In Canada, small businesses are 98.2% of all businesses having fewer than 100 employees. When you add in medium-sized businesses (100 to 499 employees), the percentage rises to 99.8%. Small Business is the engine of the economy and their success is vital to Canada’s prosperity.

There are around 33,843 general freight trucking companies all over Canada. So now, you are going to be part of one of them or if you would like to open up your own company, then You need a plan to make your business a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses.

Starting a trucking business doesn’t require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. So, first of all, you need to put together a spreadsheet that estimates the one-time start-up costs for your business, like fees for licenses and permits, type of equipment you would need, talk to your lawyer for legal fees, cost of cargo and truck insurance, branding, property leases, etc., as well as what you anticipate you will need to keep your business running for at least 12 months (you might also have to pay for rent, load boards, Parking, marketing, and advertising, travel expenses, employee salaries, your salary, etc.). Alternatively, The tractor and trailer are going to cost a lot of money, and registration costs can add a few more dollars to it.

Those numbers combined are the initial investment you will need. Look into financing and try to secure a line of credit. It`s a good idea to save up enough money to cover your first six months of operation.

Once you are done with your finances, you need to plan what type of equipment you need, like Dry Van, Reefer, Flat Bed, Step Deck, or any other trailer type.

Now you need to decide, whether you want to do Short Haul, Long Haul, that too, Within Canada, within USA or Cross Border. We always recommend, that a startup should always go for a 53ft dry van in a combination with short-haul, which is 500 miles(805 km) radius from your origin. The reason behind this is that when you start finding loads for yourself, you will see that the maximum number of loads available in the market is for dry vans and the shorter the distance is more the money you earn as a profit.

The next step will be to Obtain necessary business licenses, permits, and do operational cost calculation. You can reach out to us for detailed information about Authorities and Permits required for your trucking company.

A key factor in operating a successful business is creating a system to track income and expenses. This is especially important in terms of logistics because payments are often received weeks or months after delivery, and it can be difficult to track expenditures while you’re on the road. So, plan your invoicing and finances properly. In case, you do not have a lot of cash in the bank, then take the help of factoring companies for immediate cash flow.

If you need help with Training or with Profit Optimization of your company. Please click below to schedule an appointment with one of our trucking business consultants.You can reach us at info@welocity.ca or call us at 905-901-1601

Unlike many sales jobs, freight brokers are normally paid based on the gross margin of loads, rather than the gross revenue number. The reason for this is that gross revenue is not the key metric for a brokerage in any industry. The most important metric is the profitability of each individual buy and sell transaction. 

Gross margin vs. gross revenue – Gross revenue is what a freight broker charges customers, which are normally called shippers. The gross margin is the difference between what a freight broker charges a customer (GR minus the cost of purchased transportation, or the amount a freight broker pays a carrier to move the load). 

Gross Margin = price charged to shipper – price paid to a carrier 

The difference between the customer price and cost of purchased transportation measures the true profitability of each transaction.  

This is an important distinction for a freight brokerage in much the same way it is an important distinction for an individual freight broker’s commission. Gross revenues can be a deceptive metric for a freight brokerage. Unlike most industries that have relatively stable costs for manufacturing or providing services, the cost of purchasing transportation from carriers is highly variable. This can be illustrated by comparing the following two loads: 

$5,000 charged to customer – $4,500 paid to the carrier = $500 gross margin or net revenue 

$2,000 charged to customer – $1,500 paid to the carrier = $500 gross margin or net revenue 

In the example above the $5,000 load will represent 250% more in gross revenue, but at the end of the day both loads bring in the same amount of gross margin.

Net revenue – is another term used to describe gross margin. Net revenue is usually used in accounting and finance to differentiate between the gross revenue collected from customers and the revenue left over after the freight brokerage pays a carrier to move the load. 

Unlike industries that produce tangible products and have a stable cost structure for production, freight brokerages’ cost of purchased transportation is volatile and variable. Freight brokerages operate like financial brokerages that buy and sell varying assets on a daily basis and only charge a commission for their services. 

One prime example of a brokerage model is eBay. While there might be billions of dollars bought and sold each year on this platform, the company only really earns its commission on each transaction. So, only the commissions eBay earns – its net revenue – is available to pay technology, marketing, administrative and payroll costs. Of course, what is left over is the company’s profits. 

Commission for freight brokers – So, whether a freight broker sells $50,000 or $500,000 of freight to customers is immaterial to the commission. How do freight brokers get paid? The only metric that really matters is the profitability of each of those transactions or loads, which is described as the gross margin or net revenue. 

Compensation and commission plans vary from one freight brokerage to another, so there is no one universal commission plan. Some freight brokers earn a base salary plus commissions and others are paid on commission only. The median entry-level salary for a freight broker is $40,000 per year with an average commission of 13% to 15% of gross margin on loads. According to the salary survey, the average commission rate on gross margins is 13.2%. This varies slightly by region; Canadian freight brokers earn the smallest commissions at 10%, while brokers in the Mountain West earn 14.8%.

So, an entry-level freight broker selling on average $20,000 per month in gross margin would expect to earn $71,200 per year with a 13% commission.

If you need help with Freight Brokerage Training or with Profit Optimization of your company. Please click below to schedule an appointment with one of our trucking business consultants or you can reach us out at info@welocity.ca or call us at 905-901-1601.

Have you passed an audit or roadside inspection without a violation this year? If so, then you’re in the minority…FMCSA data shows that only six percent of carriers got through an audit or inspection without a violation in 2020.

Part 391 of the Federal Motor Carrier Safety Regulations deals with the qualification of drivers to ensure that every CDL driver who is operating on public roadways has the required training, credentials and safety record. To comply with the requirements of this section, employers are required to both gather a variety of documents from the driver and run a series of background screens. All of this information is then organized into two folders that must be maintained for the duration of the driver’s employment, as well as three years thereafter.

