How To Start Trucking Company – If you’ve been thinking about starting a trucking business, now is a great time to act. Demand for freight capacity has grown across Europe in recent years and is likely to continue to soar for the foreseeable future. You can get into the trucking industry relatively quickly compared to other types of businesses, and with a little strategic planning, you can schedule all the loads you can handle in no time. In this article, we’ll pre-answer a few basic questions about your trucking business, and then we’ll walk you through the steps you can take to start building your trucking business today.
More than half of European shipping is by truck, while in inland shipping the figure is around 75%. According to Statista, the total value of the European road freight market could reach almost 420 billion euros this year by 2025.
How To Start Trucking Company
Despite the huge and growing demand for truck freight, the number of truck drivers is declining. Truck driver vacancies could reach 60 percent by 2026, according to IRU. While every major country in Europe is experiencing a shortage of truck drivers, Poland, Germany and the UK have been hit the hardest.
How To Start A Trucking Company In 10 Steps
That could bode badly for European supply chains, but it’s good news for anyone starting a trucking business. Across Europe, the need for reliable road freight capacity is growing. This presents a golden opportunity for trucking companies. Anyone who can buy a truck, register it and hit the road is sure to find a booming business.
In fact, in terms of volume, European road freight is dominated by small businesses. A comprehensive report by IRU states that about a third of European trucking companies own and operate just one vehicle, with a further 51% owning between two and ten trucks.
So plan to start with a truck or two if you don’t have the funds to start. You can always expand your fleet in the future, while you will start to gain valuable experience.
At , many of the trucking companies we work with start with a single truck. For example, UAB Rolavita, a Lithuanian trucking company and business owner we continue to work with, was founded by two people who bought a truck in 2013. In less than a decade, UAB Rolavita’s fleet grew to include 11 trucks.
Trucking Company: The Complete Guide On How To Start And Run Your Successful Trucking Business Startup From Scratch
So, what do you need to get started? Here are five key steps to building a trucking company from the ground up.
Any good business starts with a good plan. Taking the time to develop a well-thought-out plan can really pay off, so be sure to give it some thought.
You may want to start with some basics, such as creating a business name, a trucking company business plan, identifying your target market, and drafting a pricing plan.
Once you have a plan in place, you’ll need to legally set up your business and obtain resources that can confirm your business name and company identity, such as tax ID numbers, business bank accounts, and insurance plans.
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The process varies by country, so be sure to understand local requirements. That said, generally speaking, in Europe you need the following to get started:
With your files ready, you can start building your fleet. Generally speaking, the more trucks you have, the more money you can make, but large trucks are expensive. If you are new to this industry, it may be wise to start small.
In trucking, reliable equipment can make or break the difference, so take some time and consider the best way to get your initial fleet.
As a first step, consider your budget and research your options for buying and leasing a truck. Also, consider the type of truck you’re looking for. There are many different truck and trailer types to choose from – everything from minivans and 7.5 ton trucks to larger trailers and road trains.
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Just be sure to pick from the right truck for the cargo you’re going to be carrying. Perishable foods, for example, require a refrigerated truck, but if you’re not planning to deliver groceries, it’s not necessary at all.
A good option for carrying a lot of dry goods is the zip lining. Tautliner is a generic term for a truck with a curtain trailer. Curtains can be opened and the forklift can easily load and unload goods from the side, which can help you achieve faster loading and unloading times. The curtains are then closed and winched tight to secure the cargo for transport.
If you’re not sure which truck to buy, do a cost-benefit analysis of several different trucks you’re considering. Do your research and try to account for maintenance costs and fuel. Older, used trucks are cheaper upfront, but repair costs add up quickly, and any time the truck sits in the garage is lost revenue. Newer trucks will be able to haul more cargo before any serious maintenance is required.
Finally, you may want to consider which fuel to use. Even standard diesel engines can run on biodiesel or HVO fuel. Using these fuels to reduce carbon emissions may help your business stand out. With more and more large shippers looking to transition to a greener supply chain, offering low-emissions trucks might just help you win a few extra contracts.
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If you’re just starting with a truck or two and you plan on doing all the work associated with owning, operating, and driving your vehicle, you can skip this step for now. But to run your business more efficiently, you’ll probably want to hire at least a small team as your business grows.
If you plan to drive the truck yourself, you will need to obtain a commercial driver’s license for the class of vehicle you own. If you plan to hire a driver, don’t forget to double check that they hold the required driver’s license.
You may also want to create an onboarding process that enables you to confirm divers’ experience and skills as well as their qualifications for the job. You should also consider conducting background checks on applicants you plan to hire. In addition to drivers, some trucking companies employ teams for administrative and financial needs. Larger companies may also include teams focused on sales and marketing.
Armed with your business plan, documents, trucks and people – you can start a successful trucking company. The final step in making a profit is finding customers.
Steps To Start A Trucking Company
A trucking company’s customers are “shippers” who need to ship goods. Many of these shippers post jobs on the marketplace or load boards on the web. Trucking companies then bid for the cargo they are able to carry.
Shippers often prefer to work with a freight carrier they know they can rely on. So, treat every first load as an opportunity to prove your worth. Do your best to complete pickups and deliveries on time, and you’ll be more likely to get ongoing business from your customers. As you start to get more customer contacts, you may want to consider how you prefer to work with your shipper. For example, winning long-term contracts will help ensure long-term stable and recurring business. But doing one-off spot shipments can lead to higher profit margins per load.
Loadboards, or freight boards, are online marketplaces where shippers can post their shipments that need coverage so that freight companies can cover them. In some cases, a freight forwarder operator may be required to bid on a shipment in order to “win” the shipment. In other cases, you can simply “accept” the load at a fixed price. Especially for a trucking business that is just starting out, a loading board may present an opportunity to find new business and new customers. However, load boards are notoriously difficult to handle. Searching or filtering the loads that are best for your business isn’t always easy. Also, some load boards don’t update in real time, meaning the loads you see aren’t always available.
To avoid the administrative work of combing through load boards and bidding on loads, some trucking businesses work with freight forwarders. A freight forwarder essentially organizes shipping services for suppliers. Large shipping lines typically contract with freight forwarders, who then work with a number of smaller trucking companies for their road freight needs.
How To Start A Successful Trucking Company
As Europe’s leading digital freight forwarder, we offer trucking company owner operators much more than a typical freight forwarder.
We know that starting your own trucking company is a lot of work on your own, so we’ve developed digital tools to help you seamlessly start and run your business.
Our carrier platform called orcas includes tools to help you easily find shipments, manage shipments and collect payments.
Our marketplace is designed to help you avoid pain points such as long wait times between loads or empty kilometers (i.e. trucks driving empty to the next pickup location).
How Much Does It Cost To Start A Trucking Company?
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