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03/21/2008 - Five Ways to Keep On Trucking
With the economy in a freefall and the price of fuel skyrocketing, these are hard times for the independent truck driver. Across the nation, owner-operators and small family firms are finding their operations are making less money. In an effort to help, here are five great tips for saving money during the tough economic times.
1) Tax Deductions
Many owner-operators do not realize how much of their expenditure can be claimed as a tax deduction. The Trucker’s Report offers a list of items used by truckers that can be deductibles. For example, association fees to organizations such as the Teamsters Union and Owner-Operator Independent Drivers Association (OOIDA) are deductible, as is safety gear and charges for business cell phones. Other examples include engine repairs and new equipment, such as tires and lights. Talk to your accountant or tax professional to make sure that they are aware of all your expenses and are working to save you money. If you do not have an accountant, it may be a sensible investment that could save you much needed money in these difficult times.
2) Fuel Additives
Large trucking companies do not need to worry about rising fuel prices as much as smaller firms do. They have the resources to buy huge amounts of fuel when the price is low and the facilities to store it. Smaller operators do not have this luxury. They must buy their fuel one tank at a time. That is a costly proposition, especially when you consider that diesel prices have topped $4 a gallon in some states. As such, drivers should try to get the most out of the fuel that they use. One way to boost fuel economy is to use additives. Look for additives that clean fuel lines or fuel injectors. These contain solvents that strip away old oil and dirt deposits that clog diesel engines. A clean engine runs more efficiently and lasts longer. This saves money on fuel and unnecessary engine repairs. Furthermore, drivers who operate in cold climates should use an additive that prevents diesel from gelling in the winter. Again, this helps with fuel and prevents expensive engine repairs.
3) Use Power Hookups for Idling
Across the country, truck stops are adding power hookups for trucks. These plug into the truck and provide electricity for climate controls and for amenities like microwaves. Originally they were designed to help improve the environment but they are also a great way to save money. According to the Washington State Department of Ecology, they cost, on average, $1 an hour. Idling costs $3 to $4 an hour as trucks burn through about a gallon of fuel every hour. The driver who idles seven hours every night for seven nights a week, will spend up to $196 each week and $9,408 a year. By using a power hookup drivers can save up to $126 a week and $7,056 a year.
4) Haul Specialized Loads
There is no way a company with one or two drivers can cover the routes of a company with a hundred. The best way to survive is to work around the larger companies. One way to circumvent the territory of the larger companies is by hauling specialized loads. Specialized loads include hazardous materials and oversized cargo. Everyone has seen one of these trucks, carrying a 50 foot chimney or a modular home down the road. If you have the necessary license and meet all the regulations to haul such cargo, these can be valuable routes. The Boston Globe reports these routes pay $2 to $3 more per mile than regular routes. Even over reasonably short journeys these routes can pay significantly more. Over a hundred miles, specialized load drivers can expect to earn up to $300 more than regular drivers.
5) Cut Back on Small Expenses
If you were told that one of the best ways to save money was not to buy a $1,000 television, it would seem like pretty obvious advice. But drivers throw away far more than this every year without even realizing it. They are running up huge bills little by little on small expenses. For example, food costs can add up fast. Many drivers eat in roadside restaurants and diners. While it may seem cheap at the time, this is actually a very expensive way of eating. If a driver spends just $10 on a meal, three times a day he ends up spending a lot of money. That’s $210 a week, $840 a month and more than $10,000 a year. Obviously, a driver has to eat, so this expenditure cannot be entirely erased. However, there are less expensive ways of eating. Whenever possible, bring food from home. This will save a significant amount of money. Trucks with a sleep cab may be equipped with a refrigerator or a microwave. If available, it is sensible to utilize these valuable assets.
Trucking is still a great industry and a vital part of our nation’s economy. There are still many more loads to be hauled than trucks to carry them. These tips are just a few of the many different ways that will help owner-operators and small firms to increase their profits. Just saving a few dollars every day will help America’s hardest working citizens keep on trucking.
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