Violation #1: Inquiries into Employment Record Not Kept in Driver Qualification File (391.51(b)(2))

This is the third most common critical violation for 2019 so far, with employers either not completing the prior employer inquiry, or not filing the documentation in the correct place. To comply with regulation Part 391, all inquiries into a driver’s previous employment must be well documented and filed as part of their Safety Performance History. Because of the sensitive nature of the information contained within this file, it must be kept in a secure location that is only accessible to those who are directly involved in the hiring process for your company.

Violation #2: Failing to Maintain a Driver Qualification File on Each Driver (391.51(a))

The driver qualification file isn’t simply a pre-hire process, it’s a file that must be updated throughout the duration of a driver’s employment. Confusion over that point – as well as the lack of an organizational system to alert carriers when an update is required – means that many carriers don’t have complete driver files for every driver they employ.

Each file must contain a variety of important documents, including the driver’s DOT application, motor vehicle report (updated annually), CDL, medical card and prior employer verifications. Every time a document is set to expire, it must be updated within the file to ensure it stays compliant.

Violation #3: No Medical Certificate in Qualification File (391.51(b)(7))

Given how important physical health is to both the safety of your drivers and the roadways, regulation Part 391 requires that a legible copy of the driver’s medical certificate be kept in the driver qualification file. This document must be kept current and replaced with the driver’s updated document each time it’s renewed.

Related to this violation, is the need for drivers to have a copy of their medical certificate on them each time they drive. Although not specific to audits, this has been one of the top roadside inspection violations this year.

How to Survive a DOT Audit?

The best way to survive a Department of Transportation is to have an organized recordkeeping system as lost, missing our outdated documents are one of the primary issues that leads to audit violations. In the past few years, audits have transitioned to an offsite audit format, with many new entrant safety audits and compliance reviews being held remotely. Now more than ever before, carriers need to have an electronic recordkeeping system in place to get through an audit successfully.

What Happens if You Fail a DOT Audit?

Failing a Department of Transportation audit can have lasting implications for a business, as it can lead to immediate out-0f-service orders and a safety rating downgrade. As we’ve written about recently, a conditional or an unsatisfactory rating (especially an unsatisfactory rating) can be very challenging to bounce back from, and can impact future business relationships and insurance rates. For carriers that are issued an unsatisfactory rating during a Department of Transportation audit, they’ll have to address all compliance concerns and submit a comprehensive safety management plan to the DOT within 60 days (45 days for passenger carriers).

How to Prevent a Part 391 Violation

The key to staying compliant with all of the requirements of regulation Part 391 is a good organizational system – or a partner that can manage the requirements on your behalf. If you’re opting to manage the files yourself, make sure you have a checklist of all the required documents so that nothing slips through the cracks during the pre-hire process. Then, have an alert system in place so that you’re reminded well in advance of CDL and medical card expiration dates, for example.

An easier route is to utilize services of Welocity Logistics and Solutions, we will help create and manage files on your behalf.  We will help you stay on top of your important tasks without consuming too much of your time. You can reach us at info@welocity.ca or call us at 905-901-1601

Canada took a slower road than the United States to implementing its electronic logging device (ELD) mandate for commercial vehicles. In doing so, it added teeth: a requirement that ELDs undergo certification by a third party accredited by the government. 

When the Canadian ELD mandate takes effect on June 12, it won’t have any immediate bite. Initial enforcement measures, according to the Canadian government, will consist of “education and awareness.” The mandate approaches as no ELD has been certified for use under the Canadian rule. 

Transport Minister Omar Alghabra announced the soft rollout of enforcement last Tuesday. He did not explain why the government is taking that route but highlighted the challenges facing the industry during the COVID-19 pandemic.

Full enforcement didn’t come immediately in the case of the U.S. mandate either. It came two years later, in 2019, when trucks using the legacy automatic onboard recording devices (AOBRD) had to make the switch.

The Canadian ELD mandate, unveiled in 2019, was designed to have a lot in common with the U.S. rule. The majority of Canadian trucking companies do cross-border operations into the U.S. and have already had to use ELDs as a result. 

The Canadian rule has been complicated by the fact that each province has also had to adopt individual mandates. While Canada’s provinces and territories have adopted ELD rules in harmony with the federal mandate, it hasn’t been without kinks. Quebec won’t be enforcing its mandate, initially.  

U.S. trucks entering in Canada will need a certified ELD

Canadian officials envisaged that the mandate and certification process would not mean that a separate ELD would need to be used for Canada. Existing ELDs, including those currently used in cross-border operations, can continue to be used once their software is updated after they are successfully certified.

ELDs are already in widespread use among Canadian fleets and owner-operators on account of the U.S. mandate and the prevalence of cross-border trucking operations. The rule also applies to any U.S. trucks entering Canada. They around accounted for less than 20% of all cross-border truck traffic in 2020, according to Statistics Canada data. 

But whether any given device used today will get approved for the Canadian mandate is another question.

Tougher ELD vetting process intended discourage hours-of-service manipulation

The additional certification requirement was intended, in part, to make it harder for carriers and drivers to circumvent hours-of-service rules by ensuring that the ELDs themselves can’t be tampered with as easily.

If you need more info on ELD or want to apply any US or Canadian permits, You can reach us at info@welocity.ca or call us at 905-901-1601

Canada has been watching and learning from the ELD mandate that the United States put into place December 16, 2017. After observing the implementation and effects of it on our southern neighbours, Canada is now ready to put forth its own ELD mandate.

In fact, the Canadian Trucking Alliance feels that the Canadian ELD rule will put Canada ahead of the United States in trucking safety and compliance.

This decision started back in 2017, when Transport Canada put forth their proposal for making ELD’s mandatory. By 2019, Transport Canada had finalized the rules for Canada’s ELD mandate, and stated that June 12, 2021 ELD use will be enforced.

