemic has changed transportation because of distance learning or remote jobs. Because of this, there is less travel. As time goes on, car sales may drop due to less demand. Also, public transportation won’t be needed as much and may experience a decrease in utilization and services.
High-speed travel
Bullet trains and transport capsules are being developed to change traveling speed. Hyperloop, a proposed high-speed transportation system for both public and goods transport can change transportation worldwide.
High-speed travel will change commute times which may affect real estate markets and home prices along the route. Hyperloop will help transport time-critical, high-priority supplies such as medical supplies and food.
Revolution of MaaS
MaaS, or mobility as a service, is the concept of a personalized and on-demand transportation service. In the future, MaaS apps could offer real-time information on, e.g., crowding levels, and even the frequency of cleaning of public transport, to better estimate travel times and risks related to it.
Rethinking tourism and business trips
Business trips and tourism have suffered globally during quarantine. We are already seeing new habits acquired during the quarantine, such as social distancing, as well as the fears that will remain, which have a lasting impact on the way we travel during vacations. Also, large events, conferences, and concerts may witness smaller visitor numbers. Business travel has decreased, thanks to the remote working possibilities learned during the crisis.
Solar panel roads generating electricity
Solar technologies are developing rapidly, with new concepts and ideas constantly entering the markets. Solar panel roads could potentially boost renewable energy production, power the lights and smart street infrastructure, charge EVs driving on it, and melt ice and snow.
AI and data-driven maritime transport
AI or artificial intelligence can calculate optimized routes and transport velocity by combining weather and sea current data. Ships produced through their smart systems could represent the most significant leap in the shipping business since the introduction of containers.
Road traffic as a software
Software directing the traffic flows can make congestion history by efficient management and can improve safety significantly. The role of AI is vital in forming an adaptive system that can take into account both the needs of humans as well as those of the transported goods.
To conclude, the futuristic transportation in The Jetsons doesn’t seem so outrageous or merely a figment of your imagination. Next time you consider the future of transportation, just think to yourself, “Meet George Jetson...”
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- Written by: Kate Williams
Many truck drivers enter the industry because the pay is good, and the jobs are secure. But not many of the young men and women who earn their CDL consider what a truck driver retirement plan may entail. In fact, it’s not uncommon for people who opted for a career in the trucking industry over spending hundreds of thousands of dollars on a four-year college degree to expect to work until they’re eligible for social security.
But the high salaries today’s professional big rig operators earn can easily position you for early retirement or set you up for particularly comfortable golden years if you play your financial cards well. If you are a veteran driver or a rookie choosing among a variety of truck driving jobs, consider how these long-term investment strategies could set you up later in life.
Parlay Your Truck Driver Salary into Long-Term Wealth
Consider for a moment that, according to the Bureau of Labor and Statistics, the average truck driver earned $49,920 in 2022 or approximately $24 per hour. Top-paying trucking companies continue to increase salaries to secure the help of experienced truck driving professionals. Among the highest of pay are reported top earners making $110,000. Many companies are also offering incentives such as cash bonuses to sign on, health care, and profit sharing in some cases. If you have an entrepreneurial streak, Owner Operators are pulling down upwards of $220,000 in some cases.
The point is that for those thinking about truck driving as a paycheck-to-paycheck career, you may want to take notice that you can make a great deal of money. The question is: how to invest that hard-earned cash? These are some of the traditional investment strategies that truckers can use to augment their financial portfolio and plan for your truck driver retirement days with little effort.
- Invest in a 401(k): A 401(k) is an employer-sponsored retirement savings plan that offers significant tax benefits. You select a percentage of your income to be automatically taken out of each paycheck and most employers will make a matching contribution, essentially giving you free money. Beware, check the fine print as there are stipulations to earn the match! You will always completely own, or be vested, in your contributions and can not lose this portion. If you leave the employer, you do have the ability to transfer your account to a new retirement plan without penalty or tax consequences. However, any withdrawals before age 59½ will be subject to an early withdrawal penalty and ordinary income tax. The contribution limits change annually; for 2023 you may allocate $22,500 to this type of truck driver retirement fund.
