What You Need:
Firstly, you need a vehicle. This really is pretty damn clear for anyone getting started being an owner driver, nonetheless it is..
Starting as an owner driver is straightforward, and has the advantage of possibly becoming profitable fairly quickly due to the lack of overheads. But, there are some things to consider as you begin, and this guide hopes to show you the kind of things you will need and the pitfalls to avoid becoming a manager driver and when going freelance.
What You Need:
Firstly, you need a vehicle. This is pretty damn obvious proper getting started being an owner driver, but it is still worth stating. The automobile should be no more than six years of age and can in fact be of any size actually though if youre serious about making this work, then purchasing a larger truck (instead of utilizing a hatchback car) enables you to transport larger masses, and therefore cost more.
Subsequently a cellular phone is all important for new manager owners. Nowadays, people who dont own one are something of a rarity, so this shouldnt be an issue: All the same, its important to help you to keep connected with others from your street, so finding such an unusual and amazing device is all important.
Eventually, manager driver insurance is all-important. The array of possibilities can be complicated, but there are three forms of insurance you must explore, which I can handle now:
Courier insurance is all-important for new owner drivers. There are three kinds of insurance you should look into:
Any vehicle on the highway has to be insured thats a legal requirement which many people are aware of! A standard temptation is to say your vehicle is for company use but actually make sure to specify that you need it for courier use, when you contact the insurance carrier. The difference is the fact that you will be carrying goods for the others for gain, and any future claims you need to make, and this will influence your quote!
Goods in Transit Insurance
Its worth stumping up the additional money for Goods in Transit insurance also. This may protect your cargo against damage and loss, usually covering you for things up to a value of 10,000. Most of your insurance company may address this, but if not, then its super easy to obtain this from expert courier insurance sellers. If you think you know any thing, you will probably fancy to study about go. This is especially worthwhile considering for new manager owners, since it makes you seem more genuine and people is likely to be more comfortable coping with you.
This one may not be as essential while the other two, but is still worthwhile considering, particularly for new owner drivers with butter fingers! This may cover you for situations involving your web visitors, for example if you drop their same-day-delivery package of anvils on their base
While not totally insurance, its also worth mentioning at this point that as youll be self-employed, new manager drivers need to sort out their taxes using the Inland Revenue and arrange any credits they might be eligible to. At this point it could be worth hiring an accountant who ll learn how to save yourself money to you by understanding what expenses you can maintain. Alternatively, if you know book keeping, there s nothing to prevent you from controlling your own finances, if youre not-too busy with all the owner driver jobs you aspire to be overwhelmed with!
Having Your Name Out There
So, given that your finances are (hopefully!) sorted out, how can you begin finding your first owner driver jobs? Well the first step gets your-self stated in local sites the Yellow Pages and Thomson Local service certainly are a good start, as-is getting an advertisement in the local paper. Its also worth joining a freight change like ours, as this assists you obtain backloads and manager driver jobs in addition to keeping your running costs down. If you want help or guidance some shipping exchanges also provide a group.
Print some professional-looking business cards, and dont be afraid about passing them out you never know when you might get an owner driver work from them!
One unusual means of getting business is to contact other couriers locally. In the beginning this might sound like an unlikely option, however the facts are that if your opponents cant complete all their work in one day, then they will be happy to have your help, in the place of risk losing their reputation for timely deliveries. If you could possibly get on-the sub-contraction books of a few local couriers, you may find this allows a continuous stream of one-off owner driver jobs to keep things ticking over nicely.
A website pays to too, but in the early days of your procedure you could find the costs involved with setting up and maintaining your site will cost more than the traffic they make, therefore I would suggest you save yourself this for when your business has picked up a little.
A tricky one to answer is the problem of just how much you need to be paid. However, Im not able to provide a definitive answer as to how much you should demand for every single manager driver work, because it very much is dependent upon the area you work in and the size of one s vehicle.