Now with the June 2021 deadline around the corner, commercial vehicles will need to start to implement ELD’s into their operations.

The Canadian ELD mandate is not set to come into effect until June 12, 2021. Those affected will be anyone currently required to keep a logbook to record their hours of service.

While Transport Canada is still planning to go with their June 12, 2021 start of ELD enforcement, the focus for the first 12 months will be on education and awareness.

With COVID-19 putting people under stress, Transport Canada felt it advisable to go with a progressive enforcement period. This means full enforcement will not go into play until June 2022.

After the Canadian ELD rule comes into effect, drivers will need to use a certified third-party ELD device to track their hours of service.

The hours of service rules as established in 2005 are not going to change. Just the method in which these hours are recorded. Using ELD’s should prevent any tampering of data and protect against non-compliance.

If you care to brush up on the Canadian Hours of Service rule you can refer to the Government of Canada’s site here.

The good news is if you have already put ELD’s into your fleet to comply with the ELD mandate in the United States, chances are pretty good that all you will need is a software update from your ELD service provider. This update will allow drivers to switch between Canada and the U.S hours of service requirements depending on current location.

ELD providers have advised Transport Canada that they will provide these software updates at no additional cost to their customers.

Are there any exemptions to the Canadian ELD Mandate?

There are 4 exemptions:

• Commercial vehicles that have a hours of service permit
• Commercial vehicles that have a statutory exemption
• Commercial vehicles that are subject to rental agreement of 30 days or less
• Commercial vehicles manufactured prior to the year 2000.

Why is Canada adopting its own ELD Mandate?

A few reasons have been put forward as to why Canada has decided to hop on board with the ELD mandate.

First of all- safety. Transport Canada wants to promote a system that supports safety and fairness in the industry. With attention on a few rule breakers after the Humboldt Bronco’s tragedy, lawmakers are looking for a way to track those that are trying to cheat the hours of service regulations.

Secondly, the ELD’s will help make enforcement and compliance easier. With the ability of ELD’s to digitally transfer information to inspection officers, making it  quick and easy to verify driver records.

Transport Canada says that this new regulation is also to help keep competition in the industry fair and legal. The idea is that this new mandate is to prevent those trying to cheat the system and run longer hours and deliver more loads than their competitors.

There are approximately 9400 hours of service convictions per year according to Transport Canada. This mandate is intended to cut down on this number.

You can reach us at info@welocity.ca or call us at 905-901-1601

Everyone wants to be their own boss. At Welocity Logistics & Soultions, we speak to many drivers who are interested in starting their own trucking company. Choose your hours, choose your loads and control your profits. Sounds great, right?

Here are 5 things to know before you start your own trucking company;

 

1. You must set up a CVOR Level 2.

• Every company in Ontario which operates a vehicle weighing more than 4,500 kg must have an active CVOR Level 2.
• You must complete and submit the application and pay a fee to the Ministry of Transportation.
• There is a written test which you must complete and pass prior to receiving your CVOR 2 certificate.

 

2. You should have prior owner-operator experience.

• We recommend a minimum of 2 year owner-operator experience prior to starting your own company.
• Vehicle maintenance and records are extremely important.
• Insurance companies require proof of prior owner-operator experience to provide quotes.

 

3. Consider your overhead expenses.

• Many necessary roles in a trucking company should have a dedicated employee to handle.
• Filing quarterly reports for your International Fuel Tax Agreement (IFTA’s) can be complicated, consider hiring an expert to assist you.
• Handling dispatch and safety while also driving is quite difficult, do not spread yourself too thin!

 

4. Protect yourself, get incorporated.

• Registering your company in your province offers you another layer of protection against litigation.
• Most companies register under an provincial Limited number or Canada limited number, but include “doing business as” or “operating as” to include their operating name.
• Government Incorporation fees is different for all provinces but are between $350 and $400.

 

5. Call an Insurance broker who specializes in trucking!

• Trucking insurance is a unique and technical product. Not every insurance broker has experience or understanding of the industry.
• Make sure you fully understand the quote which you are being offered. Ask about cargo liability, commercial general liability and make sure the limits are adequate for your operation. If you don’t have the proper coverage, shippers won’t give you loads.
• Be honest. You are only hurting yourself if you misrepresent yourself to your broker. 

The above list is a simple overview. There are many other aspects of the business to consider when starting your own trucking company. There are passionate and committed owner-operators who are starting trucking companies every day in this province.

You can be your own boss, but consider the requirements when you are considering the profits. Call us or email us to get more detailed info. You can reach us at info@welocity.ca or call us at 905-901-1601

We wish there was a simple answer. But the truth is that the cost of starting a trucking company varies business-to-business. Startup cost also fluctuates based on the type of trucking company you want to start, including cargo you plan to haul, the operation you want to run, insurance coverage, and more. New trucking company owners can invest somewhere between $10,000 and $20,000 to start a small trucking company.

Trucking Company Startup and Registration Costs

The Welocity`s Startup Program doesn’t just offer a few packages at set pricing. Instead, we customize our service plans based off of your needs. Our administrative fee depends on the scope of services you need and what province you are starting in. For a full-service setup, Welocity`s Startup Clients typically pay between $1,000 – $1,600 – that includes both government fees and our administrative fee.