- Mutual Funds/Exchange-Traded Funds (ETFs): This is done by groups of people pooling their resources and having a manager use the resources to purchase long-term diversified investments. They tend to be relatively low risk and good earners. However, these types of investments have their ups and downs. An index fund is a type of mutual fund that by its nature tends to have lower costs and may be an attractive investment for a truck driver's retirement strategy.
- Stocks: This is a classic long-term wealth strategy used by everyday Americans to build a nest egg for their retirement years. Consider working with a financial planner early in your trucking career on stocks that are steady earners. The point is to select stocks that you cash in 10 to 20 years down the road.
- Bonds: Corporate bonds, municipal bonds, and U.S. Treasuries are considered relatively safe investments with proven yields. If you don’t like risk, this class of investment might be right for your portfolio.
- Certificates of Deposit: This type of investment earns a set profit over a predetermined time period. Any truck driver can go online and research which financial institution offers the best CD rates. You can walk into most banks and invest in a CD. Just be aware of the fact that early withdrawal generally results in penalties.
Along with these methods of investing the salary you earn as a professional freight hauler, traditional and Roth IRAs also remain viable options to discuss with a qualified tax advisor.
If you decide to utilize these strategies, it may be prudent to direct a percentage of your salary toward developing a healthy financial portfolio, investing early and often to take advantage of time for potential growth. But there are alternative pathways for funding one's truck driver retirement plan.
Flipping Land Can Yield High Return on Investment
Television is loaded with reality shows about house flipping. Someone buys a blighted property and directs contractors to revitalize it and, boom, they sell it for a significant profit. That scenario doesn’t lend itself particularly well to the truck driving lifestyle. The home-flipping industry is far too hands-on and uncertain. But land, well, they aren’t making any more of it.
What doesn’t make reality TV is that overgrown properties near neighborhoods and main roads can be quite valuable once they are prepped for building. During your travels, keep an eye out for buildable lots that are still raw. For relatively little investment, you may have an opportunit to purchase a lot, have it professionally cleared, and have a local real estate agent put it on the market for a hefty profit. It’s essential to work with a local real estate professional to understand the market trends in the area.
This proactive wealth-building strategy doesn’t require a great deal of your time. It also puts your travel experiences to additional use. How many occupations provide people with geographical information that can be leveraged?
Real Estate Investments for Truck Drivers
There are trending real estate strategies that may be well suited for long haul truckers. These include multifamily properties and buying your retirement home first. If that sounds counterintuitive, consider the following reasoning why truckers are uniquely positioned for this type of financial strategy.
Buy Your Retirement Home First
Although this may seem like putting the cart in front of the horse, over-the-road truckers spend a lot of time away from home. That minimizes, to some degree, the need to make a substantial investment into your home base. That reality has prompted some drivers to pivot, buying property in luxury areas suited each truck driver's retirement plan.
One of the key strategies is to buy a property that can earn strong rental income, such as a beach community or even college town. Then, enlist the services of a property management company to oversee rental, maintenance, and day-to-day operations. You may also block out times when you use it for vacationing much like a timeshare. The only difference is that you own it. The best part of using this financial strategy is that the property will get paid off from rental revenue. With some due diligence, you may turn a profit while your retirement property gets paid off.
Multifamily Properties for Truck Drivers
A more difficult road is buying a multifamily property that you live in and collect rents. Like the previous scenario, you may enjoy having the rentals effectively pay the mortgage and taxes while holding on to more of your own money. The downside is that it can be challenging to have tenants living next door. You will also need someone reliable to oversee the property while you are earning a living on the open road. Although this might not be the easiest road to take, it can work out well financially for some truckers.
Plan for Your Truck Driver Retirement Early
Getting that first big truck driving paycheck may make you want to indulge yourself by purchasing things you have always wanted. It’s certainly a time for celebration because you have arrived in a good paying career. But consider putting away a portion of every paycheck toward investments that can strengthen your long-term financial health and well-being.
CDLjobs.com is not a financial advisor. The content on this website is for informational purposes only. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!
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- Written by: Kate Williams
If you work as a truck driver or plan to enter the industry, you’ll want to consider how to file your taxes. Tax obligations depend on your current employment status. Owner Operators will have to file differently than company truck drivers. Staying on top of your tax requirements will help you manage your income and expenses better. Remember to keep all expense receipts to make the tax filing process go smoothly.