Usually, manager drivers charge per mile on the outbound journey, and at a discounted price on the return, but an effective way of finding the right value for you would be to read the cost of employing the local rivals and working from there.
Becoming an owner driver could seem a little daunting at first, but staying with this basic framework should make sure that the first few months work smoothly. This should give the solid foundations to you you perhaps see you expanding your operation on the following years, and can must start getting the form of money the job can offer.
Freight forwarders are falling victim to fraudulent Chinese freight operators demanding ransoms totalling thousands of dollars to release Bills of Lading.
In the UK over the past year, ransoms totalling US$33,500 have been reported.
The British International Freight Association (Bifa) warned operators this month October to be wary of emails from unknown Chinese forwarders, looking for UK partners and offering cheap ocean rates.
Once a signed and stamped agency agreement is in place between both parties and business starts, all appears to be normal. This is until the cargo arrives at the UK port and no-one has received the original Bill of Lading.
When contacted the Chinese forwarder then demands a large ransom for the release of the original Bills of Lading.
Companies which refuse to pay find themselves on an expensive rollercoaster ride of meetings with customers, lawyers, insurers and shipping lines in order to obtain the original Bills of Lading to release the cargo.
By spreading shipments around a number of shipping lines, fraudulent forwarders make this recovery process even more onerous.
Determining whether that mail shot is from a legitimate forwarder in China or part of a scam in the first place can be difficult, however just asking for a signature on an agency agreement with an overseas partner is not good enough, said Bifa.
Dan Harris, a lawyer at Harris & Moure and co-author of the China Law Blog, which focuses on assisting foreign companies doing business in China, writes in one of his blogs on how to avoid Chinese business scams: There is probably no document that has not been faked thousands of times in China. I have seen fake Bills of Lading, fake bank statements, fake contracts, fake purchase orders, fake company registrations, fake IP registrations, even fake lawyers.
If you are going to rely on paper, he said, at least do more than just rely on the document itself. At the very least businesses should check with the company or the governmental body that purportedly issued the document.
Put all of the documents you receive under a microscope. Even the most experienced scammers nearly always make some mistake in their fake documents.
Try to get the company s official corporate records from the official Chinese government sources. Though doing this is neither inexpensive nor easy it can be incredibly enlightening in that it usually goes far beyond the information provided by the basic company search firms.
It is hard to measure the scale of the Bills of Lading scam at present. Only two incidents have been reported in the UK to-date, although The Loadstar understands that forwarders in Australia have also posted warnings about this type of fraud.
The reasons for this could be that either these types of incidents are in their infancy or are underreported.
Michael Yarwood, claims executive for specialist freight insurer TT Club, said the techniques used in the scam are in line with fraudulent activity experienced throughout Europe, where entities pose as legitimate freight forwarders and hauliers with the sole purpose of cargo theft.
He said that the use of cargo clearing websites (or freight exchanges) to carry out theft is increasing.
Fraudulent forwarders pose as legitimate companies with spare capacity. They arrive on-time to collect loads and then disappear.
Another frequently seen scam involves organised gangs creating their own websites and advertising themselves as freight forwarders. These sites are characterised by very basic information, freemail accounts, and mobile phone or Skype contacts only, Mr Yarwood warned.
A third type of fraud commonly seen is where criminal organisations buy failing operators and continue to trade under their name in a state of virtual insolvency. They are able to identify and accept cargo which is subsequently stolen in transit. This type of scam is hard to identify, however checking with Companies House to determine whether there have been any recent changes in a company will help operators avoid being caught out by this type of fraud, Mr Yarwood suggested.
Companies need to perform due diligence in selecting carriers, he argued: Request original documents rather than electronic copies which are much easier to doctor.
He admits this is difficult with time-sensitive cargo and it is with these types of shipments that forwarders take risks they normally wouldn t take.
However, Mr Yarwood maintained that it is commercially less damaging to suggest a customer delays collection than to take a risk with an unknown operator.
