Expenses You Need to Account for When Managing a Truck Fleet
Owning a trucking fleet can be a bustling, productive business. It can also bring great financial success, as there are millions of companies that need their products and supplies shipped across the country each day. However, there are certain expenses that you need to be aware of when you’re managing your truck fleet.
These expenses can quickly add up and eat into your profits if you’re not paying attention.
You may be surprised to see just how much it costs to keep a fleet of trucks operating each year. In fact, the costs are so steep that only 1 out of every 7 new truck owners even make back their initial investment .
First off, one of your most important expenses will be providing insurance for your truckers and equipment. You’ll want to buy business insurance to cover different business costs and to provide some financial security. You will also want to provide some cargo insurance that will cover the cost of shipments or cargo that is lost, stolen, or damaged in the shipping process. Most importantly of all, you’ll need to make sure that your drivers are safe. The driving conditions can be dangerous and risky, and you’ll want to make sure that your drivers are protected, and that your business isn’t at risk of any liabilities.
Next, one of your important expenses to keep up with will be the maintenance of your vehicles.How do you keep your trucks running safely and efficiently? Of course, you’ll want to perform routine maintenance checks yourself, but that can be very time consuming. You also need to hire out the repairs once in awhile because some truck repair tasks just require specific knowledge or experience.
This area is one of the biggest expenses that is involved with owning a fleet of trucks. Trucks face many maintenance issues while out on the road. Difficult road conditions such as icy, wet, cracked roads can make it difficult to manage large trucks. Additionally, many cross-country highways include portions that are narrow with steep inclines or tight turns. Even if your trucks don’t get into crashes or accidents, these conditions wear down the vehicle, making it hard for your drivers to commute safely.
Even though it might seem obvious, fueling your trucks will also be one of your main expenses. Filling such big vehicles with enough fuel to make cross-country travels can be quite expensive, especially when your drivers are doing so multiple times a week. If you’re looking to find ways to decrease the fueling expenses of your fleet, consider using fuel-efficient engines, and work to schedule more direct routes to save fuel. You could even encourage your drivers to reduce idling or to use a card with fuel discounts or benefits.
In order to stay competitive in this industry, you’ll need to have a fleet of drivers who know how to get where they’re going quickly and safely. You can hire new drivers, which has several upfront training costs, or you can train existing employees, which also has an initial price. You may want to invest in driver tracking software or updates for your fleet management systems that will give you more data on the trucking performance of your drivers.
Additional office staff is needed when you own a fleet of trucks, since there are additional deadlines and records to be kept. You’ll need someone who can keep your shipping records updated, as well as manage the invoices and payments required for these services.
Truck Fleet Expenses You Need to Account for
Remember, some of your main trucking costs will be insurance, maintenance costs, and truck fueling. Now that you’re aware of these costs, make sure that you’re maintaining a budget that will allow you to better manage your business. If you have concerns about managing these finances, consult with a financial adviser or professional to know how to best help your company.
Check out this article on how to plan long-term financially as an entrepreneur!
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