1852 Flatbush Avenue - 2nd Floor
Brooklyn, New York 11210
|Client Update - quarterly newsletter||
The Trucking Industry & Passenger Vehicles
What would you like us to do for you today?
Barry's Accounting Services, Corp., is the leading Insurance & tax specialists in the "TRANSPORTATION" industry. We work with experienced truck consultants. We are knowledgeable about CSA/DOT/OSHA compliance issues and Tax & Appeals Courts rulings. We help our clients remove impediments quickly, discontinue inefficient business practices, accelerate revenue, identify important tax deductions, streamline financial reporting, maximize Gross Margin, ROA, ROI & Net Profit, and operate successfully by adhering to traditional metrics in anticipation of changes in economic and market trends.
We specialize in preparing complex tax returns and we defend them aggressively. Over the last 18-years we have done work for over 400 TRANSPORTATION companies.
TO AUDIT YOUR FREIGHT BILLS, send us your paid bills for the last 180 days, carrier tariffs, and contracts that were in effect during that timeframe. We will check for duplicate billings, rate errors, commodity classification errors, discount errors, accessorial charges, etc.
Types of Haulers
People in various industries would refer to the trucking industry by different names, such as inland freight, interstate commerce, or inland marine. The cars we drive are brought to the dealers by trucks. Heavy equipment (tractors, bulldozers, cranes, etc.) to build roads, buildings and highways are brought to the construction site by trucks. The items that we purchase at the supermarkets and neighborhood shops are transported there by trucks. This includes lumber and hardware materials; and pipes used in the transportation of petroleum, water, and natural gas. In some states trucking companies are the biggest employers. Fuel price and fuel surcharge do have an effect on the industry. However, the industry will continue to dominate freight movement and the national economy as more fuel efficient trucks are being manufactured annually. There were over 110 million REGISTERED trucks including 1.87 million REGISTERED tractor trailers on the road in 2009, according to the Federal Highway Administration (FHA) statistics.
Truckers are busy people on tight schedules. They are paid on a per mile basis, hence they cannot waste time when they arrive at consignee's warehouses. To do so means they are losing profits. They are required to charge detention pay of $13/hr. after 2 hours, cargo assist pay $35; and load/unload pay $65. Owner operators are paid 95 cents/mile by the leasing company (lease/buy) and upwards of 65% of the freight when they own their trucks.
Truck owners are not only driving their trucks, they are also responsible for driving their bottom lines/profits upwards to meet future increases in operating costs. To accomplish their goal, they have switched to more fuel efficient trucks and adhered to continuous adjustments in their operations budget in anticipation of changes in economic and market trends. Managing successfully through economic cycles is a challenging, but necessary part of every business operation. They must also manage risks and proposed vehicle user fees based on weight when they are entering Santa Fe, NM, and other borders. There are the new California emissions proposals for trucks built before 1994 and retrofitting for trucks built before 2007; compete with a pilot program that authorizes Mexican carriers to operate beyond the border zone; effective use of electronic manifests to quickly cross the borders, and effective use of the electronic transaction system (ACE) to submit electronic versions of mandated paperwork in advance of crossing the border; compliance with federal, interstate, and cross-border laws; zero-tolerance/immediate termination of contract for traffic infractions on the ice; paying registration costs and high fuel and highway taxes to fix infrastructure (tolls and bridge fees per axle; MVT registration, HVUT stickers, IFTA stickers, truck registration carb card IRP, IFTA motor fuel tax, HVUT 2290; NY transport and transmission corporation franchise tax, and NY maintenance fee for a foreign corporation); filing employment taxes and personal and corporation tax returns. Truckers are responsible for securing the cargo they haul (tarp, tied down, chained and other ways to secure load); but shippers can contribute to problems by overloading and by packaging loads in improper fashion — dangerously assembled loads. Truckers must be careful not to accept the shippers' liability in addition to their liability. If you are running reefer freight, understand that the broker bond does not cover produce/dairy, so be selective with shippers in those commodities. Truckers must pay close attention to unfair indemnification clauses that shippers may have inserted in their contracts. Also, IRS officials are expressing their concern that some trucking companies are not following the rules for capping reimbursement to drivers for meals and other expenses at $52 per day when they are away from home. According to IRS officials, most of the confusion stems from the fact that truck-load carriers pay their drivers by the mile, but the per diem ceiling must be expressed in dollars per day, not dollars per mile.
When my clients ask me how much insurance coverage I would consider adequate to cover their exposure, I often tell them to look at their net worth on their business or personal financial statements because that is what is at risk in the event they incur a catastrophic loss, including the verdict from possible lawsuits. The coverages I recommend are auto liability, physical damage, motor truck cargo, trailer interchange/drop lot, general liability, excess auto liability/umbrella, worker's compensation, occupational accident & health (OA&H), and pollution coverage.
Truck Cargo Coverage
"What is the typical cost range including operating costs for a new or used tractor/trailer, and what's the average lifespan?"
Steven Transportation replaces its fleet continuously. You may be able to purchase high quality pre-owned trucks from that company. If you want to buy new trucks and trailers, your best bet is to attend the Mid-America Truck show, the Mid-West Truck show, or the Great American Trucking Show in Dallas, TX; and don't be afraid to ask questions. Those shows offer everything that you can think about in the trucking/transportation industry.
"I am a class "A" OTR with hazmat and tank endorsements. I have been working for companies for 13 years. I am starting my company as an O/O and I will be soliciting freight from Brokers whom I have built a relationship with over the years. I am offered a pre-owned, well-maintained 18-wheeler, 2005 Ken worth T-2000 with 400,000 miles. The truck cost $62,500, 9.5%, five years. Trailer $25,500, 6%, three years. I plan to be on the road for nine months a year. Diesel 5.8 ml's/gal.; tolls, registration, etc., $3,500. How much load do I have to haul to be able to break even in the first year?"
information you have given us is invaluable. We have leased a fleet
of trucks and the leasing company has encouraged us to retain your services."