Current Filling Options:

• Incorporation Formation (INC)
• CVOR or SFC
• SS4 for Employer Identification Number (EIN) – Internal Revenue Service (IRS)
• USDOT & MC Numbers – Federal Motor Carrier Safety Administration (FMCSA)
• BOC-3 for Designation of Process Agents
• Unified Carrier Registration (UCR)
• IFTA Registration
• KYU Registration
• NYHUT Registration
• NM ID Registration
• Oregon Registration
• IRP Registration
• and many more permits

Other Startup Cost For Trucking Companies

You’ll notice that we’ve only mentioned the costs of forming and registering your new trucking company. But there are other trucking business expenses to consider. Examples include:

• $2,000-$4,800: Insurance Down Payment (per truck)
• $500-$3,000: IRP (apportioned plates per truck)
• $100-$550: Heavy Vehicle Use Tax Obligations (per truck)
• $500: Additional Province Specific Tax Obligations (per truck)

GET STARTED WITH OUR STARTUP PROGRAM

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Ongoing Cost of Running Trucking Company

You’ve started your trucking company and received your authority. You’ve received all the permits you need to operate, and your trucking company is ready to haul freight. Now you need to consider your operational costs. Understanding the different types of costs will help you anticipate expenses and set a budget for your company.

Fixed Costs

Fixed costs are expenses that consistently occur, such as monthly truck payments, monthly insurance payments, and bi-weekly payroll. Annually, you will need to pay permit or license renewals. These payments are generally the same every pay term so budgeting for these expenses is usually simple.

Variable Costs

Variable costs are expenses that vary when operating your trucking company. It includes costs of fuel, maintenance and repairs, meals, and lodging. After all, you can’t make money in the trucking industry without spending some too! Variable costs are harder to anticipate when compared to fixed costs. After operating a few months, you should be able to estimate your variable costs.

Cost Per Mile (CPM)

Your Cost Per Mile is the cost of operating for every mile you drive. It’s found by dividing your costs by the number of miles you drive. Mastering this calculation lets you know a minimum freight rate to accept when booking loads. You can attend our trainings in which we will tell you about CPM calculation.

Operating Ratio

Your operating ratio determines whether you’re operating at a profit or loss. It’s calculated by dividing your expenses by your revenues.

There Is A Lot More Information and It`s Not Simple Either

That’s why we’re here to help every step of the way. Choosing the WeLocity`s Startup Program to help you start your trucking company allows you the time and resources to plan for other business issues, such as equipment, insurance, and creating a profitable business plan.

If you’re worried about operational cash flow after starting your trucking company, we can help with that too! Factoring your freight bills is the best way to get cash fast so that you can anticipate and budget for fixed and variable costs.

 

The trucking business can be very profitable, but it is incredibly competitive. Many truckers try to get into the business every year and end up failing. This outcome usually happens to people who are great truckers but are not good business owners.

Knowing how to run and grow your trucking business takes more than knowing how to drive a truck or choose a route. You can also join our Truck Dispatch and Freight Brokerage Training . Overall, this training will certainly help you find the best job and grow your business because our course will guide you how to book a load from a broker and get contracts from shippers. Having knowledge about Freight brokerage will always be an added advantage to get a job or run your business successfully. In this course, you get theoretical knowledge and practical hands-on experience.

These seven steps point you in the right direction. They help you make the transition to becoming a successful business owner.

1. Support the right market niche

The most important step to be a successful owner-operator is to support the right market niche. This step affects small fleet owners as well. The market you choose determines the equipment you buy, the rates you charge, and the freight lanes you can service. As a rule, owner-operators should focus on markets that the large carriers avoid.

In other words, consider hauling specialized loads. Making decent revenues with a dry van is very difficult as an owner-operator. There is too much competition from large carriers and other owner-operators trying to pull the “easier” loads.

There are many markets that you can focus on. However, hauling fresh produce and meat in reefers has many advantages, including: less competition, year-round work, and it’s resistant to recessions. The last one is very important.

2. Charge the right rate (per mile)

As an owner-operator you need to determine what rate to charge your clients to haul a load. Your rates need to be high enough to give you a nice profit and pay all your operation costs.

You need to know your rates before you start calling shippers and making sales. Remember, when you call shippers, you want to be competitive with what brokers charge them. We cover all this in detail in our Training Modules.

3. Determine your operating costs

Knowing your operating costs in detail is important. Otherwise, you have no idea whether you will make a profit. Determine your fixed costs. These are costs that stay the same regardless of how many miles you drive. Examples are truck payments, insurance, permits, and so on.

Now determine your variable costs. These costs depend on the number of miles you drive. For example, fuel is a variable cost. The more you drive, the more you fuel you use.

Use your fixed and variable costs to determine your “all-in-cost per mile.” This figure is very important.

If you subtract your “all-in-cost per mile” from your rates (calculated in step #2), you get your profit – the amount of money you keep. We explain costs in detail and provide a spreadsheet in this article: “Calculate your cost per mile”.

4. Use the right fuel-buying strategy

Fuel is the largest expense for owner-operators. However, new and experienced owner-operators often buy their fuel incorrectly. They think that the cheapest pump price provides them with the cheapest fuel.

This approach is wrong. You could lose hundreds (or thousands) of dollars by doing this. The issue is taxes. Regular drivers pay fuel taxes in the state where they purchased the fuel. Truck drivers, on the other hand, must deal with IFTA. Truckers pay taxes based on fuel used as they drive through states, regardless of where they bought the fuel originally.

5. Work directly with shippers

Load boards and brokers have their place in your business. They can be very useful when you have an empty truck. However, they are also very expensive. Brokers keep about 10% to 20% of the load price. That’s fair, as they must make a living and they provide the shipper (and you) with a service.

Minimize your use of brokers and load boards. Instead, develop a realtion with direct shippers.  In our Freight Broker Training module we make you understand right approach to get a contract from shiper.

6. Run an efficient back office

Having an efficient back office is key if you want to stay profitable and grow. The importance of the back office becomes more important as you start adding leased drivers to your operation.

You have a couple of options. One option is to do it yourself. You can run your business out of the cab of your truck. All you need is a laptop, an Internet connection, and a printer. You also need accounting software to run your business. There are several options on the market.

Alternatively, you can outsource your back office to a dispatcher. However, they can be expensive. If you choose this route, interview them thoroughly. The wrong dispatcher can kill your business.