Company driver tax deductions
Drivers, including those who work for trucking companies, will receive a W-2 form from their employers. In years past, truck drivers could make deductions on their tax returns for certain expenses despite being employed by a private company. Write-offs included mileage and travel expenses. However, the Tax Cuts and Jobs Act eliminated travel expenses claimed by truck drivers who receive W-2s from their employers. Once you become an independent Owner Operator as a driver, you will report income through Form 1099 and can claim deductions to reduce tax payments.
The transition from employee to owner operator
Many truck drivers may start as private employees. With taxes automatically deducted from their paychecks, the drivers may not realize filing requirements have changed. Keep in mind that if you switch from an employee to a self-employed employee mid-year, you must file a W-2 and 1099. The tax return will need to show your self-employment income as well as your earnings from an employer.
Another part of transitioning from an employee to an Owner Operator is establishing your tax status. A frequent mistake is incorporating too quickly. Instead, accountants recommend working as an independent contractor for at least a year before changing tax status to a sole proprietorship or establishing an LLC. As an Owner Operator, you will make tax payments every quarter. An individual, sole proprietor, or partner, will use Form 1040-ES to estimate tax payments. Corporations rely on Form 1040-W to calculate taxes owed.
As a new Owner Operator, you’ll want to set aside approximately 20 to 30 percent of your income to pay taxes, according to Keeper Tax. After operating independently for at least a year, you could also use the safe harbor method to estimate tax obligations. Drivers can look at the year prior’s tax liability and divide the amount by four to figure out quarterly payments. Any driver anticipating owing more than $1,000 to the IRS must make quarterly payments to avoid penalties.
As of 2022, the self-employment tax rate set by the Internal Revenue Service is 15.3 percent. The rate includes 12.4 percent for social security and 2.9 percent for Medicare. Higher Medicare taxes may apply to Owner Operators who earn more than $125,000. Tax deductions and tax credits reduce a driver’s liability.
Truck driver tax deductions
Owner Operators and contract drivers can claim tax deductions on their income tax returns. If you get one or more 1099s, you can submit itemized deductions. Any write-off would need proof of payment, meaning you must save all receipts. The following are the top deductions that relate to owning and operating a truck business:
- Truck payments. Truck drivers can write off vehicle depreciation and loan interest accumulated. Additional vehicle costs qualify as tax deductions, including registration payments, fuel, and truck maintenance.
- Mileage. The IRS permits either a standard mileage rate deduction or a vehicle expense deduction. Tolls and parking fees may also qualify as a write-off.
- Insurance payments. Any insurance premiums related to your business can act as a write-off. Types of insurance related to a trucking company include commercial liability, cargo insurance, and property liability.
- Education. You can claim CDL programs as a tax deduction on your taxes. The IRS also accepts write-offs for licenses and permits.
- Travel. For non-local drivers, you may list a certain amount of travel expenses on your taxes. Included travel expenses are lodging, meals, and laundry.
- Association dues. Remember to list any union or association dues as a deduction for truck drivers. If you subscribe to any trade publications, you can include them in your tax return.
- Office supplies. Claim any electronics costs and office supplies related to your business on your tax return. Examples include GPS units, mobile phones, computers, CB radios, and stationery.
- Personal products and Trade-related tools or equipment. Many truckers need personal care products, including bedding, coolers, cleaning supplies, tool sets, and flashlights. An accountant can often include these items as well as itemized deductions.
Truck driving tax credits depend on your eligibility. Tax deductions reduce your taxable income, while tax credits lower your tax liability dollar for dollar. Examples of tax credits include Earned Income Tax Credit, Child Tax Credit, and American Opportunity Tax Credit.
Non-taxable truck driver expenses
Remember, you can’t write off non-business expenses on your taxes. You can’t deduct any clothing or gear purchased for personal use. Any mileage between your home and office isn’t a write-off either. Meals or travel expenses on vacation also don’t count toward your deductions. If you’re a contracted driver reimbursed by your client for any costs, they also won’t be included.
You should hire an accountant familiar with the industry to reduce the chance of filing in error or getting audited by the IRS. You'll be subject to penalties and fines if you’re audited and can’t provide supporting documentation. Keep all truck driving expense records for a minimum of three years before purging any records in case of an audit.
