There is an impressive half a million trucking companies in the United States it is no wonder you have come here to find out which is right for you.
We will uncover the best types that this $800 billion a year industry has to offer.
Here’s a quick answer to which Trucking Business is Best:
The best trucking business to start is one with a medium-duty truck hauling ad-hoc loads. The cost of vehicle and labour is generally cheaper, however the lower entry barrier makes it more competitive. Heavy-duty trucks offers great return on investment, however, cost of business start-up is high.
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What are the Different Types of Trucking Businesses?
The trucking industry is so diverse it would literally take up this whole article and more to go through the different types so here are a few of the main ones to help you decide which area you would like to pursue a career in.
Intermodal freight transport is basically the transportation of containers from the ship to their destination. The driver doesn’t handle the freight itself.
Flatbed trucking services are more for the delivery of timber, machines and their parts and just about anything else that can fit.
It’s a favorite for trucking companies due to the easy load from almost all angles and can also carry too high to go on the average closed trailer trucks.
Refrigerator trucks these trucks are responsible for the delivery of meat, dairy and produce products and anything else that needs to be kept cold.
Tanker trucking companies haul fuel or raw products such as milk or molasses and even alcohol and pretty much any liquid that needs hauling.
Dry van trailers will deal with hauling boxes of cargo or pallets and even large equipment these are the more commonly seen trucks on our highways.
What are their Pros and Cons?
The pros all of these businesses have in common are being left to get on with your job it’s not a 100% flexible lifestyle but it does give you the freedom to rest when you need.
Here we will look at what truckers themselves have to say as they are on the frontline of your business.
The cons overall are the limits imposed by trucking companies on how long you can idle the truck for and at times like that you start to miss the comforts of an office or home and can leave you even missing out on a shower here and there.
But we have to remember that everyone is different and what might be a pro for me might well be a con for you and vice versa.
The pay a truck driver receives for a flatbed would generally be higher than the pay of a dry van driver due to the work involved.
A flatbed requires assistants from the driver to offload the merchandise whereas the dry van will usually have the aid of a forklift or troll jack.
Some might see this as a pro but it does mean more physical work and in all kinds of weather which some might say is a con.
Tanker trucking is easy work compared to the rest and slightly more pay and usually quite fast-paced in terms of turnaround times which we can all agree are pros.
The cons of tanker trucks are the regulations set in place by The Department for Transportation and all the safety around the many hazardous chemicals and fluids you will be transporting.
This can slow your day down a little but safety is a major concern for these companies.
Refrigerator trucks as well as all the other mechanics of the vehicle need to constantly monitor its Temperature Controlled Unit (TCU) the refrigerator on the front end of your trailer.
The pros are food sells more than anything else so the work is constant the con is the times of your work schedule.
All supermarkets take deliveries at all hours and this would mean 3 am sometimes and they could take half a day to a whole day to unload, making your turn-around time slow.
As a business, the pros and cons of your driver’s lives will greatly affect or improve your business.
The pros definitely out weight the cons in our opinion wouldn’t you agree?
What is the Most Profitable Trucking Business?
The top-ranking of the most profitable trucking businesses in the United States is the parcel and package movers such as UPS and FedEx Corporation bringing in tens of billions in revenue each year they have been around a long long time.
But this isn’t what makes them titans in their field but rather the merchandise they transport.
What is the Best Trucking Business to Start?
The best one to start really depends on what you are passionate about.
If it’s more the money side of things then it would be good to head in the direction of parcel and packages (courier service).
This business’s biggest issue is its delivery deadlines and has little concerns over products being kept at the required temperature.
Or how about a car haulage business, and again just deadlines to be concerned about and making sure all your employees or subcontractors are properly insured.
Another thing to consider is how much capital you want to invest which would then give you a rough idea of what business would suit that best.
Which Trucking Business requires the Least Start-Up Capital?
The minimum startup cost on any trucking business would come from firstly getting the contracts yourself and then subcontracting truck drivers to those contracts or any other work that comes your way.
By subcontracting truck drivers you save on insurance costs as well as fuel and truck maintenance costs.
Yes you pay the drivers more than you would if you had your own trucks and they were your employees, but the startup cost in this direction is so much cheaper.
You can also lease a truck which is way cheaper than owning one starting with a box truck would still keep you in the game.
So again the least startup might not be the one you want to pursue but the cheapest way to pursue any of them is as above.
Which Trucking Business requires the Most Capital?
To start any trucking company would cost between $10,000 and $20,000 and that’s just for starters you then need to think about the ongoing cost like the variable and fixed.
Costs may vary slightly depending on which business you choose but you can expect it should still in within this price bracket.
There is no direct answer as it really depends on which company you wish to start.
Fixed costs are your monthly truck and insurance payments these are normally simple to budget for as you know exactly how much they’ll cost each month.
Variable costs have different dates each month as well as different fees things like fuel and maintenance, repairs, meals, and lodging which makes it harder to anticipate, to begin with.
However, this will get easier to plan for once you have reached the 2 to 3-month mile.
Do you need a Commercial Drivers License to Start a Trucking Company?
You can actually own a trucking business without a Commercial Drivers License (CDL) but the reason it would be more beneficial if you have one is for unforeseen circumstances.
Like if you have to move a truck for loading or that could be inconveniencing someone or even in the hopeful event that you get overloaded with work these could be the times you’ll kick yourself for not having one.
You could always start a business without one and then acquire one later on which would probably be easier as your trucker buddies can give you tips on getting through your training.
Do you need to Own a Truck to Start a Trucking Business?
You can actually start a truck business without owning one outright. In fact most starter uppers rent to begin their journey to building a multi-million dollar business.
You can hire a truck from multiple rental companies who specialize specifically in freight hire for the transportation industry.
Prices range from a box truck at $50 a day to a Freightliner Cascadia at $120 a day. A trailer will set you back another $23 a day.
I know at first glance this may seem expensive but you have to weigh out how much is coming in and make that exceed your outgoings, it’s basic business practice.
Is Owning a Trucking Business Profitable?
This business can be very profitable provided you plan ahead and don’t try and take any shortcuts.
Building a profitable trucking business is the same as building any other profitable business it takes time and patience.
To be kind, courteous, and professional at all times is a great asset to succeeding as well as being punctual and even going the extra mile (doing more than you’re paid to do).
A very competitive business but even more highly in demand and with a shortage of truck drivers means you have the potential to rake in the dollars.
At times you may need to take to the wheel yourself but that’s why you started this business.
Be aware of entrepreneurs trying to lend or give you money for a slice of your pie as this will eat into your profits and could well cause the crash of your business.
Try and start on your own. It’s going to be harder but more profitable and remember, nothing worth having is easy.