7. Avoid cash flow problems

Trucking is a cash flow-intensive business. You are always buying fuel, making insurance payments, making truck payments, and so on. Unless you get quick-pays, shippers and brokers can pay invoices in 15 to 30 days. Sometimes they take 45 days. This delay can create a cash flow problem for you, especially in the early days of the business.

One way around this problem is to use freight bill factoring. Factoring solves your cash flow problem by advancing up to 95% of the invoice, often the day you submit it. The remaining 5%, less a small fee, is rebated once your shipper pays. 

If you want to understand these things in details before you invest your hard earned money. Call us or email us to get more detailed info. You can reach us at info@welocity.ca or call us at 905-901-1601

Details of Ontario’s provincial ELD mandate were communicated on
November 1, 2021, to outline requirements and criteria for commercial truck and bus carriers in Ontario. These changes will make it mandatory for commercial motor vehicle drivers who operate within Ontario to use an ELD to record their hours of service (HoS).

To simplify operating requirements for Ontario carriers that operate both inside and outside of the province, Ontario’s ELD regulations closely match the federal ELD mandate and take effect for commercial truck carriers on June 12, 2022. This date was identified to align with the expected rollout for the enforcement of ELD enforcement for federally-regulated commercial truck and bus carriers. Bus carriers who operate in Ontario only will be required to use a certified ELD as of July 1, 2023.

On March 7, 2022, the Canadian Council of Motor Transport Administrators advised that all Canadian jurisdictions will continue to support an education and awareness period for the federal ELD mandate that was set to expire on June 12, 2022, through to January 1, 2023. These measures have been recommended to allow sufficient time for industry to purchase and conduct necessary training to comply with the federal mandate. 

Ontario will support the federal ELD mandate with an education and awareness period through to January 1, 2023 (without penalties for federally-regulated carriers). Ontario will implement a complementary education and awareness period for the provincial ELD mandate that was set to take effect June 12, 2022, through to January 1, 2023 (without penalties for provincially-regulated carriers). 

Through this approach, Ontario will support industry to successfully transition to ELDs by aligning the provincial approach with the enforcement of federal ELD requirements. This will ensure a level playing field for all carriers (regardless of where the carrier operates). 

As a result of the recommended enforcement approach changes, Ontario carriers are advised:

• These measures are temporary – requirements will be enforced following the conclusion of the education and awareness period (January 1, 2023, for commercial truck carriers; July 1, 2023, for bus carriers who operate in Ontario only).
• Carriers should continue to prepare and adopt ELDs as certified ELDs become available, research ELD device options and ensure that any ELD procured is a certified device as approved by Transport Canada.
• While penalties will not be incurred, carriers can expect education and awareness of ELD requirements to be during interactions with commercial vehicle enforcement.
• As provinces and territories are responsible for enforcing the federal Commercial Vehicle Drivers Hours of Service Regulations, it is important that carriers operating outside of Ontario are aware of the regulations and requirements of the provinces or territories where they will be operating.

Details concerning Ontario’s approach to enforcing the provincial ELD mandate will be communicated to provincial and municipal enforcement partners to ensure consistent application and understanding of this approach in Ontario.

 

If you need any help in choosing ELD, Applying for various Permits for your trucking company please reach out to Welocity at info@welocity.ca or you can call us at 905-901-1601

I normally get to see the trends come and go in the truck transportation industry, specifically from front line people like drivers and owner operators. For most people, the duty-free store is a place to pick up a cheap bottle of liquor or carton of smokes. For others, specifically, for truck operators crossing the border at the Ambassador Bridge in Detroit, it’s a place to fill up the fuel tanks.  Certainly, we are in a time of belt-tightening so owner operators and carriers alike are trying to find ways to save a buck.  Fuel being such a big expense tends to top the list on money-saving ideas.

This past quarter, I have seen carriers have started fueling at Native Reserves and at Duty Free Shops, to save taxes on fuel. You might wonder why is this news worthy, well it directly ties in with every carrier’s IFTA fuel tax liability at the end of the quarter.  

Why?

IFTA or the International Fuel Tax Agreement is charged on a few key items:

-In which Province or state you have travelled
-How Many KM`s you have travelled
-How much fuel you bought and in which Province or state 
-And finally your fuel efficiency or MPG/KPL.

Fuel is a key element as it does assume you purchased fuel with fuel taxes already charged.  This means for every litre of fuel you buy in a given jurisdiction you have already pre paid fuel taxes.  If you buy fuel where taxes are not paid at the pump, IFTA charges you back those very taxes at the end of the quarter.

But isn’t the price at the pump cheaper and therefore you save in the long run? Yes it certainly can be cheaper but not always. I looked at www.michigangasprices.com at the time of writing this and found Ammex duty free was 5th on the list of cheapest fuel in the Detroit area. This means 4 other stations are cheaper still and have taxes included in the price of their fuel. The others on the list were not that far apart.

Remember included in the price of fuel is fuel taxes, for Michigan $0.30/gallon is fuel taxes. So if fuel at the pump is $3.00/gallon you can take off the fuel tax for the end price of $2.70/gallon.   This is something important to remember when shopping for fuel.

So what does this all mean? Well it means we have to be smart consumers. The price at pump isn’t always the full story. You must consider, is the price at Ammex Duty Free really cheaper once you deduct fuel taxes from the fuel station next door? Is the difference enough to warrant a higher IFTA fuel tax bill at the end of the quarter?

What about Native Reserves?

In New York State, for example, there is a reserve quite close to the Ontario border and we have seen a significant increase in drivers buying fuel from there. While the receipt doesn’t state it, unlike those issued at Ammex Duty Free, we have confirmed, IFTA fuel taxes are not charged at the pump.

We at WeLocity Logistics & Solutions Inc are always available to answer any questions you may have on this or any other trucking related subject.  Please leave us a comment or question.