CDLjobs.com does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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- Written by: Kate Williams
Truck drivers face a myriad of laws and regulations on the topic of whether or not they are allowed to carry a firearm when driving over the road and crossing state lines.
Learn what it takes to ensure safety and legal compliance as a responsible gun owner and commercial truck driver.
CAN TRUCK DRIVERS CARRY GUNS?
Gun laws in the United States have long been a hotly debated topic. Attention to the issue has intensified recently after a mass shooting at Robb Elementary in Uvalde, TX left 19 children and two teachers dead.
Truck drivers and the trucking industry at large are acutely aware of gun control controversy. While many truckers exercise and defend their Second Amendment right to bear arms for the safety of themselves and others, many drivers advocate for stricter regulations to combat America’s unparalleled gun violence. With various state and local laws, and new federal legislation reportedly imminent, it’s important to understand… can truck drivers carry guns?
DIFFERING GUN LAWS BY JURISDICTION
Are truckers allowed to carry guns? The answer isn’t always straightforward. One of the trickiest aspects truckers face is the countless gun laws that vary not only from state to state, but even within different cities of the same state. Although there is no national law that prevents truck drivers from carrying a properly permitted gun, they can run into issues driving through a state or city with strict gun laws.
For example, New Jersey has very tough laws on how gun owners can store their weapons for transporting. The law states guns must be unloaded and stored in a closed and fastened case or locked in the trunk while traveling. A trucker coming from a different state might not realize these laws and face penalties or fines for unknowingly breaking the law.
Truckers carrying a weapon should consult the state firearm laws database before they hit the road if they’re unsure of an area’s gun policy.
CONGRESSIONAL FRAMEWORK FOR NEW NATIONAL GUN LAWS
After gun control garnered national attention in the wake of another deadly mass shooting, a bipartisan group of Senators have agreed to a framework for new federal legislation. The measure is expected to receive near unanimous support among congressional Democrats and enough votes from Senate Republicans, the greatest impediment to new regulations, to overcome a filibuster. Notably, Senate Minority Leader Mitch McConnell announced his approval of the proposed reform.
Once Congress passes a bill, it will likely be signed by President Joe Biden. The President urged Senators to pass this agreement. Biden called it a “step in the right direction” while simultaneously stating that it doesn’t go far enough to combat gun violence.
The handshake Senate deal, which is not yet an introduced bill, encourages states to implement red-flag laws. This allows authorities to keep guns out of the hands of people a judge has deemed a threat to themselves or others. Further, the agreement includes federal criminal background checks for gun buyers younger than 21 years old that consists of searching juvenile justice and mental health records. It also invests billions of federal dollars into new school security and mental health programs.
Until more details are shared when a bill is formalized, it is unclear how this will affect truckers.
INACTION ON MIKE'S LAW
For decades, gun control measures have failed in Congress. One example stems from a heartbreaking story in the trucking industry. The Small Business in Transportation Coalition (SBTC) proposed a bill in 2014 called Mike's Law. It was named after Michael Boeglin, who was shot and killed inside his truck while he was parked in an abandoned lot waiting to pick up freight.
The proposed bill would have created a nationwide gun permit designed specially for truckers allowing concealed carry. However, the National Rifle Association (NRA) lobbied against the bill in favor of more universal gun accessibility proposals. Mike’s Law, and the subsequent Michael's Law Amendment, were both ultimately scrapped.
WHY DO TRUCKERS CARRY? SAFETY CONCERNS
The top reason truckers report why they carry a gun while driving is for their own safety. Sadly, slayings can occur while truckers are on the road. One such case, which remains unsolved, involves 52-year-old Piotr Pietrzykowski from Illinois, who was found stabbed to death in his truck on March 8, 2016. While truck driving often makes the news as one of the most deadly occupations because of highway accidents, it is stories like Pietrzykowski’s that prompt debate over whether truckers should carry guns for protection.
