How to get trucking contracts

There are many roads you can go down to find reliable contracts as a freight hauler. A lot of them require you to put yourself out there and promote your company. If you’re shy or more reserved, it might be hard at first, but the payoff will likely be worth it. Try some of these tips:

• Utilize online marketplaces: Load boards are where shippers and brokers post loads they need hauled. Carriers can then search by a lot of different criteria to find what they’re interested in bidding on. It’s similar to Upwork for the transportation industry.
• Build relationships with freight brokers: If you’re able to develop a rapport with someone who can hire you consistently, that’s golden. To get that callback, it’s important to have a good attitude, communicate well, and always live up to your side of the contract – be reliable!
• Network within the industry: Don’t just limit your contacts to brokers, though. Anyone in transportation could be a link to your next contract. Other drivers, logistics managers, and even those who work in maintenance can help you learn about potential work.
• Prospect local shippers: Even though the idea of cold calling doesn’t appeal to most people, there can be a lot of value in picking up the phone and talking directly to the people who need their goods moved. By personally contacting freight companies, you also remove the middleman—the broker—which could mean extra profit for you.
• Consider hiring a dispatcher: While at first glance you might think an extra employee may hurt your bottom line, a dispatcher can actually help you find loads and contracts, as well as do administrative paperwork. Plus, it never hurts to have another person with contacts in the business on your side.

Once you have some good experience, word-of-mouth and referrals will hopefully kick in, too.

While you may not need to meet all of these requirements, some of them include:

• Obtain a commercial driver’s license (CDL): To get your CDL, you have to meet the minimum age, have a certain amount of driving experience on a non-commercial driver’s license, and pass a background check, medical exam, written test, and road test.
• Register your business with your state: Whatever legal entity you choose for your business—limited liability company (LLC), partnership, or corporation—you’ll need to register with your state and local governments. If you decide to run as a self-proprietorship, you won’t need to register, but you could lose out on some liability protection and legal and tax benefits. For example, you’d be seen as an independent contractor and would have to pay your Social Security and Medicare taxes in full.
• Register with the Federal Motor Carrier Safety Administration (FMCSA): Commercial vehicles that transport passengers or haul cargo across state lines need to have a USDOT number. Most will also require an Operating Authority or Docket Number. These are more commonly known as MC numbers because they typically begin with “MC” as the identifying code. You can find out if you need these numbers for the type of hauling you do here.

To win contracts, brokers and shippers typically require proof of insurance. The easiest way to do that is to furnish a certificate of insurance (COI). This will list all your coverages, including limits and additional insureds.

While every contract is different, most of your clients will ask for the following types of insurance:

• Auto liability: All states but one require commercial auto insurance coverage for business-owned vehicles, and if you’re in the trucking industry, this is an obvious necessity. If you hire truck drivers who own their tractor-trailers or if you lease your vehicles, then a business auto policy might be a better option, since it includes hired and non-owned auto (HNOA) insurance. Another good add-on might be non-trucking liability insurance, which covers off-duty truck driving, such as when taking a vehicle home after dropping off a load.
• Cargo insurance: This is a specialized type of inland marine insurance that protects the goods you’re transporting. It covers perils like fire, theft, collision, and natural disasters and applies during transport, loading, and unloading.
• General liability: Commercial general liability (CGL) insurance helps pay for legal issues if a third party sues you for property damage or injuries. For a trucking company, this can be helpful if something happens while discharging the contents of the trailer. For example, if shelving buckles under the weight of pallets you moved onto it, your general liability would cover their replacement.
• Physical damage coverage: This is supplemental to auto liability. Physical damage coverage extends to the repair or replacement of your vehicle. The most common types are collision and comprehensive.

The shipper or broker you’re dealing with wants to see that you’re a reputable and responsible company. In addition to good reviews from past clients, extensive insurance coverage shows you take a proactive approach to protecting yourself and them from risks. It’ll build trust, which in turn will help you qualify for contracts.

With that in mind, you might also consider the following insurance policies:

• Workers’ compensation insurance: Almost every state requires workers’ compensation if you have employees. It covers work-related injuries, such as ones sustained from repetitive stress, lifting, and slips and falls. For independent contractors, occupational accident insurance is a cost-effective alternative.
• Business owner’s policy (BOP): If you have commercial property, such as a garage where you store your vehicles, then you can bundle your general liability and commercial property insurance into a business owner’s policy. It’ll save you money over purchasing them separately.
• Cyber insurance: In today’s digital world, anytime client information is stored online, you’re at risk of security threats. That’s where first-party cyber coverage comes into play.
• Mobile equipment endorsement: While not every trucking company would need a rider or endorsement for mobile equipment, this can be added to a commercial auto policy and would cover heavy machinery or farm equipment when driven on a public road.

Especially when you’re just getting started, you may want to narrow down which types of contracts to focus on. Here are a few to consider:

• Freight broker contracts: As the middleman between you and shippers, a freight broker will match you to clients who need something hauled. For new owner-operators, this may be a good way to break into the business before you establish good contacts. Brokers charge a commission based on the fee that’s negotiated, which is paid by the shipper.
• Shipper contracts: Here, you’ll deal directly with the client, which could include manufacturers, farmers, or retailers.
• Lead board contracts: These online marketplaces are a way to find one-off or recurring work. Just like any digital job board, some will be more competitive than others.

A blend of hard and soft skills will set you apart from the competition when you’re up for a trucking contract. This includes:

• Professional website: Make your business look legitimate through a well-designed website. Also, pay the extra money for an email that goes along with your website URL. [email protected] sounds much better than [email protected].
• Established online presence: Pay attention to any feedback you get online. Respond to the positive and negative reviews, and try to offer solutions to the latter. It’s also a good idea to cultivate your social media accounts.
• Load board and broker directory activity: Join popular sites like DAT and Truckstop. Each has a subscription fee, but you can quickly make that money back after just a few contracts.
• Industry events and trade show attendance: Rubbing shoulders with other people in your industry can be a great way to network. You may also want to join trucking associations.
• Bid and proposal preparation: Carefully go through each project to understand the shipper’s needs and routes. Offer fair, consistent pricing based on your cost. Emphasize your safety record, delivery reliability, and insurance coverage. Include references and customer testimonials if possible.
• Technology investment: Upgrade your fleet as much as possible, such as through GPS tracking, which gives clients peace of mind. Things like digital invoicing will also be convenient for shippers and show professionalism.
• Equipment maintenance: Do all you can to maintain your trucks in a preventative way to avoid delays.
• Great service, every time: Nothing will get you a contract faster than a job well done. Happy clients generate repeat business. They could also attract new clients, especially if you establish a referral program.