Let WeLocity take the burden of your IFTA fuel tax reporting

The Freight Broker Bond or BMC-84 surety bond is a license surety bond mandatory by the Federal Motor Carrier Safety Administration (FMCSA) in the amount of $75,000. The FMCSA Freight Broker surety bond obligation is continuous, meaning that as long as the operating authority is in place, the surety bond requirement stays as well. This surety bond is required by all freight brokers who need MC/US DOT number.

Freight broker bonds provide a form of remedy for a motor carrier hired by a freight broker. If a motor carrier has not received payment for a work for which payment is due, a claim can be made against the surety bond. The Surety, the company offering the freight broker bond, could then be required to make payment up to the bond penalty amount if the issue is not resolved by the Broker. The surety would then attempt to collect the paid claim amount from the broker. Ultimately, the broker is responsible for any amount paid out on a claim.

Let us know if you want to apply for Surety Bond. Welocity can always get you connected with surety bond agents.

Freight Broker Bonds

• $75,000 USD

The amount of the security required by the FMCSA. This security can be provided in the form of a BMC 84 Surety Bond.

• FMCSA

This bond is required by the Federal Motor Carrier Safety Association for all Freight Brokers who apply for MC/USDOT number.

• 3-4%

The estimated annual bond premium for Canadian companies that require a BMC 84 Bond. Long-standing freight brokers may qualify for a lower rate.

Who Needs a BMC 84 Bond?

Freight Brokers operating in the USA that contract with motor carriers for land transportation are required by the Federal Motor Carrier Safety Administration (FMCSA) to post a $75,000 BMC-84 Surety Bond. Freight forwarders and brokers must post this $75,000 BMC-84 surety bond before receiving a freight broker license. Brokers that do not comply with the BMC-84 bond requirement may have their broker authority revoked by the FMCSA.

If a Freight Broker fails to remit payment for services rendered per their contractual agreement, the Motor Carrier is then able to make a claim against the bond and get paid directly by the surety company. However, in this case, the Freight Broker would then be liable to reimburse the Surety for the claim.

Please vist our website www.welocity.ca to check other services provided bu us.   You can reach us at info@welocity.ca or call us at 905-901-1601

 

The Commercial Vehicle Safety Alliance (CVSA) has set the dates for its 2022 International Roadcheck, the 72-hour blitz of commercial vehicle inspections across North America. From May 17 to May 19, law enforcement officers will focus on wheel ends.

The results of Roadcheck in 2021 showed that brake systems took the top spot for violations in North America, accounting for 26.5% of all truck out-of-service conditions. Brake adjustments rated as the fourth highest violation last year, accounting for 12.4% of all violations.  

Wheel-end components—specifically brakes and slack adjusters, support the heavy loads carried by commercial motor vehicles, maintain stability and control, and are critical for braking. 

According to CVSA, violations involving wheel-end components historically account for about one quarter of the vehicle out-of-service violations discovered during Roadcheck, and past data from the annual inspection blitz routinely identified wheel-end components as a top 10 violation.

Wheel-end compliance exercises will include the observance and assessment of a semi-truck and trailers wheel-related maintenance/health. To pass inspection, all wheels must be in full working order, in accordance with the conditions outlined by the FMCSA

The wheel-related assembly regulations that will be checked for this year include:

• Wheels and rims cannot be broken or cracked.

• Stud and/or bolt holes cannot be “elongated” (no longer round).

• Bolts and nuts cannot be “loose.” 

• Tread depth on a tractors steer tires must be no less than 4/32 inches.

• Tread depth on all remaining tires must be no less than 2/32 inches.

Note: even though wheel-end maintenance and condition(s) are the primary focus of 2022s Roadcheck, issues in this arena often prompt further vehicle inspections to be conducted at the discretion of law enforcement.

As such, in addition to the inspection of wheel-end components, drivers should also expect to be assessed on general equipment maintenance like:

• Lights
• Braking systems
• Load securement
• Hours of service (HOS) logs
• Permits (where applicable) 

Needless to say, all truck drivers will want to ensure their trucks and trailers are fully compliant with all safety regulations over this three-day period. 

However, this is easier said than done; even if a driver leaves their starting point with wheels in perfect condition, it is impossible to guarantee that damage would not occur during transit. 

This simple fact leaves truck drivers far less motivated to move freight during “blitz” week. 

What Happens If a Driver is Non-Compliant?

During these Roadchecks, if a truck driver is found to violate any of the regulatory mandates they are being audited for, three actions will be taken. 

First, the driver and the freight they are hauling must immediately halt their progress until each discrepancy is amended. If they are missing bolts or a hubcap, they will need to get those things fixed. If they are discovered to be in violation of HOS regulations, they will need to rest until their “clock” resets. 

As you might imagine, the prolonged delays caused by non-compliant carriers over “blitz week” can be harmful to the schedules of trucking companies and shippers/consignees alike. 

The second thing that happens once a driver is found to violate one commercial motor carrier mandate is an immediate examination for further violations. In the trucking industry, an industry that must maintain safety standards, unsafe practices do not go unchecked. As such, a single violation — be it a set of loose bolts or otherwise — may be an indicator of deeper issues with the health of a vehicle and/or the safety practices of a carrier. 

The third thing that happens to drivers who are found to be in violation following a road check (which can happen anywhere) is perhaps most impactful. 

You see, drivers that are found to be non-compliant are given an out-of-service (OOS) violation. OOS violations directly impact each motor carriers compliance, safety, accountability (CSA) scores — a scale indicating their overall safety “rating.” 

Truck drivers are each given individualized CSA scores. Any violations they incur — and the points associated with them — remain on a drivers CSA scorecard for three years, affecting their reputation all the while. 

Failing an International Roadcheck and receiving an OOS violation is a two-point violation for that driver.