NOT ALL TRUCKERS THINK GUNS ARE NECESSARY
However, not all truck drivers think it's essential to carry a gun when on the road. Debra, a truck driver from Florida, believes carrying a gun is dangerous and unnecessary. While emphasizing that she doesn't blame the victims, she does point out that many of the incidents occurred because truck drivers stopped illegally in parking lots at abandoned buildings. She says she's very careful about planning where to park and rest and with all the apps available "there's no reason to park illegally or in an unsafe place.”
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- Written by: Kate Williams
When you pursue a career in trucking, one of the first decisions you'll have to make is whether you want to work in long haul or short haul trucking. So what's the difference?
Short haul trucking jobs involve shorter trips – within about a 150-mile radius – whereas long haul truck drivers cover further distances. Take a look at the pros and cons of both types of trucking jobs, and decide which is right for you.
Truck Types
One of the biggest differences between short haul and long haul truckers is the type of rig they drive. Short haul truckers operate smaller vehicles that are easier to operate on city roads, while long haul truckers drive tractor-trailers that carry big loads and have cabs with plenty of room to stretch out.
Time on the Road
If you have a family, a house, or other commitments in your hometown, you need to anticipate what your schedule will look like as a trucker. Most short haul truckers essentially work local trucking jobs. That means they put in a full day trucking in their area, and then they head home for the night.
Long haul truckers find that their trucking jobs occupy much more time on the road, and they may drive with a partner. Many keep regular weekly or monthly schedules, and they might return home over the weekend or every couple of weeks. During the week, they can look forward to getting some rest in their cabs.
Job Duties
As a long haul trucker, you spend most of your time covering long distances in a specific region or cross-country. You'll only make deliveries every few days, after driving hundreds or thousands of miles. When you arrive at your destination, you'll coordinate unloading with the customer and complete paperwork to document your delivery or pickup.
As a short haul driver, you'll make multiple pickups and deliveries each day. While you'll spend some time on the road, a big chunk of your day will include loading, unloading, and coordinating tasks with customers.
Average Salary
One of the reasons many drivers opt for long haul trucking is that it tends to pay more. According to the 2021 median pay statistics published by the U.S. Bureau of Labor Statistics (BLS), short haul drivers earn about $36,660 per year.
Instead of a standard hourly rate, a long haul truck driver salary is typically based on a per-mile rate, along with bonuses. The BLS estimates during 2021 that heavy tractor-trailer drivers earned an average of $48,310 per year, and those at the top end of the spectrum earned nearly $73,000 per year.
Typical Expenses
For short haul drivers, on-the-job expenses tend to be minimal. You might spend a few dollars on a cup of coffee or a bite to eat, but you can keep those costs very low if you're on a budget.
In contrast, long haul drivers' expenses tend to be much higher. Since you're spending days or weeks at a time away from home, you can expect to spend money on meals, snacks, showers, and even a comfortable bed once in awhile. If you're committed to long haul trucking and don't need to maintain a home, you might be able to cut costs by not having a home base.
Quality of Life
Quality of life varies between short haul and long haul trucking jobs. If you want a job that requires physical activity, a standard daily schedule, and the ability to clock out and go home at the end of the day, short haul trucking is probably the right choice for you.
If you're looking for freedom on the open road, the ability to see the country, and long stretches away from home, long haul trucking is a great option. Since the job is what you make of it, you can achieve great quality of life on either career path.
Now that you know the pros and cons of short haul and long haul trucking, your next question is probably, "Where can I find trucking jobs near me?" Start doing some research on trucking companies hiring drivers and find a position that works for your lifestyle needs.
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- Written by: Tyson Williams
No one uses more fuel than truck drivers and trucking companies. Truckers are watching on the front lines as prices at the pump rise drastically. Increasing gas prices hurt everyone, but they have an especially devastating effect on the trucking industry. The ripple effect is pronounced. The cost to move freight booms, companies seek alternative transportation methods like railroads, and the list goes on.
Fuel prices were already high before the war in Ukraine began. With relaxing COVID-19 restrictions and an economy dealing with supply chain issues, the cost to fill up your tank soared. After Russia invaded Ukraine on February 24, 2022, a bad situation became increasingly worse. Much worse.
Gas prices rose 49.1 cents over the seven days following Russia’s attack on Ukraine, a record-setting increase over that period. This seven-day surge narrowly tops what Americans experienced in the aftermath of Hurricane Katrina, when the price of gas rose 49.0 cents in one week during 2005.