Transport Intelligence s Cathy Roberson has done a brief round up of the major forwarders first quarter results and discovered a stagnant ocean freight market and depressed air freight. However, the Americas is starting to look brighter, especially for Panalpina and K+N.
Posted on | April 29, 2013 | Comments
Watch Political Empire to learn about how a Riverside County supervisor is promoting his effort to change food truck regulations and how local officials are blaming the state for higher crime.
So, the Low Emission Zone has now been in effect for three months and fuel prices are continuing to rise. The freight industry is most certainly in crisis as shown last month, when one haulage company presented a coffin representing the bankruptcy of many smaller firms and the loss of road haulage jobs to parliament. While LEZ has reduced the number of high emission haulage vehicles entering London (no surprise, considering the hefty fines required otherwise!) it certainly hasn t made our job any easier, and so there seems like no better time to review the London LEZ, congestion charges and similar schemes around the country.
The most major event to happen in the capital in the last few months was the ousting of Ken Livingstone as mayor of London. Boris Johnson won the May 1st election, and this should be treated with cautious optimism by us. It s no secret that Livingstone s policies weren t exactly hauler friendly, but will Johnson be any better? In his manifesto, he promised to review the London Low Emission Zone, and pay more attention to the views of the transport industry, and that does thankfully include us with jobs in the road haulage industry. He even described the LEZ as hastily implemented in an interview with Motor Transport, but haulage workers of London shouldn t celebrate just yet. It appears the anti-LEZ stance was a fairly recent development, and as recently as February, his website said will support the Low Emission Zone to improve air quality , so I wouldn t say we re home and dry just yet! If anything, we must continue to apply pressure to ensure he is true to his word and listens to us even if his mind if already made up.
Elsewhere, following the success of the London Low Emission Zone, Glasgow has become the next UK city to announce plans to introduce a similar scheme. Like London, the scheme is aimed to improve air quality and reduce congestion in the city center, but will also extend to ways of tackling vehicles idling by the roadside . It s still in the planning stage, so no costs have been announced, but Scots with road haulage jobs (or those who regularly take loads north of the border) should be prepared for more strain on their wallet. Although currently without a start date, the city had pledged to have a LEZ in place before the Commonwealth Games in 2014.
The good news is that incoming mayor Boris Johnson has scrapped the plan to charge high-emission vehicles a 25 per day central London congestion charge. That s a manifesto promise, so we have to make sure he sticks to it, but unlike the LEZ it is a promise he has made, so we have reason to be positive about this.
The general perception outside of the industry is that the central London congestion charge is working brilliantly, and there s talk of a similar scheme being introduced to the east midlands. Like the central London congestion charge, motorists would have to pay a fee to enter city centers during peak hours thus creating funds to promote other transportation methods. Likely to be included in the scheme are Derby, Leicester and Nottingham. Another city (though not in the midlands) to show an interest in the scheme is Norwich, but the council s plans to implement the scheme have stalled because the estimated revenue would not be able to fund sufficient transport improvements.
Hopefully a new study out this month will make these local councils reconsider. Researchers from King s College, London have come to the conclusion that 2003 s central London congestion charges have made no overall difference to smog in the city because more taxis and buses have taken on the strain of commuters who have abandoned their cars. The researches in charge also pointed out the congestion zone only covers 1% of the Greater London area, so it was unlikely to have a marked impact. The increase in buses resulted in ruling out any initial improvements made, although they pointed out that it reduced traffic down by 40,000 vehicles per day.
Against this backdrop, we have news that the price of fuel is going to continue to rise this year ( 1.50 per liter by autumn is one estimate), and we have to accept that it s going to be a tough time for those of us with road haulage jobs. The best we can do? Continue to look out for our fellow haulers, back the Road Haulage Association and be sure to keep petitioning the government and the new mayor. Boris Johnson has pledged to listen to us it s now time to see if he will keep his word.
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