In case you need help in maintaining your companies safety and Compliance please reach us out at info@welocity.ca or call us 905-901-1601.

 

 

Freight Brokerage Start-Up Guide

Although many shippers have agreements with trucking companies to transport their goods, a substantial amount of truck transport in North America is handled by freight brokers. A freight broker is an intermediary between a shipper who has goods to transfer and a carrier who has capacity to move that freight. Below are steps you’ll need to take to profitably launch your freight broker business.

GET BROKER AUTHORITY

 

Set up and Corporate your business

1. Select a Federal or Provincial corporation

Decide if you want to operate as a sole proprietorship, a partnership, a limited liability corporation, or a number of other options.

2. Apply for operating authority

Freight brokers involved in interstate commerce must apply for broker authority. There is an application processing fee and it takes 4 to 6 weeks for processing. Welocity can help you get your authority.

3. Designate a process agent

The role of the process agent is to act as a representative upon whom court papers may be served, on behalf of the appointing parties, and to deliver those court papers per the instructions of the appointing parties. Parties over here are a broker or carrier. Brokers must designate a process agent in each state where they maintain an office or establish contracts. Some companies offer “blanket coverage” . Welocity can help you get Setup with Process agent.

4. Get surety bond or trust fund

All freight brokers are required to have a $75,000 surety bond or trust fund. Click here to know more about surety Bond.

5. Register your business

All brokers, freight forwarders and carriers must complete the Unified Carrier Registration and pay an annual fee. The fee varies a little each year, but generally runs around $60-$125 per year.

6. Check your Provincial requirements

Be sure to check with your provincial regarding requirements to establish and operate a business in your state. Welocity can help you to get your provincial authority.

 

7. Set up your office

• This can be a home office or commercial office space. At minimum, you’ll need a phone, fax and computer. Be sure to budget for recurrent costs, such as:
• Utilities (heat, electricity, water)
• Phone and internet charges
• Insurance & Taxes
• Rent
• Payroll and benefits
• Subscription fees for load boards and Dispatch Software’s
• Factoring Setup

Conducting business

1. Get training

Before you get started, make sure you know the business inside and out. Please reach out Welocity We can get you enrolled for the Freight Brokerage Training.

2. Get broker contracts & paperwork

Now you’re ready to conduct business! Freight brokers are required to keep records of each transaction. This includes contracts, bill of lading, payables, receivables, carrier qualifications, and more. WeLocity’s Freight brokerage Training includes the Free Brokerage kit to start your operations.

3. Find shippers

Contact shippers who need the services you provide.

4. Find carriers

Identify carriers ready and willing to transport freight. This can be accomplished using a load board to post your loads or search for trucks. To get an idea of what this process is like, you can search for available trucks during our Freight Brokerage Training.

5. Set prices

Determine an appropriate rate for each load. 

6. Move freight

Now you’re on your way to a successful freight broker business!

Details of Ontario’s provincial ELD mandate were communicated on
November 1, 2021, to outline requirements and criteria for commercial truck and bus carriers in Ontario. These changes make it mandatory for commercial motor vehicle drivers who operate within Ontario to use an ELD to record their hours of service.

 

To simplify operating requirements for Ontario carriers that operate both inside and outside of the province, Ontario’s ELD regulations closely match the federal ELD mandate and took effect for commercial truck carriers on June 12, 2022.
Bus carriers who operate in Ontario only will be required to use a certified ELD as of
July 1, 2023.

 

While requirements took effect for commercial truck carriers on June 12, 2022, Ontario has implemented an education and awareness period for both the provincial and federal ELD mandates through to January 1, 2023 (without penalties). This approach has been taken to support industry in the successful transition to ELDs and align with the enforcement approach of federal ELD mandates as advised by the Canadian Council of Motor Transport Administrators.

 

As we approach the conclusion of the education and awareness period, Ontario carriers continue to be advised:

• The education and awareness period is a temporary measure.
• To prepare and research device options and ensure that any ELD procured is a certified device as approved by Transport Canada.
• To expect education and awareness of ELD requirements to be discussed during interactions with commercial vehicle enforcement (penalties will not be issued)
• To be aware of the regulations and requirements of the provinces or territories where they will be operating (provinces and territories are responsible for enforcing the federal Commercial Vehicle Drivers Hours of Service Regulations).
• Enforcement action will be taken following the conclusion of the education and awareness period on January 1, 2023, including charges and penalties for violations of federal and provincial ELD mandates

Hours of Service (HOS) rules are in place to keep truck drivers well-rested and alert. These rules are essential for keeping truckers and everyone else on the road safe. Understanding the difference between sleeper berth time and off duty time is essential to managing a drivers HOS. The sleeper berth rule is just one important safeguard put in place to ensure drivers get enough rest in their sleeper berth compartment. Read on to learn more about sleeper berth rules, how they differ from off duty time, and delve into how an edge computing ELD and fleet management technology solution can streamline HOS management. What does sleeper berth mean? Sleeper berth provision refers to the period in which a driver rests or sleeps in a qualified sleeper berth compartment of their commercial motor vehicle (CMV). This time is often used to meet the mandatory rest requirements outlined in HOS regulations. When a driver is in the sleeper berth, they are considered off duty, allowing them to accumulate off-duty time. that counts toward the daily 10 hours off duty requirement required prior to starting a new Hours of Service (HOS) day What is Considered a Sleeper Berth? Sleeper berths must meet minimum dimension and installation guidelines. Sleeper berths must be adequately ventilated, and located so that occupants are protected against exhaust heat and fumes, and fuel leaks. If the drivers vehicle does not meet the physical requirement with your truck, you can not use the sleeper berth provision.