According to fuel data platform GasBuddy, this unprecedented jump in fuel pushed average United States gas prices to an all-time high of $4.104 per gallon. The last time gas prices were over $4 per gallon was in 2008 right before the Great Recession. At that time, gas prices would have been $5.25 per gallon after adjusting for inflation. Experts predict the national average price of diesel, which is currently $4.63 per gallon, will surpass diesel’s highest price of $4.846 by early April.
Government measures to mitigate these rising costs are taking place at both the state and federal levels. President Joe Biden places blame on oil companies for corporate profiteering, saying in a tweet, “Oil prices are decreasing, gas prices should too. Last time oil was $96 a barrel, gas was $3.62 a gallon. Now it’s $4.31. Oil and gas companies shouldn’t pad their profits at the expense of hardworking Americans.”
Vice President Kamala Harris urged Americans to withstand higher costs at the pump. The United States is abstaining from Russian oil, which previously supplied 8% of the United States oil imports. New sanctions have banned imports from Vladimir Putin’s country because of its aggression in Ukraine. “There is a price to pay for democracy,” says Vice President Harris. “You’ve got to stand with your friends. Sometimes it is difficult. Often, it ain’t easy.”
States Take Aim at the Pump
States are beginning to take matters into their own hands. Three states, Maryland, Georgia, and Connecticut, have placed temporary suspensions on gas taxes. More states will likely follow their lead.
- Maryland legislators have eliminated their state gas tax for 30 days, saving Marylanders 36.1 cents per gallon.
- Georgians will save 29.1 cents per gallon while their state gas tax is eliminated until May 31.
- In Connecticut, a measure backed by bi-partisan support lifted the state's 25-cents-per-gallon motor vehicle tax through June 30, saving drivers an estimated $90 million.
Maryland Governor Larry Hogan says, “This bipartisan action will provide some relief from the pain at the pump and it is possible because of the prudent fiscal steps we have taken, which have resulted in a record budget surplus. This is, of course, not a cure-all, and market instability will continue to lead to fluctuations in prices.” The state of Maryland stands to lose nearly $100 million in revenue over the next month due to this tax stoppage.
Similar sentiments came from Georgia Governor Brian Kemp. “Today, I signed HB 304 to temporarily halt collection of the state gas tax and ease the burden consumers are feeling at the pump. We can’t fix everything that Washington has broken, but we are doing our part to lessen the impact on your wallet.”
There are growing calls from citizens and politicians for a national hold on gas taxes. The federal fuel tax is roughly 18.3 cents per gallon for gasoline and roughly 24.3 cents per gallon for diesel. On a 15-gallon tank, Americans would save about $2.75 each time they fill their car up with gas and $3.65 each time they fill up with diesel.
Senator Mark Kelly from Arizona sponsored the Gas Prices Relief Act of 2022, which would provide a temporary exemption from the excise tax on gasoline through the rest of calendar year 2022. The bill is currently under deliberation in the United States Senate Committee on Finance. It has yet to be voted on by either the Senate or the House of Representatives.
Release of oil Reserves
On March 31, in an unprecedented move to attack rising fuel prices and growing inflation, President Joe Biden announced the United States will release one million barrels of oil per day from its strategic petroleum reserves for the next six months. This release is designed to bridge the gap created by the U.S. ban of Russian oil imports, allowing domestic producers to ramp up production.
While it remains unknown what effect this release of oil reserves will have on pricing overall, it is sure to provide a measure of short-term relief while continued efforts are taken both domestically and internationally to address the crisis.
Truckers always need to be cognizant of transportation costs, but that’s true now more than ever. Protect yourself and your company; learn important budgeting tips for truck drivers and insider tips on how to improve fuel-efficient truck driving.
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- Written by: Kate Williams
There are almost 2 million semi trucks and 5.6 million semi trailers currently in operation in the United States according to HDS Truck Driving Institute. But what’s the most popular truck in America? What’s the most iconic semi in pop culture history? If you love trucking as much as we do, keep reading to learn about the most prolific and memorable semis in the industry!
FAMOUS SEMI TRUCKS FROM FILM AND TELEVISION
What’s the single most famous semi truck of all time? While that question might not be easy to answer, there are some serious contenders for the title. Let us know your favorite iconic truck by connecting with us on Facebook, Twitter, or LinkedIn!
These trucks are recognizable throughout pop culture, and you don’t have to be a truck driver to appreciate their style, designs, and attitude. Take a look at our choices for five of the most famous semi trucks from American film and television:
Snowman’s Kenworth W900 from Smokey and the Bandit
Smokey and the Bandit is one of the most iconic and well-known movies of all time, and while some people swoon over Burt Reynolds’ black Trans Am, truckers know that the true star of the film was Snowman’s Kenworth W900 with a gorgeous wild west mural trailer. Three different trucks were actually used during filming. Two were 1974 models and the third was a 1973 model, which can be picked out by the gold Kenworth emblem. (The ’74’s emblems were silver.)
Rubber Duck’s 1977 Mack from Convoy
While this film might not hold the same level of pop-culture fame as Smokey and the Bandit, Convoy is a favorite among truck drivers across the country. While there were numerous Mack trucks used to create the film, Rubber Duck’s truck is generally a 1977 Mack RS712LST, which is now on display as the Museum of Transportation in St. Louis. While the truck’s black paint and grille guard make the vehicle look mighty tough, the most famous element is the flexing duck for a hood ornament.
Optimus Prime from Transformers
He’s the leader of the Transformers (at least the good guys), and he’s probably the best known semi truck in modern American popular culture. Throughout the multiple generations of Transformers, Optimus Prime has taken the form of many different trucks. He was first represented as a cab-over Kenworth K100, but he has also been a Peterbilt truck. In the latest film starring Mark Wahlberg, Optimus Prime was a custom-built Western Star semi.
The Green Goblin from Maximum Overdrive
It’s hard to forget a murderous semi truck that is bent on killing all of humanity, but the main villain from Stephen King’s campy horror film becomes even more memorable thanks to the Green Goblin grille. Green Goblin’s face, taken from Spiderman, is mounted on a Western Star truck that chases Emilio Estevez in this so-awful-it’s-fun-to-watch 1986 movie.
BJ's Kenworth K100 from B.J. and the Bear
This short-lived television comedy series has remained in the hearts of Americans, and truck drivers in particular, as the red and white Kenworth K100 is one of the most famous semi trucks of all time. The show only lasted from 1979 to 1981, but it is referenced in pop culture even today. Shows and movies like South Park, 30 Rock, Breaking Bad, and My Name is Earl have all referenced the show or the truck itself. One of the trucks from the original series has apparently been restored and is actually being used by a hard working trucker to this day.
POPULAR SEMI TRUCK BRANDS
Of course, these fictitious trucks are fun. But what about the real semis that actual truckers rely on? Here are some of the most trusted semi truck brands in the industry:
Freightliner
Freightliner is a titan in the trucking industry, owning roughly 40% of the market share. They sell nearly 200,000 semis each year and employ over 3,000 workers. The average price of a new Freightliner semi truck is between $140,000-$160,000. They’re well-known for their culture of innovation, as evidenced by their new E-Mobility electric truck initiative.
Kenworth
Believe it or not, Kenworth produced more than just BJ’s famous red and white K100! A whole lot more, actually. Headquartered in Kirkland, WA, Kenworth specializes in the production of heavy-duty and medium-duty commercial trucks. Kenworth’s W900L, a whopping 130 inches from bumper to back-of-cap, is their best selling and most popular semi truck.
Peterbilt
Another phenomenal brand in the trucking industry is Peterbilt. The company prides itself on durable construction and a high degree of customization in their trucks. With all-aluminum cabs, ergonomic interiors, and comfortable sleepers, it’s no wonder Peterbilt won a J.D. Power award for highest customer satisfaction among heavy-duty vocational trucks.
What did we miss? Share your favorite trucking brand or truck from a film with us on any of the social media outlets found at the top of this page!
FIND YOUR SEMI TRUCK AND NEW TRUCKING CAREER WITH CDLJOBS.COM
No matter which truck you love, CDLjobs.com has an abundance of trucking jobs posted that may be just right for you! In today’s market, you’ll find a trucking company that fits your needs and your life. Apply for trucking jobs today!