 

Advantages of Sleeper Berth Time:

• Flexibility: The sleeper berth option allows drivers to split their 10 hour required rest period into two separate segments, typically known as the long segment and the short segment. The two segments must cumulatively equal 10 hours minimum prior to the start of an HOS day. The long segment must be no less than 7 consecutive hours, and the short segment must be no less than 2 consecutive hours. Note: the sum of the long segment and the short segment must add up to a minimum of 10 hours.  This flexibility allows drivers to adapt their sleep schedule according to their personal preferences or in response to traffic, weather, or other unforeseen circumstances.

• HOS Recalculation: One key provision of splitting the sleeper berth is that upon completing the second segment, a driver’s HOS time is recalculated back to the end of the first split sleeper segment. This can be extremely helpful if the driver is running out of daily HOS driving window or cycle hours.

• Reduced Fatigue: By providing an opportunity for uninterrupted sleep in the comfort of a sleeper berth compartment, this method can effectively combat driver fatigue and enhance overall alertness.

• Improved Efficiency: Utilizing sleeper berth time strategically can optimize driving schedules, enabling drivers to make the most of their available hours on the road.

What is the sleeper berth rule?

The FMCSA HOS final rule and regulations specify the following guidelines regarding off duty hours:

• Minimum Off Duty Time: After completing a duty period, drivers are required to take a minimum of 10 consecutive hours off duty before starting a HOS duty day. This is commonly known as the 10-hour off duty rule.

• Rest Breaks: Drivers are also entitled to rest breaks during their duty period to ensure proper rest and manage fatigue. According to FMCSA regulations, drivers are required to take a 30-minute break if more than 8 hours have passed since their last off duty period or sleeper berth period. This break can be taken in segments, as long as it adds up to a total of at least 30 minutes.

It’s important to note that off duty time is distinct from sleeper berth time. While off duty time is spent away from the commercial motor vehicle (CMV), sleeper berth time refers to the period when a driver rests or sleeps in the sleeper berth compartment of the CMV as defined in sect 393.76 Sleeper berths .

Compliance with these off duty hour requirements is essential for ensuring driver safety, managing fatigue, and adhering to FMCSA’s Hours of Service regulations.

Who does the sleeper berth rule apply to? And why is the sleeper berth rule in place? 

The sleeper berth rule applies to commercial motor vehicle (CMV) drivers who are subject to the Hours of Service (HOS) regulations enforced by the Federal Motor Carrier Safety Administration (FMCSA) in the United States. The rule specifically governs the use of the sleeper berth compartment within the CMV for rest and sleep purposes.

The sleeper berth rule applies to drivers who operate CMVs that meet the following criteria:

• Gross Vehicle Weight Rating (GVWR) or Gross Combination Weight Rating (GCWR) of 10,001 pounds or more.
• Vehicles used for interstate commerce (transporting goods or passengers across state lines) or vehicles transporting hazardous materials in intrastate commerce.

It’s important to note that the ELD exception for sleeper berth rule is specific to the United States and may vary in other countries or regions. These regulations are in place to ensure driver safety, prevent fatigue-related accidents, and maintain compliance with designated driving and rest periods.

What does off duty hours mean?

According to the Federal Motor Carrier Safety Administration (FMCSA) regulations, off duty hours are defined as the time during which a driver is relieved from all work-related responsibilities and is free to pursue personal activities. While off duty, drivers are not accumulating driving, on duty, or sleeper berth time.

What are considered off duty hours?

Off duty hours are not considered working time, and they do not contribute to the accumulation of driving, on duty, or sleeper berth time. While off duty time does not impact available HOS cycle hours, it will not pause the daily 14 hour HOS driving window. Once the daily 14 hour driving window is started, it can be paused or extended by using sleeper berth.

Here are some examples of off duty time for a truck driver:

• Personal Rest and Sleep: During off duty time, truck drivers can prioritize rest and sleep to recharge and maintain their physical and mental well-being. 

• Leisure Activities: Off duty time allows truck drivers to engage in leisure activities that they enjoy such as reading, listening to music, watching movies or TV shows, playing sports, exploring nature, or pursuing any other recreational activities.

• Personal Errands and Appointments: Off duty time can be utilized for personal errands and appointments. 

• Exercise and Fitness: Maintaining physical fitness is important for truck drivers, and off duty time can be dedicated to exercise and fitness activities. 

• Personal Communication: Off duty time provides an opportunity for truck drivers to stay connected with their loved ones. 

• Personal Development: Off duty time can be used for personal growth and development. 

• Relaxation and Recreation: Off duty time allows truck drivers to relax and unwind from the demands of their work. 

It’s important for truck drivers to utilize their off duty time effectively to ensure they have a healthy work-life balance, manage fatigue, and rejuvenate for their next duty period.

Can you mix sleeper berth and off duty?

Yes, according to the regulations set by the Federal Motor Carrier Safety Administration (FMCSA), drivers have the flexibility to mix sleeper berth and off duty time to meet their rest requirements. This is known as utilizing the “split sleeper berth” provision.

What does it mean to split your sleeper berth time?

The split sleeper berth provision allows drivers to divide their required rest period into two separate intervals. One interval must be at least 7 consecutive hours in the sleeper berth, and the second interval must be at least 3 consecutive hours either in the sleeper berth, off duty, or a combination of both.

For example, a driver could choose to spend 7 hours in the sleeper berth, followed by 3 hours off duty, or they could split their rest into multiple shorter intervals as long as the total rest time meets the required duration – 10 hours.

When a driver enters the first segment of the split sleeper, the time clock pauses with what HOS hours they have available on their time clock. When they exit the first portion of sleeper, the clock resumes. When the clock expires, they will need to close out the requirements of sleeper by doing the second segment.

When the driver completes the second segment, he or she is given a 14 hour clock minus ALL time that elapsed between the end of the first sleeper and the start of the second sleeper. All this time is subtracted from the 14 hour clock including off duty, on duty, personal conveyance, yard moves, and driving. The drivers HOS clocks a